The news: Podcasts continue to gain traction as a key opportunity for brands to reach engaged audiences likely to take action. Podcast listeners will grow 3.9% YoY this year to reach nearly half (44.1%) of the US population, per our September forecast. Meanwhile, podcast viewers will grow 9.4% YoY to represent 23.4% of the US population amid the rise of video podcasts, and ad spending on podcasts will increase 10.5% YoY to $2.97 billion.

Podcasts are powerful: Podcast advertising is proving to be one of the most effective mediums for driving user action, as the format prompts immediate responses and deeper engagement compared with other media channels.

• 22% of monthly podcast listeners in the US have made an immediate purchase after hearing a podcast ad in the six months preceding February 2025, per Sounds Profitable and Signal Hill Insights. That’s above platforms like Instagram (13%), premium TV streaming services (13%), and YouTube (12%).
• Podcast ads have a strong influence on brand engagement: 26% of listeners have visited a brands’ social media page after hearing a podcast ad, compared with 15% for Instagram and 9% for YouTube.
• Podcasts maintain high penetration among key demographics like Gen Z and millennials. Forty-six million US Gen Zers and 44.9 million millennials will listen to podcasts in 2026—making podcasts essential for reaching generations driving digital buyer growth.

What advertisers can do: As the podcast advertising space becomes more competitive, brands that stand out will be those that create ads most likely to resonate with user preferences.

Listeners pay the most attention to podcast ad formats that feel integrated and personal. Casual brand mentions during a show (cited by 59% of podcast consumers as the format that they’re most likely to pay attention to), host-read ads that feel personal (52%), podcast stories or interviews sponsored by brands (50%), pre- or mid-roll ads with music (43%), and branded bonus episodes or mini-series (41%) will drive the most meaningful and immediate actions.