Digital Audio Advertising: Your 2026 Marketing Budget Essential

As you finalize your marketing budget for 2026, you're likely focused on proven channels and emerging trends. But, are you overlooking the one place your audience is spending a significant portion of their day? 

From their morning commute to their evening workout, Americans are spending over four hours each day with audio. In fact, 79% of the population—that’s 228M Americans aged 12 and up—listen to online audio every single month.  

This guide explains why digital audio advertising needs to be an essential part of your marketing budget in the new year. Plus, learn how to allocate your audio advertising spend for maximum impact.

Rethink Where Your Ad Dollars Go

It's time for a reality check on your media mix. Consumers are dedicating a significant portion of their media time to audio. Are your ad dollars following their ears? Audio accounts for 21.4% of total media time spent but makes up only 4.5% of total advertising spend in the US. Digital audio accounts for an even smaller portion of the pie at just 1.8% of the overall ad budget. This gap between consumption and investment represents a significant missed opportunity for brands to connect with their ideal audiences.

The growth trajectory for digital audio advertising suggests that this gap will likely narrow over time. Between 2024 and 2028, digital audio ad spending is expected to rise by $1.6B. And by the end of the decade, in 2030, the digital audio advertising market is forecasted to reach a staggering market volume of $15.4B. 

These numbers tell a clear story: Digital audio is not just a passing trend, but a fundamental, long-term medium where people consume content. Advertisers who recognize this fact and adjust their marketing budget accordingly will be best positioned to capture audience attention and drive future growth.

Audio Advertising’s Unmatched Reach and Engagement

Digital audio provides a direct line to consumers during screen-free moments, offering a level of hands-free engagement that other channels can't match. The data speaks for itself, highlighting how deeply integrated audio is into the daily lives of millions of consumers.

Digital Audio Beats Out Non-Digital Listening 

The shift to digital formats is undeniable. Digital audio listeners now spend 60% more time with audio than those who listen to non-digital formats like traditional radio. This data highlights the growing consumer preference for on-demand, personalized content via streaming audio services and podcasts.

Diverse Audiences Are More Likely to Listen

Digital audio is an incredibly inclusive medium, attracting broad and diverse listeners, creators, and hosts alike. In fact, Black and Hispanic consumers are 6% more likely to have listened to online audio in the past month than the general population.

And when it comes to the most time spent listening in the last week, Hispanic listeners take the lead—spending 12% more time with online audio than the overall population. For brands committed to reaching multicultural audiences authentically (or looking to start), digital audio provides an essential platform.

Smart Speaker Ownership Continues Growing

The rise of smart speakers has brought audio into the heart of the home. Today, 101M Americans aged 12 and older own a smart speaker, marking a 29% growth in ownership since 2020. This household shift creates plenty of opportunities for hands-free listening and offers advertisers easy access into homes during daily routines like cooking, cleaning, and relaxing.

How to Build and Allocate Your Audio Advertising Budget

As you add digital audio to your marketing budget, taking a strategic approach ensures your investment delivers the best possible ROI. Get started with these best practices. 

Map Out Clear Campaign Goals

Before you invest, define what you want to achieve. Are you aiming to build brand awareness at the top of the funnel? Or are you focused on driving consideration and conversions further down? Your objectives will determine your creative approach, channel of choice, and measurement strategy. And no matter which stage of the funnel you’re targeting, brands can rest assured that audio delivers full-funnel results. 

For example, programmatic ads on streaming audio can deliver broad reach for upper-funnel campaigns. Meanwhile, host-read podcast ads can be incredibly effective for building trust and driving lower-funnel actions.

Allocate Your Spending Across Channels

There are many moments where you shouldn’t put all your eggs in one basket, and audio advertising is no different. Instead, adopt a multi-platform approach that combines streaming audio, podcasts, and SiriusXM radio to enhance reach and boost incremental reach. Fun fact: The SiriusXM Podcast Network has virtually no overlap with our streaming audio platforms and SiriusXM Digital, so you can continue reaching unique and untapped audiences. Each channel offers targeting capabilities and creative formats that you can customize for your campaigns. 

Consider Creative and Production Needs

Producing high-quality creative is essential for cutting through the noise. Start by A/B testing different ad formats, CTAs, and messaging to reveal what resonates most with your audience. For brands that need extra (or full) support, our award-winning, in-house agency Studio Resonate can help develop audio creative from start to finish—capturing attention and driving results for your brand.

Invest Where Audiences Are Listening with SiriusXM Media

As you plan your 2026 marketing budget, the evidence is clear: Digital audio advertising is no longer a nice-to-have but a fundamental component of a successful media mix. Consumers have made audio an integral part of their daily lives, and it's time for brands to follow suit by adapting their strategies. When you invest strategically in digital audio, you can connect with engaged, diverse, and valuable audiences in a way that other channels simply can't match.

We’re your partner in navigating this ever-evolving, dynamic landscape. With our expansive networks, advanced targeting capabilities, and creative expertise, we’re equipped to help you build an audio strategy that drives results and delivers maximum ROI.

Ready to make your brand heard? Let's chat.

Further Proof That Digital Audio Works