As radio companies struggle to find a successful, revenue-generating, profit-producing podcast strategy, that doesn’t take away from their over-the-air revenue, money is moving rapidly into the podcasting space. And, the preferred ad type on podcasts are host-read ads which, of course, are a carbon copy of a radio creation.
As more and more radio hosts lose their jobs to cost-cutting or syndication, the very successful ones are finding a new home – and local revenue – by shifting their shows to podcasting (see Ron & Don, Eric Zane, Drew & Mike).
If podcasting advertising revenue reaches $1 billion in 2021, as the IAB predicts, that will more than double the final number from 2018, which the IAB reported was $479 million. That final 2018 number was 53% higher than 2017 ($314 million).
Host-read ads make up nearly two-thirds of all podcast advertising. Successful radio and podcast hosts make those ads work because they seamlessly weave them into their broadcast as if the ad content fits with all the other content of the show. It comes across genuine.
Direct response campaigns, which really helped podcasting grow in its early days are still popular but are decreasing in popularity.
Direct-to-consumer Retailers and Financial Services spent more on podcast advertising than other industry categories. Overall, five business categories represented nearly three-quarters of all advertising revenue captured:
Direct-to-Consumer Retailers (22%)
Financial Services (21%)
Business-to-Business (14%)
Arts and Entertainment (10%)
Telecommunications (7%)
