Where Is The Podcasting Industry Headed?

It is so important to be in the loop about current happenings, but it is equally, if not more important to look ahead and anticipate what upcoming trends in podcasting may arise. Which begs the question — What does the future of podcasting look like? Where is the podcasting industry headed? And how do I prepare for it?

The future may look uncertain right now, but we can definitely look at the present for some hints. That’s what the Interactive Advertising Bureau, or IAB, did. (For more on who the IAB is and why they matter, click here.)

Using data from their primary and secondary research, here are the IAB’s top predictions for the future and recommendations for you.

1.    Expand into Video-Enabled Podcasts

While podcasting started out as entertainment for our ears, it has slowly been expanding into one that serves our eyes too. No longer can podcasts be strictly defined as content you listen to, it has broadened into something that you watch too.

According to a survey done by Cumulus Media, 37% of respondents say that they enjoy watching their podcasts (which is on par with the 35% that prefer only listening to podcasts). More notably, new podcast listeners are more interested in watching than listening podcasts, as compared to podcast veterans. As such, if you want to capture the newbies, venturing into video podcasts is something that you should seriously consider.  

If you need more convincing, this trend can be seen in Spotify too. Ever since Spotify introduced video podcasts that play in-app, the global average in daily streams of video podcasts has increased by more than 39%. The total number of video podcast shows have increased too. From 100,000 in 2023 to 250,000 in 2024, this 150% increase is a testament to the potential in joining the video podcasting wave.  

The broadening of podcast as a definition also means that the platforms that are compatible with podcasts is expanding too. Besides big players like Spotify and Apple Podcasts, YouTube has become a massive and reliable source of content for video podcast consumers too.

Your Takeaway: Take a chance with video podcasts, especially on compatible platforms like YouTube, Spotify, and Apple Podcasts.

2. Use of Generative Artificial Intelligence

Right now, podcast publishers are mostly using generative artificial intelligence (GAI) for content creation, content refinement (copy-editing and fact checking), and ad operations. Truth be told, GAI is capable of much more than that, and there are countless tools that can help you to simplify your creative processes and streamline business operations.

(Alitu, Resound for audio production; Capsho, Jasper, and Dubb Media for social media marketing; just to name a few.)

However, if you’re concerned about how your audience feels about you using AI, you need not be. In fact, podcast listeners are more open to the idea of AI being used than you think. Around 80% support using AI to improve sound quality, transcribe audio into captions, and for research and preparation.  

All in all, if it improves the quality of your podcast, your listeners are giving you the green light.  

Your Takeaway: Don’t shy away from using GAI.  

3. Programmatic over Direct Buying  

Programmatic buying for podcasters in particular is still in its nascent phase, but its potential for growth is undeniable.

For you to understand the power of programmatic buying, you first need to understand the difference between direct and programmatic buying.

Direct buying is the traditional process of media buying that most people think of — marketers reach out to ad vendors and purchase media ad space through negotiations and transactions. This means that the success of the ad is very much limited by the industry expertise and knowledge of the marketer. Additionally, the direct and back-and-forth communication between marketer and vendor can make direct buying more inefficient and thus less preferred.   

Programmatic buying combats all of direct advertising’s weaknesses through automation. The demand-side platform carries out media buying for the ad publisher, targeting the most optimal consumers for each marketer.

If you’re into the nerdy specifics, the programmatic media buying process is made possible through real-time bidding. Marketers input their marketing campaign information into the demand-side platform, which connects with a supply-side platform that possesses ad inventory space to be sold by ad vendors. When users like you and me are waiting for ad space on a website to load, the website’s supply-side platform contacts multiple demand-side platforms and engages in a bidding based on the user’s alignment with the marketer’s target audience. Highest bidder wins, and their ad is shown when the website loads.

TLDR: The type of ads shown to each user is tailored to them according to their demographic and behavioural segmentation, as well as the company’s target audience.

This optimises the campaign’s success, and removes all unnecessary communication that can drag out the process of media buying. Often with programmatic buying, marketers don’t even contact a single ad vendor at all, technology takes care of it all.

As you can tell, programmatic buying is a significantly more logistically and time efficient. While it is not yet the industry norm, with only 11% of podcasting advertising revenue being earned via programmatic, it isa good idea to start thinking about where and when you can make use of it.

Your Takeaway: Experiment with programmatic buying when the opportunity arises.

4. Audience-based over Show-based Buying  

Audience-based buying is somewhat related to the concept of programmatic buying, and it’s something that the IAB is also pushing for.

Understandably, podcast ad inventories right now remain show-specific, which means that the amount of advertising space available for purchase is dependent on each podcast show.

Audience-based buying, as suggested by its name, uses audience behavioural segmentation to determine how advertising space is chosen. For PR agents, this will look like booking ad campaigns based on the target audience rather than the content of the podcast show. Because this method utilises your audience’s interests, purchasing behaviours, and lifestyle habits to determine advertising choices, this means that you are more likely to speak to consumers who are more likely to be interested in your product, and thus increase conversions.

Beyond maximising reach of your target audience, another major benefit of audience-based buying is achieving cross-funnel KPIs. I’m not sure I need to elaborate on the benefits of cross-channel marketing, but if you’re not in-the-know: more consumer insights, more audience engagement, and ultimately higher ROI, is what you can expect if you succeed in this area.

As podcasting looks to become a more mainstream and widely accepted content form, the ability to achieve cross-funnel KPIs via audience-based opportunities is a crucial part of making that happen.  

A simple way to start practising audience-based buying is changing how you search for podcasts for your clients. For instance, using PodSeeker’s podcast search to filter for podcasts according to their audience demographics (gender, location, etc.) is a great starting point.

Your Takeaway: Prioritise finding your target audience with audience-based buying.  

In Conclusion

Evidently, the podcast industry is geared to make some major shifts in how we approach advertising, content creation, and how we view podcasting in general. I don’t know about you, but I’m pretty excited to see these changes take shape!