Although traditional radio advertising remains a $10.5 billion business in the US, it’s slowly shrinking. Digital audio advertising, by contrast, will grow 6.8% in 2024 to reach $7.12 billion.
The average US adult spends more than 2 and a half hours (2:42) each day listening to audio, but advertisers spend only 4.5% of their ad budgets on audio, predominantly in traditional radio. As digital audio services expand their ad-supported offerings, the digital share of audio advertising will approach parity by the end of the decade.
Key Question: Where is the growth in audio advertising, and how does it stack up against other advertising media?
Key Stat: Digital audio will grow at a solid 6.8% rate in 2024 to reach $7.12 billion, but it will still account for just 40.4% of audio revenues.
Key Report Features:
- 2 Exportable files for easy reading, analysis and sharing.
- 9 Charts: Reliable data in simple displays for presentations and quick decision making.
Table of Contents
- Executive Summary
- Audio advertising continues to punch beneath its weight class
- Audio advertising is small but rising thanks to digital
- Audio generates relatively little ad revenues per listener and time spent
- The shift to digital is more gradual in audio than video
- Programmatic audio advertising remains a minority of digital ad sales despite its fast growth
- Podcast advertising’s growth holds its lead
- Pandora holds a shrinking lead in digital audio advertising
- Diversifying audio listening behavior will create new audio formats
- Media Gallery
Charts
- Despite Shrinking Broadcast Radio Ad Revenues, Audio Ads Power Ahead Thanks to Digital Audio
- Digital Audio Has the Lowest Ad Spend per User of Any Major Ad Medium
- Audio Advertising Generates Far Less Ad Spend per User Hour Than Other Media
- Audio Advertising Has Shifted to Digital More Gradually Than Video Advertising Has
- Programmatic Audio Only Produces a Quarter of Digital Audio Ad Spending-but Growth Is Fast
- Podcast Ads Will Earn More Than a Third of Digital Audio Ad Revenues Next Year
- Spotify Continues to Catch Up to Pandora in Digital Audio Ad Share
- While Ad Spending on Pandora Shrinks, Spending on Spotify Grows by Double Digits
- Only About Half of US Digital Audio Listening Occurs on Mobile Devices
Companies Mentioned
- Spotify
- Pandora
