4. Podcasts Lure More and More Advertisers
Many find podcasts a convenient way to consume media and information – you hop in your car and start NPR, begin your day with a dose of The Daily, wind down with an episode of Welcome to Night Vale. Podcasts have quickly become a staple, and advertisers are starting to see the value of placing sponsored content on the streams. However, what’s holding them back is the lack of reliable measurement standards, which is why podcasters want to eliminate advertisers’ hesitation by adopting the Interactive Advertising Bureau’s (IAB) new standard for podcast measurement. The guidelines demand more transparency and more accurate measurement of impressions. For example, a common practice has been to measure podcasts that are delivered through multiple files as separate downloads, thus artificially inflating the number of unique downloads. The IAB standards are meant to create a consistent and reliable means of leveling the playing field and ensuring advertisers get what they pay for. The short-term impact of transitioning to these new measurement standards is that advertisers may not be seeing the numbers they had been seeing previously, which were deflated and misleading. Several podcast companies are taking the lead in adopting the new standards with the hope that others will follow, which will ultimately change the game in podcast advertising, and subsequently give advertisers more reliable ROI measurements. In fact, IAB discovered in a recent study that U.S. podcast ad revenue increased 87% in 2018, and forecasts that it will reach $659 million by 2020, which is a 110% jump from this year.