Podcast Advertising - G7 | Statista Market Forecast

The Podcast Advertising market in G7 is anticipated to witness substantial growth in the coming years.
According to projections, the market's revenue is expected to reach US$2.90bn by 2024.
Moreover, it is predicted that there will be a steady annual growth rate (CAGR 2024-2027) of 8.69%, resulting in a projected market volume of US$3.72bn by 2027.
Furthermore, the number of users in the Podcast Advertising market is estimated to reach 159.4m users by 2027.
This indicates a significant increase in user penetration, which is expected to reach its peak by 2027.
In a global comparison, United States is poised to generate the highest revenue in the Podcast Advertising market, with US$2.57bn projected for 2024.
This highlights the dominance of the United States in this market segment.
Lastly, the average revenue per user (ARPU) in the Podcast Advertising market is projected to amount to US$23.34 in 2024.
This metric provides insights into the financial performance and potential profitability of the market.
In the United States, podcast advertising is experiencing exponential growth as major brands recognize the power of this medium to reach a highly engaged audience.

Definition

Podcast advertising refers to the practice of promoting products, services, or brands through ads inserted into podcasts, which are audio recordings that can be downloaded or streamed online. Podcasts can cover a wide range of topics, including news, entertainment, education, and business. Podcast advertising can take different forms, including pre-roll ads that play at the beginning of a podcast, mid-roll ads that play in the middle of a podcast, and post-roll ads that play at the end of a podcast. Advertisers can target their ads to specific demographics, interests, or behaviors, and measure their effectiveness through metrics such as listener engagement, downloads, or conversions.

Additional information:

Podcast advertising comprises advertising spending, users, average revenue per user and penetration. The market only displays B2B spending. Figures are based on podcast advertising spending and exclude agency commissions, rebates, production costs, and taxes.

Host-read ads, such as those featured on The Joe Rogan Experience, Serial, and Stuff You Should Know
Programmatic ads, such as location or listener demographics or those featured on NPR podcasts
Branded content, such as those featured on Radiolab, TED Radio Hour, and This American Life.

Non-audio podcast-related advertising, such as sponsorships of a podcast's website or merchandise
Video advertising, such as pre-roll or mid-roll ads on video podcasts or on platforms such as YouTube
Audio advertising in other forms of media, such as radio or music streaming services.

Podcast advertising has been growing rapidly in recent years, and several trends are emerging that are shaping the industry. One of the most notable trends is the increasing use of host-read ads, which are ads that are read by the podcast host themselves. These ads tend to be more effective and engaging than traditional pre-recorded ads, as they feel more natural and authentic. Another trend is the rise of programmatic advertising, which uses algorithms to automate the buying and placement of podcast ads.

Podcast advertising has seen strong growth in recent years, driven by several factors. One key factor is the increasing popularity of podcasts as a medium for consuming audio content. With more people tuning in to podcasts on a regular basis, there is a growing audience for advertisers to reach. Additionally, podcast advertising offers several advantages over traditional forms of advertising, such as radio and TV. Podcast ads are often more engaging and targeted, as they can be tailored to specific audiences based on their interests and listening habits. Another growth factor is the increasing sophistication of podcast technology, which has made it easier and more cost-effective for producers to create high-quality content and for advertisers to reach their target audience. Finally, the COVID-19 pandemic has accelerated the shift towards digital media, including podcasts, as more people spend time at home and seek out new forms of entertainment.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on podcast advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers podcast streaming ads.

Modeling approach:

market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, web traffic, and survey results from our primary research (e.g., Statista Global Consumer Survey) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, internet users, consumer spending, and digital consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Digital market, in a PDF format.