Demand for digital audio—think streamed or downloaded podcasts, albums, and songs—is on the rise, and we're not just talking about a minor uptick. Right now, there are more than 4 million podcasts registered around the world, according to recent stats from Podcast Index.¹ In 2025, there are expected to be more than 150 million monthly podcast listeners in North America alone, and globally, regions like China and Latin America are also seeing explosive growth in this arena.² At Spotify, we now have 626 million global monthly active users (MAUs), including more than 393 ad-supported MAUs.³

Simply put, people are spending more time with digital audio than ever before. What's more, additional research shows that time spent with podcasts has more than quadrupled over the past ten years—and nearly a quarter of listeners (23%) spend 10 hours or more engaging with podcasts on a weekly basis.⁴

It's no wonder so many advertisers are on board with digital audio advertising. In the second quarter of 2024, Spotify's ad-supported revenue increased by 13% year-over-year (YoY) as more brands discovered the value of audio ads.⁵

Let's take a look at the advantages of digital audio as an advertising medium and why it's shaking up the ad industry.

The elevated digital audio experience

What's the appeal of digital audio? For starters, it's versatile. Audio immerses listeners in the content—and reaches people wherever they happen to be and during whatever they're doing. When engaging with digital audio, listeners are often going about their daily lives exercising, commuting, cooking, etc. They're even on Spotify while meditating. Overall, we've seen +492% YoY growth in “Wellness”-related streaming, which includes playlists and podcasts focused on mindfulness, yoga, relaxation, and self-love.⁶

But it's not just passive listening. Often, users are actively engaged with their devices when interacting with digital audio—like when they're curating playlists for a special occasion, discovering new music, or watching video content, a format that's seen 48% YoY growth on Spotify.⁷

The advantages of digital audio advertising

There are many benefits of digital audio advertising. For one, audio is engaging and immersive. It feeds listeners' imaginations—perhaps inspiring them to launch a company after hearing advice on a business podcast, or maybe providing motivation while they're working out.

Crucially, streaming audio also allows listeners to curate personalized soundtracks to connect with cultural moments—particularly among younger audiences like Gen Zs. Spotify's 2023 Culture Next report found that half of Zs in the US feel that podcasts get them closer to the zeitgeist of culture than any other form of media,⁸ and 78% agree that Spotify brings people deeper into culture.⁹

For advertisers, personalized playlists offer the opportunity to create equally customized messaging that's relevant to listeners' personalities and interests. According to Deloitte's 2024 report on the power of personalization in marketing, nearly 75% of consumers are more likely to purchase from companies that curate personalized experiences—and they tend to spend around 37% more with brands that offer personalization.¹⁰

Audio advertising trends

The way people engage with digital audio is constantly evolving, creating new opportunities for brands to connect with audiences. According to our 2024 Podcast Trends report, podcast ads have grown in popularity—in part because they're successful at driving business results. In fact, nearly two-thirds (62%) of listeners take an action like searching for a product, purchasing the product, or simply talking about it after hearing an ad during a podcast show.¹¹ Spotify podcast conversion rates also perform 26% better than Spotify Ad Analytics industry benchmarks across 240 publishers.¹²

Adding the Spotify Audience Network to a podcast campaign can boost advertisers' results even more: Our data finds ads with this component achieve a 4.6X more efficient cost per visitor vs. those that don't include it.¹³ Combining audio and video ads in a multi-format campaign also has the potential to lead to even greater impact: Third-party research shows that such campaigns saw a 7% lift in Brand Awareness and a 27% lift in Purchase Intent, compared to audio only.¹⁴

How to get started with digital audio advertising

The advantages of audio advertising are clear: It's a sound strategy for brands looking to build strong, lasting connections with audiences. With unique targeting tools, creative services, and real-time reporting all wrapped up in an easy-to-use platform, Spotify Ads Manager allows businesses of all sizes to create multi-format ads that help them reach engaged listeners and meet their advertising objectives.

Ready to embrace this effective ad format? Find out exactly how it works, and start creating digital audio ads today.