Digital audio services ad spend in the U.S. 2023-2027

In 2023, digital audio services advertising spending in the United States was expected to amount to 6.79 billion U.S. dollars. The latest predictions indicate that this figure will rise to 9.74 billion by 2027.

Digital audio advertising is the next big thing

The U.S. audio landscape has undergone a fundamental digital transformation fueled by the emergence of digital streaming services and audio companies such as Spotify. Now that audio content can essentially be accessed at any time from any place and consumption is primarily taking place online, marketers are also starting to leverage these digital channels for promotion. In 2021, digital audio advertising spending increased by around 16 percent in the U.S., and while spending growth is forecast to only increase by single digits after 2022, this consistent upward trajectory already provides an insight into the digital future of audio advertising. That said, short-form user-generated audio is also poised to stir the social media and advertising pot in the future.

Podcast advertising shows plenty of potential

Podcasts are playing a much greater role in companies’ marketing plans and activities than they did a few years ago. In 2021, the number of podcast listeners in the U.S. reached an estimated 83 million, and as over 100 million online users are forecast to be listening to podcasts by 2024, marketers are embracing this up-and-coming digital audio format for ad purposes more eagerly. Podcast advertising revenue in the U.S. jumped from just over 100 million U.S. dollars in 2015 to more than 842 million in 2020, with even more rapid growth expected for the following years. While podcast advertising is accelerating, data shows that podcasts and online audio, in general, remain the most under-invested media formats worldwide.