This explosive growth is driven by the performance benefits of aligning brand stories with the deep personal connections creators make with their followers. The most influential creators inspire genuine two-way connections, with audiences viewing them as friends sharing valuable information and advice.

As the creator economy evolves, understanding the powerful role podcasters play in fostering intimacy and community with their followers is essential. In this webinar, we will explore**:

• Why 88% of podcast audiences describe their podcast time as meaningful.
• How brands and agencies can profit from the tidal shift where 75% of podcast audiences consider podcasters more influential than social media or entertainment influencers.
• How this attentiveness and feeling of closeness from podcast consumers make podcasters the most impactful creators today.

Don’t miss this opportunity to learn what makes podcasting such a special opportunity for advertisers and how podcast creators and marketers can optimize their partnerships for mutual success.

* The Creator Economy Opportunity: Where Authenticity Meets Impact (IAB x TalkShoppe, 2023)
** A New Era of Influence (Magna x VOXMedia, 2023)

The post Podcasting in the Creator Economy: Where Influence Drives Purpose appeared first on IAB.

Are we ready to move beyond reach?

The advertising industry is trying hard to solve cross-channel measurement with unduplicated reach, a legacy metric – but perhaps we are focusing on the wrong challenge. Business outcomes are the most important KPI for buyers of digital video (social video, online video, and CTV) ahead of reach and frequency, according to the 2024 IAB Digital Video Ad Spend & Strategy Report. Achieving scale and ubiquity in reach measurement is becoming increasingly difficult due to data fragmentation (walled gardens, data minimization, and privacy regulations). Also, focusing solely on reach ignores the creative message and its impact on campaign success. Reach should just be a proxy for what matters: business outcomes.

The industry should shift its focus to measuring metrics that directly drive outcomes, such as sales, leads, site/store visits, attention, etc. These offer a better indication of success than reach across publishers.

Measuring true cross-publisher reach is difficult due to data silos, publisher data limitations, and potential privacy concerns around data clean rooms. And the solution might lie in establishing new, outcome-based goals for individual publishing partners. This could involve focusing on closed-loop attribution with retail partners, but consistency and standardization across the industry are necessary.

2024 IAB Digital Video Ad Spend & Strategy Report: Key Takeaways
The biggest data point from the report discussed throughout the day was that the #1 KPI buyers use to assess success is business outcomes, 20-40 percentage points higher than reach and frequency.

Video ad spending is booming, with increased investment across all content types, especially short-form video and immersive experiences. Programmatic buying dominates CTV advertising with 75% of CTV buyers transacting programmatically already.

However, measurement remains a challenge, especially for smaller advertisers. The industry is turning to AI and data-driven solutions like multi-touch attribution (MTA) to bridge the gap. Standardizing creative IDs is also crucial for better ROI analysis.

The good news: alternative currencies, which go beyond impressions, are gaining traction. Nearly 90% of buyers are interested, with multi-screen attribution being a top use case. Challenges like cost and complexity remain, but the video ad landscape is actively seeking solutions for a future-proof strategy.

Standardization vs. Innovation: Finding the Equilibrium
A recurring motif throughout the summit was the delicate interplay between standardization and innovation. Proponents of standardization believe it’s the linchpin to overcoming measurement, data sharing, and ad format challenges. Standardized metrics would enable consistent campaign optimization and reporting across platforms. Conversely, concerns exist that standardization could stifle creative ad format development in an increasingly saturated landscape. The crux lies in striking a balance. The industry must embrace format and creative innovation while establishing baseline standards for measurement, data sharing, and ad delivery.

Privacy Regulations: An Evolving Landscape
Privacy regulations were highly debated. Discussions centered on the use of IP addresses for targeting, post-cookie data collection practices, and navigating antiquated laws like the Video Privacy Protection Act (VPPA) and the myriad of state privacy laws like the California Consumer Privacy Act (CCPA). The focus was on establishing clear and consistent privacy practices that enable effective advertising while respecting user privacy. This delicate negotiation requires acknowledging the effectiveness of data-driven targeting while addressing user concerns about tracking and data misuse. Standardizing privacy diligence questionnaires and fostering transparency around data collection practices could be potential steps forward. Another point of discussion was the future of data clean rooms. While it’s definitely a potential solution, it also raises privacy concerns due to the risk of re-identification, potential misuse of anonymized data, and a focus on targeting and measurement vs measurement over user privacy.

