Over the past few years, podcasts have grown immensely in popularity, drawing millions of users worldwide. So, it was only a matter of time before advertisers took note of the trend and tried to take advantage of the emerging medium.
According to data presented by OnlyAccounts.io, the total spending on podcast ads will reach $4 billion in 2024, four times more than just five years ago. This figure is projected to grow by a further 25% and hit over $5 billion by 2027.
Total Ad Spending Has Increased Sevenfold Since 2017 and will Continue Growing by an Average of $400 Million per Year by 2027
Although podcast popularity soared during the pandemic years, helping the format earn a deserved spot among other established media, the entire market continues growing with no signs of stopping soon.
In 2024, roughly 460 million people will listen to podcasts, 55 million more than last year and five times more than in 2017. This massive audience, mostly young, educated with high income, and high trust scores, has become highly attractive to advertisers and brands, especially smaller ones seeking to reach a particular target group, helping podcast advertising, the largest revenue stream in the market, to skyrocket over the years.
According to a Statista Market Insights survey, global podcast ad spending has increased more than sevenfold since 2017, rising from roughly half a billion dollars to over $4 billion. Although the annual growth rate dropped from an all-time high of 45% in 2021 to 16% in 2024, this shows the massive boom the market experienced during the pandemic is being replaced by steady growth and investment.
Statista expects global spending on podcast ads to continue growing by an average of $400 million per year and hit over $5 billion by 2027. Over 65% of that value will come from the world`s largest podcast advertising industry, the United States. The US market is expected to hit $3.3 billion in total ad spending by 2027, or 30% more than this year.
Far below, China follows with roughly half a billion dollars in podcast ad spending by 2027, or 13% more than this year. All other top podcast advertising markets, like Japan, India, and Brazil, will see less than $100 million in total ad spending.
The Biggest Podcast Enthusiasts are in Spain, United States and Sweden
Podcasts are especially well-suited for long-form audio content like interviews and talks that dig deeper into specific topics or special interests. This format has become particularly popular among younger audiences and digital natives, helping the market to grow its user base more than fivefold. However, the level of podcast adoption varies significantly across different markets.
According to the Reuters Institute’s latest Digital News Report survey, 38% of respondents from 47 countries had listened to a podcast in the month preceding the survey, but the biggest podcast enthusiasts were found in Spain, the United States, and Sweden.
Spain had the highest podcast adoption rate of 44%, up from 39% five years ago. The United States and Sweden saw similar growth, with 44% and 43% of podcast listeners in 2024, respectively.
The survey also showed Canada and the United Kingdom saw the biggest podcast adoption growth, rising by 12% and 10% in five years, respectively. Japan and France were at the other end of the scale, with 26% and 28% of respondents having listened to a pod in the past month.
