Understanding Audio Advertising

Audio advertising – through podcasts, streaming platforms, and various radio formats – is in vogue. It’s essentially the mom jeans of digital media. But this time, it’s less about catchy jingles and more about authentic, engaging content. 

Coegi is enthusiastically leaning into this space, adding new programmatic audio capabilities and publisher-direct relationships to our repository of digital solutions., We connected Coegi’s Director of Innovation, Savannah Westbrock, to answer some key questions about the latest trends and technologies within audio advertising. 

What are the primary benefits of audio advertising?

The biggest advantage I see with audio advertising is the ability to meaningfully reach engaged audiences anywhere. Consumers spend an astonishing one-third of their media time with audio content. Over 424M individuals tune into podcasts worldwide – that’s over 20% of all internet users! And with 85% of audio listening being done on mobile devices, it’s a great way to reach users on the go and feed into a mobile-first marketing strategy. 

Podcast advertising becomes increasingly relevant for brands aiming to reach Gen Z. A 2023 report found that Gen Z listens to podcasts nearly as much as they watch streaming TV. Yet, audio advertising is still a largely untapped white space in the market for many brands. 

No matter your industry, marketing goals, or budget, explore how your brand can leverage the influencer status of podcasters to gain brand awareness and build authentic audience connections. Even if you are opting for programmatic audio, aligning your branded content with contextually relevant and interactive audio advertising content will increase authority and brand affinity. 

How has the world of audio advertising changed over the last 5 years? Did the pandemic impact audiences’ listening behaviors?

Despite expectations that audio would decline with the rise of hybrid office work and fewer commutes, time spent with audio during the lockdown stage of the pandemic seems to have grown at-home streaming audio listenership to levels not seen previously. 

In 2021, at-home audio streaming grew to surpass 90 minutes per day, with expectations to continue rising. Podcasts have been a major factor driving this growth, which could be related to the increase in individuals creating new podcasts from home.  

Podcasts are a unique audio advertising opportunity. How can brands do podcast advertising “right?”

This advice is going to be true of all media, but especially with podcasts: know your audience. Heavy podcast listeners usually have tight bonds with their favorites, especially those who subscribe to support their favorite creators. Ensure your audience matches the show, and then ensure the inventory itself is a strong fit for your strategy. 

What is the value of doing host-read audio advertising versus dynamic ad insertions (DAI)? Are there noticeable differences in use-case or performance expectations?

Host-read podcast ads have been the mainstay for many years due to historically limited programmatic audio ad formats as well as the benefits of a more organic ad experience. Programmatically inserting audio ads may turn listeners off of your brand if they feel irrelevant and disruptive. 

Collaborating with creators may be a better choice if your product or service has a very specific audience. In this case, the process will work much like influencer marketing. (For a full step-by-step process, view our Influencer Marketing Guide.)

However, if your product has broad enough audience appeal that the content of the show itself is less of a strategic concern, dynamic ad insertion remains a doable tactic. With programmatic audio and DAI, you also gain greater flexibility. You can swap out outdated ads with new ones, versus host-read ads which live in the podcast archives forever. Take timeliness into consideration as you weigh the pros and cons of these options. 

In what ways are host-read podcast ads similar to or different from influencer marketing?

The relationship between podcast marketing and influencer marketing is quickly becoming a squares-and-rectangles situation. Generally speaking, you can expect a strong recommendation from a podcaster to carry a perception of greater authenticity for your brand. 

The core difference is the content itself. With influencers, influencing purchases is the content, whereas podcasts cover every topic under the sun. A relevant recommendation from a trusted host is more akin to a testimonial than an influencer’s #sponsored post. 

How do you measure the impact of audio advertising?

Depending on your strategy, measurement will look very different. Programmatically-bought audio spots allow for most standard digital metrics like clicks (via companion banners) and inferred view-through conversions. 

But increasingly, strategists are viewing podcasts as a similar opportunity to influencer marketing. With this approach, pairing awareness KPIs, such as reach and lift, with referral codes or unique landing pages can be a stronger play.

For more benefits and tips, check out our 3 Reasons to Use Podcast Advertising blog

If you’re interested in running audio advertising campaigns with Coegi, contact us for a discovery call

3 Reasons to Use Podcast Advertising

Podcasts have been around for nearly 20 years, but only recently have gained mass appeal among both audiences and advertisers. With growing audiences, loyal listeners, new targeting advances and reporting options, there has never been a better time to explore podcast advertising.

