Audio Advertising - NAFTA | Statista Market Forecast

in North American Free Trade Agreement (NAFTA), the country in focus, is expected to witness Ad spending in the Audio Advertising market reaching US$20.65bn by 2024.
The largest market within NAFTA is Traditional Radio Advertising, with a market volume of US$13.77bn in 2024.
When compared globally, the United States stands out, generating the most ad spending at US$19.07bn in 2024.
The average ad spending per listener in the Traditional Radio Advertising market is projected to be US$43.99 in 2024.
In the NAFTA region, Audio Advertising is experiencing a surge in programmatic buying, optimizing ad targeting and increasing campaign effectiveness.

Definition:
Audio Advertising refers to advertising via traditional radio and digital audio. The category of Traditional Radio Advertising refers to advertising on the program service of a terrestrial radio station or network (terrestrial radio broadcasting and satellite radio services in the U.S. and Canada). 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

Structure:

Traditional Radio Advertising includes all types of spot formats of traditional radio advertising (e.g., classic spots, live reader, content spots, allonge). It also includes direct (local) advertising, in which advertisers reach out to individual stations, and indirect (national) advertising, in which advertisers employ media buying agencies to manage their advertising purchases from individual stations.
Digital Audio Advertising includes ad-supported free versions of premium subscription services or services funded by advertising. 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.

Additional information:
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. Additional definitions of Traditional Radio Advertising and Digital Audio Advertising can be found on the respective pages. For more information on the data displayed, use the info button right next to the boxes.

Traditional Radio Advertising broadcasting on the program service of a terrestrial radio station or network
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 Audio Advertising market in NAFTA is experiencing significant growth and development due to several key factors. Customer preferences are shifting towards audio platforms as a result of changing media consumption habits. Additionally, the market is benefiting from local special circumstances and underlying macroeconomic factors that are driving increased demand for audio advertising.

Customer preferences: Customers in NAFTA are increasingly turning to audio platforms for their entertainment and information needs. This is evident in the growing popularity of streaming services and podcasts. Streaming services such as Spotify and Apple Music have seen a surge in subscribers, while podcasts have become a mainstream form of media consumption. As a result, advertisers are recognizing the value of reaching consumers through audio advertising.

Trends in the market: One major trend in the Audio Advertising market in NAFTA is the rise of programmatic audio advertising. Programmatic advertising allows for targeted and personalized ad placements, maximizing the effectiveness of campaigns. This trend is driven by advancements in technology and data analytics, which enable advertisers to deliver relevant and engaging audio ads to the right audience at the right time. Another trend in the market is the integration of voice-activated devices into consumers' daily lives. Smart speakers such as Amazon Echo and Google Home have gained widespread adoption, providing a new channel for audio advertising. Advertisers are leveraging this trend by creating voice-activated ads that engage with consumers in a more interactive and personalized way.

Local special circumstances: The Audio Advertising market in NAFTA is also benefiting from local special circumstances. For example, the United States has a strong tradition of radio advertising, which has seamlessly transitioned to digital audio platforms. This familiarity with audio advertising has created a receptive audience for new forms of audio advertising, such as streaming services and podcasts. In Canada, the bilingual nature of the country presents unique opportunities for audio advertisers. Advertisers can target specific language preferences and cultural nuances, allowing for more tailored and effective campaigns. Additionally, Mexico has a large and growing population that is increasingly connected to digital platforms, providing a significant market for audio advertisers.

Underlying macroeconomic factors: The Audio Advertising market in NAFTA is also influenced by underlying macroeconomic factors. The region has a strong and stable economy, which provides a favorable environment for advertising investment. As businesses continue to recover from the impact of the COVID-19 pandemic, advertising budgets are expected to rebound, driving increased spending on audio advertising. Furthermore, the increasing penetration of smartphones and internet connectivity in the region is fueling the growth of audio advertising. With more people accessing audio content on their mobile devices, advertisers have a wider reach and greater opportunity to engage with their target audience. In conclusion, the Audio Advertising market in NAFTA is experiencing significant growth and development driven by shifting customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors. Advertisers are recognizing the value of audio platforms in reaching and engaging with consumers, and are leveraging advancements in technology to deliver targeted and personalized audio ads. With a strong economy and increasing connectivity, the region presents a promising market for audio advertising.

Data coverage:

Data encompasses enterprises (B2B). Figures are based on audio advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers traditional radio advertising (broadcasting programs on terrestrial radio stations or networks) and digital audio advertising (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, internet users, consumer spending, 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.