The Opportunities and Limitations of Programmatic Audio
Digital audio advertising formats are designed to be placed within audio content such as digital radio, music streaming services and podcasts. These ads may appear on mobile, desktop or in app on an individual level, or possibly via smart speakers and in-car for group listening.
The growth of streaming services and introduction of smart speakers has given audio content a new lease of life. Digital audio advertising is on track to become a €1.5bn market by 2023 with U.S. stats already highlighting 2020 as the year digital audio surpasses radio listeners.
This medium now reaches 180 million consumers each month with the average adult listening to 50 minutes a day. Additionally, podcasts have spiked in popularity – with the amount of listeners doubling over the past five years and ad revenues projected to account for 10% of audio in 2020. This growth has piqued interests, with 78% of UK advertisers looking to increase spend across music and digital radio formats in 2020.
Despite audio streaming services such as Spotify offering premium, ad free subscriptions, out of their 232m monthly listeners only 108m are paying subscribers, leaving plenty of ad inventory opportunities.
The programmatic activation of audio holds rich data application opportunities. Audio has always been a medium with an impressively high share of voice, in an often one-to-one environment. Additional flexibility in terms of data and context enables buyers to tailor creative messaging to suit audiences – segmenting by interests or location for example, enhancing the relevancy and therefore recall.
- Commercials are CPM based
- Advertisers are often pre-approved to run across the inventory, speeding up the creative review process
- The marketplace predominantly transacts via deal IDs
- Standard reporting metrics include listen-through-rate and quartile completions, additional metrics such as mutes, unmutes, stops and starts differ by publisher
- CPMs are variable by geo, format and targeting, averaging in the region of £15 CPM
Programmatic Audio Infographic
We have created a handy programmatic audio infographic that outlines its opportunities and limitations. You can find this below!