The podcast hosting company publishes its Podcast Advertising Rate report on a monthly basis to help advertisers monitor market pricing. The data used in the report is derived from actual sales data across the company’s AdvertiseCast marketplace, which has an inventory of over 3,000 podcasts.
In the July report, Libsyn AdvertiseCast’s chief revenue officer Dave Hanley predicted that the second half of this year would show more growth due to increased demand from customers during the holiday season. Since then, the average CPM for a 60-second ad spot has increased by 3.10%.
Overall, the average CPM rate has continued to decrease year-on-year by nearly 7% due to macroeconomic challenges, although the IAB predicted in its annual US Podcast Advertising Study that podcast advertising revenue will continue to grow, and is expected to more than double between 2022 and 2025.
The categories that showed the most growth in November with the highest CPM rates are Kids & Family at $27, followed by Arts and Education. Other categories that proved to have highly engaged audiences with a more accessible CPM rate in the low 20s include History, TV & Film, and True Crime.
In addition to publishing the monthly podcast advertising rates, Hanley also shared his five predictions on what podcast advertising will be like in 2024, which include advertisers becoming more comfortable with brand safety due to advancements in technology and a shift in focus to brand suitability, a rise in the use and demand for AI-powered contextual targeting, more regional and local advertising entering the podcast advertising space, more use of video in podcast advertising, and more cause-based advertising ahead of the 2024 election cycle.
“Podcasting has emerged as one of the fastest-growing advertising channels, and its trajectory remains on an upward curve,” said Hanley. “With greater access to sophisticated audience-based targeting and attribution measurement, new advertisers are capitalising on the expanding opportunities to achieve their brand goals, be it direct response or brand awareness.”
“We've been at the forefront of delivering new capabilities for advertisers, and since introducing programmatic ads in August 2022, we've witnessed a threefold increase in advertisers utilising our automatic ad solution.”