A new industry study has revealed that despite increasing scrutiny from advertisers demanding stronger proof of performance, digital audio is surging.
The 10th annual Digital Audio State of the Nation Report from IAB Australia, released today, shows investment intent across podcasts and streaming continues to climb. But as budgets rise, so too do tougher questions around measurement, ROI and the responsible use of AI.
Unveiled at IAB Australia’s Audio Summit, the findings land just days after the IAB Australia Internet Advertising Revenue Report showed digital audio revenue increased 8.5 per cent year-on-year to $338.7 million in CY25 — underscoring the channel’s continued move into the mainstream.
Buyers signal growth across podcasts and streaming
According to the report, 69 per cent of audio ad buyers plan to increase spend in original content podcast advertising, while 56 per cent intend to boost investment in streaming music advertising.
Video podcasts are also emerging as a serious consideration: 25 per cent of respondents have already included the format in a campaign, with a further 50 per cent researching the opportunity.
Audience attention and engagement remain the top drivers of investment, but brand integrations, custom executions and access to talent and content creators are climbing rapidly up the priority list.
The creator economy is now firmly embedded in audio strategy. Sixty-one per cent of respondents have used podcast creators and talent within their broader creator marketing strategies, with a further 17 per cent considering it. Access to talent and content creators jumped 10 percentage points year-on-year, making it the second most important driver of digital audio investment.
From brand to performance
While digital audio has traditionally skewed towards brand-building, the mix is now shifting.
This year, 37 per cent of respondents plan to increase the share of spend on performance advertising compared to brand activity. Only 27 per cent expect to increase brand-led investment.
That pivot aligns with broader industry pressure on measurable outcomes — and explains why accountability has become the defining theme of this year’s findings.
Market Mix Modelling (MMM) is now the leading tool for assessing the sales impact and ROI of audio advertising, with 44 per cent of respondents using it to evaluate effectiveness. But buyers are calling for more standardised data that integrates seamlessly into existing planning and MMM systems to allow apples-for-apples comparisons with other channels.
Fragmented formats and inconsistent measurement frameworks remain friction points.
Programmatic stabilises, guaranteed deals rise
Programmatic buying remains entrenched, with 72 per cent of respondents buying audio programmatically in 2025 — steady year-on-year.
However, there is growing appetite for guaranteed deals. Among those buying programmatically, 68 per cent intend to buy streaming audio guaranteed deals in 2026 (up from 51 per cent in 2025), while 62 per cent plan to buy podcast advertising guaranteed deals (up from 43 per cent).
Data and targeting sophistication continue to be the primary reasons for buying programmatic audio — but again, performance validation is front of mind.
Opportunity meets authenticity concerns
The industry’s relationship with AI is best described as curious but cautious.
The report finds the greatest opportunity for AI lies in performance tracking, reporting and campaign optimisation. However, 53 per cent of Australian ad buyers expressed concerns about the use of AI in audio content production for host reads or voice cloning, where authenticity fears remain high.
For a medium built on intimacy and trust, that hesitation is significant.
Gai Le Roy, CEO of IAB Australia, believes “there is clear positive sentiment around digital audio, with buyers signalling continued growth across podcasts and streaming”.
“What’s equally clear is that investment confidence increasingly depends on outcomes-based measurement and consistent standards that allow audio to sit comfortably alongside the broader digital mix,” he said.
“At the same time, the expansion of the creator economy and the rise of video podcasts are reshaping how brands show up in audio environments. As an industry, we need to innovate around measurement, trading models and creative integration to ensure growth is matched with clarity and credibility.”
Steve Golding, head of audio automation at NOVA and chair of IAB Australia’s Audio Council described the future for digital advertisers as “increasingly compelling”.
“As the channel scales within the media mix, advances in targeting, dynamic creative, and experimentation with content creators will make audio campaigns even more relevant, accountable, and effective allowing them to deepen connections with audiences and build trust at scale.”
