The Interactive Advertising Bureau’s latest revenue outlook shows US advertising growth slowing as economic uncertainty and tariffs weigh heavily on key categories; however, digital audio, particularly podcasting, remains one of the stronger-performing categories.
While the IAB still projects overall ad spend to rise 5.7% year-over-year, that figure represents a downgrade from the +7.3% forecast earlier this year.
Buyers report reduced second-half budgets as automakers, retailers, and consumer electronics companies absorb billions in tariff-related costs. These pressures are accelerating a pivot toward social media and connected TV, at the expense of traditional media.
But there is still good news for radio operators with on-demand offerings: the study projects still 4.8% growth for podcast advertising in 2025, only slightly below January’s 6.2% forecast. Podcasts are now expected to capture 3.3% to 5% of total US ad spend.
New findings from Edison Research and Nielsen underscore podcasting’s value in multi-platform strategies. In a one-month campaign model with a $5 million budget, shifting podcast spend from just 1% to 21% increased overall reach among adults 18–44 from 60% to 76%. That represents a 27% lift without increasing total spend.
Despite the growth, challenges remain. Advertisers cite fragmented measurement and proving incrementality as major concerns when investing in podcasts. The push for shorter campaign lifespans and greater cancelation flexibility could also complicate long-term sponsorships and integrations, which many podcast networks rely on.
Heading into 2026, podcasts are well-positioned to benefit from election-related spending, particularly among candidates and advocacy groups targeting younger, issue-driven audiences. Longer term, podcast revenue growth will depend on publishers’ ability to deliver proof of performance and to position themselves as part of full-funnel, cross-platform packages alongside digital audio and CTV.
