The U.S. podcast industry is on pace to hit $1 billion in annual ad revenue this year for the first time ever, according to a study published by the Interactive Advertising Bureau on Wednesday.
That milestone would come after a big 2020 for podcasts, when advertising revenue jumped 19% year-over-year to $842 million. Looking ahead, IAB’s study projected the industry’s ad sales will double in just two years, going from $1 billion to $2 billion in annual revenue by the end of 2023.
“Podcasting will grow in the next two years by leaps and bounds,” IAB Media Center VP Eric John said. “Podcast listeners have shown that — even when working from home — podcasts are a preferred medium. Advertisers are benefiting from new technologies developed to serve these marketplaces, to make podcast advertising more dynamic and measurable than ever before.”
Of course, there’s been an overall push by some tech giants to beef up their podcast efforts in recent years. Perhaps most notably, Spotify went on a buying spree in 2020, locking up popular podcasters like Joe Rogan and Bill Simmons with multi-million-dollar deals. (You can read about Spotify’s big bet on podcasts by clicking here.) Apple, meanwhile, has started to dabble in creating its own original shows, and recently announced it would soon offer paid podcast subscriptions; Spotify also launched its own subscription podcasts feature last month.
And if you’re looking to start your own podcast, here’s something to keep in mind: the most popular podcast genre for advertisers is news, which accounted for 22% of market share.