Optimizing the Full Funnel: A Collaborative Endeavor
The summit also explored strategies for optimizing video advertising across the entire marketing funnel, extending beyond brand awareness campaigns and considering how video can drive conversions and foster customer loyalty. Discussions revolved around outcomes-based media buying and measurement, optimizing video experiences across streaming environments, and personalizing ad experiences in a privacy-compliant manner. A key takeaway was the emphasis on collaboration between advertisers and publishers. Developing a unified approach to data sharing and measurement is crucial for creating a seamless and effective advertising ecosystem. Publishers providing granular audience data could empower advertisers to tailor campaigns for optimal results.

The Future of Video Advertising: User-Centric Innovation
The IAB Video Leadership Summit offered valuable insights into the current state and future of video advertising. While challenges persist, the industry is dedicated to finding innovative solutions that prioritize measurement, creativity, and user privacy. The summit underscored the need for a user-centric approach, where innovation focuses on crafting engaging and relevant ad experiences that seamlessly integrate with the viewing experience. Striking the right balance between standardization and innovation, coupled with responsible data management practices, will be paramount for the continued success of video advertising in the evolving digital landscape. The industry is moving towards a future where video ads are not intrusive interruptions, but rather valuable content that complements the viewing experience and offers genuine value to the audience.

A Glimpse into the Future
The summit also offered a glimpse into potential future trends. Discussions highlighted the growing importance of programmatic advertising, leveraging automation for ad inventory buying and selling. The use of artificial intelligence (AI) in ad creation and targeting was another topic of interest. AI has the potential to personalize ad experiences to a much greater degree, ensuring viewers see ads relevant to their interests. However, ethical considerations surrounding AI use in advertising need careful consideration. Transparency and user control over data will remain critical. Overall, the Video Leadership Summit painted a picture of a dynamic and evolving video advertising landscape. By embracing change, fostering collaboration, and prioritizing UX, the industry can ensure that video advertising remains a powerful tool for brands and a valuable addition to the viewing experience for audiences.

The post 2024 IAB Video Leadership Summit: Video Advertising Navigates a Shifting Paradigm appeared first on IAB.

New York – July 16, 2024 – Today, IAB released the second half of its “2024 IAB Digital Video Ad Spend & Strategy Report,” revealing insights into the buy-side’s selection criteria for investing in digital video channels, platforms, and media properties as well as issues with measurement and how those are being mitigated.

“The industry has bought, transacted, and measured against reach since the beginning of time,” said Cintia Gabilan, Vice President, Media Center, IAB. “But now business outcomes are the most important metrics to assess success, with reach and frequency coming in second. However, measurement is not yet where it needs to be. Two-thirds of buyers cite issues across nine key areas of measurement.”

The report, available here, was released at the IAB Video Leadership Summit (VLS), the annual agenda-setting event where senior leaders across the converging TV and digital video space gather to discuss the industry landscape.

Key insights from part two of the report include:

Three-Quarters of CTV Buying Is Now Programmatic
Within that, activation is roughly equal among the real-time bidding (RTB) / open exchanges (36%), private marketplaces (PMP) / preferred deals / programmatic guaranteed (34%), and ad networks (30%).

Buyers Are Spending More Across All Video Channels and Content Types
Part one of the report, released earlier this year, revealed that the three major digital video channels will see increased spend in 2024. Part two reveals that buyers are investing across all video content types, from short-form to long-form to creator and immersive. Short-form (69%) and vertical-format (68%) account for the largest share of buyers.

Performance Advertising Needs Better Measurement
Business outcomes like sales, store/site visits, and leads are now the most important KPI for buyers, across all channels — social video (64%), online video (58%), and connected TV / CTV (54%).

