Spotify had a huge year in 2022, and even with recent podcast cuts, the streaming audio company still had a phenomenal year in the podcasting sphere. In a 2022 wrap-up, Spotify shared podcast advertising trends for the year, as well as where podcasting really excelled.
“After months of turmoil brought by the Covid-19 pandemic, the need to consume—and create—digital content skyrocketed in 2021. Listeners and creators alike turned to podcasts for escapism and a deeper sense of human connection,” said the Spotify advertising team in a podcast trends report. “In turn, advertiser investment in the space boomed in 2022, and now we are seeing greater diversity in both audiences and brands, increased listenership, and increased ad spend driven by more traditional advertisers.”
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Podcast streaming grows in double- and triple-digits
Spotify shared that podcast streaming took off, particularly in southern Europe. Germany, the U.K., Australian and U.S. experienced double-digit growth year-over-year while southern Europe saw triple-digital growth.
Spotify also shared insight on what ages listen to podcasts, and they found that age wasn’t a factor on who was tuning in. Listeners ages 13 to 17 showed 49% growth within their category, users between ages 55 and 64 showed 45% growth, followed by listeners ages 65 and up with 42% growth.
Spotify also highlighted where people are listening to their podcasting. They noted that they felt podcasts resonated so well with users due to a more intimate, one-on-one setting, allowing a user to feel more immersed. Mobile devices became the most popular way to listen to podcasts in 2022, with that time accounting for 91% of time spent across Spotify. Car listening saw the biggest growth spike, at 131%, followed by smart speakers and smart TVs.
What people are listening to
Spotify’s data showed that Society & Culture and News podcasts were the most streamed, but the Comedy category was the most popular.
Growth in ad spend by topic
Advertisements grew significantly in the portions of health and fitness, religion and spirituality, music and history. Health and fitness saw the most significant growth, seeing the highest spike in France at 233%. Australia, the UK and the US all also saw growth in this portion of over 100%. Religion and spirituality advertisement grew 232% in Italy. Music ads grew by 245% in Spain.
Another metric tracked this year was conversion of listeners. Business-to-business ad spend grew the highest at a whopping 1254%, followed by travel and leisure at 362%, and medical/pharmaceuticals at 244%. Spotify notes that advertisers saw an average conversion rate of 1.28% from podcast campaigns, and pre-roll ads had the most effective placement.
“As the podcast medium continues to grow rapidly in popularity, we are seeing greater diversification just about everywhere—from audience and content, to choice of device and advertiser investment. And that bodes very well for another exciting year of growth and opportunity for advertisers to reach audiences immersed in the content they love,” said Spotify.
Insider Take
These podcast advertising trends based on first-party data is very useful to current podcast advertisers and prospective podcast advertisers. This can help advertisers, including subscription companies, decide how podcast advertising should fit into their marketing plans for the year. For those not currently advertising on podcasts, Spotify directs brands to their beginner’s guide to podcast advertising.
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