Podcast advertising saw rapid growth in Q1 2023, as digital audio had a 55.4% share of national audio ad dollars in the first part of the year.
According to Standard Media Index (SMI), national ad spending on podcasts grew 43.7% YoY.
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Pre-recorded spot spending was up 46.9%, and spending on host-read ads was up 30.7%.
- Spending on sponsorships and branded content saw a 51.4% rise during Q1.
- Podcasting only has about a quarter of the national brands' digital audio investment, as streaming music services still have a 74% share.
- "Podcasts are very connected to the user in the audience because it's geared to a specific topic or conversation," says Darrick Li, VP of Business Development & Strategic Partnerships at SMI. "What appeals to advertisers is being able to demographically target their advertising message to content. So I think naturally, because of that, you're going to have that ability to see a larger share of spending go towards that."
- The shift in recent years from traditional media to digital media is backed up by the numbers.