“The growth of podcasting has brought a massive opportunity for advertisers to reach highly engaged, niche audiences.” – Arica McKinnon, Vice President, Client Consulting at Nielsen.

Not sure if podcast advertising is the right tactic for you and your brand’s bottom line? Here are three reasons that may change your mind.

Reason #1: The audiences are there…and growing

An estimated 120 million Americans listened to podcasts in 2021, with a projected growth to 160 million listeners in 2023. Despite a short flatline in listenership in 2020 due to shortened or non-existant commutes (a highly-popular listening time for the avid podcaster), podcast engagement increased notably this year with no signs of slowing down. Furthermore, according to a survey done by NCS Solutions, 88% of current podcast listeners maintained or increased their listening time over the past year. This increase can be attributed to several factors. Those factors include the return of commuting, increased WOM, new shows for niche audiences, and an influx of influencers developing their own shows to flesh out revenue streams and reach their audiences in a new way.

With this growth trajectory, it is no surprise that advertisers are increasing investment in this lucrative channel. According to IAB, podcast ad revenue in the US increased by 19% in 2020 and is predicted to exceed $3B by 2023. This indicates brands are seeing success with podcast advertising. As follows, competition for reaching these audiences will continue to build over time. Jumping into the pool of opportunity now will allow you to expand your reach and effectiveness.

Reason #2: More options and flexibility

Podcasts have held the attention of highly-engaged, niche audiences for years. Historically, the only option for brands to advertise in this space was to purchase expensive, inflexible and hard-to-measure direct buys. In recent years, however, the growing popularity of podcasts has created a demand for an updated, more flexible and measurable system for reaching these audiences.

The industry recognized this opportunity and began developing alternative ways to monetize it. The result? A programmatic option called dynamic ad insertion (DAI) has now entered the market, making it easier and more affordable to incorporate this tactic into your media mix.

This biddable technology allows for new audience targeting options, including listening habits, geographic region and weather conditions. Due to the nature of podcasting, there are somewhat limited options for targeted demographics. However, as the technology continues to develop, there will likely be more options on the horizon. Don’t let these limits keep you from investigating this tactic as a viable option.

Reason #3: Listeners are ad-friendly

Not only are the audiences growing, they are receptive and responsive to the ads they hear while listening. A recent study on podcast “super listeners” discovered that 48% of listeners pay more attention to podcast ads than any other media and that 71% of those surveyed say they never, rarely, or only sometimes skip the ads they hear while listening. The study also found 54% of respondents are more likely to purchase a product after hearing an ad for it on a podcast, up from 46% in 2019.

There are a few surface-level reasons for this acceptance. Firstly, most podcasting platforms are free to use and audiences understand they trade the ad for the content. Then, there is the fact that most listeners tune in while doing other activities – driving, cleaning, walking, etc. Their hands are not typically free during these activities so they are more likely to listen through the ad. This is unlike many other ad formats that are easy to scroll by or tap the skip button.

The primary reason audiences are receptive and responsive to podcast advertising, however, is trust and authenticity. Listeners often feel like the host is directly speaking to them. Before the introduction of DAIs, hosts read all podcast ads. Because podcasts tend to attract highly engaged, niche audiences, the hosts became their own breed of influencer. They make trusted recommendations to their highly connected listeners. This has set the stage for advertising to natively work its way into the expected user experience. Host-read spots are still the most highly trusted advertising spot in podcasting, but they have conditioned podcast listeners in general to be more receptive to advertising.

Recommendations

With the growing audience sizes, ad-friendly listener behavior and advancing technology options, reaching your ideal audience in the podcast space has become easier than ever. However, the unique channel constraints may require different strategies than what is successful for your brand on other channels. Here are a few recommendations:

  1. Be creative with your targeting strategy. With limited out-of-box options for DAI placements, hyper-targeting will likely lead to overly expensive and minimal scale results. Instead, research the audiences that are already listening to podcasts and find a happy medium between niche and broad. What podcasts would your target audience be listening to and engaging with? Use interest and affinity-based audience insights to inform your targeting strategy.
  2. Consider the user experience when creating ad content. Like with all advertising mediums, your ad will perform better if it blends into the user experience. Podcast listeners are used to more conversational experience, so ads that are organic, informal and relatable perform best.
  3. Experiment with programmatic and traditional direct-buy placements. A podcast whose audience perfectly aligns with your target may be worth the direct ad buy. But also experiment with more flexible DAI purchases to find the most successful shows and targeting combinations for your brand.
  4. Stay on top of technology developments. Be comfortable in these platforms so you can take advantage of the high value podcast audiences before your competitors.

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