Digital audio ad spending increased by over 50% last year alone, IAB reported making 2022 the best-ever year for radio advertising spend. With the return of travel and transport after the pandemic, these sectors began to spend considerably again on radio advertisements. Another reason for this increase is the spike in interest in podcasts throughout the pandemic and continuing through 2022. It’s no surprise that these listening habits are expected to grow in 2023, fuelling the growth of radio advertising.

According to a study by Nielsen, the entertainment industry is leading the way with the highest spend on radio advertising at nearly £138.6 million, with finance (£106.2 million) and the motor sector (£98.6 million) following behind. Radiocentre reported that companies such as Sky, who led the way for audio spend at £19.6m in 2022 helped set records of £740m in revenue in the ad sector. Global ad agency Dentsu believes that automakers will spend 6.2% more on radio marketing in 2023.

Steve Dunlop and Paul Kelly of A Million Ads recently predicted the significance of audio in 2023 in an article by The Drum, highlighting how audio may find itself rivalling visual advertising. Companies that have a large focus on podcasting such as Spotify have made efforts to collaborate with names such as Michelle Obama and will likely continue to grow these partnerships in the future. Ad platforms have the ability to target podcast audiences, who tend to be loyal and engaged, based on their listening data, making advertising a highly effective option in many verticals. Therefore, it is suggested that the listening habits of audiences are adapting and (metaphorically) tuning into the radio could be reconsidered by consumers.

Audio advertising can benefit marketers because of its ability to be personalised, catering to the needs of consumers. Results from radio advertising can be measurably considerably and companies can collect valuable data about listeners.