Podcast advertising to hit $1 billion in 2021

In 2020, 105.6 million Americans will listen to podcasts, surpassing 100 million for the first time

Podcasts have taken over America and not just with listeners but also with their revenue.

A report says American podcast advertising spending will surpass 20% of digital radio advertising spending in 2020 and will cross the $1 billion mark in 2021.

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“Growth in podcast advertising spend will be more resilient this year relative to digital radio advertising as a whole, which will see double-digit declines,” said eMarketer forecasting director at Insider Intelligence Shelleen Shum. “The continued growth in podcast advertising is no surprise, as investments have made podcasts accessible to a wider audience. The news genre, a focus of many podcast advertisers, has performed well during the pandemic. While some ad campaigns were paused in H1 due to the uncertainty from COVID-19 lockdowns, we expect a rebound in Q3 and Q4.”

By year’s end, podcast advertising spending in the country will reach $782.0 million, 10.4% higher than 2019 -- a 21.0% share of the American digital radio ad market.

In 2021, podcast advertising spending will level up nearly 45% to $1.13 billion. 

“One of the key challenges in podcast advertising is the lack of uniformity in measurement,” Shum said. “The IAB has released a set of guidelines to establish a common set of ad metrics for podcasts, which should bring some standardization to the industry and give advertisers more confidence.”

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Half of American digital audio listeners now tune in to podcasts.

In 2020, 105.6 million Americans will listen to podcasts, surpassing 100 million for the first time.

There are many ways to listen to most podcasts — among them, streaming services, downloads and podcast-specific apps like Castbox and Stitcher for Podcasts.