If you’ve noticed more ads in your favorite podcasts lately, you’re not alone. Podcast advertising is booming, and ad load is increasing right along with it. According to recent data, US podcast ad spend will hit $2.28 billion in 2024, marking a 15.9% growth compared to last year. This surge in investment has led to a noticeable rise in the share of ads within podcast episodes.
Ad Load Is on the Rise
The average podcast episode in the US now contains 9.1% ads, up from 6.0% in 2023, as per Q2 2024 data from Magellan AI. Certain genres are experiencing higher ad loads than others, with true crime leading the pack. True crime podcasts devote a significant 17.2% of their episodes to ads, followed by society and culture podcasts, where ads make up 12.9% of episodes.
Interestingly, the length of a podcast also affects its ad share. Shorter episodes (around 15 minutes) tend to feature a greater percentage of ads, while longer episodes have fewer ads proportionally.
However, this doesn’t necessarily mean that all listeners are tuning in for the ads. A significant number of listeners, about 49% of US adults, report skipping podcast ads most or all of the time, according to Nielsen.
Where Is the Money Going?
The top 500 podcasts are capturing the lion’s share of US podcast ad spend. In Q1 2024, 46% of all podcast ad spend was allocated to these top shows, up from 37% in 2023. Mid-level podcasts (ranked 501–3,000) held steady, attracting 30% of ad spend, while lower-ranked podcasts (below the top 3,000) saw their share shrink to 24%, down from 33% last year.
This concentration of ad spend on top shows suggests that for advertisers seeking a wide reach, high-ranking podcasts are the safest bet. However, niche advertisers or those working with smaller budgets can still find value by targeting podcasts with smaller, more specialized audiences, which often offer more affordable ad placements.
The Growing Focus on Brand Awareness
Another notable shift in podcast advertising is the increasing focus on brand awareness. In Q2 2024, 54% of podcast ad spend was dedicated to brand awareness campaigns, a rise from 46% in the previous year. At the same time, the share of direct-response ads—ads designed to elicit an immediate action, like clicking a link or making a purchase—fell from 51% to 44%.
This swing toward upper-funnel marketing reflects the growing role of podcasts as a medium for building brand recognition rather than solely driving direct sales.
Podcast Ad Formats and Placement
Despite the evolving strategies, most podcast ad practices have remained stable in recent years. The majority (59%) of podcast ads fall between 30 and 60 seconds in length, according to Magellan AI. Additionally, mid-show ads are the most common, accounting for 53% of podcast ad placements. However, pre-show (27%) and post-show (18%) ads still play a significant role in podcast advertising strategies.
Podcast advertising is continuing its upward trajectory, with more ads, higher ad loads, and a growing focus on brand awareness. For advertisers, whether they’re targeting a mass audience or niche markets, the podcast landscape offers a wide range of opportunities. As ad spend and ad loads increase, understanding listener behavior and focusing on engaging content will be key to success in this ever-expanding medium.
Source: EMARKETER
