Audio Advertising - Americas | Statista Market Forecast

Audio Advertising market in the Americas is projected to reach US$21.96bn in 2024.
The largest market is Traditional Radio Advertising with a market volume of US$14.80bn in 2024.
In global comparison, most ad spending will be generated the United States (US$19.07bn in 2024).
The average ad spending per listener in the Traditional Radio Advertising market is projected to amount to US$24.98 in 2024.
In the Americas, audio advertising is experiencing a surge in programmatic buying, revolutionizing how brands reach consumers in the market.

Definition:
Audio Advertising refers to advertising via traditional radio and digital audio. The category of Traditional Radio Advertising refers to advertising on the program service of a terrestrial radio station or network (terrestrial radio broadcasting and satellite radio services in the U.S. and Canada). Digital Audio Advertising includes all ad revenue generated through pre- and in-stream audio ads that appear in music (music also includes all kinds of radio services) and podcast streaming services

Structure:

Traditional Radio Advertising includes all types of spot formats of traditional radio advertising (e.g., classic spots, live reader, content spots, allonge). It also includes direct (local) advertising, in which advertisers reach out to individual stations, and indirect (national) advertising, in which advertisers employ media buying agencies to manage their advertising purchases from individual stations.
Digital Audio Advertising includes ad-supported free versions of premium subscription services or services funded by advertising. Formats can be single spots, tandem spots, or popular special advertising formats such as presenting, on-air promotions, and infomercials, directly embedded in the audio file or dynamically inserted.

Additional information:
Audio Advertising comprises advertising spending, users, and average revenue per user. The market only displays B2B spending. Figures are based on advertising spending and exclude agency commissions, rebates, production costs, and taxes. Additional definitions of Traditional Radio Advertising and Digital Audio Advertising can be found on the respective pages. For more information on the data displayed, use the info button right next to the boxes.

Traditional Radio Advertising broadcasting on the program service of a terrestrial radio station or network
Digital Audio Advertising through pre- and in-Stream Audio Ads that appear in music and podcast streaming services

Banner or Video ads included only in the web player of the streaming service

The Audio Advertising market in Americas is experiencing significant growth and development due to several key factors.

Customer preferences: Customers in the Americas are increasingly turning to audio advertising as a way to reach their target audience. With the rise of streaming services and podcasts, consumers are spending more time listening to audio content, creating a prime opportunity for advertisers to engage with them. Additionally, audio advertising offers a more immersive and personal experience compared to other forms of advertising, allowing brands to connect with consumers on a deeper level.

Trends in the market: One of the major trends in the Audio Advertising market in Americas is the shift towards programmatic advertising. Programmatic advertising allows advertisers to target specific demographics and interests, ensuring that their message reaches the right audience. This trend is driven by advancements in technology and data analytics, which enable advertisers to optimize their campaigns and maximize their return on investment. Another trend in the market is the increasing popularity of podcast advertising. Podcasts have gained a significant following in the Americas, with a wide range of genres and topics available to listeners. Advertisers are recognizing the potential of podcast advertising to reach a highly engaged and loyal audience. As a result, more brands are investing in podcast advertising, either through host-read endorsements or pre-recorded spots.

Local special circumstances: The Americas is a diverse region with varying cultural and linguistic preferences. Advertisers need to take into account these local special circumstances when developing their audio advertising strategies. For example, in Spanish-speaking countries, there is a growing demand for Spanish-language audio content and advertisements. Advertisers who can cater to these specific preferences have the opportunity to tap into a large and underserved market.

Underlying macroeconomic factors: The growth of the Audio Advertising market in Americas is also influenced by underlying macroeconomic factors. As the economies in the region continue to grow, there is an increase in disposable income and consumer spending. This provides advertisers with a larger pool of potential customers and allows them to invest more in advertising campaigns. Additionally, the rise of mobile devices and internet penetration in the region has made it easier for consumers to access audio content, further driving the demand for audio advertising. In conclusion, the Audio Advertising market in Americas is experiencing significant growth and development due to customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Advertisers who can adapt to these factors and tailor their strategies accordingly have the opportunity to reach a highly engaged and receptive audience in the region.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on audio advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers traditional radio advertising (broadcasting programs on terrestrial radio stations or networks) and digital audio advertising (pre- and in-stream audio ads and podcast streaming ads).

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, web traffic, and survey results from our primary research (e.g., Consumer Insights Global Survey) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, internet users, consumer spending, and digital consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.