Digital audio ads forecasted to see continued growth
Growth in digital audio advertising continues with momentum, according to advertising giant Group M’s This Year Next Year 2023 mid-year forecast. The sector grew 19.4% in 2022. IAB Europe projects the European digital audio market, which stood at €772 million in ad spend in 2022, will surpass the €1 billion mark by 2025.
IAB Europe’s AdEx Benchmark Report highlights that markets with a traditionally high radio share in their media mix, such as Ireland, Belgium, Germany, and Spain have an above-average proportion of digital spending dedicated to digital audio.
“Advertisers and agencies’ top three drivers for audio investment include the channel’s ability to enhance wider media plans (65%), raise brand awareness (55%), and reach specific audiences (48%). Almost half (47%) of advertisers and agencies state audio advertising is either their top or among their top media choices”, the report from OAB and Group M says.
“Mobile devices are the key device for reaching audiences consuming audio content; 70% of buy-side respondents said they expect to reach their audiences via mobile devices whilst 84% of publishers said the same.
“Innovation within digital audio will be a major growth driver, with buyers considering interactive and dynamic audio ads to be a key opportunity for increasing spend.”
“Publishers meanwhile view the rising availability of audio ads and optimising supply as significant growth opportunities. ` Due to the proliferation of audio channels and ad formats, buyers are investing budget across streaming (59%), podcast (59%), and online radio (57%), highlighting the importance of a holistic approach to advertising efforts.”
“EMEA Audio is a channel buzzing with opportunity as buyers and publishers expect notable growth in the near future. As a medium that reaches highly engaged audiences at moments when its more visual counterparts cannot, audio is capable of complementing buyers’ wider plans and publishers’ media offerings”, says Harry Harcus, Group M.
“From 2018 to 2022, digital audio has outpaced all other advertising channels in Europe in terms of compound annual growth rate”m says Daniel Knapp, chief economist at IAB Europe.
“The pandemic served as a cyclical catalyst for digital audio, particularly podcasts, due to a rise in consumption. However, structural enhancements like improved measurement, simplified buying and automation continue to advance the market.”
“The advertising industry’s emphasis on attention in a screen saturated media environment, quality of reach and brand safety positions digital audio as a promising investment channel for advertisers and a potent platform for publishers to exploit context.”
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