A podcast industry overview:

Back when I first wrote about the podcasting industry scene in 2016, podcasting was gaining huge momentum, but faced significant monetization and discovery hurdles.

Fast forward to today. Podcasts are mainstream media, but many of the format’s challenges remain. The good news is that there are many opportunities for both creators and advertisers.

Podcast Growth in the 2020s

The podcasting world has come a long way since 2016.

According to Edison Research, 67% of Americans have listened to a podcast at least once and 46% of weekly podcast listeners have made a service/product purchase because of an ad they heard on a podcast. purchased a product or service as a result of hearing an ad on a podcast.

By end of 2024, data from Oberlo finds that US podcast advertising revenue is expected to reach $3.2 billion—a 42.7% increase from 2023.

With millions of podcasts available across various platforms, podcasting is no longer niche. It is a dominant force in digital media consumption that rivaling video streaming services and old-school radio.

Despite this massive growth, there are still challenges around monetization and discovery.

The good news? These challenges also offer us opportunities.

Monetization in 2024: An Ongoing Struggle

Podcast creators are still struggling to generate consistent revenue.

The advertising model, which is much more robust than it was eight years ago, continues to favor larger, more established podcasts.

According to recent estimates, podcast ads can fetch anywhere from $25 to $50 per thousand listeners (CPM) in 2024—only a slight increase from the $20 to $45 range in 2016.

This means substantial revenue for top-tier podcasts, but does not necessarily translate into sustainable revenue for smaller podcasts.

One of the key changes since 2016 is the rise of subscription-based models. Patreon, Substack, YouTube and others help podcasters directly monetize their audiences by offering paywalled or gated episodes for paying subscribers.

This has given smaller podcasts a viable revenue stream besides traditional advertising and sponsorships.

Affiliate marketing has also grown as a revenue source.

Today, this model has expanded. Podcasts partner with brands to offer promo codes, which drives commission-generated purchases.

While there are more avenues for monetization in 2024, lots of barriers remain for smaller creators.

Large-scale advertising networks like Spotify’s Megaphone and iHeartMedia’s network dominate the landscape. This often leaves indie podcasters struggling to make ends meet.

The Podcast Discovery Problem

Showing up in podcast discovery is still a significant hurdle for podcasters in 2024.

In 2016, the dominance of Apple Podcasts was a major issue. Today, the landscape is more diversified, but the problem of helping listeners learn about new podcasts remains.

Spotify has emerged as a major player in podcasting. The company has also heavily invested in algorithm-driven podcast discovery, which helps listeners find shows based on their interests.

While Spotify has made podcast discovery and finding new podcasts to listen to more accessible, it is not a panacea for smaller creators. Algorithmic recommendations tend to favor established shows with larger audiences.

Other platforms, such as YouTube and Patreon podcasts, have also become popular for podcast consumption. Video podcasts in particular are gaining traction.

However, the shift to video podcasting adds new production challenges for creators. This further widens the gap between hobbyists and professional podcasters.

Apple remains a key player and has made strides in addressing the data and analytics issue.

In 2017, Apple introduced basic listener analytics for podcast creators, a move that was long overdue.

Compared to the detailed data available for video and social media content, podcast analytics are still relatively rudimentary.

Creators may know how many people are downloading their episodes, but still struggle to get deeper insights into listener behavior, such as where listeners stop listening or which segments are most engaging.

Finding The Right Podcast Networks and Platforms

One of the biggest shifts in the podcasting industry since 2016 is the rise of major new podcast networks and platforms. Companies like Wondery, Luminary, and Acast built business models around bundling podcasts into networks.

This makes it easier to attract advertisers and give creators resources for bigger and better shows. These networks often handle everything from advertising sales to production assistance, allowing podcasters to focus on content creation.

However, the network model has downsides.

Joining a network often means giving up a degree of creative control. Networks may push for certain formats or more advertiser-friendly themes.

Smaller creators are also shut out of some of these networks. They tend to prioritize podcasts that already have a large following.

The platforms themselves have also evolved.

Spotify, Apple, and YouTube now dominate podcast distribution, but smaller platforms like Pocket Casts and Overcast remain popular with podcast listeners. These platforms offer more curation and customization options and appeal to podcast enthusiasts who want more control over their listening experience.

Podcast Advertising in 2024: Evolving With More Options

One area where podcasting has seen significant growth is in sophisticated podcast advertising.

Programmatic advertising with automated ad buying and placement has become more common in the podcasting world.

This has made it easier for advertisers to target specific demographics and conduct detailed analytics of podcast advertising campaigns.

However, programmatic advertising is still primarily available to larger podcasts with large existing audiences.

Smaller podcasts are often left out because they lack the resources to implement programmatic solutions.

This perpetuates the divide between major A-list podcasts and indie creators, who must rely on direct sponsorships or affiliate marketing.

Another trend in podcast advertising is the rise of dynamic ad insertion. This podcast adtech tool allows advertisers to change the ads in a podcast episode based on the listener’s location or other data. This technology has made podcast ads more flexible and personalized, but also raises concerns about privacy and data tracking.

What’s Next for Podcasting?

As we look to the future, there are several trends and opportunities that could shape the podcasting landscape in the years to come:

1. Platform Consolidation: The podcasting industry is likely to see more consolidation, with major platforms like Spotify and Apple continuing to acquire exclusive content and smaller competitors. This could make it harder for indie podcasters to gain visibility, but it could also lead to more standardized discovery and monetization tools.

2. Niche Podcasts Will Thrive: While mainstream podcasts will continue to dominate, there is a growing demand for niche podcasts that cater to specific communities or interests. These podcasts may not have millions of listeners, but they often have highly engaged audiences, making them attractive to advertisers.

3. More Data-Driven Insights: As podcasting matures, we can expect to see more sophisticated analytics tools that give creators deeper insights into listener behavior. This could help podcasters refine their content and improve monetization strategies.

4. Expansion of International Markets: Podcasting has traditionally been dominated by English-language content, but there is enormous potential for growth in international markets. As internet access improves in developing countries, and as more creators produce content in languages other than English, the global podcast audience will continue to grow.

Podcast Consulting And Strategy

Ungerleider Works are the podcast experts. If you are new to podcasts, we’ll help you get your podcast up and running. If you are already running a podcast, we will help you boost listenership, audio quality, partnership, distribution, and revenue. Learn more by reaching out for a free consultation: