Ad spending on podcasts will surpass $2 billion next year and $3 billion by 2026 according to eMarketer Inside Intelligence.
New data from Insider Intelligence forecasts that US podcast ad spending will account for over a quarter of digital audio services ad spending in 2022 and will be more than a third of spending by the end of 2026. Overall they predict total spending will surpass the $2 billion mark next year and $3 billion by 2026. accounting.
According to the report, digital audio monetization will come from recorded music for the foreseeable future, but “podcasts’ share of the market has grown so much—and will continue to do so—that it cannot be ignored by marketers.” They added that while podcast ad spending was once relegated to experimental budgets, “podcasts are becoming a crucial component of multimedia ad campaigns.”
A survey of 255 advertisers by Advertiser Perceptions last summer found that more than half of advertisers said they planned to increase their podcast ad budgets in 2022, with nearly half (46%) planning to keep their budgets the same, and just 1% saying they planned to reduce podcast ad spending.
The survey also found that overall digital budgets were the most common place that marketers pulled their podcast ad budgets from.
Dedicated budget for podcasts
According to Insider Intelligence, advertisers don’t have dedicated podcast budgets, with about half of them using their digital audio budgets to fund podcast campaigns.
“As podcast ad spending increases and accounts for a greater share of total audio ad dollars, expect more advertisers to break out podcast-specific budgets,” adding that, “Having dedicated budgets could help centralize campaign planning and measurement for advertisers committed to podcasts over the long run.”
You can read the full report here.
Image: Melanie Pongratz via Unsplash
