Programmatic Audio Ad Spend Trends: Key Insights from eMarketer

Programmatic audio has experienced such massive growth that it now has its own dedicated reports. eMarketer’s inaugural “Programmatic Digital Audio and Podcasting Spend Report” provides an in-depth look at the rapid growth of programmatic digital audio, particularly in streaming audio and podcasts, along with projections for the coming years. As advertisers increasingly recognize the value of programmatic advertising, investments in programmatic audio are expected to rise substantially in the coming years to capture more of the omnichannel investment. 

Here’s a closer look at some of the key insights from the report and how they illustrate the growing importance of programmatic audio in the advertising ecosystem. 

Digital Audio Leaders and Adtech Are Shaping Programmatic Audio 

SiriusXM Media, Spotify, and iHeart, collectively representing just under half of the digital audio services in the ad market, are expanding their programmatic offerings to capture even more demand. Pandora (SiriusXM Media) accounts for the highest percentage (21.1%) of total digital audio services. 

The report highlights that SiriusXM’s AdsWizz is playing a crucial role in this shift, serving as the ad server and sell-side platform (SSP) for the entire SiriusXM Media portfolio. This grants advertisers access to SiriusXM Media’s inventory through private marketplace and programmatic guaranteed deals via all major demand-side platforms (DSPs), making programmatic audio more impactful and accessible for advertisers. 

Massive Growth in Programmatic Digital Audio

According to the eMarketer report, US programmatic digital audio spend is projected to reach $2.26B, marking an 18% increase year-over-year and more than doubling since 2019. 

In 2025, programmatic digital audio is expected to account for 30% of total digital audio spend. While this figure is a significant increase, it still lags behind the 90% programmatic share seen in display advertising, signaling there’s still substantial room for growth in programmatic audio. 

Lagging Growth in Programmatic Podcast Spend

Podcasts are a key growth opportunity within programmatic digital audio. 

The report notes that podcasts will account for 11.9% of total programmatic digital audio spend, with the remaining spend going toward streaming radio and ad-supported music platforms. In contrast, podcasts currently represent 33.8% of overall digital audio spend this year and capture the majority of incremental ad dollars (62.8%). 

The hesitation behind programmatic podcasts largely stems from the misconception that digital audio, and particularly podcasts, are difficult to measure effectively. 

Challenges and Opportunities within Programmatic Audio

While programmatic audio is seeing such promising growth, there are still several challenges at play across the industry.  

Challenge: Ad-Free Subscriptions

One of the key challenges noted in the report is the prevalence of ad-free subscriptions. Many digital audio platforms offer ad-free subscriptions, which can significantly limit the listener pool that can be reached with ads. This is a problem specifically within programmatic advertising, as advertisers look to scale across a broader audience. 

Opportunity: Ad-Supported Audio

That being said, platforms like Pandora, which boasts 87% of ad-supported users, offers more opportunity for scale and sees impact across the ad-free subscription growth.

Challenge: Changing Measurement Misconceptions

Another hurdle is the misconception around measuring the effectiveness of digital audio ads. Despite significant advancements in the digital audio space with capabilities mirroring connected TV (CTV), advertisers have remained hesitant in fully leaning in. 

Opportunity: Digital Audio is Fully Measurable

With a logged-in user base and the same pixeling capabilities available across display, this misconception should be laid to rest. Check out the Audio Measurement Playbook to learn more about the measurable impact of audio.

The Biggest Opportunities in Programmatic Audio

While challenges remain, there are also emerging opportunities that could lead to significant growth in programmatic digital audio. Here are the three biggest opportunities: 

• Retail media networks

• In-store audio

• Generative AI for audio creative

Programmatic digital audio and podcasting are projected to continue seeing massive growth and become an even more integral part of advertising. As the market continues to evolve, SiriusXM Media is tapped into both the head and tailwinds of programmatic audio to drive innovation and larger market adoption.

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