Digital Audio Advertising - United Kingdom

Ad spending in the Digital Audio Advertising market in the United Kingdom is forecasted to reach £215.50m in 2024.
Ad spending is anticipated to demonstrate an annual growth rate (CAGR 2024-2030) of 3.80%, leading to a projected market volume of £243.30m by 2030.
With a projected market volume of £5.18bn in 2024, most revenue will be generated the United States.
In the Digital Audio Advertising market in the United Kingdom, 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 the United Kingdom is projected to be £6.33 in 2024.
In the Digital Audio Advertising market in the United Kingdom, 66% of total ad spending will be generated through mobile in 2030.
In the United Kingdom, the surge in programmatic buying is reshaping the landscape of digital audio advertising, offering targeted and data-driven solutions to advertisers.

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 United Kingdom is experiencing significant growth and development.

Customer preferences: Customers in the United Kingdom are increasingly turning to digital audio platforms for their entertainment and information needs. The convenience and accessibility of digital audio content, such as podcasts and streaming music services, have made them popular choices for consumers. Additionally, the rise of smart speakers and voice assistants has further fueled the demand for digital audio content.

Trends in the market: One major trend in the Digital Audio Advertising market in United Kingdom is the shift from traditional radio advertising to digital audio advertising. Advertisers are recognizing the potential of reaching a highly engaged audience through digital audio platforms. The ability to target specific demographics and personalize advertising messages has made digital audio advertising an attractive option for brands. Furthermore, the increasing popularity of programmatic advertising has made it easier for advertisers to buy and optimize digital audio ad placements. Another trend in the market is the rise of native advertising in digital audio. Native ads seamlessly blend into the user experience, providing a non-disruptive and engaging advertising format. This form of advertising is particularly effective in the digital audio space, where users are often listening to content without visual distractions. Advertisers are leveraging native advertising to create customized and relevant messages that resonate with listeners.

Local special circumstances: The United Kingdom has a highly developed media and advertising industry, making it an ideal market for digital audio advertising. The country has a high internet penetration rate and a tech-savvy population, which has contributed to the rapid adoption of digital audio platforms. Additionally, the United Kingdom has a strong tradition of radio broadcasting, and digital audio advertising allows advertisers to tap into this established medium while also embracing the digital revolution.

Underlying macroeconomic factors: The growth of the Digital Audio Advertising market in United Kingdom is also influenced by underlying macroeconomic factors. The country has a strong economy and a stable advertising market, which provides a favorable environment for digital audio advertising investment. Additionally, the increasing use of mobile devices and the proliferation of high-speed internet have made it easier for consumers to access digital audio content on the go. These factors have contributed to the growth and development of the Digital Audio Advertising market in United Kingdom.

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.