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We’re on the cusp of the most significant year to date for audio advertisements and, more specifically, for podcast advertising. As per Insider Intelligence, podcast advertising spending is expected to reach 2 billion this year and comprise approximately one-third of all audio-related advertising. It’s a vast improvement from only four years ago when the amount of podcast advertising was around 16% of the total pie of audio advertising.
It’s just one thing that counts for podcasters or advertisers, especially not in a volatile economic environment like ours. With this type of money comes the possibility of demonstrating the kind of innovation advertisers and brands will seek. If you’re trying to break into the market, you may be looking for a place to start. Let’s look at the top trends.
Audiobooks go ad-supported.
In streaming, free ad-supported television (FAST) and ad-supported video on demand (SVOD) have genuinely taken off in 2022. Big companies such as Netflix and Disney are taking up the concept. Warner Bros. Discovery is getting in on the game by licensing some of its canceled-for-budgetary-reasons shows like “Westworld” to Tubi and Roku on the FAST side of the equation. What’s the next option for advertising? It could be an audiobook.
Apple has already begun testing AI to produce audiobooks for books you have signed to a preferred partnership for the audiobook to go into production. Apple has announced that it will pay for this procedure. However, Apple could be experiencing decreases in revenue. As reported by Forbes writer John Koetsier, Apple is one of the three leading companies that operate in the audiobook industry along with Spotify, Amazon’s Audible, and the two other companies also are interested in what Apple chooses to pursue, even if offer lower prices and, thus, draw customers out of the Apple’s garden.
With the market set to grow to more than $20 billion in 2028, the race is now for more outstanding market share. If Apple can provide more audiobooks than they did previously, Spotify and Amazon are likely to make it easier to buy them. No credits or complex systems are required or a need to endure ads after each chapter, for instance. Amazon has tried similar things before, with advertising-supported Kindles that are available at a lower cost and most likely contributed to making the e-reader the most popular in the e-reader market that is dedicated to.
Podcasts are a great way to promote brands with a budget.
Despite the encouraging signs from the market in recent months, the recession is still in everyone’s thoughts— (subscription required)–you do not have to go any further than the Spotify cuts to realize that technology isn’t immune to the economic jitters. Even before the recession hits (if it ever does), the companies are likely to look to trim their budgets and get rid of campaigns that aren’t performing. Podcast advertising is a low-cost and personalized option that has the potential to grow. Since the pandemic, recorded audio consumption has risen by nearly 80 percent, with podcasts and radio showing the most significant gains in this segment.
Those who have been listening for years may recall the three advertisements they heard on an airplane during an hour-long listening session. Podcast advertising has advanced since then and can personalize it as a more appealing (and cost-effective) medium. The most prominent brands in various industries, such as retailers, CPG, automotive, and even luxury, will likely look into audio to gain the return on investment they require.
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This is made possible by advancements in the audio advertising technology ecosystem. To be clear, A Million Ads, my business, A Million Ads is a company that offers ad-tech solutions. As I’ve mentioned elsewhere, companies can now focus ads, such as host-read and endorsement ads using programmatic technology, increasing brand loyalty and efficiency while providing the most reliable automation, cross-channel measurements and attribution, personalized artistic content, and, most importantly, brand safety.
Marketers need to be aware of the frequency at which podcast listeners have strong connections with hosts, which allows for a high recall for brands that leverage this platform.
Spotify is adopting this strategy over its previous significant investment to expand its podcasting business Ashley Carman writes that the latest Emma Chamberlain deal allows Spotify to develop the character’s already existing fan base onto the platform. Advertisers need to continue to watch how Spotify continues to change its strategies and expect brands to be open to new technologies they use in the field of audio.
Automation means more content and less spending.
The same way that audio automation is set to explode because of the huge variety accessible for a small amount of resources. Platforms such as Audacy and iHeartRadio such as iHeartRadio, for example, offer live analytics, actionable information, and even brand safety analyses through their automation services as well as the Audacy Digital Audience Network and iHeart’s collaboration with Sounder.
In addition to privacy concerns for consumers, increasing concern, automated systems can keep providing the personalization that advertisers desire without removing information that consumers are beginning to safeguard more rigorously. This includes affinity information to location or time-sensitive information that can help focus promotions.
It could sound like an uneasy proposition, but certain advertisers need to know what’s possible without the detailed information they’re accustomed to obtaining about customers. Travel site Kayak is a prime example. It utilized AI to see what kinds of themes would be popular with consumers by 2021, resulting in higher popularity with customers. In the case of audio, it could mean being capable of changing ads or even just 1 word at a given time to make them more relevant to what people are searching for.
2023 is expected that it will be one filled with unexpected events.
With the increasing likelihood of a recession, many marketers are looking beyond the conventional options, either because of budget cuts or the desire for more ROI in what could be an uncertain year. This article will help others understand the latest audio trends as we look forward to further advancements in the years to follow.
