U.S. podcasts captured $314 million in ad revenue last year
U.S. podcast advertising captured $314 million in revenue in 2017, a rise of 86 percent over $169 million in 2016, according to the latest IAB/PwC Podcast Advertising Revenue Study for full-year 2017 released this month by the Interactive Advertising Bureau (IAB) and conducted by IAB and PwC US.
According to IAB, the research predicts even stronger returns in the years ahead, forecasting that podcast revenue will surge to $659 million by 2020, a triple-digit 110 percent hike from 2017.
In self-reported revenues by top podcast companies, revenue continued to rise steadily, growing 94 percent between Q4 2016 and Q4 2017, yielding an 18 percent compound quarterly growth rate.
Host-read ads were cited as the preferred ad type, representing more than two-thirds of ads in 2017. Direct response ads transacted on a cost per thousand basis made up the majority of campaigns, followed by brand awareness ads (29%). In addition, ads integrated or edited into programming accounted for 58 percent of the podcast ad inventory in 2017.
Podcast preferred ad type
Most of the ads were purchased on annual / quarterly rate cards, via a direct IO. Less than 1% of the ads were bought via programmatic.