Podcasts are an entertainment format that is becoming more and more popular. This is because it is a type of content that we can consume in a simple way, either when we go from home to work, at the gym or even while working.
Podcasting is a growing format that offers creators several ways to monetize their content.
This has led to the generation of an industry around it, capable of generate billions of dollars. In this regard, according to data from a report published by Interactive Advertising Bureau and PricewaterhouseCooper, this year alone podcasts have generated $2 billion in revenue and are expected to generate more than $4 billion by 2024.
This growth is not only due to the increase in audience, nor to the number of platforms such as Spotify that have begun to host these types of programs. In fact, for Spotify, podcasts have become a fundamental part of its strategy. Much of this growth is due to the advertising revenue which, thanks to advances in technology, makes it possible to target an audience that is much more willing to buy.
In this regard, the type of advertising inserted in podcasts has also changed a lot. In 2021, 84% of the ads appearing in programs are of the dynamic type. In addition, thanks to geotargeting and other improvements, advertisers can track ads much more deeply and create much more targeted audiences.
This new ad dynamic invites advertisers to spend more money on advertising, while podcasters have easier ways to monetize their content, being able to place ads even on older programs.
However, not all podcast revenue comes from ads. Apple Podcasts, Spotify, or Patreon offer subscription options to users. This is another way to monetize content, so that the user pays a monthly fee to receive all updates.
On the other hand, a large part of podcasting platforms have seen increases of up to 37% in its audience in just a few months. This data is relevant, if we take into account that the growth of traditional radio has remained at around 14% during the same period of time. In this sense, Richar Schmaeling, Audacy’s CFO, has pointed out that he has a growth forecast of more than 47% for the following year.