{"id":287,"date":"2023-07-03T12:50:40","date_gmt":"2023-07-03T07:20:40","guid":{"rendered":"https:\/\/www.paytunes.in\/blog\/?p=287"},"modified":"2023-07-03T12:50:40","modified_gmt":"2023-07-03T07:20:40","slug":"how-vast-is-the-digital-audio-opportunity-luma-estimates-it-to-be-worth-45-billion","status":"publish","type":"post","link":"https:\/\/paytunes.in\/blog\/how-vast-is-the-digital-audio-opportunity-luma-estimates-it-to-be-worth-45-billion\/","title":{"rendered":"How Vast Is the Digital Audio Opportunity? Luma estimates it to be worth $45 billion."},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-290 size-large\" src=\"https:\/\/blog.paytunes.in\/blog\/wp-content\/uploads\/2023\/07\/pexels-grzegorz-4336587-1-1024x683.jpg\" alt=\"How Vast Is the Digital Audio Opportunity? Luma estimates it to be worth $45 billion\" width=\"640\" height=\"427\" srcset=\"https:\/\/blog.paytunes.in\/blog\/wp-content\/uploads\/2023\/07\/pexels-grzegorz-4336587-1-1024x683.jpg 1024w, https:\/\/blog.paytunes.in\/blog\/wp-content\/uploads\/2023\/07\/pexels-grzegorz-4336587-1-300x200.jpg 300w, https:\/\/blog.paytunes.in\/blog\/wp-content\/uploads\/2023\/07\/pexels-grzegorz-4336587-1-768x512.jpg 768w, https:\/\/blog.paytunes.in\/blog\/wp-content\/uploads\/2023\/07\/pexels-grzegorz-4336587-1-1536x1024.jpg 1536w, https:\/\/blog.paytunes.in\/blog\/wp-content\/uploads\/2023\/07\/pexels-grzegorz-4336587-1-2048x1365.jpg 2048w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Podcasters and broadcasters have sung similarly when they complain that the amount of advertising dollars poured into both types of audio hasn&#8217;t kept up with actual consumption. But the scope that digital music has to offer the market could trigger a chorus of celebrations based on estimates by Luma Partners.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;It&#8217;s approximately 20% of the digital time that is spent, and yet it&#8217;s not as well-positioned from a marketing perspective,&#8221; says Luma Partner Conor McKenna. He believes that if advertising percentages are better correlated with consumption patterns, millions of dollars can be pumped into <\/span><a href=\"https:\/\/www.paytunes.in\/jiosaavn-ads\"><span style=\"font-weight: 400;\">digital audio<\/span><\/a><span style=\"font-weight: 400;\">. &#8220;That&#8217;s an opportunity worth $45 billion,&#8221; McKenna said during an appearance at Luma&#8217;s Digital Media Summit earlier this month.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, even though Luma is an investment bank focusing on marketing and digital media believes that <\/span><a href=\"https:\/\/www.paytunes.in\/\"><span style=\"font-weight: 400;\">audio-based advertising<\/span><\/a><span style=\"font-weight: 400;\"> has some issues associated with this format. However, it assumes that the move away from cookies for advertising can help the industry. &#8220;We&#8217;re currently in a world where we&#8217;re transferring from third-party data to first-party data platforms. A few massive first-party data platforms are in charge of the entire ecosystem. Therefore, there&#8217;s a lot of potential there,&#8221; McKenna said.<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone  wp-image-288\" src=\"https:\/\/blog.paytunes.in\/blog\/wp-content\/uploads\/2023\/07\/Luman-chart-for-May-30-2023_chart-ONE-300x158.jpg\" alt=\"How Vast Is the Digital Audio Opportunity? Luma estimates it to be worth $45 billion 1\" width=\"328\" height=\"173\" srcset=\"https:\/\/blog.paytunes.in\/blog\/wp-content\/uploads\/2023\/07\/Luman-chart-for-May-30-2023_chart-ONE-300x158.jpg 300w, https:\/\/blog.paytunes.in\/blog\/wp-content\/uploads\/2023\/07\/Luman-chart-for-May-30-2023_chart-ONE.jpg 697w\" sizes=\"(max-width: 328px) 100vw, 328px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Another aspect that could help the growth of digital audio, particularly the rise of podcasting and radio, is the growing creator economy. In part, thanks to the rapid growth of Instagram and TikTok, Luma expects nearly $6.2 billion to be invested in marketing via influencers this year. According to the company&#8217;s forecast, this number could reach $7.1 billion next year.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;The creative economy has become too large for us to overlook,&#8221; McKenna said. &#8220;This is fueled in the first place by consumers&#8217; adoption.&#8221; He anticipates that numbers will keep growing, mainly because influencers are moving from pitching to creating companies. McKenna mentions YouTube&#8217;s famous Jimmy &#8220;Mr. Beast&#8221; Donaldson as an excellent illustration. Luma states that Mr. Beast hopes to reach a $1.5 billion value for its online and studio brand.