Digital Audio Advertising - EU-27

Ad spending in the Digital Audio Advertising market in EU-27 is forecasted to reach US$959.90m in 2024.
The ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2030) of 3.69%, leading to a projected market volume of US$1.19bn by 2030.
With a projected market volume of US$6.59bn in 2024, the majority of revenue will be generated within EU-27.
In the Digital Audio Advertising market in EU-27, the number of listeners is expected to reach 0.0users by 2030.
The average ad spending per user in the Digital Audio Advertising market in EU-27 is estimated to be US$9.47 in 2024.
Within the Digital Audio Advertising market in EU-27, 68% of total ad spending is projected to be generated through mobile in 2030.
In the EU-27, programmatic buying is driving the growth of Digital Audio Advertising, allowing for targeted and efficient ad placements across diverse audiences.

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 EU-27 is experiencing significant growth and development due to changing customer preferences and the increasing popularity of streaming services.

Customer preferences: Customers in the EU-27 are increasingly turning to digital audio platforms for their entertainment needs. With the rise of smartphones and other portable devices, consumers can now access their favorite music and podcasts anytime, anywhere. This has led to a shift in customer preferences towards digital audio advertising, as it allows brands to reach their target audience in a more personalized and engaging way.

Trends in the market: One of the key trends in the Digital Audio Advertising market in EU-27 is the growing adoption of programmatic advertising. Programmatic advertising uses data and algorithms to automate the buying and selling of ad inventory, allowing advertisers to reach their target audience more efficiently. This trend is driven by the increasing availability of data on consumer behavior and preferences, which enables advertisers to deliver more relevant and personalized ads. Another trend in the market is the rise of native advertising. Native ads are designed to blend in with the content of the platform they appear on, providing a seamless and non-disruptive user experience. This type of advertising is particularly effective in the digital audio space, where users are often listening to music or podcasts and may be less receptive to traditional display ads.

Local special circumstances: The Digital Audio Advertising market in EU-27 is influenced by local factors such as language diversity and cultural preferences. Each country within the EU-27 has its own unique language and cultural landscape, which poses challenges for advertisers trying to reach a diverse audience. Advertisers need to tailor their campaigns to local languages and cultural nuances to effectively engage with consumers in each country.

Underlying macroeconomic factors: The growth of the Digital Audio Advertising market in EU-27 is also driven by underlying macroeconomic factors. The EU-27 has a large and affluent consumer base, with high levels of internet penetration and smartphone ownership. This provides a fertile ground for digital audio advertising to thrive, as advertisers can reach a large and engaged audience. In addition, the EU-27 has a strong digital infrastructure, with reliable internet connectivity and advanced mobile networks. This enables consumers to easily access digital audio platforms and stream content without interruption. The availability of high-quality streaming services contributes to the growth of the Digital Audio Advertising market in EU-27, as consumers are more likely to engage with ads when they have a seamless listening experience. Overall, the Digital Audio Advertising market in EU-27 is experiencing significant growth and development due to changing customer preferences, the adoption of programmatic advertising, the rise of native advertising, local special circumstances, and underlying macroeconomic factors. Advertisers in the EU-27 are increasingly recognizing the potential of digital audio advertising to reach and engage with their target audience, and this trend is expected to continue in the coming years.

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.