A new advertising category has been created to cater for the increase in demand for digital audio in Australia.
The result of an industry collaboration between IAB Australia and Commercial Radio & Audio, the IAB Australia Online Advertising Expenditure Report (OAER) prepared by PwC reveals that Australia’s digital audio advertising market across podcasts, music and radio streaming hit AU$221.2 million in 2022.
Streaming attracted the biggest slice of the pie with 63% of total digital audio spend (AU$138.7 million), while podcasting accounted for the remaining 37% (AU$82.5 million).
“With the increase in investment in both streaming audio and podcasting advertising it was important that we have an accurate picture of the market and we are pleased to have digital audio spend now tracked as a category in its own right,” said Gai Le Roy, CEO of IAB.
“In 2022 digital audio represented 4% of the total digital display market. Digital audio revenue, including both agency and direct investment dollars, will now be included in our regular quarterly reports.”
CRA CEO Ford Ennals added that digital audio had emerged as a category in its own right following soaring growth in listener numbers and strong interest by advertisers.
“Digital audio is one of the most significant growth markets in Australian media with both streaming and podcast listening and revenue continuing to surge. PWC has confirmed that they expect to see continued strong digital audio growth in 2023. Digital audio revenue is incremental to broadcast radio spend, which remains robust.”
Edison’s Infinite Dial Australia study found that 71% of Australians listen to audio online on a weekly basis, up from 46% five years ago, while 40% of Australians listen to a podcast monthly. The Australian Podcast Ranker, which reports on the most popular podcasts consumed in Australia each month, showed Australians downloaded more than 755 million podcasts in 2022.