IAB: Digital Audio Grew 10% In 2025 as Podcasts Near $3B

Why It Matters

Audio’s steady revenue growth confirms it as a durable ad channel, but the emerging AI and video dynamics could force marketers to rethink targeting and measurement strategies. Ignoring these shifts may erode audio’s competitive edge against faster‑growing formats.

Key Takeaways

• Digital audio revenue hit $8.4 billion in 2025, up 10.2%.
• Podcast ads grew 17.6% to $2.86 billion, still double‑digit.
• Audio share of internet ad spend stayed at 2.8% in 2025.
• 71% of US podcasters now produce video versions of shows.
• AI‑driven discovery pushes brands toward Answer Engine Optimization.

Pulse Analysis

Digital audio’s 10.2% growth in 2025 underscores its resilience amid a crowded digital ad landscape. While display and social media posted higher percentage gains, audio’s absolute revenue—$8.4 billion—continues to expand, driven largely by podcast advertising, which alone added $2.86 billion. The sector’s stable 2.8% share of total internet ad spend suggests that advertisers view audio as a niche yet reliable medium, especially for brand‑building campaigns that benefit from longer listening sessions.

A notable trend reshaping the podcast ecosystem is the migration to video. According to Sounds Profitable, 71% of U.S. podcast creators now release video versions of their episodes, blurring the line between traditional audio and visual content. This convergence raises classification challenges for advertisers and measurement firms, as revenue streams may shift from pure audio metrics to hybrid video‑audio reporting. Brands must adapt attribution models to capture cross‑media engagement and ensure that spend aligns with the evolving consumption habits of listeners who increasingly watch podcasts on platforms like YouTube and TikTok.

The report’s AI insights signal a deeper structural shift. Large language models are moving consumer discovery from keyword search to conversational agents, compressing the visibility of publisher sites that historically relied on search traffic. Marketers are therefore urged to adopt Answer Engine Optimization and Generative Engine Optimization to stay discoverable in AI‑driven ecosystems. As Nielsen’s Peter Naylor predicts, agent‑to‑agent interactions will revive branding focus, demanding emotionally resonant audio experiences that can be summoned by AI assistants. Brands that integrate these emerging tactics will preserve audio’s relevance and capitalize on its unique capacity to influence consumer sentiment in an AI‑first world.