Audio Advertising - Australia & Oceania

Australia & Oceania is expected to see Audio Advertising market ad spending reach US$1.20bn by 2024.
The region's largest market is Traditional Radio Advertising, with a market volume of US$1.01bn in 2024.
When compared globally, the United States is set to lead in ad spending, reaching US$19.07bn in 2024.
The projected average ad spending per listener in the Traditional Radio Advertising market is US$49.79 in 2024.
Australia is witnessing a surge in programmatic audio advertising, leveraging its tech-savvy population to target niche audiences effectively 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 Australia & Oceania is experiencing significant growth and development due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in Australia & Oceania have shifted towards audio-based content consumption, with a growing demand for podcasts, music streaming, and radio. This shift can be attributed to the convenience and accessibility of audio content, as well as the ability to consume it on-the-go. As a result, advertisers are recognizing the value of audio advertising in reaching their target audience. Trends in the market indicate a strong growth trajectory for audio advertising in Australia & Oceania. Advertisers are increasingly leveraging programmatic audio advertising, which allows for targeted and personalized ad placements based on listener demographics, interests, and behavior. This trend is driven by advancements in technology and data analytics, enabling advertisers to optimize their ad spend and maximize the impact of their campaigns. Furthermore, the rise of voice-activated devices, such as smart speakers, has created new opportunities for audio advertising. These devices provide a seamless integration of audio content and advertising, allowing advertisers to reach consumers in their homes and engage them through voice commands. As the adoption of smart speakers continues to grow in Australia & Oceania, so does the potential for audio advertising. Local special circumstances in Australia & Oceania also contribute to the development of the audio advertising market. The region has a strong radio culture, with a high listenership and engagement rate. This provides a fertile ground for audio advertising, as advertisers can tap into the loyal and captive audience of radio listeners. Additionally, the diverse and multicultural nature of Australia & Oceania presents an opportunity for targeted audio advertising campaigns. Advertisers can tailor their messages to specific cultural or linguistic groups, ensuring relevance and resonance with their target audience. Underlying macroeconomic factors, such as the steady economic growth in Australia & Oceania, contribute to the development of the audio advertising market. As the economy expands, businesses have more resources to invest in advertising, including audio advertising. This creates a favorable environment for the growth and innovation of the audio advertising industry. In conclusion, the Audio Advertising market in Australia & Oceania is developing rapidly due to changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Advertisers are recognizing the value of audio advertising in reaching their target audience, and advancements in technology are enabling more targeted and personalized ad placements. The rise of voice-activated devices and the strong radio culture in the region further contribute to the growth of the audio advertising market. With the steady economic growth in Australia & Oceania, businesses have more resources to invest in advertising, creating a favorable environment for the industry.

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.