Nigerian podcast advertising market to reach US$2.50m by 2027
By Oluwaseyi Lawal
A Statista report has revealed that the Nigerian Podcast Advertising market is expected to show significant growth with an annual growth rate (CAGR 2024-2027) of 10.36%, resulting in a projected market volume of US$2.50m by 2027.
The platforms in scope and under review in the report includes Host-read ads, such as those featured on The Joe Rogan Experience, Serial, and Stuff You Should Know, Programmatic ads, such as location or listener demographics or those featured on NPR podcasts and branded content, such as those featured on Radiolab, TED Radio Hour, and This American Life. For 2024, the revenue in the Podcast Advertising market is projected to reach US$1.86m while the number of users in the market is expected to amount to 9.0m users by 2027.
In global comparison, most revenue will be generated in the United States (US$2,570,000.00k in 2024). The average revenue per user (ARPU) in the Podcast Advertising market is projected to amount to US$0.30 in 2024. The key regions indicated in the report are South Korea, China, Germany, France and India.
Podcast advertising comprises advertising spending, users, average revenue per user and penetration. The market only displays B2B spending. Figures are based on podcast advertising spending and exclude agency commissions, rebates, production costs, and taxes.
In Nigeria, podcast listenership has grown by over 200% between 2021 and 2022, according to Spotify. This growth is driven by several factors, including rising smartphone adoption and increasingly affordable connectivity, increasing number of African-produced podcasts and the growing interest in podcasts as a source of entertainment and information. Additionally, brands are exploring sponsorship opportunities, where they sponsor entire episodes or series, gaining more exposure and associating their brand with specific content.
While the Nigerian podcast advertising market is still in its early stages, it has the potential for significant growth. This is due to the large and growing podcast listenership in Nigeria, as well as the increasing number of African-produced podcasts. The Nigerian market for podcast advertising is facing a number of obstacles despite its expansion. Lack of comprehensive methods to evaluate listener demographics, engagement, and conversion rates—all important factors in determining the efficiency of podcast ads—is one of the main problems. Because of this, it is challenging for advertisers to calculate the return on investment. Furthermore, it’s still difficult for a lot of Nigerian podcasters to successfully monetise their work. Some have begun to draw in local marketers, but others still depend on merchandise sales, donations, or partnerships abroad.
The Nigerian podcast advertising market is a promising market with significant growth potential. Data encompasses enterprises (B2B). Figures are based on podcast advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers podcast streaming ads.
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