Yet two in three buyers cite measurement issues. In particular, small advertisers aiming for niche audiences rather than broad reach are significantly more likely to report issues with viewability, standardized targets, currency, and obtaining sell-side data. Streaming networks hoping to further tap the “long tail” will need to boost buyer confidence.

Alternative Measurement Currencies Are Now Widely Used
The report found that the industry is continuing to evolve beyond strictly panel-based, gross rating points (GRP) ratings. 89% of advertisers are transacting, testing, or having discussions with alternative currency measurement vendors. Buyers value multi-screen attribution (45%) and real-time reporting (43%), and 28% of buyers are already transacting on alternative currencies.

“As the saying goes, ‘with great power comes great responsibility’,” said David Cohen, CEO, IAB. “With the continued impressive growth of digital video comes demands for better measurement, viewability, standardized data, and placement transparency. The video ecosystem must fully commit to innovation, especially in measurement.”

To create the report, IAB partnered with Guideline, which leveraged ad billing data, other market estimates, and an IAB-commissioned Advertiser Perceptions quantitative survey of TV/digital video ad spend decision-makers to generate these results.

The full “2024 IAB Digital Video Ad Spend & Strategy Report” is available here.

About IAB
The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

IAB Media Contacts
Brittany Tibaldi / Michael Vaughan
347-487-6794 / 813-210-1706
btibaldi@kcsa.com/mvaughan@kcsa.com

The post Business Outcomes Are Now the Top Buyer KPI, According to Part Two of the IAB Digital Video Ad Spend and Strategy Report appeared first on IAB.

Part one, released in April, covered general market trends and revealed that total digital video ad spend is projected to grow 16% in 2024. Part two, released in July, dives deeper to reveal insights into the buy-side’s selection criteria for investing and measuring KPIs.

Key takeaways from the complete report:

• Business outcomes are the most important KPI for buyers of digital video*
• Digital video, the fastest-growing media channel, is driving buyers to spend . . .
   

  You must be an IAB Member to continue reading. To receive IAB member benefits, you must be employed by one of our member companies and have a verified business email address associated with your account.   Log In or Create Account   Become a Member If you have an IAB Portal account, please create a new account on iab.com and we will link to your records. To create a new account, please click here. If you're logged in and believe you are seeing this message in error, log out and try with another account or contact us about your company's membership status. Contact iab@kcsa.com with press inquiries.

  The post 2024 Digital Video Ad Spend & Strategy Report appeared first on IAB.

  ]]> https://www.iab.com/blog/beyond-the-binge-redefining-success-in-streaming/ Mon, 15 Jul 2024 21:15:06 +0000 https://www.iab.com/?post_type=iab_blog&p=184960 This is a CTV summer blog series discussing the Streaming Business Model, CTV Programmatic Buying, and CTV Frequency management. Every month, one new article is released. Follow along and join the discussion! The advantage of endless entertainment once defined streaming services. Now, a paradox grips the industry: content saturation amidst consumer fatigue. Millions of viewers … Continued

  The post Beyond the Binge: Redefining Success in Streaming appeared first on IAB.

  ]]> This is a CTV summer blog series discussing the Streaming Business Model, CTV Programmatic Buying, and CTV Frequency management. Every month, one new article is released. Follow along and join the discussion!

  The advantage of endless entertainment once defined streaming services. Now, a paradox grips the industry: content saturation amidst consumer fatigue. Millions of viewers have cut the cord, flocking to streaming platforms for diverse, high-quality shows. Yet, these very platforms struggle to turn subscribers into profit.

  Fueled by relentless subscriber growth, the current model is reaching its limit. Each service – subscription video on demand (SVOD), advertising-based video on demand (AVOD), and free advertising-supported streaming television (FAST) – caters to an audience, but the sheer volume of content across all platforms is overwhelming. However, the recent Digital Media Trends study by Deloitte reveals a telling truth – American households feel a pinch despite subscribing to multiple streaming services (an average of four in 2024), and many didn’t think the expense was worth it. Inflation, at a staggering rate of 27% over the past five years (according to Bureau of Labor Statistics data), has eroded buying power, making entertainment a luxury many can’t afford.