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Luma Chief Executive Officer Terry Kawaja said that artificial intelligence could also alter everything since it blends the creative with the data, positioning it as a threat and an opportunity for businesses.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;I believe that the marketing industry is obsessed with the idea of efficiency, which is why things cost less, mostly with an emphasis on data and media. It&#8217;s all very well and well, but it fails to consider the bigger view,&#8221; Kawaja said. &#8220;The bigger picture is efficiency which is mostly an emphasis on creativity&#8230; If AI is applied to creativity and efficiency in marketing and media, prepare because it&#8217;s a new era.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Luma&#8217;s outlook is based on uncertainty in advertising and Wall Street. McKenna stated that the rise in interest rates had been a &#8220;massive influence&#8221; on the deal market and companies themselves. While he claims there&#8217;s been a &#8220;stabilization on valuations,&#8221; it&#8217;s not where executives&#8217; focus is. &#8220;Profitability is becoming more important for those who have gotten past the initial stage of company creation,&#8221; McKenna told investors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The tracking of Luma indicates that in 2022, no public companies were launching after the IPO took place in 2021. In the VC market, which has financed the bulk of the podcasting industry&#8217;s early-stage expansion &#8211; Luma estimates that $190 million was raised in the first quarter in 546 deals. This contrasts with the $371 million raised in 7,924 sales in last year&#8217;s first quarter.<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone  wp-image-289\" src=\"https:\/\/blog.paytunes.in\/blog\/wp-content\/uploads\/2023\/07\/Luman-chart-for-May-30-2023_chart-TWO-300x158.jpg\" alt=\"How Vast Is the Digital Audio Opportunity? Luma estimates it to be worth $45 billion 2\" width=\"327\" height=\"172\" srcset=\"https:\/\/blog.paytunes.in\/blog\/wp-content\/uploads\/2023\/07\/Luman-chart-for-May-30-2023_chart-TWO-300x158.jpg 300w, https:\/\/blog.paytunes.in\/blog\/wp-content\/uploads\/2023\/07\/Luman-chart-for-May-30-2023_chart-TWO.jpg 699w\" sizes=\"(max-width: 327px) 100vw, 327px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The year ahead could be a different one. At the very least, a new audio company is set to go public, and LiveOne intends <\/span><a href=\"https:\/\/www.podcastnewsdaily.com\/news\/once-podcastone-splits-from-its-parent-deal-making-is-part-of-the-plan\/article_cdd0894c-f664-11ed-b886-57331f6256d5.html\"><span style=\"font-weight: 400;\">to separate the PodcastOne Division<\/span><\/a><span style=\"font-weight: 400;\"> into a standalone firm.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;We&#8217;re beginning to see signs of stability,&#8221; McKenna said of the marketing and ad tech companies now being positive on the market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Kawaja stated that there are indications that the tailwind could begin to overtake the headwinds of economic growth. &#8220;We are going to see positives in this quarter, as there isn&#8217;t a recession in sight,&#8221; Kawaja said. We note that 95% of marketing firms&#8217; ad technological technology beat their revenue estimates for the first quarter.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Source:- <\/span><a href=\"https:\/\/www.insideradio.com\/free\/how-big-is-the-digital-audio-opportunity-luma-pegs-it-at-45-billion\/article_7ab1d9b6-feaf-11ed-86de-2b03e1035b7b.html\"><span style=\"font-weight: 400;\">https:\/\/www.insideradio.com\/free\/how-big-is-the-digital-audio-opportunity-luma-pegs-it-at-45-billion\/article_7ab1d9b6-feaf-11ed-86de-2b03e1035b7b.html<\/span><\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; Podcasters and broadcasters have sung similarly when they complain [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":290,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[25,26,10,18],"ppma_author":[321],"class_list":["post-287","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-audio-advertising","tag-digital-audio","tag-digital-audio-advertising","tag-paytunes","tag-podcast-advertising","author-user"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Vast Is the Digital Audio Opportunity?<\/title>\n<meta name=\"description\" content=\"Millions of dollars can be pumped into digital audio. &quot;That&#039;s an opportunity worth $45 billion,&quot; McKenna said during an appearance at Luma&#039;s Digital Media Summit\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/paytunes.in\/blog\/how-vast-is-the-digital-audio-opportunity-luma-estimates-it-to-be-worth-45-billion\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Vast Is the Digital Audio Opportunity?