This year has been a tough one for advertisers as inflation impacts consumer spending, causing ad spending to fall.
Here are three insights about the state of audio advertising and what’s in store:
Spotify had a successful third quarter, adding 23 million monthly active users to its platform and growing total revenues 21% year over year.
A running start: Spotify had a head start over other music streaming services, said our analyst Daniel Konstantinovic on a recent “Behind the Numbers: The Daily” podcast.
Just for you: Spotify does personalization better than anyone else. The platform’s ability to provide personalized experiences for its users (think Spotify Wrapped and recommended playlists) helps it keep subscribers engaged and entice those not on the platform to give it a try.
Not-so-bright spot: Despite a surge in users, Spotify slightly missed the ad revenue mark.
We predict that worldwide podcast listener growth will continue to slow as the explosive rise in adoption over the pandemic levels off. Listener growth will mainly come from France, Germany, and China, which have some of the largest growth rates in our forecast outside of the US.
US spotlight: The number of US podcast listeners will grow 5.0% this year to reach 124.5 million. Time spent with podcasts is increasing as well, totaling 23 minutes a day this year and growing to 27 minutes by 2024.
Meanwhile, US ad spending on podcasts will increase 30.0% this year and continue to grow by double digits through 2026. Programmatic podcast ad spending will make up an increasing portion of total podcast ad spending, reaching nearly 10% by 2024.
Staying alive: Around 214 million people in the US listen to traditional radio today, down just 3% since 2008.
Something to think about: “Most of the country drives, so most of the country listens to radio,” observed podcast host Marcus Johnson. As cars evolve to become more connected/autonomous/electric, will that have an impact on radio listenership?
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