  This content overload isn’t just about money. David Lewis, a psychologist, warns of “information fatigue syndrome,” a mental state caused by the constant bombardment of stimuli. We skim articles, fast-forward shows (60% of viewers admit to doing this, according to a recent Netflix survey), and rely on AI summaries for books. With millions of songs (Spotify boasts over 100 million In 2024), movies (Hollywood churns out an estimated 800+ films annually), and podcasts (over 2 million exist worldwide) vying for our attention, true engagement becomes a casualty.

  Locked in a subscriber war, streaming services have responded with a relentless pursuit of “tentpole” content – mega-budget productions designed to attract the masses. Yet, this strategy drives production costs through the roof. The recent NBA broadcasting rights deal, valued at a record-breaking $76 billion, exemplifies this trend, further squeezing profit margins.

  A Turning Point: Redefining Success

  The traditional metric of subscriber count is no longer enough. Nielsen’s data demonstrates a fragmented audience—more content (over 2.7 million video titles available in the U.S., UK, Canada, Mexico, and Germany alone as of June 2023), but fewer viewers per platform. A new definition of success is needed, considering not just subscriber numbers but engagement, quality, and long-term value.

  • Customer Retention and Loyalty: Churn rate and lifetime value become crucial for understanding user satisfaction and building a sustainable business.
  • User Experience: User-friendly interfaces and personalization features, powered by AI that analyze viewing habits and recommend content, can significantly enhance user engagement and satisfaction.
  • Social and Cultural Impact: Streaming’s ability to influence pop culture, spark social media buzz, and build communities becomes another metric.
  • Content Quality and Diversity: Awards and critical acclaim become benchmarks, ensuring content resonates with viewers and fosters loyalty.

  The Future: A Long-Haul Flight with Tech as the Co-Pilot? 

  Streaming services are like airplanes constantly adjusting their flight path for optimal fuel efficiency. The answer to profitability likely won’t be higher subscription fees. Advertising will (and has already) become more prominent. This, however, creates two new tension points. First, mass-appeal content to attract advertisers versus niche, critically acclaimed shows. Second, spending on network programming has been reduced, creating a vicious cycle: less original programming means less subscription, which leads to less investment.

  The streaming landscape will evolve through some turbulence. Platforms must balance content investment with profitability, perhaps exploring co-productions, global expansion, and strategic mergers. On top of it, the emerging streaming bundling trend has come to stay. The Disney+ Hulu-ESPN+ bundle has been available for a while. More recently, Netflix, Peacock, Apple TV+, and more have joined together in various groupings (which somehow recreates the same dynamic we saw in the early days of cable – what’s old is new again). Consumers, meanwhile, will seek value for money with flexible pricing models and ad-supported options.

  The future of streaming is uncertain, but far from weak. By understanding the challenges and embracing new metrics of success, both consumers and businesses can navigate this evolving entertainment landscape. The golden age of choice may come with compromises, but with careful curation, innovative solutions, and technology as a co-pilot, streaming services can ensure quality content continues to thrive. Imagine AI-powered recommendations that unearth hidden gems or create personalized playlists, or technology that tailors content delivery based on screen or bandwidth limitations. As technology evolves, so will the streaming experience.

  When we consider the tension between mass-appeal content (attracting advertisers who crave large audiences) and niche shows (attracting advertisers who want to bet on contextual), programmatic advertising can be an impactful and scalable solution. In the August blog post, we will explore how advertising can use programmatic to address this tension and the innovation happening in this space.

  The post Beyond the Binge: Redefining Success in Streaming appeared first on IAB.

  ]]> https://www.iab.com/events/election-readiness-in-the-ai-and-social-era/ Fri, 21 Jun 2024 17:59:54 +0000 https://www.iab.com/?post_type=iab_event&p=184439 With the 2024 elections rapidly approaching, how can brands and agencies prepare for the shifts on the horizon? Fortunately, major platforms have robust policies, enforcement, and transparency to protect democratic processes — as well as controls for people and businesses. Join our panel as we explore how the advertising industry and social networks are paving … Continued

  The post Election Readiness in the AI and Social Era appeared first on IAB.

