Digital audio ad spend hits $221.2m in Australia as slowdown hits digital market
Australian advertisers spent $221.2m on podcasts, digital radio and music streaming in 2022, according to figures from IAB Australia.
Australian digital market reports first signs of slowdown
The figures, from the IAB’s annual Online Advertising Expenditure Report (OAER), prepared by PwC, mark the first time the digital audio advertising market has been included.
The report found digital streaming attracted $138.7 million or 63% of spend, while podcasting accounted for $82.5 million or 37% of total digital audio spend. Overall, digital audio accounted for 4% of the total digital display market in Australia.
The figures are the result of a partnership between the IAB and Commercial Radio & Audio and it comes as forecasters predict digital audio growth to continue the year thanks to strong growth in listener numbers and advertisers.
CRA CEO Ford Ennals said "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 as more and more businesses and agencies invest in these highly targeted mediums. Digital audio revenue is incremental to broadcast radio spend, which remains robust.”
It comes as the overall digital market experienced a slowdown in growth with total advertising expenditure up 9.1% year-on-year to $14.2bn in 2022. The growth is down significantly from 36% rates reported in 2021.
All categories recorded year-on-year growth with general display up 7.7% to $5.5bn, search and directories up 8.5% to $6.2bn, classifieds up 14% to reach $2.5bn and video advertising increased by 12% to reach $3.3bn.
Gai Le Roy, CEO of IAB Australia, said “2022 had two distinct growth phases, with 15% for the first six months compared to 2021 and 4% growth in the second half of the year. Despite this slow down, we are seeing encouraging signs including automotive advertiser’s share of display advertising returning to levels not seen since early 2021.”
The top five advertiser categories in general display advertising remained consistent year on year, with retail, automotive and FMCG remaining stable, entertainment increased slightly while and finance dipped slightly.