Podcast’s growth continues to show a bright opportunity for local radio in the future. IAB and PwC estimate that $678.7 million will be spent on advertising on podcasts in 2019 growing to $1B by 2021. BIA’s updated U.S. Local Advertising Forecast projects strong growth for the local online radio (terrestrial, streaming, podcasts) segment through 2023. In 2019 online radio accounts for $1.6B in spend but it will grow to $2.1B by 2023 due in part to podcasts and streaming.
The IAB and PwC study included which types of content advertisers spend the most on podcast ads in 2018 – news/politics/current events, comedy, business, education and arts and entertainment podcasts. According to the study, a large majority (73.7%) of ads are bought by brands in D2C retail, financial services, business-to-business, arts and entertainment, and telecommunications. BIA’s US Local Advertising Forecast found the largest increasers in online radio ad spend in 2019 include- professional & trade schools, education support (tutors/prep), insurance, financial services, and home remodelers.
What type of ads work the best? According to the IAB and PwC study, DAI ads are growing in use but the edited-in / baked-in ads still represent the majority of ads delivered in 2018 with sixty-second ads being the most used. The majority of ads are still bought on a quarterly basis with programmatic on the small side of buys but growing.
BIA’s U.S. Local Advertising Forecast 2019 offers a five-year forecast of the top media including direct mail, local video, online/interactive (i.e,. local search and local display), newspapers, mobile, radio, out-of-home/OOH video, directories (i.e. PYP and IYP), social and local magazines.