The U.S. podcasting manufacture had a record year in 2017, reaching $314 million in revenue- a anatomy that’s up 86 percent from the $169 million in 2016, according to brand-new learn out this morning from the Interactive Advertising Bureau( IAB) and jointly conducted by IAB and PwC U.S.
The houses are also calculating podcast receipt will see triple-digit 110 percentage increment between 2017 and 2020, when receipts will then contact $659 million.
The study also examined what kind of podcasts were benefiting “the worlds largest” from the increased interest in the audio format, as well as what sort of advertisements were preferred.
As you may have suspected( if you waste any time listening to podcasts ), host-read ads were the more heavily exploited ad nature, accounting for a whopping two-thirds of all ads in 2017.
Direct response ads transacted on a cost per thousand basis made up the majority of awareness-raising campaigns, must be accompanied by brand awareness ads at 29 percent.
In periods of placement, ads that were inserted or edited into programming been taken into consideration 58 percent of the ad inventorying last year, research reports also found.
Top advertisers included financial services( 18% share of ads ), direct-to-consumer retailers( 16% ), and arts and amusement( 13% of all ads ).
However, specific types of podcasts are doing better than others when in comes to raking in the ad dollars.
In fact, the four largest material genres, out of the 14 assessed, made over half the advertising revenue in 2017. These were: Arts& Entertainment( 17% ), Technology( 15% ), News/ Politics/ Current Events( 13% ), and Business( 11% ).
IAB has particular insight into the podcasting busines, thanks to representative corporations like Audioboom, Authentic, ESPN Radio, Gimlet Media, How Stuff Works, Market Enginuity, Midroll Media, National Public Media, Panoply, Podcast One, PMM, Turner Podcast Network, Westwood One, WNYC Studios, and Wondery, who underwrote service industries study.
And in case you’re suspicious that an ad bureau claiming ads are doing great , em> the numbers here back up other industry reports proving the podcast blowup. Nielsen, for example, claims that half of U.S. households listen to podcasts now, including big consumer groups- like brew purchasers or brand-new mothers- who advertisers want to target.
ComScore, meanwhile, claims 1 in 5 Americans aged 18 -4 9 listen to podcasts at least once per month.
And podcast startups are benefitting from the increased consumer interest in the format, as well. Wondery, for instance, raised$ 5 million earlier this year from Greycroft, Lerer Hippeau Ventures and Shari Redstone’s Advancit Capital. At the time of the grow, IAB was foreshadowing $220 million in podcast ad revenue.
HowStuffWorks likewise raised $ 15 million last year, as did Gimlet Media; radio broadcaster Entercom bought 45 percent of podcast creator and system, Dgital Media, residence to” Pod Save America .” Podcast pulpit Anchor raised $ 10 million in 2017, podcast stage Art1 9 grew $7.5 million, and, this spring, Castbox raised $ 13.5 million for its podcast app.
Investors wouldn’t be throwing coin at the business if there wasn’t potential for more coin to be made. And to a certain extent, those increased opportunities to reach purchasers via audio are attributed to the changes in how we listen to audio content – that is, on mobile designs instead of radio, and on smart orators in the home.
PwC too credits smart talkers and mobile as contributing to the opportunity here.
” The growing trend toward’ anywhere and everywhere’ media participation has created prodigious opportunity for digital media, of which podcasting is a significant ingredient, ” said David Silverman, a Partner at PwC U.S.m in a statement about the brand-new report. “Whether at home on a smart talker, at work on a PC, or somewhere in between on a mobile device, more and more Americans are listening while they live, requiring a robust podcast scaffold where advertisers can connect with today’s consumers ,” he said.