  ]]> With the 2024 elections rapidly approaching, how can brands and agencies prepare for the shifts on the horizon? Fortunately, major platforms have robust policies, enforcement, and transparency to protect democratic processes — as well as controls for people and businesses.

  Join our panel as we explore how the advertising industry and social networks are paving the way for a safe and secure election cycle. Panelists will share strategies for:

  • Upholding transparency best practices
  • Communicating brand values, while complying with policies and leveraging brand safety and suitability tools
  • Maintaining consumer trust and evolving community guidelines and content moderation practices

  Don’t miss this critical discussion on the role of social media in supporting a healthy democratic process, and learn from industry leaders how platforms and brands can unite around civic integrity.

  The post Election Readiness in the AI and Social Era appeared first on IAB.

  ]]> https://www.iab.com/blog/the-power-of-storytelling-iab-podcast-upfront-2024-rings-in-a-new-era/ Thu, 16 May 2024 20:46:16 +0000 https://www.iab.com/?post_type=iab_blog&p=183021 The 2024 IAB Podcast Upfront painted an optimistic picture of an industry in transition. While podcast listenership remains strong and content continues to diversify, advertising revenue growth slowed compared to previous years due to economic headwinds. However, the partners’ presentations at the event and the overall sentiment highlighted a space brimming with potential, focusing on … Continued

  The post The Power of Storytelling: IAB Podcast Upfront 2024 Rings in a New Era appeared first on IAB.

  ]]> The 2024 IAB Podcast Upfront painted an optimistic picture of an industry in transition. While podcast listenership remains strong and content continues to diversify, advertising revenue growth slowed compared to previous years due to economic headwinds. However, the partners’ presentations at the event and the overall sentiment highlighted a space brimming with potential, focusing on innovation, collaboration, and a commitment to unlocking the full potential of podcasting as an advertising medium.

  Here are some key takeaways from the event:

  Massive Audience, Undermonetized Market: Podcasts boast an impressive reach, with 135 million monthly listeners in the U.S. and nearly 100 million tuning in weekly. They also capture a significant share of listener time, averaging 8.3 weekly episodes (approximately 6.5 hours). However, advertising spending pales in comparison to this impressive audience. Only 9% of audio media consumption currently translates to ad revenue, highlighting a significant “monetization gap” the industry needs to bridge.

  Investing in the Future: The good news is that the outlook for podcast advertising revenue is positive. While growth slowed in 2023 due to economic factors, it’s projected to reach $2 billion this year and climb to $2.5 billion by 2026. Additionally, early data from Q1 2024 shows a promising upward trend in podcast ad spend. Part of the story behind the strong outlook is increasing innovation and the adoption of podcast measurement capabilities. Because podcasts are primarily consumed via progressive downloads rather than streamed, the buying community has sometimes found podcasting to be more difficult to measure than other digital media, but the deployment of increasingly sophisticated pixel-based attribution is enabling measurement of multiple KPIs compared to other channels and giving podcasters a more prominent seat at the media planning table.

  Content is King (and Queen): Podcasting continues to diversify, catering to various interests. Comedy and sports remain the top genres, with news, society, and culture following close behind. This diversity gives advertisers a rich tapestry of opportunities to tailor their messages to specific audiences.

  Sports Domination: Sports podcasting is experiencing explosive growth in listenership and advertiser investment. Popularity is driven by sports fans’ passionate and engaged nature and the explosion in sports content supply. ESPN brought its A list, hosted by Mike Greenberg, including Adam Schefter, Brian Windhorst, and Clinton Yates, sharing its upcoming lineup and investment in Women’s sports. Better Collective portfolio, a network specialized in sports, also talked about its launches and successes, including The Big Podcast with Shaq.

  Beyond Host-Reads: Ad formats are evolving beyond basic pre-rolls and mid-rolls. Live podcasting, branded episodes, experiential activations, and social media integration are increasingly utilized to create a more immersive and engaging brand experience for listeners.

