Podcast Ad Spending Expected to Reach $4 Billion by 2025

Podcasts have become a unique new avenue for advertisers who are looking to target certain consumers that are harder to reach. This has lead to a massive increase in ad spends on podcasts, going from $842 million in 2020 to over $2.2 billion by 2023. The rate of growth is showing no signs of going into the negatives, with the increase for the rest of the year expected to be somewhere in the region of 43% or so.

With all of that having been said and now out of the way, it is important to note that the growth rate of advertising dollars that are spent on podcasts is slowing down to an extent. 2020 saw a 72% growth in podcast ad spendings, but in spite of the fact that this is the case, the growth rate has remained more or less consistent ever since then.

Apart from a sudden uptick in 2023 when the growth in ad spends reached 43%, each year has seen increases that are somewhere in the mid twenties. 2021 saw ad spends on podcasts increasing by 26%, followed by 25% in 2022. Projected growth for 2024 also hovers at around 23%, although it remains to be seen if this comes to past.

Based on these figures, the Interactive Advertising Bureau estimates that ad spends on podcasts will touch a whopping $4 billion by 2025. One thing that might make this data somewhat less accurate than might have been the case otherwise is that it is based on self reported statistics. There has been no transparency on how the data was used to compile these percentage increases, so it will be interesting to see if growth matches these predictions.
The podcast ad industry received a brief scare in the final quarter of 2022, becoming the worst performing fourth quarter in recent years in terms of growth percentage. However, 2023 proved that this was just a short term dip, and future numbers are looking stronger than ever. Podcasts are fast becoming a mainstay of the ad industry, and an increase in output looks like it will be right around the corner.

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