Podcast ad revenues will grow consistently despite broader ad pullbacks

The news: Podcasting ad revenues surpassed $2 billion in the US in 2024, growing 26.4% YoY, per a new IAB/PwC report.

• YoY growth was massive compared to 2023, where podcast ad revenues grew 5%.
• Podcasts represent 0.9% of total digital ad revenues—behind giants like digital video, but seeing steady growth.
• The digital ad industry overall proved resilient, with internet ad revenues growing 14.9% YoY, “despite the volatility from geopolitical shifts, interest rate changes, and economic uncertainty,” said IAB CEO David Cohen.

Increasing competition in the podcast environment indicates that podcasts are enduring despite economic uncertainty and ad spending pullbacks.

• 88% of podcast listeners have taken some form of action because of a podcast ad, significantly ahead of other mediums like out-of-home ads.
• Time spent with podcasts is thriving, and companies are tapping into the trend. YouTube is excelling as listeners’ preferred podcast platform, while Netflix is rumored to be eyeing video podcasts. Spotify has expanded its Partner Program to better compete in the podcast ecosystem.
• Part of why podcasts remain profitable and reliable for advertisers outside of consistent growth in engaged audiences is the medium’s affordability. Podcasts are easily accessible on free platforms like YouTube and Spotify, meaning they aren’t subject to consumer budget cuts in the way other mediums, like paid streaming services, are.

Zooming out: The findings align with the broader trend of brands increasingly investing in podcasting.

• We forecast that overall podcast ad spending will reach $2.51 billion in 2025 and exceed $3 billion by 2028.
• Podcast ad spending per hour spent with podcasts, per person, is also climbing steadily, expected to reach $0.06 in 2025, according to our forecast.

Why the surge? As time spent with social networks flatlines, podcasts are showing no signs of slowing down—for several reasons.

Accessibility remains a huge driver of podcast adoption for listeners. The format is unique because it can be consumed anytime, anywhere, particularly during times when traditional media is more difficult to access, like commuting.

Podcasts also benefit from an intimacy that other platforms struggle to mimic. The medium fosters a unique connection between hosts and listeners, giving listeners a more personal connection to the creators they follow compared to other channels.

Our take: As podcast viewership thrives, advertisers must recognize the massive potential the affordable medium presents to reach key audiences.

• Partnering with podcast influencers who listeners view as highly trustworthy will offer unique opportunities to convert audiences into customers. Long-term partnerships that build familiarity and trust will yield the best results, and working with micro-influencers will prove valuable to balance affordability with engaged listeners.
• Advertisers can capitalize on the diverse content opportunities podcasts present. New podcast categories are constantly emerging—giving brands the chance to align with highly specific niches and build authentic connections based on audience interests.