Once a niche medium, podcasts have emerged as one of the most dynamic and rapidly growing segments of the media industry, captivating millions of listeners and generating billions in advertising revenue.
That hockey-stick growth in audience has attracted the attention of major advertisers, and the industry is expected to surpass $2 billion in ad revenue.
Podcasting’s meteoric growth has been underscored by blockbuster deals like Joe Rogan’s $250 million Spotify contract and SiriusXM’s $125 million investment in Alex Cooper’s Call Her Daddy. Similar agreements, including SmartLess’ $100 million deal with SiriusXM and the Kelce brothers’ $100 million-plus partnership with Amazon’s podcast studio Wondery for New Heights, illustrate the platform's competitive race for audience attention and ad dollars.
As we head into 2025, here are four trends in the podcasting space that advertisers should bear in mind:
The artificial intelligence revolution
AI is set to redefine the podcasting landscape. And in many ways, AI is already embedded throughout the entire podcast ecosystem.
Creators are leveraging AI for research, crafting scripts and developing probing questions for guests. In production workflows, AI assists in audio editing, speeding up processes and maintaining quality. For global reach, synthetic voice technology is translating podcasts into multiple languages while preserving the host’s unique vocal identity. Advertisers, too, are tapping into AI to refine targeting and measure campaign effectiveness.
As AI continues to grow within the podcasting ecosystem, it promises scaled personalization while retaining the authenticity of host-read ads—a format that remains pivotal to the industry’s monetization model. However, creators and brands must tread cautiously. Transparency and intentionality in deploying synthetic voice technologies are critical to retaining listener trust. Audiences might forgive technical glitches but are unlikely to overlook a breach of authenticity.
YouTube’s dominance and the rise of video
In just a few short years, YouTube has emerged as the number one podcast listening platform, capturing 31% of weekly podcast listeners and edging out Spotify and Apple. YouTube’s advanced tools and monetization features make it a natural fit for podcast creators seeking to expand their reach and revenue streams.
As a result, YouTube is reshaping how audiences engage with audio content. No longer confined to traditional audio formats, podcasts are increasingly adopting video-first approaches. This transformation has opened the door to new advertising opportunities, enabling creative brands to craft their messages through sound, sight and motion.
Video podcasts particularly resonate with younger audiences, especially Gen Z, who gravitate toward visually engaging content. Some podcast platforms report that the inclusion of video components has attracted new demographics to podcasting. In some cases, these video-first approaches have become the main draw, redefining the medium itself.
As video podcasting evolves, it will further blur the lines between audio and video, pushing creators and brands to innovate storytelling formats while capitalizing on the synergy between the two mediums.
Social media integration
The intersection of podcasting and social media is reshaping how creators connect with their audiences. Podcasts no longer exist in isolation; they’re becoming key components of creators’ broader ecosystems, seamlessly integrating across platforms like TikTok, Instagram and YouTube. According to Edison Research, 80% of podcast listeners follow their favorite hosts on multiple platforms. This level of interaction fosters a sense of community and deepens audience loyalty.
Social media also amplifies discovery and virality. Platforms like TikTok, with its algorithm-driven reach and virality, have propelled niche podcasts into mainstream visibility almost overnight, broadening the medium’s appeal. For advertisers, the synergy between podcasts and social media influencers offers a unique opportunity. Hosts double as influencers, extending campaign messages beyond the audio format and creating cohesive, multi-platform narratives.
As the podcast-social crossover continues to grow, brands and creators should embrace the fusion of these platforms to unlock new opportunities for audience engagement and monetization.
Waning of mega-deals and consolidation
As podcasting matures, the era of eye-popping mega-deals is likely to slow considerably. The economics of sustaining multi-million-dollar contracts are proving challenging, especially in a fragmented landscape. While deals like Joe Rogan’s $250 million Spotify partnership made headlines, the ad-model economics make it very difficult to sustain.
Consolidation is likely to accelerate in 2025 as the largest players in the space continue acquiring smaller players to streamline operations, acquire talent, remain compelling to creators, attract listeners and win ad dollars from brands.
Despite this shift, podcasting remains one of the most accessible mediums for independent creators. Platforms like Spotify for Podcasters empower individuals to monetize their shows without the backing of major publishers. This democratization ensures that podcasting retains its unique blend of authenticity and innovation, even as the industry becomes more structured.
Even amid consolidation, independent creators remain at the heart of podcasting’s identity, ensuring the medium continues to thrive on its core values of authenticity and innovation.
Josh Morphew is managing director of client strategy at PMG. Prior to PMG, he held leadership roles at Camelot Strategic Marketing & Media, Travelocity and ShermansTravel.