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The majority of audio advertising is connected with radio commercials of the traditional variety.
But, given the expanding popularity and reach of digital audio services, including the streaming service, radio digital and podcast streaming, audio-based advertising is experiencing changes. Digital audio advertisements, which are the distribution of ads for the rapidly growing digital audio technology, are growing rapidly.
There’s no doubt how. With the popularity of streaming platforms such as Pandora, Spotify and podcasts, the number of people listening to audio-based content has been increasing at an alarming pace. Within the United States alone, the digital audio marketing industry is expected to grow by $6.66 billion before 2027. All in all, within the Digital Audio Advertising segment, listeners will reach 231.2 million people in 2027.
The empirical evidence suggests that targeting the audio market can yield significant positive benefits for publishers and advertisers. This is where the digital aspect of marketing comes into play. Though it might sound like a simple concept, it’s a significant improvement over traditional strategies for delivering information specifically to the intended group of people, measuring the impact of campaigns and delivering a higher return on investment.
This article discusses the benefits of using digital audio advertisements and how they can benefit both publishers and advertisers seeking to increase the value of their marketing budgets.
WHY DIGITAL AUDIO ADVERTISING MATTERS
Digital audio ads allow marketers to communicate with the audience efficiently and adjust to changing behaviour of the consumer.
The result is that advertisers gain in many different ways, such as:
Efficient reach for consumers
Most people listen to audio on digital devices not just while driving; they also listen to it during their leisure activities, including running, exercising or even working remotely. Audio is still a popular choice because it doesn’t require users to be attentive, allowing the ability to work in multiple places. Furthermore, the increasing use of smart speakers allows users to access the audio they love anytime, anywhere.
Since people prefer to consume content that is important to them, advertising or messages included as part of the audio-based content have the potential to be more memorable. Additionally, it is less likely to be ads that are blocked digitally by blockers for ads.
Contextualised advertisement
Programmatic audio ads allow advertisers to position ads within the environment of a single customer. It means that you can reach your audience in the significance of the importance of your product within the life of the customer and the demographics of the way they behave their geo-location, or even the device’s type. For example, let’s suppose a person listens to music for exercise. Imagine the potential impact of placing ads for a health app between music. This kind of strategic placement can change the game.
In-depth real-time information
The programmatic sound advertising system also allows users to collect real-time data on how people react to ads. Nowadays, smartphones allow customers to make a decision based on when they see a brand advertised, examine it more deeply and find products similar to it, and so on. This leads to a better knowledge of the campaign’s effectiveness and how it connects with people based on geography, demographics, and similarities. This also allows you to comprehend your customer base better and develop new targeting strategies.
Improved advertising costs
Video-based advertisements can outperform audio advertising in a significant way as costs are related, which can be extremely beneficial to advertisers. With the advancements in ad technology currently available, the running duration of ads has decreased significantly. The new capabilities are making it easier for forward-thinking advertisers and marketers and aiding in reducing the price of their ads.
HOW PROGRAMMATIC AUDIO ADVERTISING CREATES VALUE
Adtech is the foundation of audio-based programmatic marketing.
The Adtech ecosystem comprises eight basic elements.
The inventory of ads is purchased and sold with various tools that do not require in-person meetings. These ads are placed on albums, banners, or pre-roll (before you get to the actual content) or mid-roll (in-content).
Advertisers and publishers can conclude these negotiations for advertising transactions online in either of two ways by using automated systems.
- Programmatic direct: The publishers and advertisers discuss the purchase of advertising inventory by agreeing on the price per mile (CPM).
- Real-time bidding: In this way, the advertiser puts up ad inventory in real time.
THE CHANGING LANDSCAPE OF THE ADTECH SPACE
Acquisitions and mergers have become the norm of the month for digital audio. However, there are still a lot of challenges to overcome.
The market is becoming increasingly condensed, with major media corporations investing in smaller players to provide various offerings and control the advertising market. The result could be an industry-wide dominance for a small number of players. However, the good news is that even though Facebook and Google have the majority of market share, new players provide better-targeted solutions specifically for businesses.
Privacy issues are a further problem to tackle. The introduction of new regulations, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), restrict the ability of DMPs to focus on their intended customers. It is a requirement for the digital advertising business to come up with better strategies for the secrecy of user information in order in order to protect data and security while also allowing them to provide targeted services.
THE FUTURE IS DIGITAL
The digital audio advertisement is anticipated to fight head-to-head with the traditional method.
With the growth of digital audio as it expands, the scope of programmatic advertisements is predicted to grow proportionately. Thanks to the development of AI machines, machine learning and big data advertising platforms can accurately analyze and classify the user’s behaviour, allowing advertisers to determine better their audience and publishers to manage their inventory better.
While advertisers and publishers look for ways to boost their use of mobile and smart devices, ad tech firms are accelerating their innovation to reach audiences more accurately and offer transparent platforms to deliver content.
With the advent of wearable smart devices and the capability to harness big data machine learning, AI and IoT, the ability to deliver hyper-personalized advertisements is rapidly becoming a possibility. The development of smart streaming devices will continue to increase, bringing into a new era of audio-based interactive ads, letting listeners interact with ads via smart speakers.
The future of audio technology will bring revolutionary innovation that will create significant opportunities within the tech area. Businesses that are wise in investing in this field are the best placed to grab customers’ attention and maximize their marketing budgets.