Podcast advertising has reached a new phase of maturity.

Across recent Q3 earnings calls, Spotify and Netflix described a channel evolving from experimental to essential, a place where marketers can drive both discovery and durable brand recall.

• US podcast ad spending grew 26% YoY in Q3, according to Magellan AI’s Q3 Podcast Advertising Benchmark Report.
• Gaming was the fastest growing category in podcast ad spending, with a 59% increase from Q2 to Q3 in 2025, per Magellan AI.

Some of the largest audio and streaming platforms are positioning the medium not as a testing ground, but as a measured, multi-format marketplace for storytelling.

From earbuds to ecosystems

Podcasts have grown into a strategic pillar of Spotify's “multi-format” model, according to its executives. On the call, they said the company now hosts nearly 500,000 video podcast shows, with 390 million users having streamed a video podcast, a 54% increase year over year.

“In podcasts, more than 390 million users have streamed a video podcast on Spotify now,” said Alex Norström, Spotify’s co-president and chief business officer, on their earnings call. “Time spent with video content has more than doubled year over year, driven mostly by video podcasts.”

Netflix, for one, is eager to get in on the action. The streaming giant announced a partnership with Spotify last month to bring select podcasts to Netflix's platform.

• Some 79% of monthly podcast listeners at least sometimes watch video podcasts, according to an August 2025 survey from Acast and Differentology.

“This deal is a video co-exclusive partnership with Spotify that secures a curated selection of their top podcasts,” said Greg Peters, Netflix' co-CEO, during their earnings call. “We see this as the opportunity to integrate high-quality video podcasts that broaden the Netflix offering … and reinforce our value as the most important service for your entertainment needs.”

Video, measurement, and monetization discipline

Spotify’s data shared on the earnings call shows that the next wave of podcast advertising isn’t about expanding inventory, but increasing efficiency with the help of automation

"Our advertising business was consistent with prior year results on a currency-neutral basis, and as expected, our automated ad sales channels saw strong growth in the quarter," said Spotify CFO Christian Luiga on their earnings call. "We continue to see 2025 as a transition year for ads business and expect growth to improve in the back half of 2026."

That “transition year” for Spotify hasn't stopped advertisers from testing the podcast waters. For the first time, there were nearly 1,700 brands advertising on podcasts in Q3, a 41% increase from Q2, according to Magellan AI.

Netflix intends to expand how marketers can take advantage of these audiences, with interactive ad formats and AI-enhanced targeting, borrowing tools from the company’s video ad suite.

“Later this quarter, we’ll be introducing ad interactivity,” Peters said. “In 2026, you’re going to see us continue to develop … more modular and interactive ad formats with enhanced AI capabilities.”

Brand recall is the metric that matters

As the market matures, so does its definition of success. Brand awareness campaigns now made up 56% of podcast ad spending in Q3, while direct response has dropped to 41%, according to Magellan AI's November report.

Both Spotify and Netflix signaled this same shift: The goal is less about clicks, more about cultural connection.

“When you have a hit the size of 'K-pop: Demon Hunters,' it stirs the imagination of how big we could take this… Being on Netflix gave the film a chance to build momentum,” said Netflix co-CEO Ted Sarandos on the earnings call.

That same philosophy of creating repeat engagement through ubiquity underpins both companies’ podcast strategies.

Norström described Spotify’s Netflix partnership as a “natural extension of our ecosystem,” helping creators “reach audiences in as many places as possible.”

From Spotify’s multi-format expansion to Netflix’s entry into the podcast space, Q3 earnings calls underscored the same message: Podcasts are evolving into a performance-proven, creativity-led medium. The next phase won’t be defined by ad load increases or inventory land grabs, but by smarter distribution, hybrid formats, and deeper integration with the rest of the marketing mix.