Already a key driver in global music revenues, digital music streaming ad revenues are expected to increase by 37% this year and 21% in 2022. Globally, ad revenues from digital streaming platforms will hit $7.7 billion in 2021 and $9.4 billion next year, according to a report from Morgan Stanley.
Projected 2021 results would more than double the 15% growth rate of digital music advertising from a year ago, MediaPost says in their analysis of the report.
“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,” Morgan Stanley Research Analyst research analyst said. “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.”
In fact, all ad-supported radio – broadcast, digital and satellite – will climb 16% this year to $33.1 billion. In 2022 the increase will be 13% more to $37.2 billion.
The report says advertising at broadcast radio will make a dramatic comeback from pandemic-plagued 2020, rising 11% this year to $24.2 billion globally from a 24% drop in 2020. The recovery will continue in 2022, rising 10% to $26.6 billion.
Morgan Stanley projects overall digital streaming – advertising and subscription – to reach $24.1 billion in 2021 and $28.3 billion in 2022.