  The Power of Storytelling: With programmatic buying growing, there is a bigger emphasis on emotionally resonant narratives over audience size. The ability to connect deeply with listeners is key to success. This shift prioritizes quality content that fosters a loyal audience. Highly engaged listeners are more receptive to advertising messages, leading to better campaign outcomes. To display such storytelling momentum, the Podcast Upfront stage was a star-studded gathering of the industry’s biggest host names, like John Allen, AKA MrBallen from “Strange, Dark & Mysterious Stories” (Wondery), Cam Jordan from “Off The Edge” (iHeart), Ben Shapiro from “The Ben Shapiro Show” (DailyWire), Phill and Matt Simms from “Simms Complete” (Cumulus), amongst others. Another big moment was when Jon Stewart announced the launch of his new podcast, “The Weekly Show with Jon Stewart”, through Paramount Audio.

  Hollywood Shift: The line between podcasts and traditional media is blurring, with hit podcasts transitioning to TV series, attracting big players like Hollywood studios, and altering content creation. Wondery, for example, showcased multiple partnerships with Peacock, AppleTV, FX, and Amazon MGM Studios. These collaborations aren’t just about podcasts becoming TV shows. We’re also seeing video-based programs adding podcast components to their offerings. This trend suggests the growing influence of podcasts and the potential for cross-platform storytelling strategies.

  AI’s Rise in Podcasting: Artificial intelligence is poised to transform the industry through innovative targeting methods, dynamic audience optimization, and personalized ad creative. One of the most important ways this transformation is already playing out is using AI transcription analysis which has dramatically improved brand safety and suitability assessments by analyzing context beyond isolated words, opening doors for more advertisers. Some partners also bring AI innovations together in unique, bundled solutions that allow advertisers to supercharge their podcast measurement and targeting. One example was a joint presentation from the integrated marketing optimization powerhouse Claritas, and Horizon Media about a new audio analytics solution to assess digital audio and podcasting’s contribution to client KPIs.

  Diversity and Inclusion Take Center Stage: Authenticity and diverse narratives are critically important drivers of listener engagement and advertiser success in podcasting, which reaches multicultural audiences through inclusive storytelling, fostering a sense of representation that is not always as evident in other forms of media. Some examples of podcasting’s unique offerings for multicultural audiences highlighted at the Upfront included iHeartMedia’s Charlamagne tha God discussing the “Black Effect” podcast network and presentations from Pod Digital Media and Sonoro Media.

  The 2024 IAB Podcast Upfront reminded us of podcasting’s immense potential. Despite the slowdown in ad revenue growth, the industry remains optimistic. The continued growth of listenership, the increasing popularity of video podcasts, and the potential of live events all point to a bright future for podcasting. Investing in improved measurement analytics, leaning more into programmatic buying, and exploring additional revenue streams will be crucial for continued growth.

  The post The Power of Storytelling: IAB Podcast Upfront 2024 Rings in a New Era appeared first on IAB.

  ]]> https://www.iab.com/research/u-s-podcast-advertising-revenue-study-2023-revenue-2024-2026-growth-projections/ Thu, 09 May 2024 12:32:02 +0000 https://www.iab.com/?post_type=iab_research&p=182795 The IAB U.S. Podcast Advertising Revenue Study: 2023 Revenue & 2024-2026 Growth Projections, prepared for IAB by PricewaterhouseCoopers LLP (“PwC”), quantifies annual podcast advertising revenues generated over the past year, analyzes revenue share by ad category and content genre, and forecasts future revenues through 2026. Key takeaways: After years of double-digit increases, 2023’s overall challenging … Continued

  The post U.S. Podcast Advertising Revenue Study: 2023 Revenue & 2024-2026 Growth Projections appeared first on IAB.

  ]]> The IAB U.S. Podcast Advertising Revenue Study: 2023 Revenue & 2024-2026 Growth Projections, prepared for IAB by PricewaterhouseCoopers LLP (“PwC”), quantifies annual podcast advertising revenues generated over the past year, analyzes revenue share by ad category and content genre, and forecasts future revenues through 2026.

