2024 Podcast Advertising Developments to Watch
Podcast advertising has experienced a meteoric rise in recent years, and as we enter 2024, there is no sign of this growth abating. According to IAB research, in 2023 alone, U.S. podcast ad revenue is projected to soar to $2.28 billion, up 25% year over year — and will reach $4 billion by 2025. With more people immersing themselves in their favorite podcasts, listenership and engagement is surging, offering advertisers a golden opportunity to connect with dedicated and loyal audiences.
Dave Hanley, Chief Revenue Officer of Libsyn AdvertiseCast, outlines five predictions for podcast advertising in 2024, underscoring the industry’s continued momentum.
- Persistent Brand Safety Concerns Put to Rest: Advertisers will become more comfortable with brand safety in the podcast channel due to recent technology and procedural developments. The emphasis will shift toward brand suitability, authenticity in tone, and aligning with the right content creators. As brands recognize this, the call to action will be clear: Don& sit on the sidelines in 2024—leverage the genuine connection podcasts offer to engage audiences effectively.
- AI-Powered Contextual Targeting Expands Ad Inventory: Libsyn’s AdvertiseCast expects a rise in adoption of AI and predictive contextual targeting in the year ahead. Leveraging innovative tools to provide accurate context to content will unlock a wealth of relevant inventory for advertisers. This ensures that their
messages resonate with intended audiences, driving precise targeting and ad effectiveness while eliminating waste.
- Regional & Local Ad Boom with Data-Driven Precision: Libsyn’s AdvertiseCast anticipates more regional and local advertisers will enter the podcast advertising space, fueled by the growing interest in data-driven targeting. Advertisers can now geo-target with increased precision and at scale to connect with desired local podcast audiences across hundreds of audience segments.
- Surge in Video Enhancing Discoverability: The growing popularity of video podcasts will see the further blurring of lines between audio and video. Libsyn’s AdvertiseCast, which already offers a “simulcast” ad product to advertisers, recognizes the significant advantage of using video to improve podcast discoverability. This approach amplifies the reach and impact for creators — thereby attracting more advertisers.
- Cause-based Advertising – An Untapped Opportunity: An untapped opportunity lies in the underutilization of cause-based advertisers collaborating with podcast hosts. The influential voice of podcast hosts presents a powerful platform for promoting social and environmental causes, and this synergy fosters impactful conversations and prompts action. Beyond cause-based campaigns, we see this strategy being applied for political advertisers gearing up for the 2024 election cycle. Hanley commented, “Podcasting has emerged as one of the fastest-growing advertising channels, and its trajectory remains on an upward curve. With greater access to sophisticated audience-based targeting and attribution measurement, new advertisers are capitalizing on the expanding opportunities to achieve their brand goals, be it direct response or brand awareness. We’ve been at the forefront of delivering new capabilities for advertisers, and since introducing programmatic ads in August 2022, we’ve witnessed a threefold increase in advertisers utilizing our automatic ad solution.”
October 2023 Podcast Advertising Rates
If you are looking into advertising on podcasts, podcast advertising rates (or CPM — Cost Per Thousand) are probably top of mind. To this end, we give you November 2023 Podcast Advertising Rates.
Each month Libsyn’s AdvertiseCast Marketplace publishes the prior month’s rates to allow advertisers and podcasters to monitor market pricing and to foster insight into podcasting advertising as a monetization vehicle.
The data is derived from actual sales data across AdvertiseCast’s network of 2,900 shows, including more than 225 exclusive podcasts.
For November 2023, the average CPM rate was $22.40 for a 60-second ad spot.
That figure is up by 2.5% compared to last month (October 2023 avg. CPM rate: $22.37) and has decreased year-over-year (November 2022 avg. CPM rate: $24.58).
The three highest CPM categories in November based on delivered advertising were:
- Kids & Family: $27
- Arts: $26
- Education: $2
Moreover, three categories where advertisers can effectively tap into highly engaged audiences at more accessible CPM rates include History, TV & Film, and True Crime, which averaged around the low 20s in November.
Historical data dating back to 2020 can be found on the AdvertiseCast site, along with a pricing calculator that allows you to estimate the spend for your next advertising campaign.
Interested in podcast advertising? Connect with our team and get started here.