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Digital distribution of audio content has rapidly gained popularity since the invention of podcasting in 2001. The ability to download and listen to audio content on the go, anytime and anywhere, has made podcasts a preferred medium for entertainment and education.
Even though podcasts were initially created to be free of advertisements, as the audience grew, so did the demand for monetizing this medium. This gave rise to programmatic audio advertising.
To understand the trends of programmatic audio advertising in 2024, here is a brief overview of what it is and how it works.
Programmatic audio advertising allows advertisers to run targeted audio ads dynamically with the help of programmatic platforms. These platforms use automated, data-driven technology to buy and sell audio ad inventory in real-time.
Advertisers can reach the audience by listening to digital audio content, such as podcasts, music streaming services, and radio stations. These ads are inserted in real-time, allowing for a more personalized and relevant experience for the listener.
The future holds great potential for programmatic audio advertising due to the following trends:
The music streaming industry has seen a significant increase in listeners. With platforms such as Spotify and Apple Music gaining popularity, more and more people are turning to digital audio for entertainment.
The music streaming market is projected to reach a revenue of USD 29.60 billion in 2024, with users spending an average of 20 hours and 6 minutes streaming music weekly. With the increasing number of users streaming music and audiobooks, digital audio consumption is expected to grow.
This presents a massive opportunity for programmatic audio advertising, allowing advertisers to reach a larger and more engaged audience.
Podcasts have gained immense popularity recently, with various content available on multiple platforms.
According to Deloitte, monthly average podcast listeners will increase to over 1.7 billion in 2024. The monthly average number of audiobook listeners is expected to reach 270 million, while the monthly average number of streaming music subscribers is expected to hit 750 million.
With the growing audience, podcast advertising will become a significant part of programmatic audio advertising in 2024.
The rise of smartphones has made it easier for people to consume audio content on the go.
According to Trinity Audio, spoken word audio consumption on mobile devices has increased by 278% since 2014, with mobile devices accounting for 35% of total spoken word audio listening.
In 2024, mobile is expected to remain the dominant platform for audio consumption. With the help of programmatic audio advertising, advertisers can target listeners on their mobile devices with relevant and personalized ads.
With smart homes becoming more prevalent, voice-activated devices are gaining popularity. Smart speakers, such as Amazon Echo and Google Home, have now become a staple in many households.
These devices allow for a more hands-free listening experience, making them a prime platform for audio consumption. More and more people are using these devices to listen to audio content, such as news briefings, podcasts, and music.
Smart speaker ownership in the US is becoming more common and is expected to increase in the coming years, creating another avenue for programmatic audio advertising.
In the past, programmatic audio advertising was mainly used by consumer-focused brands. However, with the increasing popularity of audio content and the rise of B2B podcasting, B2B advertisers are investing more in this medium.
B2B companies now use podcasts in their specific industries to establish thought leadership, educate their audience, and drive sales.
Companies also incorporate programmatic audio advertising into their marketing strategies to reach decision-makers and professionals on the go. As B2B podcasting continues to evolve, so will the use of programmatic audio advertising in this space.
The structure of programmatic audio advertising follows a process similar to that of other programmatic advertising methods. The digital audio ad serving template (DAAST) provided a framework in 2014 that enables programmatic platforms to integrate with publishers and ad servers.
With interactive advertising bureau (IAB) standards in place, advertisers can now buy targeted audio ad inventory in real-time through programmatic platforms.
Here’s a simplified breakdown of how it works:
With the popularity of digital audio content, various channels are available for programmatic audio advertising. Here are the top channels to consider:
Streaming music services offer personalized audio content, making them an ideal platform for programmatic audio advertising. Amazon Music, Apple Music, Tidal, Spotify, Youtube Music, Deezer, Pandora, Qobuz, and SoundCloud are some of the popular streaming music services in the market.
Podcasts have gained widespread popularity, and advertisers have taken notice. Podcasts offer a targeted audience and longer listening sessions, making them an ideal platform for programmatic audio advertising. Advertisers can target specific podcast genres like sports, business, news, comedy, and more.
Driving or at work, people often tune in to internet radio for a steady stream of music or talk shows. Platforms like TuneIn, iHeartRadio, and Radio.com offer programmatic audio ad opportunities for advertisers looking to reach these listeners.
