Digital Audio Advertising - Americas

In 2024, ad spending in the Digital Audio Advertising market in the Americas is forecasted to reach US$7.17bn.
The market is expected to exhibit an annual growth rate (CAGR 2024-2030) of 6.39%, leading to a projected market volume of US$10.39bn by 2030.
By 2024, the projected market volume is US$6.59bn, with the majority of revenue being generated the United States.
By 2030, the number of listeners in the Digital Audio Advertising market in the Americas is anticipated to reach 0.0users.
The average ad spending per user in the Digital Audio Advertising market is estimated to be US$23.51 in 2024.
In 2030, 79% of the total ad spending in the Digital Audio Advertising market is expected to come from mobile.
In the Americas, Digital Audio Advertising is rapidly growing, with major players investing in targeted ad placements to reach diverse audiences effectively.

Definition:
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. 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.

Structure:

Music streaming advertising is ad supported on music-streaming services
Podcast advertising is ad supported for ads placed within podcast channels

Additional information:
Digital 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. Key players in Digital Audio Advertising include Amazon Music, Apple Music, YouTube Music, Tencent Music, and Spotify. For more information on the data displayed, use the info button right next to the boxes.

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 Digital Audio Advertising market in Americas is experiencing significant growth and development.

Customer preferences: Customers in the Americas are increasingly turning to digital audio platforms for their entertainment and information needs. The convenience and accessibility of streaming services, such as Spotify and Pandora, have made them popular choices for music and podcast consumption. Additionally, the rise of smart speakers, such as Amazon Echo and Google Home, has further fueled the demand for digital audio content. These devices allow users to easily access and control their favorite music and podcasts through voice commands.

Trends in the market: One major trend in the Digital Audio Advertising market in the Americas is the increasing adoption of programmatic advertising. Programmatic advertising uses automated technology to buy and sell ad space in real-time, allowing advertisers to target specific audiences more effectively. This trend is driven by the growing availability of data on consumer preferences and behaviors, which enables advertisers to deliver personalized and relevant ads to listeners. Programmatic advertising also offers greater efficiency and cost-effectiveness for advertisers, as it eliminates the need for manual negotiations and reduces ad wastage. Another trend in the market is the emergence of podcast advertising. Podcasts have gained immense popularity in recent years, with millions of listeners tuning in to their favorite shows regularly. Advertisers are recognizing the potential of podcast advertising to reach a highly engaged and captive audience. Podcast ads are often integrated into the content itself, making them less intrusive and more effective in capturing listeners' attention. As a result, more brands are investing in podcast advertising to promote their products and services.

Local special circumstances: The Digital Audio Advertising market in the Americas is shaped by the cultural diversity and language preferences of the region. With countries like the United States, Canada, and Brazil having large populations and multiple languages spoken, advertisers need to tailor their campaigns to specific local markets. Advertisements that are culturally relevant and delivered in the local language are more likely to resonate with listeners and drive engagement.

Underlying macroeconomic factors: The growth of the Digital Audio Advertising market in the Americas is also influenced by macroeconomic factors. The region has a strong digital infrastructure and high internet penetration rates, which provide a solid foundation for the adoption of digital audio platforms. Additionally, the increasing use of smartphones and mobile devices has made it easier for people to access digital audio content on the go. The Americas also have a large and diverse advertising industry, with advertisers constantly seeking new and innovative ways to reach their target audience. These factors contribute to the continued growth and development of the Digital Audio Advertising market in the Americas.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital audio advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers 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, media consumption, internet users, 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.

Podcasts are still the cool kid in the media family. Even though podcast advertising revenues remain lower than that of established media such as pay TV or out-of-home, the industry is thriving and has successfully reached the threshold of two billion U.S. dollars in annual ad revenue in the United States. The U.S. is the country with the highest number of podcast listeners worldwide, with an estimated 76 million people or 23 percent of the population consuming that audio content on a regular basis.