Podcast popularity has channel primed for success

Podcasts have become a staple of modern entertainment, and it seems like everyone's jumping on the bandwagon. And in 2023, the increasing popularity of podcasts is palpable.

It's clear that podcasts are more prevalent than ever before, and this trend doesn't show any signs of slowing down. In fact, by 2023, it's expected that nearly 40% of Americans will tune in to a podcast at least once a month, and this number has been on the rise ever since Apple released their podcast app in 2012.

The sheer amount of podcast content out there almost guarantees there's something for everyone. So, whether you're a seasoned podcast pro or a newcomer to the scene, there's no denying the impact that this medium is having on our culture.

For advertisers, podcasts offer a unique opportunity to connect with consumers in a way that is personal and engaging. Ads can be delivered to listeners on a variety of devices, including mobile phones, tablets, desktops, laptops, and smart speakers. With all these benefits, it’s no wonder that more and more advertisers are incorporating podcasts into their media mix.

So, what should advertisers know about podcast advertising in 2023? Here are some key takeaways:

1. Podcast listenership is still on the rise.
   In 2022, there were 124.2 million podcast listeners in the US, and that number is forecast to reach 129.9 million this year. Plus, time spent with podcasts is increasing, with the total US population tuning in for an average of 25 minutes per day, and active listeners tuning in for 57 minutes per day.

2. Podcast ad spend is booming.
   US podcast ad spending is expected to reach $2 billion in 2023, making up 29.5% of total digital audio ad spending. That’s a 15.7 percent YoY increase, and from 2019 to 2023, podcast ad spend is projected to increase by more than 185%. By 2027, it could reach $3.51 billion.

3. Podcast ads resonate with consumers.
   Podcast ads are effective because they reach people as they engage with content that’s meaningful and personal to them. Listeners build a connection with the show and its hosts, which makes them more receptive to recommendations and ads placed within the episode. Research has shown that podcast ads are particularly trustworthy, with 51 percent of respondents reporting they are more trusting of radio and podcast advertisers than advertisers on any other medium.

4. Programmatic podcast activation is an emerging market.
   While U.S. podcast ad spending is predicted to surpass 29 percent of total digital audio ad spending in 2023, only 8.3 percent of podcast advertising will be bought programmatically. However, as programmatic audio technologies continue to evolve, more advertisers will take advantage of the benefits it offers, including advanced targeting, measurement, and optimization technologies. A 2023 study predicts programmatic podcast ad spend will triple by 2027, presenting a significant opportunity for marketers to get ahead of the curve.