Podcast advertising is growing faster than any other segment in U.S. media, and that’s fueling a battle among measurement players nearly as contentious as in TV, a market more than 30 times bigger.
Spotify's acquisition earlier this year of two of the biggest measurement and analytics firms in the space—Podsights and Chartable—is shaking up podcast measurement. Such a deal would seemingly wipe out meaningful competition in a market this size, but since then it’s actually fueled more interest in competitors Podtrac, ArtsAI and Claritas, among advertisers that demand independent measurement.
Regardless of how it’s measured, the market is exploding. The IAB reports at the kickoff of its Podcast NewFronts that podcast ad revenue rose 72% in 2021 to $1.4 billion, twice the 35% pace of total internet ad spending, and faster even than the broader streaming audio market, which was up 58%. The IAB projects podcast ad revenue will hit $2 billion this year, and then double to $4 billion by 2024.
Even so, podcast spending remains less than a third of overall digital audio, under 2% of overall digital spending and less than 10% of the total $16 billion audio market, as estimated by Magna.