Digital Audio Advertising - United States

Ad spending in the Digital Audio Advertising market in the United States is forecasted to reach US$6.59bn in 2024.
The market is expected to demonstrate an annual growth rate (CAGR 2024-2030) of 6.55%, leading to a projected market volume of US$9.64bn by 2030.
With a projected market volume 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 anticipated to reach 0.0users.
The average ad spending per user in the Digital Audio Advertising market is estimated to be US$35.56 in 2024.
In 2030, 80% of total ad spending in the Digital Audio Advertising market will be attributed to mobile.
In the United States, the surge in programmatic buying is reshaping the landscape of Digital Audio Advertising, offering targeted and efficient ad placement 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 United States is experiencing significant growth and development due to several key factors.

Customer preferences: Customers in the United States are increasingly turning to digital audio platforms for their entertainment and information needs. With the rise of streaming services and the popularity of podcasts, consumers have more options than ever before for accessing audio content. This shift in customer preferences has created a ripe 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 United States is the increasing adoption of programmatic advertising. Programmatic advertising allows advertisers to target specific demographics and audience segments with precision, ensuring that their messages are delivered to the right people at the right time. This trend is driven by advancements in technology and data analytics, which enable advertisers to optimize their campaigns and achieve better results. Another trend in the market is the growing popularity of voice-activated devices, such as smart speakers. These devices have become a common feature in many households, providing a convenient way for consumers to access audio content. Advertisers are capitalizing on this trend by creating targeted audio ads that can be played on these devices. This allows advertisers to reach consumers in their homes, where they are most likely to engage with the content.

Local special circumstances: The United States has a highly developed digital advertising ecosystem, with a large number of platforms and publishers offering digital audio advertising opportunities. This competitive landscape has led to innovation and investment in the sector, driving the growth of the market. Additionally, the United States has a large and diverse population, providing advertisers with a wide range of target audiences to reach through digital audio advertising.

Underlying macroeconomic factors: The Digital Audio Advertising market in United States is also influenced by macroeconomic factors. The United States has a strong economy and high levels of consumer spending, which creates a favorable environment for advertising. Additionally, the United States has a high level of internet penetration and smartphone usage, making it easier for advertisers to reach consumers through digital channels. These factors contribute to the growth and development of the Digital Audio Advertising market in United States.

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.