  Key takeaways:

  • After years of double-digit increases, 2023’s overall challenging ad market slowed podcast’s growth.
  • Podcasting is projected to grow 12% to over $2B this year and reach nearly $2.6B by 2026. The evolution of programmatic along with new revenues from video and live events, will help drive growth.
  • A high volume of smaller categories continue to showcase the channel’s growth and appeal to a broad range of advertisers.​
  • For the second straight year, comedy and sports outrank news as production grows and listeners turn to lighter topics.​

  Download the full report to gain insight into podcast ad revenue trends and projections, breakouts by ad category and content genre, and for key industry developments and recommendations for how to capitalize on these trends.

  The post U.S. Podcast Advertising Revenue Study: 2023 Revenue & 2024-2026 Growth Projections appeared first on IAB.

  ]]> https://www.iab.com/news/podcast-revenue-growth-slowed-in-2023-will-return-to-double-digit-growth-in-2024 Thu, 09 May 2024 12:30:59 +0000 https://www.iab.com/news/?p=182529 On track to reach $2.6 billion by 2026 New York – May 9, 2024 – After consecutive years of healthy double-digit growth, podcast ad revenues grew at a slower pace in 2023 posting a modest revenue increase of 5% to $1.9 billion, according to IAB’s “U.S. Podcast Advertising Revenue Study: 2023 Revenue & 2024-2026 Growth … Continued

  The post Podcast Revenue Growth Slowed in 2023, Will Return to Double-Digit Growth in 2024, According to IAB’s U.S. Podcast Advertising Study appeared first on IAB.

  ]]> On track to reach $2.6 billion by 2026

  New York – May 9, 2024 – After consecutive years of healthy double-digit growth, podcast ad revenues grew at a slower pace in 2023 posting a modest revenue increase of 5% to $1.9 billion, according to IAB’s “U.S. Podcast Advertising Revenue Study: 2023 Revenue & 2024-2026 Growth Projections.”

  This was due in large part to a challenging advertising climate that particularly affected mid-tier companies, resulting in losses that tempered the sector’s overall growth trajectory.

  The eighth annual IAB U.S. Podcast Advertising Revenue Study, prepared for IAB by PricewaterhouseCoopers LLP (“PwC”), quantifies annual podcast advertising revenues generated over the past year, analyzes revenue share by ad category and content genre, and forecasts future revenues through 2026.

  “While a few of the largest podcast companies maintained double-digit growth, mid-tier companies hit a speed bump,” said Chris Bruderle, VP, Industry Insights & Content Strategy, IAB. “But revenue is already bouncing back.”

  Podcasting is projected to return to double-digit growth (12%), with revenues of over $2B this year. It is on track to reach nearly $2.6B by 2026. Publishers will fuel growth through various initiatives, including measurement, programmatic, live events, more aggressive show promotion, and the continued development of video podcasts.

  Comedy and Sports are Top Performers

  Likely aided by shows from notable comedic personalities, comedy’s revenue share grew by four points in the past two years and is now among the most-listened-to podcast genres (overtaking news and sports) and gained nearly 300 new advertisers in Q4 2023 alone.

  Sports is the second most popular content genre for the second straight year, down slightly from 2022 (15%) to 13%.

  “Between comedy and sports, consumers are using podcasts to be entertained and delighted – which provides a sanctuary from other serious headlines playing out across the nation and the world”, said David Cohen, CEO, IAB. “It’s where the greatest engagement and subsequent ad dollars are.”

  CPG and Retail Brands Boost Revenue

  CPG and retail brands revenue was up 4% and 5% respectively since 2022. Advertisers are shifting to digital platforms like podcasting that enable more direct connections with consumers.

  Diversity Remains a Unique Strength

  The wide variety of subjects podcasting addresses and the unique rapport between podcasters and their listeners continue to make the medium uniquely attractive for advertisers who need to reach niche audiences.