Live audio streaming platforms, such as Twitch and Clubhouse, are gaining popularity and offer opportunities for programmatic audio advertising. These platforms provide a unique opportunity for advertisers to engage with their audience in real time through interactive ads.
Audiobooks have gained popularity in recent years, and with the rise of audiobook streaming services like Audible, Scribd, and Storytel, it has become another avenue for programmatic audio advertising. Advertisers can target listeners based on their preferred book genres or authors.
Platforms that offer a variety of audio content, such as audio blogs, radio shows, music playlists, and podcasts, also provide opportunities for programmatic audio advertising. These platforms include TuneIn, Spotify, and SoundCloud.
Here are the most common formats available for programmatic audio advertising:
Linear audio ads are traditional 30-second or 60-second audio commercials that play during a break in the audio content. These ads are non-skippable and are often used for brand awareness or product promotion.
Companion ads are visual advertisements that accompany an audio ad. They can be in the form of a banner, display ad, or interactive element. With the prominent audio ad playing, these companion ads can provide additional information or a call to action for the listener.
Skippable ads give listeners the option to skip the ad after a few seconds. Advertisers only pay if the listener listens to at least 30 seconds of the ad or interacts with it.
Ad Pods are multiple audio ads played in succession during a break in the audio content. This allows advertisers to reach their audience with multiple messages in one ad break.
Rewarded audio ads are becoming increasingly popular, especially for mobile gaming apps. These ads reward listeners, such as in-game currency or extra lives, for listening to the full audio ad.
Why should advertisers consider programmatic audio advertising as a marketing strategy? Here are 5 key benefits:
Audio content consumption allows for a more intimate and engaged listening experience.
Whether the listener is streaming music, listening to a podcast, or using smart speakers, they are actively engaged in the audio content and more likely to pay attention to ads. Unlike other forms of media, audio ads are less likely to be skipped or ignored by the listener, resulting in higher engagement rates.
Furthermore, with programmatic audio advertising, ads can be targeted to specific audience segments, making them more relevant and increasing the potential for conversion.
The rise of digital audio has attracted a younger and more affluent audience.
According to Pew Research Center, two-thirds of adults under 30 and nearly six-in-ten aged 30 to 49 have listened to a podcast in the past year. Younger US adults aged 18 to 29 and 30 to 49 also listen to podcasts more frequently than older groups (50-64 and 65+).
This younger and affluent demographic is highly coveted by advertisers, making programmatic audio advertising an attractive option for reaching this audience.
Programmatic audio advertising offers advanced targeting capabilities, allowing advertisers to reach their desired audience more effectively.
Some of the targeting options available include
The IP address of a device can be used to target specific geographic regions or households. This is especially useful for local businesses when targeting a specific regional market.
Ads can be targeted based on the type of audio content being played. Like-minded audiences are likelier to listen to similar content, making this targeting option highly effective.
Advertisers can target specific individuals by using their data, such as customer email lists or website behavior.
Audience demographics and interests can be targeted through data on their online behavior, such as search history and browsing habits.
Ads can also be targeted based on the context of the audio content being played. For example, an advertisement for a fitness product may be more effective when played during a podcast episode about health and wellness.
One of the key advantages of programmatic advertising is its ability to use data to make real-time decisions and optimizations.
With programmatic audio advertising, advertisers can access real-time data insights such as ad impressions, clicks, conversions, and more. The intelligence gathered from this data can inform future targeting and optimization strategies. This data-driven approach ensures that ad spend is being used effectively, resulting in higher returns on investment.
Programmatic audio advertising allows for real-time optimizations, meaning changes and adjustments can be made to campaigns while running.
This level of flexibility and control enables advertisers to make informed decisions based on performance data and adjust their strategies accordingly. They can pause or adjust campaigns that are not performing well, reducing ad spend wastage.
Audio advertising is a powerful tool for reaching and engaging your target audience. With the rise of digital audio consumption, programmatic audio advertising offers advertisers a more efficient and effective way to connect with their audience.
Partnering with a specialized programmatic audio ad platform like VenziMedia can help you reach your advertising goals. Whether you want to increase brand awareness, drive conversions, or engage with a specific demographic, we can help you achieve your objectives.
