Before the coronavirus pandemic stifled U.S. economic growth, the IAB projected podcast revenue would grow by nearly 30% in 2020.
That number has been revised to 14.7% due to the impact of the COVID-19 pandemic.
It’s according to the latest IAB Podcast Advertising Revenue report, which concludes that despite the lower projections, podcast advertising is more resistant than other media against COVID-19 due to an agile and flexible format that enables a quick shifting of ad messages.
With companies including iHeartMedia, Entercom Communications and Cumulus Media heavily invested in podcasting, dollars from the audio-on-demand medium are poised to cushion soft over-the-air advertising and long-term flat to slightly down growth trends.
According to the IAB, domestic podcast revenue in 2019 grew by 48% over 2018, to $708 million.
Host-read ads made up 66% of podcast revenue.
Compare that to 2018, when podcast advertising revenue was about $480 million.
In 2020, the industry will still be closing in on the $1 billion mark, the IAB says.
Thank Direct Response advertising for the projected strength.
Meanwhile, the largest Direct-to-Consumer sub-categories are home appliances and health and wellness.