After many years of breakneck growth there are still plenty of reasons to suggest that Digital Audio will continue to grow significantly in 2025, writes Lee Thompson, co founder of AudioOne.
At AudioOne, we believe Digital Audio will attract a greater share of advertising investment in 2025 and we believe it will grow by 25% next year reaching total spend levels well in excess of €20m.
Why this bullish forecast?
A Lovable Format
We have been dealt a very good hand! Audio is Ireland’s most popular media format and habit with 97% of people consuming audio each week (JNLR-Irish Audio Report, Q2 2024). That represents almost total national coverage through one advertising channel. Irish people have a unique connection to audio. Digital audio doubles down on that connection, digital targeting and measurement capabilities elevate it.
Here, There, Everywhere
Audio is the most flexible and personal companion format that exists. It is easily accessible for long periods of the day thanks to the smartphone. Other media tend to be more place-based( eg. the sofa) with peaks and troughs across the day. The deep integration of digital audio into our daily lives provides great opportunities for brands to connect with audiences in various contexts and across the key moments of the day.
As an on-the-go format, it is much more likely than other media to be close at hand when buying decisions are being weighed up and made. This gives it real influence and impact. This is not lost on advertisers who recognise the potential of audio ads to impact all stages of the sales funnel, from awareness to conversion and are investing.
A Standalone Contender
Digital Audio’s growth trajectory has been uninterrupted since the IAB and RedC surveys started reporting on it over five years ago. We expect the next wave to drop in February 2025, with the same result. More growth on top of the already massive 3m adults who listen each week or 78% of the adult population.
This compares very favourably with some of the more established media channels beating commercial TV which is viewed by 74% of the population (TAM October ‘24) and not far off the 90% logged by commercial FM (JNLR-Irish Audio Report, Q2 2024).
The headline here is that Digital Audio, despite the freckles, is now a heavyweight, mainstream media channel. In 2025, digital audio will become more of an anchor channel on media plans rather than simply an incremental one.
Although an audio format, seeing it simply a surrogate of the radio sector when it comes to investment calculations is short-sighted.
In 2025, Digital Audio will be more relied upon to deliver large audiences all on its own.
Unbeatable Content Proposition
This year we have seen local media owners recognise the audience and revenue potential of Digital Audio and invest. Look no further than Mediahuis’s star signing of sports journalist Joe Molloy. Spotify now offers its very own Audiobooks tab. Global or local, broad or niche, broadcast or internet, live or on-demand, digital audio’s content proposition has never been stronger and consumers and brand advertisers are the principal beneficiaries.
More Pervasive
With each passing year, each of us owns more connected technology. 55% of Irish adults now own a bluetooth wireless device and smart speakers are “talking” in 44% of Irish homes, up from 11% as recently as 2018 (JNLR-Irish Audio Report).
This growth in enabling technology is making digital audio more accessible to more people and fuelling its growth.
Fewer Ads
There are consistently fewer ads on Digital Audio when compared to broadcast media. Low ad load environments lead to high levels of ad recall and impact.
Estimates suggest there are 50%-70% fewer ads on Digital Audio compared to the broadcast norms. A 2024 Podscribe US survey put the share of Podcast minutes allocated to advertising at 10.9%. This compares favourably with almost 17% of minutes on Commercial TV and Radio devoted to ads here locally.
Recent increases in ad load reflect the growing appeal of the medium for advertisers in Ireland. This development will need to be monitored in the context of the integrity of the listener experience and its impact on advertising effectiveness.
However, by comparative standards, ad loads remain low here especially across music streaming services.
Audio Gets More Attention
The landmark 2023 Dentsu/Lumen Attention Economy Study confirmed that audio outperformed visual ads when it came to the key goals of advertising: creating memories, growing brand recall and increasing brand choice.
Did you know that that 79% of digital audio consumption happens where there is no visual media present? (IAB Digital Audio Buyers Guide). Why is this important? Listening without viewing a screen means there are fewer ads to contend with and listeners are more concentrated on the content including the audio ads they hear.
Influencer Budgets Arrive
In 2025, I think we will start to see Digital Audio compete for spends that previously would have been fully invested in social media, online video including Youtube and commercial TV.
Influencer budgets will also start to migrate to Digital Audio as brands look to associate in more substantive ways with podcast hosts and the spoken word.
Social media’s own backyard challenges are creating some daylight for Digital Audio. Attention levels on social media are in decline with advertisers fighting for our attention as we scroll through fast moving feeds across various platforms. Digital Audio scores higher than social media when it comes to trust, authenticity and positivity, all of which are important environmental hygiene factors for advertising success.
Brand Partnerships Begin Here
The creative canvas for brands is bigger with Digital Audio and as such in 2025 you will see digital audio media owners assert their brand-enhancing credentials. From music streamers at the cultural forefront helping brands spot trends and stay relevant to podcasters using their influence to change behaviours, audio will become a foundational platform for brands with a purpose in 2025.
We believe audio will provide the anchor content that makes integrated campaigns tick, bringing trust, authenticity and compelling content back and in doing so, will help to revitalise social media campaigns.
From audio and video ads, to bespoke content to social media extensions with trusted personalities to real life events, discerning brands will take integrated campaigns to the next level in 2025 with audio and select partners at the core.
Full Funnel Value
Next year we expect to see more use cases towards the lower end of the funnel. There is no doubt that digital audio delivers big on reach and engagement with average listen through rates consistent above the 90% mark. However, growth ambitions for the medium might require it to evidence more immediate business impact for certain clients. Next year you can expect to see more voice controlled ads, more personalisation, more data, greater use of custom URLs, the placement of attribution pixels and better ads developed with digital audio in mind.
New Research on the Way
In 2025, we will eagerly await the findings in February of the latest wave of the IAB/RedC digital audio survey. Deeper dives into reach and incrementality will help underscore the power of Digital Audio as a standalone channel and its value add as part of integrated media plans. Qualitatively we expect the results to support research to date confirming Digital Audio as a positive, ad friendly, trusted, authentic and productive space for consumers and advertisers alike.
Talent and Energy
Finally, an overlooked ingredient in Digital Audio’s growth to date has been the energy and passion of its key protagonists. Automatically we think of the celebrity podcasters and break out music stars but the team behind the team is comprised of the men and women who create, produce, plan, buy and sell the media. I have witnessed at first hand the talent in our industry and closer to home on my own team. It’s special. This should give us all confidence that next year will be special too.
