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How is programmatic advertising shaping the growth of the digital audio ad market, and how should advertisers spending in terrestrial radio think about balancing their spend between terrestrial and digital audio channels?

Although traditional radio advertising remains a $10.5 billion business in the US, it鈥檚 slowly shrinking. Digital audio advertising, by contrast, will grow 6.8% in 2024 to reach $7.12 billion.

Key Question: How quickly will the digital audio ad market grow over the next four years? Key Stat: Spending on digital audio ads will rise $1.62 billion between 2024 and 2028, per our forecast. But total audio ad spending will grow by less than $1 billion during that period. Executive Summary. Advertising budgets are migrating out of terrestrial radio very slowly.

Digital audio advertising will have a CAGR of 5.3%, including 8.5% for podcast advertising. The rapid growth will push digital鈥檚 share of audio advertising to 47.4% by 2028. In-game advertising remains mostly a mobile affair, but consoles and PC developers are making moves. Ad buyers will spend 90.4% of their in-game ad dollars on mobile games in 2024.

Digital audio ad sellers must fight an unusually steep uphill battle to grow their businesses. In addition to concerns over audio's creative limitations relative to other digital formats, many of the format鈥檚 largest services were launched as ad-free, subscription-focused products. Most of the largest services鈥攏ow well over a decade old鈥攈ave run out of easy user growth opportunities.

Nearly two-thirds of digital audio revenues come from subscriptions ($13.60 billion this year), far more than come from advertising ($7.12 billion). Time spent with digital audio exceeds time spent with traditional radio. The average US adult will spend 1 hour and 24 minutes (1:24) per day listening to some form of digital audio this year.

Use this chart: Marketers can use this chart to pitch exclusive audio content creation partnerships, determine audio ad budgets, and make the case for investing in digital audio due to its large listener base. Related 蘑菇AV reports:. US Digital Audio Forecast Overview 2024 (蘑菇AV subscription required). Radio and Digital Audio Ad Spending Benchmarks: Q4 2024 (蘑菇AV subscription required).

CVS partnered with The Trade Desk and Vibenomics to offer self-service audio ads to shoppers in 6,900 stores. 7-Eleven plans to expand its Gulp Radio network to 5,000 stores by the end of 2024, and to all 12,000+ 7-Eleven, Speedway, and Stripes locations nationwide by the end of next year.

We cover average eCPMs for digital video, digital display, and digital audio ad inventory tracked by Guideline. This report covers the period from Q2 2023 to Q2 2024, including YoY and QoQ percentage changes in Q2 2024. Definitions. eCPM is a publisher metric that focuses on revenues to the seller.

The danger of relying entirely on AI for audio ad creation is that it could be hard to tackle some of its inherent bias and lack of inclusivity. Our take: AI personalization as applied to audio advertising can exponentially increase listener engagement. And AI audio ads present a better use case than AI video ads, some of which have been harshly criticized.

We expect US creators to generate $1.49 billion in digital audio revenues in 2024. That equates to just 10.9% of the $13.70 billion creators will earn on social media this year, but it鈥檚 up from $610 million in 2020. And those figures aren鈥檛 mutually exclusive. For example, we consider any revenues generated by creators via YouTube Podcasts to be social media revenues.

In-store retail media is growing rapidly, with players like CVS and 7-Eleven using digital screens and audio ads near points of purchase, despite infrastructure challenges. Obstacles to growth: Advertising measurement challenges persist, as marketers seek to prove retail media鈥檚 incremental value, especially in physical stores, while third-party solutions attempt to bridge gaps.

Note: Nonvideo rich media includes nonvideo ads which feature various levels of interaction (including scrolling, expanding, or clicking within the ad) such as splash screens, pop-up and pop-under ads, daughter windows, interstitials and superstitials, and digital audio ads for all formats mentioned.

Loblaw partnered with Stingray for in-store audio advertising across the grocer鈥檚 national network of nearly 300 stores. Connected TV (CTV) platforms are using retail media networks (RMNs) to target viewers. They utilize first-party data from retailers to target viewers in ad-supported video-on-demand services.

While Amazon excels in digital efficiency, it has less presence in physical retail, where innovations like in-store audio ads, digital displays, and smart carts are gaining traction. In-store and omnichannel innovations are expanding the retail media playing field. Retailers are using generative AI tools to personalize shopper experiences and improve RMN ad targeting.

In-store retail media doesn鈥檛 have to be limited to the physical. In-store audio ads increase awareness among consumers without disrupting their shopping experience.

Though marketing budgets are under scrutiny in this tight economy, it might make sense to consider integrating audio advertising into your marketing mix. That鈥檚 because listener growth is picking up for podcasts and audio formats overall. Audio ad formats also have unique features to help marketers.