Internet advertising revenues reached a record level in 2023, and the Interactive Advertising Bureau says no segment of the market grew faster than digital audio for the second consecutive year. The IAB says digital audio – which includes podcasts, streaming radio, and online music services – had 18.9% year-over-year growth in 2023 as it continued to outperform other formats, with $7 billion in total revenue. That compares to $5.9 billion of revenue a year earlier, and more than double the $3.1 billion recorded in 2020.
The IAB will release podcast-specific data in May, but the growth of spoken word audio has accelerated digital audio’s revenue gains. The IAB also points to more Americans opting to spend directly with streaming services.
“Many services have now expanded their audio subscription offerings and introduced ad-supported tiers, making subscriptions accessible to more listeners. AI driven personalization is also likely to be contributing to this growth,” the annual report says.
The revenue growth of digital audio comes as audio overall is seeing a renaissance, with traditional over-the-air radio holding on to its reach. Nielsen says nine in ten Americans listen to AM/FM radio each week.
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