Podcasts are, in my humble opinion, the most exciting “new” medium. There are millions of them, covering just about any topic imaginable, and most podcasts likely monetize with ads. As of 2024, there are approximately 4.2 million registered podcasts globally. Over 30% of Americans report listening to at least one podcast per week—a figure that’s growing by double digits each year.
Weekly listeners in the U.S. consume an average of 11 episodes per week. The average podcast listener spends just shy of 8 hours per week on podcasts, equating to about 7.14% of their time. However, podcast advertising currently represents only 0.2% of total advertising budgets.
If advertising budgets were adjusted to reflect time spent, podcast advertising would represent a $74 billion opportunity. This is why I think podcast advertising is not only exciting but also a huge opportunity for hosts, advertisers (and also for INCRMNTAL). 

What is Podcast Advertising ? 

Podcast advertising broadly refers to advertorial content or ads placed around podcast shows. It isn’t restricted to native ads (audio ads during designated “slots”) but also includes paid sponsorships of podcast shows, paid interviews, product placements, and promotions.
The most common type of podcast ads is host-read ads, where the host reads the ad copy in their own voice, seamlessly blending it into the show’s content. This format leverages the trust and rapport that podcast hosts build with their audience.
Podcast ads can be placed at the start, during, or at the end of an episode. Some podcast advertising platforms, such as Spotify, Pandora, and Audioboom, support dynamic placement selection.
Podcast ad inventory is typically purchased as a sponsorship (flat fee per show or episode) or using media buying models like CPM (cost per mille) or CPA (cost per action, often tracked via promotional codes or unique URLs).

What makes Podcast Advertising Exciting ?

Some people, especially non-podcast listeners, may question the hype around podcast advertising: “Radio advertising has been around for over 100 years!” But podcasts are to radio what Netflix is to cable.
Podcasts are on-demand, flexible, and with over 4 million available, listeners can find their ultra-niche interests. They are typically consumed through headphones, creating a personal and immersive experience. Podcast listeners often develop a strong sense of intimacy with their favorite hosts, viewing them as friends, advisors, or mentors. When a host endorses a product, it carries much more weight than traditional ads.
Additionally, podcast listeners are attentive and deeply engaged. Unlike “dual screening”—a phenomenon where viewers are distracted by their smartphones while ‘watching’ TV—podcast listeners are fully immersed in their content.

What are the current challenges with Podcast Advertising ? 

While podcast advertising is an exciting medium, it’s still in its infancy and comes with challenges:

• Fragmentation: With millions of podcasts available, it’s challenging to identify the right ones to advertise on, understand their demographics, or even gauge relevant play counts. Currently, there is no equivalent of Data.ai or Sensor Tower for podcasts.
• Attribution: Listeners can’t click on podcast ads, and user data is restricted to the app used to play the podcast. There is no “Appsflyer” or “Google Analytics” for podcasts yet.
• Reporting: Podcast advertising stats are limited. While podcasts often report download numbers, many listeners follow shows with auto-download enabled. This makes it difficult to obtain clear play-count data by date.
• Measurement: While measuring large podcast campaigns is easy with INCRMNTAL, measuring a network of Podcast ads across multiple podcast shows is not there yet. 
• Targeting: Popular podcasts often have global audiences. This can result in wasted ad impressions for region-specific products (e.g., U.S.-only products being advertised to international listeners). Publishers may lack the ability to target ads geographically.
• Skipping: Without standards, nor any unbiased reporting platforms for Podcast Ads, there are no real statistics indicating how many of the ads are actually Played vs. Skipped. 
   

What Is the Future of Podcast Advertising?

I am very bullish about the growth of podcast advertising. I believe podcast hosts—acting as storytellers, thought leaders, and subject matter experts—are some of the most impactful influencers today. As an avid podcast listener myself (over 20 hours per week), I see immense potential for this medium.

Here are some emerging or likely trends in podcast advertising:

• Programmatic Ads: While platforms offering dynamic ad insertion already exist, inventory remains a challenge. Major platforms like Spotify, Pandora, and PodBean are mostly closed ecosystems. However, programmatic trading could standardize the medium—at least until large platforms revert to walled gardens.
• Geo-Targeting/Dynamic Targeting: Podcast platforms like Apple Podcasts and Spotify may soon enable dynamic targeting. For example, a UK-based advertiser could target only UK listeners on a U.S.-based podcast.
• Apple Podcasts Ads: Apple Podcasts, one of the top three podcast repositories, has yet to capitalize on advertising opportunities. I predict Apple will either acquire an existing platform or launch its own advanced podcast advertising product.
• YouTube Ads for Podcasts: Many podcasts are moving to YouTube, combining video and audio. YouTube monetization is already well-established, but Google could create a designated advertising product specifically for podcasts hosted on YouTube.
• AI-Generated Podcasts: AI voice engines (e.g., ElevenLabs, Epidemic, Filmora) are already being used to turn written content into podcasts. Some podcast shows may already be fully automated creations, consistently producing episodes to gain traction.
   

Final Thoughts and the INCRMNTAL Angle ?

The future of podcast advertising is incredibly bright, with numerous innovations and trends on the horizon. INCRMNTAL will continue to monitor and measure this space as it evolves.
Personally, I couldn’t be more excited about podcast advertising—as a podcaster, a podcast listener, and a podcast sponsor.

While the measurement of Podcast advertising is currently far from perfect, during the next few weeks, I'll share more articles, case studies, and show how companies Advertise AND MEASURE Podcast Ads.

PS, If you wanted to know which Podcasts I listen to, here’s my curated list: 

• Mobile Dev Memo Podcast
• Deconstructor Fun
• Efficient Spend Podcast
• AdExhchanger Talks
• Pivot
• Prof G Markets
• TED Talks Daily