Global Audio Advertising Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Medium (Radio, Music-on-Demand), By Device (Smartphones And Tablets, Smart TV, Radio, Others), And By Geography - Forecasts From 2022 To 2027

Published:  Jul 2022 Report Code: KSI061613516 Pages: 150

The audio advertising market is valued at US$31.811 billion in 2020.

Audio advertising is the presentation of advertisements in the form of audio records via internet streaming platforms such as podcasts, music streaming applications, and radio channels. In accordance with the rising popularity of audio, advertising through this medium is also gaining popularity, thanks to technological developments and customer demand. Audio streaming services also saw an increase in users, owing to the COVID-19 pandemic.

Podcasts have also had a significant impact on the audio advertising market, as audiences have started adopting podcasts as their means of media consumption. However, the rise in the adoption of adblockers may prove to be a setback for the audio advertising market and may decrease the overall market demand.

Impact of the COVID-19 pandemic on Audio Advertising Market

The recent outbreak of the COVID-19 pandemic had a positive impact on the global audio advertising market. With the restrictions and work-from-home norms set up by various governments, the audio streaming market saw a massive increase in users. With an increase in the number of audio users, streaming services increased by 24% year on year in 2021, compared to a 19% increase from 2019 to 2020 and a 22% increase from 2018 to 2019, according to an International Music Summit (IMS) report.

The IMS also noted that the recording music business had crossed the $26 billion mark across all genres, an 18% increase over the previous year. This surge in the number of streaming audiences increased demand for the advertising market.

Advancements in audio advertising

Audio is becoming increasingly appealing for brand advertising since it can be presented in an open environment. Earlier this year, Spotify added clickable cards to its digital audio advertisements, allowing users to act after hearing advertising material. More than 1 million new podcasts were added to Spotify in 2021, accounting for roughly a third of the total podcast inventory (3.2M podcasts). As consumption increases, Spotify aims to make it easier for audiences to understand and interact with advertisements and for marketers to extend their reach.

iHeart announced its plan to launch a new digital ad network earlier this year. The iHeart Audience Network (iAN) will gather advertising content across streaming and podcasting from the iHeartRadio database and other premium publishers. With the debut of the new ad network, iHeart claims that advertisers will achieve scale in their digital audio buys, as well as target addressable audiences across numerous channels, devices, and behaviours to pinpoint the proper audience.

Podcasts gaining popularity

With an increase in the adoption of podcasts as a source of audio consumption, audio companies have reported a considerable influx of users in the genre. Companies have also reported significant revenue generation from audio advertising through podcasts. According to a report by IAB, podcast ad revenue increased by 19% year-on-year in 2020. Despite the pandemic, revenues from podcast advertising increased to $842 million in 2020 from $708 million in 2019.

Spotify's focus on podcasting helped it beat expectations in terms of advertising revenue, which increased 29% year on year to €281 million, as advertiser demand continued to rebound after dropping at the start of the pandemic. Ad income from its podcasts increased by more than 100% year on year, with a 50% rise in the number of sponsors compared to the third quarter.

 Advertising now accounts for a sizable portion of total revenue, accounting for 13% in the fourth quarter. Spotify also announced its multi-year partnership with Harry and Megan, The Duke and Duchess of Sussex, to produce and present podcasts that showcase and promote various viewpoints and voices and inspire audiences through storytelling.

With this partnership, Spotify seeks to strengthen the community via shared experiences, perspectives, and beliefs. With such an increase in the popularity of podcasts, it serves as a ready market for audio advertisements and is expected to drive up the demand significantly.

Rise in the prevalence of ad blockers

Ad-blockers have seen a significant increase in demand among users. Ad blockers protect users from malvertising, maintain privacy and provide a better ad-free experience for users. Moreover, they are usually free to use. According to Blockthrough, by the end of 2020, there were 257 million PC adblockers and 586 million mobile adblockers.

However, the AdBlock rates observed by the most prevalent AdBlock detection approaches only account for around 60% to 80% of total Adblock usage. With 40.6% of consumers using adblockers, Asia leads the AdBlock market, followed by Europe (29.6%), the Americas (19.2%), Africa (9.2%), and Oceania (1.2%).

Ad-blockers like the Brave browser, EZBlocker, etc., filter out ads from audio streaming platforms without requiring premium audio subscriptions from streaming companies. Such an increase in the adoption of adblockers may prove to be unfavourable for audio advertising agencies and companies. 

