Guess what time it is! It's Upfront Szn! For those of you not in the know, this is when advertising agencies put on their shiniest shoes and try to make their biggest sales of the year. For the most part, they usually succeed!
The gig is this: ad agencies and other big players in the ad world throw huge parties every May with the intention of getting their clients to lock in ad campaigns for the quarters ahead. i.e., September of this year through next August. They sweeten their deals with the best rates available throughout the whole year. Historically, Upfronts are focused on cable TV, but as those days are quickly dying, it's time to innovate! Enter podcasts.
The Interactive Advertising Bureau's 2023 Podcast Upfront announced some exciting news for digital marketers this week. This year's release of the IAB's 7th annual podcast ad revenue study shows some big growth for podcast ad sales. Guess what... podcasts are growing twice as fast as overall digital advertising is! *Mic drop*
The report, "U.S. Podcast Advertising 2022 Revenue & 2023-2025 Growth Projections," reveals that Sports, Society & Culture, and Comedy are the top revenue-generating content genres, generating 15%, 14%, and 14% respectively. News and Political Opinion, the reigning champion in 2022, saw a drop from 19% to 12%. But it's not just the big players driving the revenue growth. Smaller niche categories are also getting in on the action, accounting for 28% of all revenues. Overall, revenue rose 26% year-over-year to $1.8 billion and is expected to more than double to $4 billion by 2025. So, if you're in the podcast advertising game, there's never been a better time to get on board!
According to IAB Media Center VP Eric John, in-person sports, lifestyle events, and in-store shopping have made a big comeback and are now taking the lead as top revenue generators, overtaking news which held the spot since 2018. As a result, the podcasting industry is evolving to cater to niche audiences, providing opportunities for advertisers in categories like advocacy, education, and home improvement. Recently, smaller advertisers have been driving 28% of all podcasting revenues due to the attractive targeting, ROI, and brand-safe environments that the medium offers. "The diversity of voices and content -- often targeting underserved audiences -- is driving more listenership and more time spent, and that is attracting more advertisers," said IAB CEO David Cohen. It's clear that the growth of podcasting is not just a temporary shift in behavior, and it will be interesting to see how the balance changes in the future.
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