Digital music streaming will continue to be the key driver in higher global music revenues, and ad revenues are a key piece of that growth, reports MediaPost.
They are expected to spike 37% this year and 21% next year, according to a report by Morgan Stanley.
Advertising from digital streaming platforms is estimated to hit $7.7 billion this year, and $9.4 billion in 2022, according to Benjamin Swinburne, research analyst at Morgan Stanley.
Results this year would more than double the 15% growth rate of digital music advertising from a year ago -- in part, coming out of a pandemic-affected 2020, in which all U.S. advertising unperformed.
“Higher streaming advertising represents outperformance this year compared to our expectations broadly across our coverage group, reflecting the health of the ad market in 2021,” writes Swinburne.
“This includes growth in podcasting, which has exceeded our expectations at both Spotify and iHeartMedia... and likely also at Pandora, though the underlying drivers of its outperformance are more difficult to unpack.”
All ad-supported radio -- digital, satellite, terrestrial -- will sharply climb 16% this year to $33.1 billion, and 13% more in 2022 to $37.2 billion.
Advertising at terrestrial broadcast radio will make a dramatic comeback -- rising 11% this year -- to $24.2 billion -- from a massive 24% fall in 2020.
Next year, a continued recovery is expected -- up 10% to $26.6 billion.
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