Where does digital audio fit in the landscape of digital ad spend? Good question.
Digital audio will have 197.5 million adult listeners in the US this year, but each listener will generate only $36.05 in ad revenues. Radio fares slightly better at $49.10, but both pale next to most other major video platforms.
Audio captures only a small slice of ad budgets. An estimated 4.5% of 2024 media spend in the US will go to audio, with digital audio capturing only 1.8% of that total. Even with steady growth over the next few years, digital audio’s share will drop to 1.6% by 2028, and overall audio will capture only 3.4%. By comparison, in 2024, traditional TV will capture 15.1% and digital video 27.8% of media spend.
Audio ad spend is less than time spent would suggest. The average adult will spend an average of 2:42 each day listening to audio in 2024—21.4% of total media time spent. A little over half of that (1:24) is digital audio.
Monetization via subscriptions limits digital audio ad slots. The relatively low ad spend reflects, in part, limited inventory. Audio subscriptions will account for 63.0% of digital audio revenues in 2024.