Digital Audio Ads
The growth of digital audio advertising is accelerating, according to Advertising giant Group M’s 2023-2020 mid-year projection. The sector has grown by 19.4 percent in 2022. IAB Europe projects the European digital audio market, which was at EUR772 million in ad spending in 2022, will exceed the EUR1 billion mark in 2025.
The IAB Europe’s AdEx Benchmark Report highlights that markets with a traditionally high proportion of radio in their media mix, such as Ireland, Belgium, Germany, and Spain, have a higher than average percentage of digital expenditure devoted to digital audio.
“Advertisers and agencies are the top three audio investment drivers, including the ability of the channel to improve broad media plans (65 percent) as well as increase brand awareness (55 percent) and connect with specific audience segments (48 percent). Nearly half (47 percent) of both agencies and advertisers say that audio advertising is their top or one of their most preferred media options,” according to the report by OAB and Group M.
“Mobile devices are the primary device for reaching the audience that consumes audio content. 70% of respondents from the buy-side said they would like to reach their customers through mobile devices, while 84% of publishers stated the same.
“Innovation in digital audio is a significant growth driver, with consumers looking at dynamic and interactive audio ads as an important opportunity to increase the amount they spend.”
“Publishers are also observing the increasing popularity of audio ads and optimizing supply as major growth opportunities. Due to the increasing number of ads and audio channels, buyers are investing in budgets across streaming (59 percent) and podcast (59 percent), and radio on the internet (57 percent), which highlights the significance of having a comprehensive advertising approach.”
“EMEA Audio is buzzing with potential, as publishers and buyers anticipate a significant increase in the next few years. As a medium that can reach high-quality audiences in moments when other media formats can’t, audio can enhance buyers’ plans and publishers’ media offerings,” according to Harry Harcus, Group M.
“From 2018 to 2022, digital music has outpaced other advertising channels within Europe by a compound annual growth rate,”m says Daniel Knapp, chief economist at IAB Europe.
“The pandemic was an uni cyclical catalyst for the growth of digital audio, specifically podcasts, due to increased consumption. But, structural enhancements like improved measurement, streamlined purchasing, and automation continue to push the market forward.”
“The advertising industry’s focus on paying attention in a screen-saturated media environment, the quality of reach, and brand safety make digital audio an attractive investment option for advertisers and an effective platform for publishers to capitalize on the context.”