Key Developments

  • May 2022: Veritonic's announced the debut of its audio Attribution solution, which enables marketers to track and evaluate the effectiveness of audio advertisements across any app, hosting platform, or listening device. Veritonic is the market's all-encompassing audio research and analytics platform. Attribution, a crucial part of Veritonic's audio research and analytics platform, aids marketers in comprehending the impact of their audio creative and gaining useful insights that increase the return on their advertising investments.
  • November 2020: In order to stay up with the various ways users are interacting with the site, YouTube is adding audio adverts. To reach users who use the service as their audio and podcast player, YouTube is introducing a new sort of audio-based ad unit. Although there is enormous potential to engage other sorts of audiences as well, YouTube highlights how audio advertisements are the ideal match for music channels.
  • February 2020: At Podfront LA 2020, iHeartMedia launched the iHeartPodcast AdSuite, a tool for advertisers to efficiently deliver outcomes. This innovative product will give premium advertisers an easy-to-read summary of podcast listener analytics, including audience insights and profiles, consumption/engagement metrics, and delivery reporting, from all of the platforms to which the iHeartPodcast Network distributes content.

Global Audio Advertising Market Scope:

Report Metric Details
 Market size value in 2020  US$31.811 billion
  Growth Rate  CAGR of during the forecast period
 Base year  2020
 Forecast period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments Covered  Medium, Device, And Geography
 Regions covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies covered Spotify AB, Saavn Media Pvt Ltd., Pandora Media, LLC, Airtel Digital Limited, Cumulus Media, iHeartMedia Inc., SBS, Townsquare HQ, Music Broadcast Limited, ENIL, BAUER CONSUMER MEDIA LTD
 Customization scope  Free report customization with purchase

 

Segmentation

  • By Medium
    • Radio
    • Music-on-demand
  • By Device
    • Smartphones and Tablets
    • Smart TV
    • Radio
    • Others
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • Germany
      • France
      • UK
      • Italy
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • UAE
      • Others
    • Asia Pacific
      • China
      • India
      • Japan
      • South Korea
      • Taiwan
      • Thailand
      • Indonesia
      • Others

Frequently Asked Questions (FAQs)

Q1. What is the base year considered in the audio advertising market report?
A1. 2020 has been taken as the base year in the audio advertising market.


Q2. What factors are anticipated to drive the audio advertising market growth?
A2. 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. 


Q3. What is the size of the global audio advertising market?
A3. Audio Advertising Market was valued at US$31.811 billion in 2020. 


Q4. How is the audio advertising market segmented?
A4. The audio advertising market has been segmented by medium, device, and geography.


Q5. Who are the major players in the audio advertising market?
A5. Prominent key market players in the global audio advertising market include Spotify AB, Amazon Music, Deezer, Pandora Media, LLC, Cumulus, and Media iHeartMedia Inc., among others.

1. Introduction
1.1. Market Definition
1.2. Market Segmentation

2. Research Methodology
2.1. Research Data
2.2. Assumptions

3. Executive Summary
3.1. Research Highlights

4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. Audio Advertising Market Analysis, By Medium
5.1. Introduction
5.2. Radio
5.3. Music-on-demand

6. Audio Advertising Market Analysis, By Device
6.1. Introduction
6.2. Smartphones and Tablets
6.3. Smart TV
6.4. Radio
6.5. Others

7. Audio Advertising Market Analysis, by Geography
7.1. Introduction
7.2. North America
7.2.1. USA
7.2.2. Canada
7.2.3. Mexico
7.3. South America
7.3.1. Brazil
7.3.2. Argentina
7.3.3. Others
7.4. Europe
7.4.1. Germany
7.4.2. France
7.4.3. UK
7.4.4. Italy
7.4.5. Others
7.5. Middle East and Africa
7.5.1. Saudi Arabia
7.5.2. UAE
7.5.3. Others
7.6. Asia Pacific
7.6.1. Japan
7.6.2. India
7.6.3. China
7.6.4. South Korea
7.6.5. Taiwan
7.6.6. Thailand
7.6.7. Indonesia

8. Competitive Environment and Analysis
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix

9. Company Profiles
9.1. Spotify AB
9.2. Saavn Media Pvt Ltd.
9.3. Pandora Media, LLC
9.4. Airtel Digital Limited
9.5. Cumulus Media
9.6. iHeartMedia Inc.
9.7. Entercom Communications Corp.
9.8. SBS
9.9. Townsquare HQ
9.10. Music Broadcast Limited
9.11. ENIL
9.12. BAUER CONSUMER MEDIA LTD
9.13. Digital Radio (Delhi) Broadcasting Limited
9.14. Next Radio Ltd (Next Mediaworks Limited)
9.15. SoundCloud
9.16. Southern Cross Media Group Limited
9.17. TBS RADIO, Inc. (Japan)
9.18. ABC Audio
9.19. HT&E

Spotify AB

Saavn Media Pvt Ltd.

Pandora Media, LLC

Airtel Digital Limited

Cumulus Media

iHeartMedia Inc.

Entercom Communications Corp.

SBS

Townsquare HQ

Music Broadcast Limited

ENIL

BAUER CONSUMER MEDIA LTD

Digital Radio (Delhi) Broadcasting Limited

Next Radio Ltd (Next Mediaworks Limited)

SoundCloud

Southern Cross Media Group Limited

TBS RADIO, Inc. (Japan)

ABC Audio

HT&E

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