Programmatic Audio: The Essential Guide

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18 April 2023

Audio advertising has gained immense popularity in recent years, with digital audio content attracting a large audience. According to the Interactive Advertising Bureau (IAB), programmatic audio advertising is expected to grow rapidly over the next few years, as marketers take advantage of the power of audio to reach consumers in new and innovative ways.

In the United States alone, 67% of people listened to the digital audio content in 2022, which accounts for 223 million Internet users. Despite the reduction of marketing budgets due to the threat of recession, spending on audio advertising is predicted to reach $6.8 billion this year, a 9% increase from last year. With such impressive figures, it’s no surprise that many brands are turning to programmatic audio advertising to reach their target audience.

Leading audio companies, such as Spotify, Pandora, iHeartRadio, and SoundCloud, are at the forefront of the programmatic audio revolution. These companies leverage data-driven insights to deliver personalized and relevant ads to their listeners, making for a more engaging and effective advertising experience.

Despite big players present in the niche, WARC’s data says that audio accounts for 31% of total media consumption yet receives less than 10% of overall advertising dollars. That is a clear sign of the huge-but-not-yet-realized potential of audio.

Programmatic Audio Inventory

Programmatic audio inventory includes pre-roll and mid-roll ad spots, sponsored playlists, and voice-activated ads. Advertisers can use outdoor OOH advertising with a digital slant, providing improved targeting, measurement, and retargeting. The decline in the popularity of traditional radio is contributing to the introduction of online and digital broadcasting.

Programmatic audio can be embedded in various types of content, including podcasts, music streaming services, online radio, and live audio communication. These platforms offer advertisers the ability to target specific audience segments and deliver personalized messages based on user data, such as location, device type, and listening habits. Programmatic audio can also be used in conjunction with other forms of digital advertising, such as display and video, to create cross-channel campaigns that reach consumers across multiple touchpoints.

Programmatic Audio + Podcasts and Music Streaming Services = Match Made in Heaven

One of the biggest benefits of programmatic audio is its ability to target listeners based on their interests, location, and behavior. For example, advertisers can target listeners who are listening to a specific genre of music, such as hip-hop or rock. This means that programmatic audio ads can reach your tuned-in audience really effectively, resonating with them and leading to a higher conversion rate.

Programmatic audio advertising is highly effective in podcasts, which have seen a surge in popularity in recent years. With programmatic podcast ads, advertisers can deliver relevant info directly to the listener, making for a more seamless and non-intrusive advertising experience.

In the world of advertising, programmatic audio is an essential tool for reaching listeners in a highly mobile consumer environment. At DecenterAds, we offer brands the ability to reach listeners across a wide range of channels and formats, including streaming music services, live communication, radio, sports, and podcasts. To take advantage of programmatic audio advertising and reach your target audience, use our self-serve advertising platform at DecenterAds – and offer a way to deliver highly targeted, relevant, and engaging ads to worldwide audiences, driving conversions and boosting revenue.

 

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