After a few years of double-digit progress, U.S. podcasting promoting income progress slowed down in 2023. However there may be hope forward.
Per a brand new Interactive Promoting Bureau research, launched Thursday and ready by PricewaterhouseCoopers, podcast promoting income within the U.S. elevated 5 p.c to $1.9 billion in 2023, as a consequence of an total difficult advert market that additionally impacted different sectors of media and leisure. This was in comparison with a leap of 26 p.c the prior yr, and 72 p.c earlier than that. In mild of the slowdown, podcasting promoting income was outpaced by total digital promoting, which was up 7.3 p.c, in a reversal from prior years.
Just a few podcasting corporations had been capable of preserve the prior progress charge, however losses from mid-tier corporations dragged the sector down total. Amid the downturn, corporations resembling Spotify and Audacy carried out layoffs and made cuts to programming.
Throughout the podcasting sector, comedy podcasts took the most important proportion of U.S. advert income for the yr, with 17 p.c of the overall, up from 14 p.c within the prior yr. Comedy podcasts had been probably the most listened to podcast style, in keeping with the research, and the sector gained 268 new advertisers within the fourth quarter of 2023. That is the second straight yr that comedy and sports activities have led the pack, outranking information in third place, when it comes to listenership.
The sector additionally noticed a rise in advert shopping for from shopper packaged items associated corporations, in addition to retail manufacturers, that are up 4 and 5 proportion factors, respectively, since 2021.
Nonetheless, consultants are projecting the sector will bounce again considerably in 2024, because the promoting income within the podcasting sector is predicted to develop by 12 p.c in 2024, to greater than $2 billion in income, after which by 10 p.c and eight p.c within the following years. By the top of 2026, the sector is projected to succeed in near $2.6 billion in income. It’s price noting nonetheless, that in 2022, earlier than the advert slowdown of 2023, the IAB research predicted podcasting would attain near $4 billion in 2025.
The idea within the continued progress is bolstered by enhancements in advert measurement analytics and leaning extra into programmatic shopping for, in addition to extra income tied to the manufacturing of video podcasts and internet hosting dwell occasions.
Talking to The Hollywood Reporter on the finish of 2023, Wondery CEO Jen Sargent and Conal Byrne, CEO of the iHeartMedia Digital Audio Group, had been additionally optimistic about trajectory going into 2024, pointing to the rise in day by day podcast listening, in addition to a continued momentum from nationwide manufacturers.