  More than a quarter of podcasting revenues were in the “other” category, such as government, non-profit, pets, home, and more. These individual categories are often small but are so highly targeted that they are very appealing to advertisers who need to reach a niche audience affordably.

  “Podcasts deliver at scale, can pinpoint niche audiences, and have the power to build authentic connections with consumers,” continued Cohen. “And as audience measurement in podcasting becomes more aligned with other digital channels, there’s more growth ahead.”

  The full IAB U.S. Podcast Advertising Study can be downloaded here.

  Methodology
  A quantitative, online survey was sent to leading podcast industry professionals in February to understand 2022 podcast advertising revenues, revenues by industry category and content genre, as well as forecast revenue growth for the next 3 years. As in prior years, this coincided with a podcast advertising market-sizing to deliver an estimate of the market in the United States, inclusive of non-survey participating companies.

  About PwC
  As business, accounting, and tax advisors to many of the world’s industry leading technology, media, and telecommunications (TMT) companies, PwC (www.pwc.com/us/tmt) has an insider’s view of trends and developments driving the industry. With approximately 1,200 practitioners serving TMT clients in the United States, PwC is committed to providing clients with industry experience and resources. In recent years, our work in TMT has included helping our clients to develop strategies to leverage digital technology, identifying new sources of financing, and marketplace positioning in industries characterized by consolidation and transformation. Our experience reaches across many geographies and segments, including broadband, wireless, film, television, music, publishing, advertising, gaming, sports, theme parks, computers and networking, software and technology services. With thousands of practitioners around the world, we’re always close at hand to provide deep industry knowledge and resources.

  About IAB
  The Interactive Advertising Bureau empowers the media and marketing industries to thrive in the digital economy. Its membership comprises more than 700 leading media companies, brands, agencies, and the technology firms responsible for selling, delivering, and optimizing digital ad marketing campaigns. The trade group fields critical research on interactive advertising, while also educating brands, agencies, and the wider business community on the importance of digital marketing. In affiliation with the IAB Tech Lab, IAB develops technical standards and solutions. IAB is committed to professional development and elevating the knowledge, skills, expertise, and diversity of the workforce across the industry. Through the work of its public policy office in Washington, D.C., the trade association advocates for its members and promotes the value of the interactive advertising industry to legislators and policymakers. Founded in 1996, IAB is headquartered in New York City.

  IAB Media Contacts
  Brittany Tibaldi / Michael Vaughan
  347-487-6794 / 813-210-1706
  btibaldi@kcsa.com/mvaughan@kcsa.com

  The post Podcast Revenue Growth Slowed in 2023, Will Return to Double-Digit Growth in 2024, According to IAB’s U.S. Podcast Advertising Study appeared first on IAB.

  ]]> https://www.iab.com/insights/us-podcast-advertising-revenue-study-2024/ Thu, 09 May 2024 12:15:26 +0000 https://www.iab.com/?post_type=iab_insight&p=182322 The IAB U.S. Podcast Advertising Revenue Study: 2023 Revenue & 2024-2026 Growth Projections, prepared for IAB by PricewaterhouseCoopers LLP (“PwC”), quantifies annual podcast advertising revenues generated over the past year, analyzes revenue share by ad category and content genre, and forecasts future revenues through 2026. Key takeaways: After years of double-digit increases, 2023’s overall challenging … Continued

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  ]]> The IAB U.S. Podcast Advertising Revenue Study: 2023 Revenue & 2024-2026 Growth Projections, prepared for IAB by PricewaterhouseCoopers LLP (“PwC”), quantifies annual podcast advertising revenues generated over the past year, analyzes revenue share by ad category and content genre, and forecasts future revenues through 2026.

  Key takeaways:

  • After years of double-digit increases, 2023’s overall challenging ad market slowed podcast’s growth.
  • Podcasting is projected to grow 12% to over $2B this year and reach nearly $2.6B by 2026. The evolution of programmatic along with new revenues from video and live events, will help drive growth.
  • A high volume of smaller categories continue to showcase the channel’s growth and appeal . . .
    

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