MediaRadar says podcast advertising is “proving resilient” during the pandemic, which has “caused podcast advertising to surge.” The ad-tracking firm says 1,600 brands spent money on podcasts during December, totaling more than $50 million. And during the fourth quarter MediaRadar estimates more than $150 million was spent by brand advertisers on podcasts with an 11% year-over-year growth rate for the quarter.
“We expect to see a 10-15% increase in podcast-based advertising spend in 2021,” said MediaRadar in a blog post. “There are nearly 6,000 brands that already advertise across podcasts, and we expect to see this number increase in 2021.”
The company said it is basing its rosy outlook on three trends seen in the podcast industry, most critically is its conclusion that podcast advertising works. MediaRadar said its data shows podcasting advertiser renewal rates are rising with the number of number of advertisers placing ads in podcasts going up quarter after quarter during 2020. “There were almost 6,000 podcast advertisers in the Top 500 podcasts last year, up from 5,154 in 2019,” it said.
Other contributing factors include growing listening numbers for podcasts, and more big media companies investing in the medium. “With these large companies battling it out in their podcasting investments, we expect to see them evangelize and market to their millions of existing customers—creating a more diverse selection of high-quality podcasts,” it said.