IAB: Podcast Ad Spend Accelerates, Fueling Digital Audio’s $7.6 Billion Year.

Podcast promoting development accelerated final 12 months, returning to double-digit development and flying previous the $2 billion threshold. The IAB reviews podcast advert income surged 26.4% in 2024, which it notes was a big acceleration from the 5.5% development charge recorded in 2023. That took complete trade advert income to greater than $2.4 billion, or up $500 million year-to-year.

“This rebound is pushed by continued enlargement of podcast networks, deeper model integrations, and developments in viewers focusing on,” the IAB explains. “Growth can be pushed by podcast serving as an necessary platform for political advertisers to interact with voters forward of the election,” the commerce group says within the just-released IAB Internet Advertising Revenue Report.

Overall digital audio, together with podcasting, has additionally continued to develop. The IAB—which once more labored with PwC to compile the numbers—says digital audio advert income grew 8.5% in 2024 in comparison with a 12 months earlier, with complete advert income climbing to $7.6 billion. That is a slower development charge than recorded in both 2022 (+20.9%) or 2023 (+18.9%) because it reviews that streaming radio and streaming music companies advert gross sales slowed final 12 months. But IAB says that the podcast section stays in development mode.

“As audio consumption tendencies rise our information means that there shall be continued digital audio promoting enlargement and development within the 12 months forward as manufacturers and platforms make investments extra in podcasts, streaming music, and voice-based promoting,” the report says. IAB sees podcasting persevering with to steer the cost. “As manufacturers proceed to put money into contextual promoting and direct-response podcast campaigns, podcasting stays a worthwhile channel for viewers engagement and model storytelling within the evolving digital audio panorama,” it says.

Digital audio has been given a lift by its embrace of programmatic gross sales, which proceed to see extra spending. The IAB says programmatic promoting income has elevated by $20.6 billion since 2023, to a complete of $134.8 billion in 2024. That 18% enhance reinforces a shift towards automated, AI-driven advert placements that allow real-time optimization and data-driven focusing on.

The level is additional illustrated by what occurred with non-programmatic placements (excluding search) the place income decreased 4.9% year-to-year to $20.9 billion. “While nonetheless a big share of the market, the pattern underscores the rising desire for effectivity, scale, and automation in digital promoting,” the report says.

The IAB additionally notes that its analysis reveals 61% of revenues are attributed to a programmatic market the place real-time bidding happens, and any advertiser or writer can take part. The remaining 39% was purchased by means of a personal market, most popular offers or automated assured revenues.

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Internet promoting income total demonstrated robust development in 2024, rising 14.9% year-over-year—the most important achieve since 2021. Advertising remained strong all through each halves of the 12 months, which the IAB says displays a shift towards sustained funding somewhat than reliance on seasonal peaks.

“The U.S. digital advert trade confirmed exceptional power in 2024,” CEO David Cohen mentioned. “Despite the volatility from geopolitical shifts, rate of interest adjustments, and financial uncertainty, main occasions just like the presidential election and Olympics offered significant tailwinds.”

When complete audio media—together with music, radio and podcasts—are mixed, PwC calculates the section skilled 2.8% year-to-year development in 2024. That in comparison with 14.9% development for web promoting total. TV promoting grew 6.6%, out-of-home elevated 4.4%, whereas print declined 4.7%.

For podcasters embracing video, the report provides extra excellent news. Digital video continued to be the fastest-growing format, now accounting for almost 1 / 4 of complete advert income. The IAB says that displays client engagement with video content material, which might assist the trade seize extra {dollars}. The IAB says podcasting total final 12 months had a share of simply 0.9% And audio’s share total was 2.9%.

What’s In Store For 2025?

Economic uncertainty could also be filling the headlines, however the IAB sees various factors at work in how issues will play out within the coming months. They embrace higher adoption of AI, which is evolving from an automation instrument to a transformative drive that’s getting used to create content material, make autonomous selections, and handle campaigns end-to-end.

The report additionally sees the creator financial system evolving, as manufacturers shift from one-off influencer offers to long-term partnerships, aiming for extra genuine, sustained engagement. It notes that creators are increasing past social media into podcasts, newsletters, and retail partnerships, unlocking new monetization alternatives.

“Next 12 months we count on the trade to look fairly totally different as media corporations undertake new enterprise fashions and lean closely on AI, not solely survive however thrive,” Senior VP of Research and Insights Jack Koch mentioned.

The IAB doesn’t forecast income, however Cohen stays optimistic that corporations that future-proof their enterprise by leveraging the newest developments in know-how shall be well-positioned.

“As we stay up for this 12 months, there isn’t any doubt that we are going to see an much more dynamic market pushed by geopolitical and financial elements,” he mentioned. “There is completely development available for people who embrace the volatility and innovate.”

Download the IAB Internet Advertising Revenue Report: Full Year 2024 report HERE.