Podcast advertising is set for significant growth in 2025, with 79 per cent of agencies planning to increase their investments in the channel, according to IAB Australia’s latest Australian Audio State of the Nation Report.
Streaming music and streaming radio are also expected to see increased spending of 65 per cent and 56 per cent respectively, as advertisers capitalise on digital audio’s ability to offer incremental reach and complement other media.
Now in its ninth year, the report from the Interactive Advertising Bureau provides an authoritative snapshot of the evolving audio landscape, tracking industry attitudes across streaming music, radio, original podcasts and catch-up radio.
Incremental reach on other media is still the highest driver for using digital audio advertising.
Branding is the key driver
According to the report brand-building remains the dominant objective for digital audio campaigns, but there has been a notable rise in the use of streaming audio and podcasts to enhance brand perception and engage audiences through storytelling.
This shift underscores the unique capacity of podcasts to create deep emotional connections with listeners, an increasingly attractive proposition for advertisers.
Gai Le Roy, CEO of IAB Australia, noted: “The Report highlights the strength of the digital audio ad industry in terms of investment but also its expansion within the digital ecosystem.
“Agencies and marketers are applying the same measurement techniques to digital audio as they do to video. They are also exploring the role of podcasters in the creator economy and capitalising on the growing trend of video-enabled podcasts.”
The rise of programmatic audio buying
One of the report’s standout findings is the continued rise of programmatic digital audio buying. In 2025, 78 per cent of agencies expect to buy digital audio programmatically, up from 72 per cent in 2024 and 63 per cent in 2023.
Key drivers of this growth include cross-channel frequency management, enhanced audience targeting, and greater flexibility in campaign execution.
Steve Golding, Chair of the IAB Audio Council and Head of Audio Automation at NOVA Entertainment, commented: “It is pleasing to see the report reflect the uptick in the number of advertisers using programmatic buying for digital audio inventory, offering both increased options for existing audio advertisers as well as welcoming a range of new digital advertisers.”
The report also highlights a diversification of podcasts beyond traditional lifestyle, health, and wellness content. Investment in society and culture podcasts rose by 12 per cent, news and current affairs by 10 per cent, and true crime podcasts by 9 per cent. The crime category’s growth aligns with the 2024 IAB Australia ‘Crime Pays’ Report which demonstrated the strong engagement and memorability of true crime content as factors that significantly influence consumer behaviour.
Podcast genres used in 2024 compared to 2023.
Measurement and tracking are issues
The Report also highlighted how podcasts continue to play an increasingly vital marketing role in the creator economy, thanks to new and untapped partnerships between podcast creators and advertisers.
With 87 per cent of respondents recognising the value of podcasters to build highly engaged communities, making them a valuable asset for brands looking to foster authentic connections with audiences.
However, measurement and standardised audience data remain barriers to greater digital audio adoption.
Agencies clearly see the benefits of audio advertising, but the report noted that improved programmatic supply, enhanced targeting and personalisation, increased ad verification transparency, and stronger collaboration between media owners could further accelerate industry growth.
Measurement and tracking is a huge issue preventing digital audio from being a larger proportion of ad volume.
The Australian Audio State of the Nation Report follows the recent release of the IAB Australia Internet Advertising Revenue Report, which revealed digital audio advertising revenue reached $313 million in 2024. The findings confirm that digital audio is becoming an essential part of the modern media mix, with advertisers increasingly leveraging its unique strengths.