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Podcast advertising spending surges 26% as Gaming industry leads growth

Podcast advertising spending surged 26% year-over-year in Q3 2025, with Gaming industry spending jumping 59% and 1,689 new brands entering the channel for the first time.

Luis Rijo

• 8 min read
Podcast advertising spending surges 26% as Gaming industry leads growth

Podcast advertising spending increased 26% year-over-year in the third quarter of 2025, with the Gaming industry posting the strongest growth among major advertising categories, climbing 59% compared to the previous year.

Magellan AI released its Q3 2025 Podcast Advertising Benchmark Report on November 4, 2025, based on analysis of 94,724 podcast episodes across more than 50,000 podcasts in the United States, Canada, United Kingdom, Ireland, Germany, France, and Australia. The report analyzed advertising data in four languages: English, Spanish, German, and French.

The third quarter started slowly before accelerating sharply in September. Spending in July and August reached only 96% of Q2 monthly averages, but September surged to 117% of the Q2 baseline. Overall Q3 spending exceeded Q2 by 3%, while year-over-year Q3 spending topped Q3 2024 by 26%, according to the report methodology that incorporates proprietary spend modeling based on ad load variation, episode downloads, CPM estimates, and ad delivery types.

The top 10 advertisers in Q3 spent an estimated $135 million, representing a 6% increase from Q2. BetterHelp maintained its position as the largest podcast advertiser with $18.6 million in estimated spending. Washable Sofas entered the top 10 for the first time in the past year at second position with $18.3 million. Amazon ranked third at $17.3 million, followed by Quince at $14.8 million and Toyota at $14.1 million. T-Mobile, Shopify, FanDuel, State Farm, and DraftKings completed the top 10, with nine of the ten spenders also appearing in Q2's rankings.

Gaming spending climbed from $1.6 million in Q2 to $2.6 million in Q3, marking the fastest growth among all industries analyzed. Brands including Tony Hawk's Pro Skater 3 + 4, Alienware, and NBA 2K26 contributed to the category's expansion. Dating spending increased 41% from $600,000 to $900,000, while Transportation grew 41% from $1.8 million to $2.5 million. Phone, Internet, and Cable spending rose 27% from $28.8 million to $36.6 million, and Food spending increased 23% from $53.2 million to $65.3 million.

Financial Services remained the largest industry by total spending with $89.6 million in Q3, posting 8% year-over-year growth. Consumer Services and Software reached $75 million with 58% growth, while Business Services and Software generated $69.7 million with 36% growth. Food spending totaled $65.3 million with 38% growth, and Consumer Packaged Goods reached $60.8 million with 24% growth.

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The report identified 1,689 brands advertising on podcasts for the first time in Q3, representing a 41% increase from Q2. New brands spent an average of $33,900 during the quarter. These advertisers typically ran 49-second advertisements, with mid-roll placements being the most common position. Sports podcasts attracted approximately 20% of new brands, making it the most popular genre for first-time podcast advertisers. Comedy attracted 10% of new brands, News 10%, Arts 8%, and Business 7%.

Ad load across sampled episodes increased from 8.11% in Q2 to 8.34% in Q3. The Q3 figure remained flat compared to 8.31% in Q3 2024. Advertiser ad load increased 2.3% year-over-year, reaching 7.25% of episode runtime, while pod-on-pod promotions decreased to 1.09% of episode runtime.

Society and Culture shows posted the highest ad loads at 10.68% of episode runtime in Q3, up from 9.54% in Q3 2024. True Crime followed at 13.48% when including both advertiser ads and podcast-to-podcast promotions. Education reached 8.64%, while Business hit 8.22%. Kids and Family decreased from 8.64% in Q3 2024 to 8.18% in Q3 2025.

Ad load varied substantially by episode length. Episodes shorter than 15 minutes averaged 20.1% ad load. Episodes between 15 and 30 minutes averaged 12.9% ad load. Episodes between 30 and 60 minutes, which represented 40.4% of all analyzed episodes, averaged 9.9% ad load. Episodes longer than 60 minutes averaged 6.7% ad load.

Host-read advertisements represented 46.0% of total quarterly spending, up from 43.8% in Q3 2024. This format increased 32% in absolute spending terms year-over-year. Produced advertisements accounted for 26.0% of spending, climbing 67% year-over-year. Scale executions including programmatic and run-of-network buys represented 28.0% of spending, remaining essentially flat year-over-year.

