Advertisers to amp up podcast spend in 2025: IAB report
An overwhelming majority of agencies intend to increase podcast investments in 2025, as the advertising channel has grown to become an integral part of media planning, according to the Interactive Advertising Bureau’s (IAB) Audio Advertising State of the Nation report.
The report, which is in its ninth year and is supported by industry body Commercial Radio & Audio (CRA), covers the usage and attitudes to advertising in streaming music and radio, podcasts, and catch-up radio.
The recent survey was conducted over the recent December-January period, with 133 responses from media, creative and digital advertising agencies, agency trading desks and brands/companies that buy advertising.
According to the report, podcast and streaming audio advertising expenditure rose 17.8% total in CY24, and as a result, we will see increased spending in audio across the board, as the channel continues to prove its strength in offering incremental reach on other media.
Source: IAB Australia [click to enlarge]
Key drivers for increased spend include targeting efficiencies, quality content environments, and access to talent and content creators.
Audience attention and engagement was once the number one driver, but has dropped to third this year, behind incremental reach on other media and complimenting other media.
“The report highlights the strength of the digital audio ad industry in terms of investment but also its expansion within the digital ecosystem,” said Gai Le Roy, CEO of IAB Australia.
“Agencies and marketers are applying the same measurement techniques to digital audio as they do to video. They are also exploring the role of podcasters in the creator economy and capitalising on the growing trend of video-enabled podcasts.”
Steve Golding, head of audio automation at Nova and chair of the IAB audio council, added: “It is pleasing to see the report reflect the uptick in the number of advertisers using programmatic buying for digital audio inventory, offering both increased options for existing audio advertisers as well as welcoming a range of new digital advertisers.”
The report also found that branding continues to be the key objective for digital audio campaigns, though it also highlighted an increase in use of streaming audio and podcasts to improve brand perceptions or to inform or educate with storytelling.
Source: IAB Australia [click to enlarge]
Le Roy concluded: “Looking ahead, opportunities lie in enhanced personalisation, programmatic supply, transparency, and deeper integration and collaboration between media owners.”
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