Remember the good old days when radio was just a knob on your car stereo? Or, if you’re even older (but young at heart), maybe it was a square, clunky box that only accessed a few local channels, and every so often during the broad
cast, you got advertisements promoting businesses around town or new and exciting products like the color TV. But the way we listen to music, talk shows, stories, news, weather, traffic, and the like has totally transformed in days gone by.
Today, we have podcasts, streams, playlists…a majority of people are tuning in to online radio on their phones or other devices that fit in their pockets—155 million people, to give you an approximation, with expected growth to 191 million by 2019. 68 million people subscribe to some sort of music streaming service and a quarter of those people stream music on their smartphones on a daily basis. The radio streaming service Pandora logs 5.4 billion hours of user listen time in a single quarter.
It is safe to say that over the past few years, traditional radio has undergone a major makeover of the digital kind, and with it, so has audio advertising. According to a survey coordinated by AdAge, The Trade Desk, and Advantage Business Research, US marketing and media professionals will allocate an average of 11.6% of their ad budget and inventory to digital audio placements by mid-2017. This figure is up from 7% just a year earlier and double the share of investments made two years earlier which, according to eMarketer, marks a significant gain on overall ad inventory.
It is clear that there is much to gain from incorporating audio advertising into existing online channels. According to the same AdAge study, 37.4% of respondents in the US said that formatted music channels are of interest when considering buying programmatically.
“Advertisers are after an audience, and they see digital radio as a platform that reaches an engaged user who can be precisely targeted by geography, demographics, social connections, listening behavior and other critical metrics,” eMarketer said in a statement. And with current technology, it is entirely possible to take audio advertising over the top and make it more effective than ever.
Online radio is a hyper-personalized method of streaming audio, and this is one of the main appeals of digital audio advertising. Listeners possess the ability to customize programming from a seemingly unlimited array of stations and playlists curated for the user with the aid of intelligent algorithms. Incorporating advertising and audio streaming means that listeners get relevant ad content that is targeted specifically to them, which means it is likelier for them to become potential customers. With the explosive growth of audio streaming services, there is also consistent growth of advertising revenue.
Yet another reason audio ads are so enticing to marketers is because they have the reach and influence of video advertising, but are much cheaper and much easier to produce. They aren’t really effected by ad blockers, so users can’t just skip over them or gloss over and do something else like they tend to do with video ads, so they are more directly influenced An Audio.ad survey found that nearly five of every ten people have bought between two and five products or services advertised.
So how does this kind of targeted advertising work? Well, based on your content and listener demographics, advertisers looking to appeal to a certain audience will pay to air ads on your channel. The process is streamlined with an audio ad monetization service like the one soon to be offered by Primcast. Audio advertising, similarly to other kinds of advertising, can be targeted based on region, age, interests and much more, so advertisers can be confident their content appeals to your audience. It’s pretty simple from there: triggers based on metadata in your encoder send a message to our servers to play ads automatically.
Video marketing seems to be the talk of the town, however, advertisers have had their eye on digital audio ads for some time now, and brands are beginning to take notice. By appealing to the ears instead of the eyes while a listener is tuned in to news, music, or talk shows, they are cutting through visual ads to become a part of someone’s day, and that in itself is powerful.