\" \/>\n<meta property=\"og:description\" content=\"Millions of dollars can be pumped into digital audio. &quot;That&#039;s an opportunity worth $45 billion,&quot; McKenna said during an appearance at Luma&#039;s Digital Media Summit\" \/>\n<meta property=\"og:url\" content=\"https:\/\/paytunes.in\/blog\/how-vast-is-the-digital-audio-opportunity-luma-estimates-it-to-be-worth-45-billion\/\" \/>\n<meta property=\"og:site_name\" content=\"Blog - Paytunes\" \/>\n<meta property=\"article:published_time\" content=\"2023-07-03T07:20:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/blog.paytunes.in\/blog\/wp-content\/uploads\/2023\/07\/pexels-grzegorz-4336587-1-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Nikhil S\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nikhil Suman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/paytunes.in\\\/blog\\\/how-vast-is-the-digital-audio-opportunity-luma-estimates-it-to-be-worth-45-billion\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/paytunes.in\\\/blog\\\/how-vast-is-the-digital-audio-opportunity-luma-estimates-it-to-be-worth-45-billion\\\/\"},\"author\":{\"name\":\"Nikhil Suman\",\"@id\":\"https:\\\/\\\/paytunes.in\\\/blog\\\/#\\\/schema\\\/person\\\/2d1c98ce0f5e53c66bccb71eeaa9cde8\"},\"headline\":\"How Vast Is the Digital Audio Opportunity? 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With over 8 years of experience specializing in Google Ads, Meta Ads, SEO, and web design, Nikhil plays a pivotal role in driving the digital marketing strategies that power Paytunes\u2019 growth in the audio advertising space. He has played a key role in driving Paytunes\u2019 digital marketing initiatives, including the development of a weather-triggered audio campaign for TATA AIG General Insurance, which was shortlisted for the \u2018Best Regional Campaign \u2013 APAC\u2019 award. He has a strong background in search engine optimization with 7 years of dedicated experience optimizing content and campaigns for maximum online visibility and performance. Nikhil worked across various digital marketing positions, steadily advancing his expertise from Digital Marketing Associate to Senior Digital Marketing Executive. Before joining PayTunes, Nikhil worked in digital marketing and SEO roles at UA Consultants, Aile Medicare, Webtech Solution, and Instate Media. Nikhil holds a Certification Course in Digital Marketing from the Indian Institute of Management Visakhapatnam. Outside of work, he pursues his passion as a part-time musician, blending creativity with analytics to deliver impactful marketing solutions.","sameAs":["https:\/\/paytunes.in"],"url":"https:\/\/paytunes.in\/blog\/author\/user\/"}]}},"jetpack_featured_media_url":"https:\/\/blog.paytunes.in\/blog\/wp-content\/uploads\/2023\/07\/pexels-grzegorz-4336587-1-scaled.jpg","authors":[{"term_id":321,"user_id":6,"is_guest":0,"slug":"niikhil-admin","display_name":"Nikhil S","avatar_url":{"url":"https:\/\/blog.paytunes.in\/blog\/wp-content\/uploads\/2024\/05\/2151125241.jpg","url2x":"https:\/\/blog.paytunes.in\/blog\/wp-content\/uploads\/2024\/05\/2151125241.jpg"},"author_category":"1","first_name":"Nikhil","last_name":"S","user_url":"https:\/\/paytunes.in","job_title":"","description":"<span style=\"font-weight: 400\">Nikhil Suman is a Digital Marketer and SEO expert currently serving as Marketing Manager at Paytunes. With over 8 years of experience specializing in Google Ads, Meta Ads, SEO, and web design, Nikhil plays a pivotal role in driving the digital marketing strategies that power Paytunes\u2019 growth in the audio advertising space.<\/span>\r\n\r\n<span style=\"font-weight: 400\">He has played a key role in driving Paytunes\u2019 digital marketing initiatives, including the development of a weather-triggered audio campaign for TATA AIG General Insurance, which was shortlisted for the \u2018Best Regional Campaign \u2013 APAC\u2019 award.<\/span>\r\n\r\n<span style=\"font-weight: 400\">He has a strong background in search engine optimization with 7 years of dedicated experience optimizing content and campaigns for maximum online visibility and performance. Nikhil worked across various digital marketing positions, steadily advancing his expertise from Digital Marketing Associate to Senior Digital Marketing Executive. Before joining PayTunes, Nikhil worked in digital marketing and SEO roles at UA Consultants, Aile Medicare, Webtech Solution, and Instate Media.<\/span>\r\n\r\n<span style=\"font-weight: 400\">Nikhil holds a Certification Course in Digital Marketing from the Indian Institute of Management Visakhapatnam. 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