Podcast ad revenues are expected to explode this year in the U.S. — to the tune of $220 million in 2017, according to the Interactive Advertising Bureau (IAB). This represents an 85% increase over recorded revenues of $119 million in 2016, the IAB found in its first-ever Podcast Advertising Revenue Study conducted by PwC US over 11 weeks using historical data from 20 of the industry’s largest players.
The study also looked at podcast ad revenues in 2015, which totaled $69 million — meaning that revenues grew 73% in 2016.
For comparison’s sake, the IAB’s most recent Internet Advertising Revenue Report found that overall digital video advertising amounted to a whopping $9.1 billion last year — a 53% increase over $5.9 billion in digital video ad revenues in 2015.
Other findings from the Podcast Study include that marketers prefer ads read by podcast hosts as opposed to those that are produced by brands, and that, in 2016, revenues for dynamically inserted ads — or ads that can be swapped in and out of on-demand content — increased substantially. However, direct response campaigns — which are designed to prompt an immediate response from consumers — are still the most prevalent form of podcast advertising, according to the IAB.
“The IAB Podcast Advertising Revenue Study proves two things — the whole world is listening, and brands are taking notice,” said IAB president and CEO Randall Rothenberg in a statement. “From the remarkable growth of podcast ad revenue, we’re seeing an ancient axiom being proved yet again: great rewards go to those who surprise and delight their fellow humans.”