The news: The podcast ad market is maturing and evolving past an experimental medium into a reliable resource for repeat advertisers and larger test budgets.

Q2 podcast ad spending grew 28% YoY and 17% quarter over quarter (QoQ), per Magellan AI’s latest Quarterly Benchmark report.

• Nearly 1,200 brands advertised on podcasts for the first time, up 17% QoQ, and the top 10 advertisers spent about $128 million.
• BetterHelp continued its reign as the top spender, followed by Amazon and Toyota, while Unilever joined the list of top 10 podcast advertisers.
• Shaving was the fastest-growing industry by budget increase, just ahead of home goods, beauty, and eyewear.

Strategy over spend: Despite growing spend and inventory, publishers are resisting the urge to over monetize, even as dollars flood in. Ad load—or the percentage of episodes taken up by ads—was down 11.6% YoY.

Ad loads are heavier on smaller shows, which often serve niche and deeply engaged audiences. Shows in the top 500 podcasts put 9.1% of episode time toward ads, compared with 8% for shows in the top 3,000.

Where money is going: Top marketers may be moving away from relying solely on last-click attribution.

Over half (55%) of podcast market spend goes to brand awareness, compared with 43% on direct response. That’s up 25% QoQ for brand awareness and just 10% for direct response, reflecting a broader shift in how podcast ROI is being measured.

Creative pivot: Produced ads grew 76% YoY versus 31% for host-read ads, showing a significant creative shift.

While host-read ads still sell, the rise of produced spots may show growing sophistication. When debating format, brands should focus on narrative fit and emotional tone within the episode content.

Our take: Podcast audiences are high-intent, highly engaged listeners. Maintaining a positive user experience means advertising remains effective and trusted. Marketers should use podcasts as a bridge medium, not just for conversions, but for brand memory and affinity.