The global audio advertising market is estimated to grow at a healthy CAGR over the forecast period. The primary growth factor that drives the global audio advertising market worldwide is the growing adoption of online streaming music services across the globe on account of the variety of content available on those platforms. In addition, the continuously increasing penetration of smartphones coupled with the rising penetration of the internet is also augmenting the trend of audio advertising. The growing adoption of audio advertisements by the companies across the various industry verticals due to low costs and high conversion rates are also some of the key factors bolstering the growth of the market during the next five years. Furthermore, there is a continuously evolving trend of advertising in which audio advertisement is considered as one the most integral part of this evolution which is propelling the growth opportunities for the advertisers by which they are able to combine their precision of the target audience to which the message is to be circulated. This, in turn, is propelling the adoption of audio advertising significantly and adding up to the market growth in the next five years.
The growing number of users availing of the online music streaming services or who listen to online music is anticipated to propel the growth opportunities for the market to surge throughout the forecast period.
Rising penetration of the internet is significantly driving the demand
The rapid adoption of technology across the major developing economies coupled with the increase in the adoption of technology is boosting the need for internet accessibility. The growing penetration of smartphones has led to the deep penetration of the internet among the general population. As the number of smartphones users is increasing, this has led to a significant surge in the shipments of smartphones in the coming years especially in the developing economies of the world. According to the World Bank, the percentage of the population using the internet increased from 6.77% in 2000 to 47.72% in 2017. Simultaneously, the number of households with broadband access has increased significantly in both developed and developing economies. For instance, in the Netherlands, the number of individuals using the internet increased to 93.2% of the total population in 2017 from 90.7% in 2010, similarly, in Turkey, it increased from 39.82 in 2010 to 64.68 % according to the World Bank Group. Moreover, according to the United Nations, the global population is expected to reach 9.8 billion by 2050 which will further increase the use of the internet in the future. The growing internet penetration will increase the trend of online music over the coming years thereby positively impacting the audio advertisement market growth throughout the forecast period and beyond.
Music-on-demand is anticipated to surge at a noteworthy rate
On the basis of medium, the global audio advertising market has been classified on the basis of radio and music-on-demand. The music-on-demand medium is projected to show robust growth during the next five years owing to the growing penetration of numerous online music platforms that offer high-quality music to the users and a variety of content along with numerous genres. In addition, other benefits such as a download of music and listening to them on offline modes at minimal costs are also leading to the high adoption of these services in the coming years. Furthermore, the growing risks of spam and piracy issues are also leading to the high adoption of these services especially across the developing economies due to higher purchasing power.
The radio segment is anticipated to hold a noteworthy share during the coming years owing to the high adoption of advertisements through this medium on account of considerably lower costs. However, the growth of this segment is projected to be slow throughout the forecast period.
Smartphones to rule the market
On the basis of devices, the global audio advertisement market has been segmented on the basis of smartphones and tablets, smart TV, and radio among others. The smartphone/tablets are projected to hold a notable share in the global market majorly on account of the rising penetration of these devices due to the rising disposable income and growing consumer purchasing power. Also, the availability of faster and cheaper mobile services with high-speed internet also supports the share of this segment during the next five years.
The radio is anticipated to continue showing a robust growth during the next five years as high adoption of these types of devices is expected in the coming years especially in developing and under-developed economies on account of their low cost.
The Asia Pacific to show robust growth
On the basis of geography, the global audio advertising market has been segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The Asia Pacific region is projected to show decent growth over the next five years on account of higher penetration of internet in the developing counties like India and China among others coupled with the high adoption of online streaming services due to the growing middle-class population and rising penetration of smartphones also.
Prominent key market players in the global audio advertising market include Spotify AB, Pandora Media, LLC, Wynk, Cumulus Media, iHeartMedia Inc., Global, Entercom Communications Corp., SBS, Townsquare, Music Broadcast Limited, Entertainment Network (India) Limited, BAUER CONSUMER MEDIA LTD, and Next Radio Ltd among others. These companies hold a noteworthy share in the market on account of their good brand image and product offerings.
Major players in the global audio advertising market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.
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