Podcast Ad Spending Surges In Q4 As Year-End Budgets Flood Market.

Podcast advertising closed out 2025 with a “significant boost” in activity as spending rose by a third (32%) in the fourth quarter versus a year earlier, according to Magellan AI’s Q4 Podcast Advertising Benchmark Report. The firm says momentum accelerated in the final month of the year, pushing overall Q4 spending 17% higher than in Q3 and capping a year marked by steady demand and tightening inventory.

October and November both posted solid gains, but December delivered the sharpest lift, with spending running 27% above the Q3 monthly average as holiday spending capped off a year that forecasters expect will deliver the industry’s largest revenue figures to date.

Magellan didn’t release total spending estimates, but it says the top ten advertisers collectively invested an estimated $142 million during Q4 — up 5% from what the top ten spent in Q3 — with nine repeat spenders returning from the prior quarter. T-Mobile moved into the top spot at $17.9 million, narrowly edging Toyota at $17 million. BetterHelp slipped to No. 3 with $16.9 million, followed by Amazon at $15.7 million and Quince at $14.9 million. FanDuel, State Farm, DraftKings, AT&T — a new entrant to the top ten — and Shopify rounded out the list.

Financial Services once again led all categories by total spend, with brands investing $109.6 million in podcast ads during Q4. That was up by nearly a third (31%) from a year earlier.  Business Services and Software followed at $82.9 million, up 44%, while Consumer Services and Software climbed 53% to $77.8 million.

Podcasting’s advertiser base also continued to widen. Magellan reports 1,482 brands advertised on podcasts for the first time in Q4, underscoring continued experimentation from new entrants. 

“Sports continued to be the most popular genre for new brands to run on in Q4,” the report says. “About one out of every five new brands included Sports podcasts in their media plan.” News, Comedy, Arts, and Business followed as popular entry categories.

Average spending by new brands held steady at roughly $33,000, with mid-roll placements emerging as the most common entry point. The typical ad length among new advertisers was just under one minute, reflecting continued interest in mid-funnel storytelling rather than ultra-short test reads.

The fourth quarter typically has the most pressure on ad loads and that remained the case in 2025. As ad demand rose, Magellan says ad load averaged 8.82% of total episode content in Q4. That was up from 8.33% in Q3 and 8.2% a year earlier. The data shows advertiser ad load increased 6.6% year-over-year, while pod-on-pod promotions also expanded, particularly in genres such as True Crime.

All 13 major genres tracked by Magellan posted year-over-year increases in ad loads. True Crime had the heaviest ad loads at 11.37% as the genre experienced one of the largest increases in pod-on-pod promotions.

Ad load also continued to vary by show size, with Magellan finding that the top 500 podcasts carried the heaviest monetization, averaging a 9.4% ad load — slightly above earlier quarters and higher than any other tier. Mid-ranked shows (501–3,000) averaged about 8.5%, while podcasts outside the top 3,000 ran closer to 7.8%.

Episode length continued to play a role, with short-form shows under 15 minutes — especially in True Crime — carrying the heaviest ad loads, sometimes exceeding 40% of total runtime.

The report — based on an analysis of 94,422 episodes of popular podcasts — reveals the concentration of ad dollars also intensified. The top 500 podcasts accounted for nearly half (49%) of total podcast ad spend in Q4, with advertisers spending an average of $422,000 per month on those shows. Podcasts ranked 501 to 3,000 generated an average of $48,000 per month, highlighting the widening revenue gap between the industry’s largest shows and the long tail.

Overall, brand awareness campaigns continued gained share during Q4, accounting for 58% of total market spending versus 40% for direct response and 2% for tune-in promotions.  

Download a copy of Magellan AI’s Q4 Benchmark Report HERE.