Entercom acquires ad company
Entercom Communications Corp. will acquire podcast ad network Podcorn in a deal aimed at helping the second-largest U.S. radio broadcaster expand its advertising business, according to the companies.
The deal is worth a reported $22.5 million with $14.5 million upfront and a performance-based earnout over three years. This is just the latest deal in the arms race for more podcast-based companies, as several large media corporations investing significant amounts of money with Spotify, IheartMedia, and Amazon leading the way.
Podcorn is a Los Angeles-based operation with a self-service marketplace that connects advertisers with almost 40,000 midsize podcasters to facilitate campaigns and native sponsorships. Reports have indicated that U.S. advertising revenue from podcasts is projected to grow to more than $1 billion this year with podcast listeners representing 53.9% of monthly digital audio listeners. That number is expected to rise to over 60% in 2024.
“The market doesn’t really create opportunities for leading brands to connect at scale across thousands of those influencers, that’s what we think is untapped.”Entercom Chief Executive David Field.
Entercom marked their claim into the podcast world back in 2019 with the acquisitions of Pineapple Street Media—now Pineapple Street Studios—and Cadence13. By acquiring Podcorn, the company will look to build out podcast advertising capabilities to attract more ad dollars to the rapidly growing medium.
Podcorn was founded by Agnes Kozera and David Kierzkowski after Google purchased their previous company FameBit. The two are expected to retain control of their company and will join Entercom’s leadership team.
Entercom will try and take advantage of its recent success in the podcast space as the company draws in an average of 22.6 million monthly listeners. That currently ranks third behind tech giants Spotify (28.2) and Apple (28.0) respectfully.
Make sure to check out other podcast news and stories on OPP News.