Entercom Acquires Podcast Ad Network Podcorn
By Anne Steele and Benjamin Mullin
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
The deal is the latest in a spate of consolidation in the
podcast realm as large media and tech companies build out podcast
advertising capabilities to attract more ad dollars to the rapidly
growing medium. Entercom sees Podcorn as key to helping its
advertisers reach the audiences for thousands of influential
The deal values Podcorn at $22.5 million, with Entercom paying
$14.6 million upfront in cash and a performance-based earnout over
the next three years.
U.S. advertising revenue from podcasts is projected to grow to
more than $1 billion this year, according to the Interactive
Advertising Bureau. The migration of listeners to on-demand audio
has sparked an arms race among major media and tech players,
including Spotify Technology SA, iHeartMedia Inc., Amazon.com Inc.
and Sirius XM Holdings Inc.
In recent months, these companies have focused on laying the
groundwork and building -- or buying -- an infrastructure to better
serve advertisers interested in podcasting, which has historically
lagged behind other media in its ability to measure data and
analyze its reach. The industry is aiming to make podcasts a more
popular place for brands of all sizes to advertise.
Los Angeles-based Podcorn operates a self-service marketplace
that connects advertisers with almost 40,000 midsize podcasters to
facilitate campaigns and native sponsorships. It was founded in
2019 by Agnes Kozera and David Kierzkowski after they sold their
previous company, FameBit -- which connects video influencers and
YouTube stars with advertisers -- to Alphabet Inc.'s Google. Both
founders will stay with the company and join Entercom's leadership
"The market doesn't really create opportunities for leading
brands to connect at scale across thousands of those influencers,"
said Entercom Chief Executive David Field. "That's what we think is
Entercom put its podcasting stake in the ground in 2019,
reaching deals for Pineapple Street Media -- now Pineapple Street
Studios -- and Cadence13. Pineapple produces top podcasts like "The
Clearing" and "Welcome to Your Fantasy," while Cadence13 offers a
slate of services to podcast creators with whom it works to
develop, produce, market and advertise podcasts.
Write to Anne Steele at Anne.Steele@wsj.com and Benjamin Mullin
(END) Dow Jones Newswires
March 09, 2021 18:21 ET (23:21 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.