With ad spend in the digital audio advertising market projected to reach US$2.23bn (~£1.74bn) this year, the Asia-Pacific region has been witnessing an impressive surge in digital audio consumption over the past few years. With the proliferation of smartphones, faster internet connectivity, and a growing appetite for immersive content, digital audio platforms have found a receptive audience in the dynamic APAC region. 

We take a look at the latest trends shaping the digital audio landscape in the APAC region, exploring the key drivers behind its rapid growth, the dominant platforms, evolving content preferences, and the challenges and opportunities presented to digital marketers looking to tap into this immensely diverse market.

Music streaming on the up

By the end of 2035, the Asia Pacific digital audio market is projected to claim the leading market share of 29%, primarily fueled by the burgeoning community of musicians within the region. Contributing to this remarkable growth is the widespread usage of mobile phones, which stands as the most popular device for streaming music in the area. Notably, the adoption of smartphones in the Asia-Pacific region surged from approximately 63% in 2019 to an impressive 76% in 2022, and it is anticipated to reach an impressive 89% by 2030. This has created a favourable environment for the market's expansion in the region.

This is especially true for digital marketers looking to target those in the APAC region through music streaming platforms. Streaming apps demonstrate impressive qualities, including a noteworthy average click-through-rate (CTR) of 2.19% reported by all music apps combined. This CTR is 4.6 times higher than the average CTR reported by social apps.

With the availability of such rich live data and potentially coupled with location data from users' phones, music streaming platforms can potentially deliver in-the-moment advertisements to specifically targeted users, making it more targeted, efficient, effective, and potentially offering personalised interactions with APAC users.

Country-specific listening habits

Due to the vast cultural, linguistic, and economic differences in the Asia-Pacific region, international providers face a formidable challenge when attempting to enter the music streaming market. As a result, the streaming industry in this area becomes exceptionally competitive, featuring unique pricing structures, subscription models, and partnerships between foreign platforms and local enterprises.

It is worth noting, however, the prevalence of Western streaming platforms in the APAC region, Spotify takes the lead as the top music streaming service in APAC, with 48% of consumers using the platform monthly. YouTube Music comes in second, used monthly by over 1 in 5 consumers in APAC.

There are some regional differences to consider - for example, Japan and South Korea show an affinity for international platforms, including Spotify and Apple Music as well as local choices such as LINE Music in Japan and Melon in South Korea. China, however, prefers home-grown music platform brand Tencent, with the platform’s music apps - KuGou, QQ, and Kuwo holding the spot for the three most popular music streaming apps in China.

Podcasts: An unstoppable trend?

Similar to global listening trends, APAC is no exception when it comes to the popularity of podcasts. Podcasts hold significant influence as a means of disseminating information and providing entertainment, increasingly establishing themselves as a fundamental aspect of numerous Asian consumers' media consumption. This surge can also be attributed to the rapid expansion of mobile and internet technologies, facilitating convenient access and on-the-go listening to podcasts. According to Acast's Sounds Smart Asia 2022 report, a substantial number of individuals in Hong Kong, Singapore, and Japan have incorporated audio formats such as podcasts into their daily or weekly routines. The report indicates that 90% of listeners follow through with completing most or all of a podcast episode, with 70% expressing a higher level of attentiveness while consuming podcasts compared to other media like TV streaming (64%), social media (60%), and commercial radio (51%).

The impact of audio advertising is already evident in Asia, as approximately 71% of respondents revealed that they have taken action after encountering ads on a podcast. Additionally, 33% of respondents have actively sought more information about a product or service mentioned in podcast advertisements.

Audio integration through all marketing channels

For digital marketers, leveraging programmatic audio advertising within the APAC region can serve as a hugely useful addition to an omnichannel marketing campaign. The adaptability of audio content, alongside its soaring popularity in the region, will allow for marketers to complement visual and written materials, maximising the impact of their messages and ensuring a consistent brand presence across various platforms. After all, taking a comprehensive view of an integrated media campaign more often than not means that the efficiencies of engagement, including clicks, are heightened.