Market Insights Advertising & Media Advertising Audio Advertising

Digital Audio Advertising - NAFTA

NAFTA

Ad spending in the Digital Audio Advertising market within NAFTA is forecasted to reach US$7.37bn in 2024.
The market is expected to experience an annual growth rate (CAGR 2024-2029) of 7.90%, leading to a projected market volume of US$10.78bn by 2029.
With a projected market volume of US$7,078.00m in 2024, the United States is anticipated to generate the most revenue within the Digital Audio Advertising market.
By 2029, the number of listeners in the Digital Audio Advertising market is expected to reach 273.10m users.
The average ad spending per user in the Digital Audio Advertising market is projected to be US$34.14 in 2024.
In 2029, 80.00% of the total ad spending in the Digital Audio Advertising market is estimated to be generated through mobile.
In the NAFTA region, programmatic buying is driving growth in Digital Audio Advertising, offering targeted and efficient ad placements to reach specific audiences effectively.

Key regions: Australia, United Kingdom, Germany, India, Europe

Market

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Region comparison

Currency

Analyst Opinion

The Digital Audio Advertising market in NAFTA is experiencing significant growth and development due to several key factors.

Customer preferences: Customers in the NAFTA region are increasingly turning to digital audio platforms for their entertainment and information needs. The convenience and accessibility of streaming services and podcasts have made them a popular choice for consumers. Additionally, the rise of smart speakers and voice-activated devices has further fueled the demand for digital audio content.

Trends in the market: One of the major trends in the Digital Audio Advertising market in NAFTA is the shift towards programmatic advertising. Programmatic advertising allows advertisers to target specific audiences and deliver personalized messages in real-time. This trend is driven by the increasing availability of data and advanced targeting capabilities, which enable advertisers to reach their desired audience more effectively. Another trend in the market is the growing popularity of native advertising in digital audio. Native ads seamlessly blend into the content, providing a non-intrusive advertising experience for listeners. This form of advertising is particularly effective in digital audio, as it allows brands to engage with consumers in a more authentic and contextual manner.

Local special circumstances: The Digital Audio Advertising market in NAFTA is also influenced by local special circumstances. In the United States, for example, the market is highly competitive, with a large number of streaming services and podcast platforms vying for listeners' attention. This competition has led to innovative advertising strategies and formats, as companies strive to differentiate themselves and attract advertisers. In Canada, the bilingual nature of the market presents unique challenges and opportunities for digital audio advertising. Advertisers need to consider both English and French-speaking audiences, and tailor their campaigns accordingly. This requires a deep understanding of the cultural nuances and preferences of each audience segment.

Underlying macroeconomic factors: The growth of the Digital Audio Advertising market in NAFTA is also influenced by underlying macroeconomic factors. The strong economic growth in the region has led to increased consumer spending and advertising budgets. Advertisers are looking for innovative ways to reach their target audience, and digital audio advertising provides a cost-effective and targeted solution. Furthermore, the increasing penetration of smartphones and mobile devices in the region has also contributed to the growth of the market. With more people accessing digital audio content on their mobile devices, advertisers have the opportunity to reach a larger audience and engage with them on a more personal level. In conclusion, the Digital Audio Advertising market in NAFTA is experiencing rapid growth and development due to customer preferences for digital audio platforms, the rise of programmatic advertising, and the popularity of native advertising. Local special circumstances, such as competition in the United States and bilingualism in Canada, also play a role in shaping the market. Additionally, underlying macroeconomic factors, such as strong economic growth and increased smartphone penetration, contribute to the growth of the market.

Methodology

Data coverage:

Data encompasses enterprises (B2B). Figures are based on digital audio advertising spending and exclude agency commissions, rebates, production costs, and taxes. The market covers pre- and in-stream audio ads and podcast streaming ads.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party reports, web traffic, and survey results from our primary research (e.g., Consumer Insights) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, media consumption, internet users, and digital consumer spending.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market. For instance, the S-curve function is well suited to forecast digital products due to the non-linear growth of technology adoption, whereas exponential trend smoothing (ETS) is more suited for projecting steady growth in traditional advertising markets.

Additional notes:

Data is modeled using current exchange rates. The impacts of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice per year in case market dynamics change.