Are your accounts curious about advertising on podcasts? This format can be a hugely successful way for marketers to connect with specific audiences. And that’s especially true if they appear on the right podcast topics.

How Big is the Podcast Advertising Market?

U.S. podcast advertising amounted to $2.57 billion in 2024. IAB analysts predict the market will reach $3 billion by 2026. An increasing amount of consumers’ “audio” time is spent with podcast programming. Consumers still listen to traditional radio and music. But they make time for their favorite podcasts. They do so because they are interested in the podcast topic. Or they may be fans of the hosts.

Trends in the Podcast Ad Market

As consumers discover podcasts, marketers are following. Analysts recommend that 5% of a marketer’s digital advertising spend should go to podcasts. They note that while music streaming audience have “peaked,” consumers are still discovering podcasts.

Magellan analysts also dug into details of which podcast topics are bringing in the most advertising money. In the fourth quarter of any year, media companies know demand for their ad space rises. 

In 2024, the top 500 podcasts brought in $329,000 in ad revenue each month according to Magellan. The podcast shows in the next rank, those that hold the spots between 501 and 3,000 based on listener volume, brought in $33,000 a month.

The average podcast is 51 seconds and generally runs mid-​roll during the program. However, the most popular ad length in podcasts (41%) runs about 30 seconds. And while mid-​roll is the placement 55% of the time, 29% of ads run before the content plays.

In Q4 2024, 8.22% of the typical podcast time went to advertising. For comparison purposes, the ad to content ratio on linear TV is between 15% and 20%.

Types of Podcast Ads

Researchers also studied the types of ads being run on podcast. Around 43% of ad spending on podcasts is direct response. Brand-​awareness advertising accounts for 54% of the spending. And the hosts provide voice talent for ads around half of the time.

Podcast Takeovers

In about 5% of podcast episodes, one advertiser buys all the available time. This strategy is particularly prevalent when the podcast topics are in the tech (13)% and business (11%) verticals.

In these cases, a B2B marketer may be seeking to make an impression on a specific audience. B2B BuyerSCAN research shows that 35% of business decision-​makers regularly listen to podcasts related to their field.

Podcast Topics That Draw Consumer Attention

A study of advertising loads by genre also reveals who marketers are trying to reach. True crime podcasts are the most popular with advertisers, and 10.58% of the episode time in this genre plays ads. Sports (8.26%), education (8.59%) and society and culture (8.87%) are not far behind. 39% of podcast listeners like news topics, and 79% go for personalities/​talk shows.

Magellan analysts report that the ad load for sports podcasts grew significantly in the past year. In addition, sports-​related podcasts captured new brands in Q4 2024. “…about 1 out of 6 new brands” opted for sports podcasts as part of their media spend.

Several verticals saw a big increase in podcast advertising investment between Q3 and Q4 in 2024. These verticals included shoe brands, jewelry and investment advisors.

And the industries which advertise the most on podcasts include:

• Business software and services
• Financial services
• Food
• TV and film

Podcast Listening Habits

About half of U.S. adults listen to podcasts. The average podcast listening session last 28 minutes. The median age of podcast listeners is 36, which is younger than the audience for AM/​FM radio listeners and Netflix watchers. 

This detail indicates the podcast format is one way to reach consumers who may not watch much television. A good way to draw in listeners is to produce the podcast topics that interest them.

Podcast listening also allows consumers flexibility. They can enjoy their favorite content when they are commuting, cleaning house and exercising. The most popular location for listening to podcasts is at home (67%). The most popular hours are between 10:00 a.m. and 3:00 p.m., with 32% of total time happening then.

Engagement

The Edison Research study finds that 81% of podcast fans report a high level of concentration when listening to their favorite show. This is a higher rate than consumers report for watching shows 74%.

Gen Zers remain a coveted demographic, and podcasts can reach them. The ads running during their favorite shows make an impact with 61% visiting a company’s website.

According to AudienceSCAN from AdMall, around 12% of U.S. adults are heavy podcast listeners. In the last year, over 70% of these consumers took action because of an ad they heard on a podcast. Make sure your clients check out the popular podcast topics for the audience they want to reach.

Image by George Milton on Pexels.