US audio ad spending, consumer audio use, consumer audio content spending set for record growth in 2021, amplified by new technology, consumer usage changes, and the growth of Hispanic voice

Spending on audio media ads and marketing in the United States, as well as consumer use of voice and consumer spending on audio media, are all on pace to achieve record growth in 2021, amplified by new technologies, changing consumer behavior and changing advertising budgets, according to new research.

Spending on audio and marketing is on track to grow 14.4% this year to $18.06 billion, the fastest growth in 40 years, driven by double-digit increases in OTA, broadcast, podcast, satellite, Hispanic audio ad spend, and marketing spending, According to PQ’s US Media Outlook for 2021.

Podcast advertising is on track for a 32% increase in 2021, while Hispanic audio ad spend is set to grow 16.5%, OTA ad spend is set to grow by 14.2%, and streaming audio ad spend is set to grow by 13.4%.

The caveat to this year’s twin growth spurts in audio advertising and marketing spending is that they follow the biggest drops recorded in 2020, when media spending fell due to the profound impact of COVID-19 and the after-effects of the worldwide pandemic. For example, total audio advertising spending, of which OTA accounts for 70%, is not expected to reach its pre-pandemic level for 2019 until 2023, according to PQ Media.

However, the flow of audio advertising, including digital extensions to radio stations and subscription audio services, and podcast advertising spending continued to grow at double rates during the peak of the pandemic in 2020 and will record exponential growth in 2021 to set new records for ad spend.

Meanwhile, consumer audio use is expected to rise 3.3% to an average of 13.7 hours per week in 2021, the fastest increase in 20 years, supported by strong growth across all major audio platforms. The use of voice over OTA increased by 2.7%, and the use of streaming media, including extensions of digital radio stations and voice subscription services, increased by 2.7%, while listening to audio broadcasts increased by 9.9% and satellite radio increased by 2.5%, according to media forecasts. American Vocal 2021.

Consumer spending on audio media content and technology is expected to rise 8.3% to $25.96 billion in 2021, as end-user spending on audio content and technology also continued to grow during the pandemic in 2020 and will continue to grow through 2022. Key growth driver It is consumer spending on audio content, including streaming services, satellite subscriptions, podcasts, and digital radio add-ons, that has outpaced total audio advertising and marketing expenditures, rising 12.4% in 2020, as pandemic lockdown increases consumer time with audio. digital. Consumer spending on audio content will grow at an accelerating rate of 12.6% to $19.62 billion in 2021, BQ Media estimates.

“Sound has proven to be a resilient medium since its rise to the top of the media spectrum in the 1920s, constantly adapting to the powerful challenges posed by the emergence of new technologies, such as television in the 1950s, as well as related changes in consumer behaviors and shifting advertising budgets. All have been affected. These three critical trends PEST severely affected by COVID-19, but as these key variables evolve with the severe impact of the pandemic in 2020, audio media has once again risen to the challenge and demonstrated its strength in staying with consumers, said PQ Chief Media Officer Patrick Quinn. .

With the continued growth in popularity of audio broadcasts in 2021 and the increasing use of smart technology to listen to extensions of digital radio stations, OTA broadcasts have remained the most popular audio content that consumers listen to in their cars. “When the three major platforms for audio media – OTA, digital and podcast – are combined – audio is a powerful medium like no other,” Quinn added.

US Audio Media Forecast is the only source of comprehensive benchmark economic data and analysis that tracks the three key performance indicators of the industry – audio advertising and marketing spending; use of consumer voice; Consumer spends on audio content and technology. New Forecast differs from other recent industry research in that it includes exclusive data and confidential insights provided by leading audio media companies; groups of radio stations and networks; digital audio broadcasting services; Podcast producers and audio advertising agencies. and media investment companies.

Among the other major trends revealed in this groundbreaking market research study are:

AM/FM will remain the primary way to access audio until 2023, far outstripping consumer time spent with Spotify and Pandora;
Content is the theme, as the number of listeners will rise with podcasts providing new, more engaging content, such as multicultural programming on AM/FM stations, the emergence of new podcast genres, and Q&A interviews on audio social media;
Podcasts have become the most attractive audio media channel, attracting more brands to audio who, previously, did not include this medium in their advertising campaigns and cross-channel marketing;
Hispanic audio – both digital and traditional – has emerged as a major force in the audio media industry overall, with Hispanic OTA ads up 16.6% in 2021, while Hispanic streaming audio ad spend is expected to grow 14.8% this year. , and Hispanic advertising podcast ads are expected to rise 38.5%, according to PQ Media.

“The growth in the emerging Hispanic audio media market is driven by several key factors, including the growing demographic share of this demographic in the total US population, which now stands at 19%, indicating a growth of 22% from 2010-2020 to 62 In addition, the number of radio stations programming Hispanic-focused content has increased by 20% over the past decade to nearly 1,200 stations across the country.”