Programmatic Audio Advertising | Adtaxi

Programmatic Audio Advertising

Digital Marketing

Jennifer Flanagan

Apr 27 2022

Over the last few years, there has been rapid growth in digital audio listening. In 2021, it was reported that almost three-quarters of Americans are listening to digital audio every month. With so much digital audio listening, it was only a matter of time before audio advertising emerged as a way of monetizing the thirst for audio content. The best thing about audio listening is the fact that brands can reach highly engaged audiences while they’re tuned in to their favorite digital audio content. 

Even though audio advertising is proving to be quite useful for many brands, it still has a long way to go in order to catch up with the automated display and video advertising in terms of spending. This is exactly where programmatic audio advertising comes in. 

What Is Programmatic Audio Advertising?

Programmatic audio advertising is the automated buying and selling of ads in digital audio content such as podcasts, digital radio, audio articles, and streaming music services by using algorithmic artificial intelligence. Consequently, advertisers and marketers get better targeting, measurement, and retargeting in order to execute marketing campaigns with great efficiency. 

With programmatic audio advertising, ads are delivered to listeners in real-time based on their listening behavior. This happens without direct interaction from the advertiser’s marketing department. When programmatic audio is integrated into large marketing campaigns, it can result in a more cohesive and personalized advertising experience for everyone involved. 

This is likely to result in more conversions for the brands. Unlike traditional radio advertisements, programmatic audio advertising can easily target specific locations and deliver messaging in a way that meets the marketer’s needs and enhances engagements. 

Based on the success that programmatic audio advertising has had in other areas of advertising, it has great potential to succeed in these digital audio platforms. The only thing that has been holding programmatic audio advertising back is the lack of proper technology to facilitate it and the limited interest of audio publishers. 

How Does Programmatic Audio Advertising Work?

For many years, programmatic audio was missing great delivery standards, and a lot had to be done to attract more audio publishers and advertisers and inject the advertiser’s money into the system. Fortunately, this is no longer the case as Interactive Advertising Bureau (IAB) has been working on a real template that will be used for delivering audio ads. 

Now, programmatic audio advertising uses the same technology that we’re familiar with in order to automate the selling and insertion of ads into digital audio content such as podcasts, music streaming services, and digital radio. The great thing about all this is the fact that the bidding, buying, and marketing campaign execution process remains the same as automated video advertising. 

The biggest difference between the two exists in how the message is conveyed. For instance, when it comes to programmatic audio advertising, your brand’s message will only be conveyed through audio. It is very important to note that your brand’s pre-recorded message can appear at various points throughout the media as it plays. 

With programmatic audio, the ads can be played as pre-rolls, where the audience can listen to them before their favorite show. Also, these ads can also be played as mid-rolls, whereby the show is interrupted midway in order to share the message. Generally, pre-rolls tend to be shorter, and they usually catch the listeners before they leave. 

On the other hand, mid-rolls are longer, and they tend to reach more engaged audiences. Both have their own advantages, but pre-rolls are ideal for online radio as well as music streaming services. 

However, the type that will work the best depends on the audience and the type of audio content that the ad will play over. The best thing about using programmatic audio advertising is the fact that you don’t have to make such decisions by yourself. 

Benefits of Programmatic Audio Advertising

Up to date, the full potential of programmatic audio advertising has yet to be reached. However, there are numerous benefits that brands can get from programmatic audio advertising in music streaming services and podcasts. 

The Increased Popularity Of Music Streaming Services

According to multiple reports, there has been a rapid increase in the number of people who use Spotify and other music streaming services. Even though Spotify comes with a premium plan where users can enjoy ad-free music streaming, most of them still opt for the cheaper alternative that incorporates ads. 

Almost 20 million Spotify users use the non-premium plan and listen to ads. While these numbers might not be as those associated with display ads, advertisers don’t have to compete for the listeners’ attention. Basically, the listeners can’t listen to anything else while the ads are playing, which enhances the engagement. 

It Is Emotionally Engaging

Compared to display ads and television, programmatic audio advertising never relies on visual engagement. Instead, programmatic audio reaches listeners in a much more immersive way than display ads and television. For instance, music generates emotions, and listening to your favorite podcasts is much more like chatting with a friend. 

Therefore, programmatic audio commands the listeners’ full attention, which makes it possible for them to feel intimately connected to the content they’re listening to. Therefore, whenever an ad comes on, the listener will be much more receptive and create the ideal opportunity to drive engagement. 

The Audience Is Affluent and Well-Educated

Most people who listen to podcasts tend to have a college education or higher. It is also likely that these people earn more than the median household income in the U.S. As a result, this makes them a more valuable audience from a targeting point of view. 

Low CPM Costs

Compared to other digital media channels, programmatic audio advertising involves low cost-per-thousand rates. This makes programmatic audio advertising an appealing choice for most brands, especially those with a limited marketing budget. 

Get Started With Programmatic Audio Advertising Today

Are you interested in trying out programmatic audio advertising for your brand? Contact us today at Adtaxi and let us help you run effective marketing campaigns across various digital audio channels such as podcasts and music streaming services.

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