The top 500 podcasts captured 48% of total podcast advertising spending in Q3. Advertisers spent an average of $355,000 per month on shows ranking between 1 and 500. Podcasts ranking 501 to 3000 generated an average of $40,000 per month in revenue. September showed particularly strong concentration in top shows, with the top 500 capturing 55% of spending compared to 46% in July and August.

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Podcasts simulcast on YouTube demonstrated higher ad loads and different advertiser composition compared to audio-only podcasts. Simulcast shows featured 46% host-read advertisements compared to 35% for audio-only podcasts. Ad load reached 7.64% for simulcasts versus 7.25% for audio-only shows, excluding podcast-to-podcast promotions. Direct response brands represented 34% of advertisers on simulcast shows compared to 24% on audio-only podcasts. Renewal rates among direct response brands reached 43% for simulcasts versus 35% for audio-only shows.

Brand awareness spending increased 6% quarter-over-quarter, accounting for 56% of overall market spending in Q3. Direct response spending decreased 2% quarter-over-quarter, representing 41% of market spending. Tune-in spending jumped 50% quarter-over-quarter, though it accounted for only 3% of total market spending.

Historical patterns suggest certain brands typically increase spending from Q3 to Q4. MasterClass increased spending 524% from Q3 to Q4 in 2023 and 185% in 2024. BP grew 293% in Q3 to Q4 2023 and 165% in 2024. Robinhood increased 2,170% in 2023 and 2,291% in 2024. Mattress Firm climbed 170% in 2023 and 297% in 2024.

Single advertiser episodes, where one brand filled all typically available advertisement slots, represented 5% of Q3 episodes. Among these episodes, 64% contained one advertisement, 22% contained two advertisements, and 9% contained three advertisements. Technology shows led in single advertiser episodes at 12%, followed by Education at 11% and Business at 8%.

Standard advertisement lengths showed 30-second spots remaining most common at 36% of all advertisements, followed by 15-second spots at 14% and 60-second spots at 17%. Mid-roll positions accounted for 55% of advertisements, pre-roll positions 29%, and post-roll positions 16%.

The report matters for the marketing community because it provides benchmarks for advertisers considering podcast investments and insights into competitive spending patterns. The data reveals which industries are increasing budgets most aggressively and which podcast formats command premium pricing. For media buyers, the report demonstrates that September typically outpaces summer months, suggesting quarterly budget allocation strategies should account for seasonal patterns. The substantial growth in Gaming advertising indicates potential audience targeting opportunities in Sports and Gaming-focused podcast content.

The findings show podcast advertising continues expanding despite broader digital advertising market challenges, with nearly 1,700 new brands testing the channel each quarter. The 26% year-over-year growth rate significantly exceeds typical digital advertising growth rates, suggesting podcasts capture increasing share of audio advertising budgets. However, the persistent gap between consumer audio engagement (31% of media time) and advertiser investment (9% of budgets) indicates substantial unrealized potential remains in the podcast advertising market.

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Timeline

Summary

Who: Magellan AI analyzed advertising activity from thousands of brands including BetterHelp, Washable Sofas, Amazon, Quince, and Toyota across more than 50,000 podcasts. The report identified 1,689 brands advertising on podcasts for the first time, with Gaming brands including Tony Hawk's Pro Skater 3 + 4, Alienware, and NBA 2K26 showing particularly strong growth.

What: Podcast advertising spending increased 26% year-over-year in Q3 2025, with the Gaming industry leading all categories with 59% growth. The top 10 advertisers spent $135 million combined, up 6% from Q2. Ad load across episodes increased from 8.11% to 8.34%, with host-read advertisements growing 32% year-over-year while produced ads surged 67%. New brand entry increased 41% quarter-over-quarter.

When: The data covers July, August, and September 2025 (Q3 2025), with the report released on November 4, 2025. September showed particularly strong performance at 117% of Q2 monthly averages, while July and August reached only 96% of Q2 levels.

Where: The analysis covered podcasts distributed primarily in the United States, with additional coverage across Canada, United Kingdom, Ireland, Germany, France, and Australia. The report analyzed content in English, Spanish, German, and French. Sports podcasts attracted the highest concentration of new advertisers at 20%, followed by Comedy at 10% and News at 10%.

Why: The 26% year-over-year spending growth reflects increasing advertiser recognition of podcast effectiveness despite a persistent gap between consumer audio engagement (31% of media time) and advertiser investment (9% of budgets). The Gaming industry's 59% spending increase correlates with the sports podcast audience overlap. Host-read advertisements commanded higher rates and grew faster than programmatic executions, suggesting advertisers value authentic endorsements. The 41% increase in new brands testing podcasts indicates expanding market acceptance of the channel for performance marketing objectives.