The Interactive Advertising Bureau and PwC released their 2019 Podcast Ad Revenue Study which surveyed top US revenue producing podcast companies on various data points. The companies surveyed in the report included ABC Radio, Adswizz, AudioBoom, Authentic, ESPN, Gimlet, iHeartMedia, Market Enginuity, National Public Media, Megaphone LLC, Podcast One Inc., PMM Inc., RawVoice, Stitcher, WarnerMedia, Westwood One and Wondery. This year’s report shows that advertisers spent an all-time high of $479 million on podcast ads in 2018, which is a 53 percent increase from 2017. The report projects that revenues will surpass $1 billion in 2021.
The increase in podcast listenership has been the driving force in the growth of podcast revenue. Over 50 percent of Americans over the age of 12 have listened to a podcast. “Podcast storytelling is deeply engaging and provides marketers with a brand-safe environment that enhances the appeal to advertisers,” IAB Executive VP of Industry Initiatives Anna Bager said in a statement.
Just yesterday, Entercom Communications announced that they have acquired podcasting companies Pineapple Street Media and Cadence13. According to Entercom, podcast episodes from Cadence 13 and Pineapple Street Media were downloaded more than 150 million times each month during the second quarter of 2019.
While the revenue and audience of podcasts haven’t yet reached the numbers of traditional radio, podcasts have carved out an active listener base that appeals to advertisers.