Digital Audio Advertising - New Zealand

Ad spending in the Digital Audio Advertising market in New Zealand is forecasted to reach US$13.88m in 2024.
The expected annual growth rate (CAGR 2024-2030) is 2.07%, leading to a projected market volume of US$15.70m by 2030.
With a projected market volume of US$6.59bn in 2024, the majority of revenue will be generated the United States.
In New Zealand's Digital Audio Advertising market, the number of listeners is anticipated to reach 0.0users by 2030.
The average ad spending per user in the Digital Audio Advertising market is estimated to be US$20.54 in 2024.
In the Digital Audio Advertising market of New Zealand, 65% of total ad spending will be generated through mobile in 2030.
New Zealand's digital audio advertising market is experiencing rapid growth, with increased investment from local businesses and a shift towards programmatic buying strategies.

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 New Zealand is experiencing significant growth and development. Customer preferences are shifting towards consuming audio content on digital platforms, driving the demand for digital audio advertising. This trend is influenced by various factors, including the increasing popularity of music streaming services and the widespread use of smartphones.

Customer preferences: Customers in New Zealand are increasingly turning to digital platforms for their audio consumption. Music streaming services have gained immense popularity, offering users access to a vast library of songs and personalized playlists. This shift in consumer behavior has created a lucrative opportunity for advertisers to reach their target audience through digital audio advertising. Furthermore, the convenience and portability of smartphones have made it easier for people to access audio content on the go, further driving the demand for digital audio advertising.

Trends in the market: One of the key trends in the digital audio advertising market in New Zealand is the rise of programmatic advertising. Programmatic advertising allows advertisers to automate the buying and selling of ad inventory, enabling them to reach their target audience more efficiently and effectively. This trend is driven by the increasing availability of data and advanced targeting capabilities, which enable advertisers to deliver personalized and relevant ads to their audience. Additionally, the use of programmatic advertising can help advertisers optimize their ad spend and maximize their return on investment. Another trend in the market is the integration of digital audio advertising with other forms of digital advertising. Advertisers are increasingly adopting a multi-channel approach, combining digital audio advertising with display, video, and social media advertising to create a cohesive and integrated marketing campaign. This trend is driven by the need to reach consumers across multiple touchpoints and engage them through different mediums. By integrating digital audio advertising with other forms of digital advertising, advertisers can create a unified brand experience and increase their overall reach and impact.

Local special circumstances: New Zealand has a strong music culture, with a high proportion of the population being music enthusiasts. This cultural aspect creates a favorable environment for digital audio advertising, as people are more likely to engage with audio content and be receptive to audio advertisements. Additionally, the relatively small population of New Zealand allows advertisers to target their audience more effectively and efficiently, resulting in higher engagement and conversion rates.

Underlying macroeconomic factors: The growing digital audio advertising market in New Zealand is also influenced by underlying macroeconomic factors. The country has a stable and growing economy, which provides a favorable business environment for advertisers. Furthermore, the high internet penetration rate and increasing smartphone adoption in New Zealand contribute to the growth of the digital audio advertising market. These factors create a conducive environment for advertisers to invest in digital audio advertising and reach their target audience effectively.

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.