Canada’s digital audio audience is growing faster than any other digital medium we track in the country, including digital video viewers and social media users. This year, digital audio will match terrestrial radio in listenership and exceed it in engagement, according to our forecasts.

This year, digital audio will match terrestrial radio in listenership and exceed it in engagement, according to our forecasts. Our time spent with audio forecast tipped in favor of digital audio for the first time last year.

“Terrestrial radio represents $11 billion in ad spending in the US alone, and reaches three in four consumers.”. Digital audio, Benes notes, is another potential medium for price-conscious advertisers. Why it matters:. For advertisers, Warner’s moves could mean higher CPMs not just for inventory across its portfolio, but could raise prices across linear TV and streaming. If Warner Bros.

US adults spend significantly more time listening to terrestrial radio than to any other ad-supported audio format.

Similarly, online radio apps, podcasts, and platforms like Spotify are boosting digital audio at the expense of time spent in terrestrial radio. Digital audio minutes are up more than 50% over the past five years and growth will continue throughout the rest of forecast. This year, average time spent in Canada will be 1:33 for the total population.

The ad industry refers to digital radio as streamed radio stations from terrestrial and satellite radio providers, but our estimate also includes on-demand audio from online platforms untethered to radio stations. Our new definition, with a focus on audio and not just radio, aims to make it clear that our forecast captures digital audio ad spending more broadly.

Time spent with digital audio surpassed that of radio for the first time in 2021. The gap will widen going forward. At 1 hour, 33 minutes a day on average in 2022, time spent with digital audio will be 8 minutes more than time spent with radio. The switch is related to a reduction in commuting, which has had a direct impact on terrestrial radio consumption.

Many of the podcasts on iHeartMedia’s digital platform are repurposed from programs that air across its terrestrial radio stations. Having loads of original programming gives the company more control over ad inventory.

Second, terrestrial radio remains extremely popular in continental Europe, with many consumers there still preferring this medium for their audio engagement. In France and Germany, for instance, only 62.0% of internet users will be digital audio listeners at all this year. In Italy, the figure will be even lower.

Excludes other downloaded audio files (e.g., music MP3s), as well as digital terrestrial and satellite radio services that are delivered over the air. Digital video time spent: Includes all video content viewed on desktop/laptop computers, mobile devices, and connected TVs, such as video streamed through OTT services. Excludes video streamed through social networks.

Time spent with digital audio surpassed that of radio for the first time in 2021.

Excludes other downloaded audio files (e.g., music MP3s), as well as digital terrestrial and satellite radio services that are delivered over the air. Digital video time spent: Includes all video content viewed on desktop/laptop computers, mobile devices, and CTVs, such as video streamed through OTT services. Excludes video streamed through social networks.

Radio vs. Digital Audio: A Fairly Even Split. Just as digital video is displacing traditional pay TV, a similar dynamic is happening with audio, as listeners migrate from terrestrial radio to digital services. And as with the video space, the pandemic has accelerated the trend toward digital. Digital audio will surpass radio in daily time spent for the first time this year.

Excludes other downloaded audio files (e.g., music MP3s), as well as digital terrestrial and satellite radio services that are delivered over the air. Digital video time spent: Includes all video content viewed on desktop/laptop computers, mobile devices, and connected TVs, such as video streamed through OTT services. Excludes video streamed through social networks.

Digital audio will take greater share in time spent with audio, after eclipsing time spent with radio in 2020. Podcasts will drive growth in time spent with digital audio overall. We define radio as including audio content delivered over terrestrial AM and FM radio as well as digital terrestrial and satellite radio services like SiriusXM that are delivered over the air.

Excludes other downloaded audio files (e.g., music MP3s), as well as digital terrestrial and satellite radio services that are delivered over the air. Digital video time spent: Includes all video content viewed on desktop/laptop computers, mobile devices, and connected TVs, such as video streamed through over-the-top services. Excludes video streamed through social networks.

For March and April, the IAB respondents expected the largest decreases to their ad spending to occur in traditional out-of-home (OOH), digital OOH, and terrestrial radio, likely reflecting the fact that mass quarantines mean people are much less likely to be experiencing any of those media. But significant drops in spending were expected across all channels mentioned.