It turns out that video didn’t kill the radio star, or certainly not the consumer’s love of audio content.
Online streaming of AM/FM radio by 24-54 year-olds nearly doubled from 2017 to 2022; in 2022 it accounted for 15% of their total listening. For this demographic, podcasting doubled its share of ear as well. In 2022, 67% of Americans listened to digital audio.
The pandemic certainly had a role to play in the growth of podcasting, and advertisers opened their eyes to a channel that delivers rich consumer engagement. According to a recent study, people tend to pay the most attention to podcast content than any other media, generating the highest consumer concentration. Additionally, by being both digital and intimate, podcasting and digital audio have the advantage over TV in that ads can be specifically targeted to the individual listener.
Programmatic is an optimal audio buying process and a rapidly growing strategy for advertisers seeking to capture more audience attention. According to eMarketer, U.S. digital audio ad spend in the U.S. is projected to increase by approximately 50% between now and 2026. Additionally, programmatic advertising is expected to account for $1.31 billion of this ad spend, predicted to rise to $1.8 billion in 2024.
Drive a digital dialogue with listeners
With many changes afoot in other digital channels, such as cookie deprecation and the ongoing debate over TV’s effectiveness as a targeted medium, digital audio presents advertisers with an ideal opportunity to deliver creative, personalized and measurable results.
Smart speakers are now a more familiar part of everyday life, with users comfortable asking Alexa or Siri for train times, recipes, facts and, naturally, listening to audio programming. The global smart speaker market is expected to exceed 200 million units in 2023, and is projected to continue increasing in the following years.
Voice ads go one step further, embracing the omnichannel experience by setting off a digital dialogue between brands and audiences. With this interactive ad format, listeners on mobile can trigger an action without interrupting their program by answering a question in the ad. From there, it can redirect them to the advertisers’ website or add an event to their calendar.
Game on to reach a digitally savvy audience
It’s easy to get overwhelmed by the numerous channels, technologies and concepts constantly emerging. However, advertisers can’t ignore the expanding audio market and its potential to reach audiences in a more targeted, intimate, and measurable way.
Digital audio presents advertisers with an ideal opportunity to deliver creative, personalized and measurable results.
It’s essential to notice that audio ads are not limited to just radio or podcasting. A significant benefit of audio is that it can seamlessly integrate into a listener’s daily routine. Interestingly, one of the most exciting opportunities for audio ads is in the video gaming space.
The gaming industry is booming, with over 3 billion players worldwide, growing at nearly 6% yearly. The in-game audience is diverse, affluent, and digitally savvy—an ideal group for programmatic audio. It seems everyone is catching up; Netflix recently announced that it plans to release 40 more games this year. With a whopping 230 million subscribers, imagine the impact of in-game audio advertising on marketing campaigns.
Personalize, analyze and maximize
By investing in and implementing audio ad tech, marketers can uncover the most effective target segments, get real-time insights on their audience, analyze their behavior using machine learning and AI and personalize creative at scale.
One approach is to use a managed service planning and buying platform, which provides a comprehensive solution for digital audio marketing campaigns. This platform can help with media planning, campaign setup, targeting, and reporting, making it easier for advertisers to execute campaigns and analyze results. This option is typically suitable for advertisers who require a more hands-on approach and have specific goals they want to achieve.
Another option is to use a self-serve advertising platform, which enables advertisers to create and run audio ads in just a few steps. With this approach, advertisers can set a budget and schedule for their campaigns, upload their audio or submit a script, and choose their desired audiences. This option is typically more straightforward, making it a good choice for advertisers who want to launch their campaigns and reach their target audience quickly.
Ultimately, the choice of marketing strategy will depend on the advertiser’s goals, budget and level of expertise in digital audio marketing. It’s important to carefully evaluate different options and consider cost, ease of use, targeting capabilities and reporting features before deciding.
By partnering with the right provider, advertisers can make buying digital audio easier and more accessible. In the current industry, where advertisers constantly compete for customer share of attention, it’s crucial to prioritize channels where audiences are most willing and deeply engaged.
