Commercial Radio and Audio Australia has welcomed a significant increase in expenditure in Australia's podcast and streaming audio advertising market, as per the IAB's Australian Internet Advertising Revenue Report (IARR).

Compiled by PwC, the report reveals a 23.6% year-on-year increase in FY24, bringing the total expenditure to $290 million. This makes online audio advertising the fastest-growing display category in the country.

The report also indicates strong quarterly growth, with a total of $78.9 million spent in the June Quarter 2024, surpassing the December Quarter 2023 peak of $77.8 million. This growth is particularly impressive in the podcast advertising sector, which saw a massive 32% increase in the June Quarter compared to the March Quarter.

CEO of Commercial Radio Australia (CRA), Lizzie Young, said the results were particularly pleasing, especially considering recent data from GfK Survey 5, which showed commercial radio share had reached its highest level since 2014. "Commercial radio continues to grow its audiences, and one of the reasons is audio is everywhere – whether listeners are tuning into broadcast radio, DAB, or a podcast, audio is in their cars, at home, and with them via their phone."

"The FY24 results from IAB are incredibly strong, with total online audio ad spending up 23.6% on FY23, making it the fastest growing display category. Advertisers are increasingly investing in online audio because it delivers both audience trust and accessibility," Young added. "The IARR report also shows expenditure on podcast advertising increased by a massive 32% in the June Quarter compared to the March Quarter. We expect to see more advertisers investing in podcasts, as their popularity continues to increase, as we saw in our first Australian Podcast Bi-Annual Report, released last week."

The total Australian online audio advertising market in FY24 was $290 million, with $185 million spent on streaming and $105 million on podcast advertising, representing 4.7% of total general display ad spending for the year. This growth in online audio advertising expenditure reflects the increasing popularity of podcasts and streaming audio, and the opportunities they present for advertisers.

CRA, the peak industry body representing the interests of commercial radio broadcasters across Australia, expects this trend to continue as more advertisers recognise the potential of online audio.