The Podcasting Market: Undervalued by a Factor of Three

The podcasting industry has been quietly booming, but traditional estimates have significantly undervalued its true scope.

For years, the Interactive Advertising Bureau (IAB), a key reference for market sizing, pegged the U.S. podcasting market at $2.4 billion for 2023, focusing solely on audio advertising revenue in the United States.

While this figure is substantial, it paints an incomplete picture, ignoring critical revenue streams and global markets. In 2024, a more comprehensive analysis reveals that the global podcasting market is worth a staggering $7.3 billion—roughly three times the IAB’s estimate.

The IAB’s methodology, while rigorous, is narrow. It captures only U.S.-based audio ad revenue, overlooking the explosive growth of video podcasts on platforms like YouTube and Spotify, as well as other monetization models.

The rise of short-form video clips from podcasts on TikTok, global subscription models, and one-time payments like donations or episode purchases are reshaping the creator economy.

Additionally, the IAB’s focus on the U.S. excludes massive markets like China, where platforms like Ximalaya — rumored to be a $2 billion acquisition target for Tencent — are thriving.

Analysts at Owl & Co. have taken a broader approach, offering a more holistic view of the podcasting ecosystem.

Their 2024 estimate of $7.3 billion accounts for:

• All advertising revenue: Both audio and video, including direct and programmatic ads.
• Subscriptions and one-time payments: Revenue from platforms like Patreon, Spotify, and direct donations.
• Short-form video content: Monetized TikTok and YouTube Shorts derived from podcast snippets.
• Global markets: Including China’s Ximalaya and other international platforms driving significant growth.

This expanded formula highlights the absurdity of relying on outdated metrics in an era where podcasting has evolved into a multifaceted, global industry. Video podcasts, in particular, have surged on YouTube, with creators leveraging visual storytelling to attract larger audiences.

Spotify’s heavy investment in exclusive content and creator tools has further accelerated the medium’s mainstream appeal. Meanwhile, TikTok’s algorithm has turned podcast clips into viral sensations, driving new listeners and revenue streams.

The $7.3 billion valuation is a wake-up call for the industry. It underscores the immense potential of podcasting as a cornerstone of the creator economy, rivaling traditional media in reach and profitability.

For creators, advertisers, and platforms, the message is clear: podcasting is no longer a niche medium but a global powerhouse. Congratulations to all those riding this wave — the future of podcasting is brighter than ever.

Sources: IAB, Owl & Co.