Digital Audio Advertising - Malaysia

The Digital Audio Advertising market in Malaysia is forecasted to reach US$16.19m in 2024.
It is expected to demonstrate an annual growth rate (CAGR 2024-2030) of 6.28%, leading to a projected market size of US$23.33m by 2030.
With a projected market value of US$6.59bn in 2024, the majority of revenue will be generated the United States.
By 2030, the number of listeners in the Digital Audio Advertising market is expected to reach 0.0users.
The average ad spending per user in the Digital Audio Advertising market is anticipated to be US$3.14 in 2024.
In 2030, 77% of the total ad spending will come from mobile platforms.
In Malaysia, the surge in programmatic buying is reshaping the digital audio advertising landscape, offering targeted and cost-effective ad placements to brands.

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 Malaysia is experiencing significant growth and development.

Customer preferences: Customers in Malaysia are increasingly turning to digital audio platforms for their entertainment and information needs. With the rise of smartphones and the availability of affordable data plans, more and more Malaysians are accessing digital audio content through streaming services, podcasts, and online radio. This shift in consumer behavior has created a lucrative opportunity for advertisers to reach their target audience through digital audio advertising.

Trends in the market: One of the key trends in the Digital Audio Advertising market in Malaysia is the increasing popularity of streaming services. Platforms such as Spotify, Joox, and Apple Music have gained a strong foothold in the market, attracting a large number of users who are willing to pay for premium subscriptions. This provides advertisers with a highly engaged and captive audience, allowing them to deliver targeted and personalized advertisements. Another trend in the market is the growing popularity of podcasts. Malaysians are increasingly turning to podcasts for both entertainment and education. This presents a unique opportunity for advertisers to reach a highly engaged audience through podcast sponsorships and advertisements. Advertisers can align their brand with relevant podcast content and leverage the trust and loyalty that podcast hosts have built with their listeners.

Local special circumstances: One of the local special circumstances that is driving the growth of the Digital Audio Advertising market in Malaysia is the increasing smartphone penetration rate. Malaysia has one of the highest smartphone penetration rates in Southeast Asia, with a large portion of the population owning smartphones. This has created a conducive environment for digital audio consumption, as users can easily access streaming services and podcasts on their mobile devices.

Underlying macroeconomic factors: The growing Digital Audio Advertising market in Malaysia can also be attributed to the country's strong economic growth and increasing disposable income. As the economy continues to expand, more Malaysians have the means to access digital audio platforms and are willing to pay for premium subscriptions. This has attracted both local and international streaming services to invest in the Malaysian market, further driving the growth of the Digital Audio Advertising market. In conclusion, the Digital Audio Advertising market in Malaysia is experiencing significant growth and development due to changing customer preferences, including the increasing popularity of streaming services and podcasts. Local special circumstances such as high smartphone penetration rates and strong economic growth are also contributing to the growth of the market. Advertisers in Malaysia have a unique opportunity to reach a highly engaged audience through targeted and personalized advertisements on digital audio platforms.

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.