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Marketer and consumer priorities don鈥檛 align: An iHeartMedia report shows that marketers live in a vastly different world than their target audiences.

And advertisers are already taking advantage: Spotify called out automated sales channels as the main drivers of its 7% YoY growth in ad revenues in its Q4 2024 earnings. iHeartMedia continues to capitalize on its previous programmatic investments. Between 2018 and 2021, iHeart went on a programmatic acquisition spree, snapping up Jelli, Voxnest, and Triton Digital.

Less than a fifth (19%) of high-income households worldwide say they鈥檙e finding it difficult/very difficult to manage financially, according to November 2024 data from Ipsos. 54% of US consumers making over $100,000 feel ignored by the media and most advertisers, according to June 2024 data from iHeartmedia and Pushkin Industries. What it means: High earners are loyal but often feel overlooked.

Regulators enforce influencer marketing standards: Google and iHeartMedia face a lawsuit for radio ads in which hosts lied about using the Pixel 4 phone.

That amounts to 4.5 million new listeners for Spotify and 2.7 million for iHeart. Apple, meanwhile, has been less engaged in the competition for podcast dominance, and that neglect will play out in its audience figures. We expect very little growth for Apple going forward, with a 0.5% audience increase this year and similarly minimal progress in future years.

An iHeart Media study found that consumers seek approval and conduct research to make purchases of $100 or more, marketers make purchases exceeding $1,000 without consulting anyone else in their life and within a matter of hours or days. And so I think that's a big part of it.

Why it matters: Nearly three quarters (72%) of US adults don鈥檛 want to buy products from advertisers that ignore them, according to a September survey from iHeartMedia and Pushkin Industries.

How is programmatic advertising shaping the growth of the digital audio ad market, and how should advertisers spending in terrestrial radio think about balancing their spend between terrestrial and digital audio channels?

Pandora will hold a 21.9% share of digital audio ads sales in 2024, while Spotify captures 16.6% and iHeartMedia 10.0%. Spotify will shrink the gap, trailing Pandora in 2026 by only 0.7%. Audio advertising continues to punch beneath its weight class. Audio spending trails audio time.

Three in four consumers will pay more for brands that share their values, per iHeartMedia and Pushkin Industries. DEI initiatives could be a deciding factor for some consumers. Eliminating DEI programs also creates opportunities for similar companies to court consumers who are looking for brands that support DEI, Collins warned.

Spotify has nearly twice as many US listeners as the next most popular digital audio platform, Amazon Music, at 103.6 million compared to 53.1 million, per our September 2024 forecast.

This is actually from that report from iHeartMedia and Pushkin Industries showing that folks will spend more on companies that they align with. According to the report, 75% of consumers will pay more for brands that share their values. All right, folks, let's move to question two. Blake versus Carina. Will AI smartphones be impactful out the gate? Now, Brian X.

In September, a Bloomberg investigation found that iHeartMedia (which will account for one-fifth of US podcasting revenues) and The New York Post bought millions of fraudulent listeners via mobile game ads that prompted podcast downloads. Our take: Podcasting鈥檚 next frontier is beyond North American markets.

So it's going to be bigger than Spotify, bigger than SiriusXM, bigger than iHeartMedia all rolled up together. And it's one of those funny things where to your point, its share of retail media is going to be sort of growing, but very slightly, but it's going to be in and of itself a big deal in an area that marketers and advertisers are going to have to pay close attention to. Marcus Johnson:.

The study included data from folks like Amazon Ads, iHeartMedia, SiriusXM, and Spotify covering radio, digital and podcasting. But, Danny, the most important sentence in your article about recalling audio ads is what and why? Daniel Konstantinovic:. I think it would be consumers were able to recall brands from audio ads across formats 41% of the time compared with 37 for other forms of advertising.

You've also seen some growth, particularly in podcasting, from Spotify and iHeart. CPG brands like Nestle and Pepsi have stated they're going to increase their ad spend. In a report by famed analyst Brian Wieser said that the ad industry had expanded in the second quarter at a greater rate than it did in first quarter. Marcus Johnson:. Evelyn, the US ad market isn't starting to see green shoots.