Programmatic audio combines the efficiency, scale and transparency of programmatic buying with the benefits of audio to reach audiences in new places, at more times of day and in spaces where listeners are more engaged.
The programmatic market is growing tremendously, with over 90% of digital display forecast to be purchased programmatically in 2024 and programmatic ad spend expected to reach $180 billion by 2025, according to eMarketer. Mobile devices have maintained 70% of market share; however, display and connected TV (CTV) programmatic budgets are skyrocketing, with CTV officially carving out a permanent space within programmatic strategy.
As overall programmatic budgets continue increasing, it is a critical time to explore new avenues for programmatic spending and engaging ways to reach your target audience.
Audio is exploding
Online audio listening has reached a record high, with 76% of the U.S. population listening to digital audio monthly, and 70% listening every week, according to Edison Research’s “The Infinite Dial” report.
Adding audio to your programmatic mix allows you to stay relevant with your audience at more touch points throughout the day than any other medium. The average listener spends roughly five hours per day listening to digital audio, which is more time than is spent with any other digital media, including social media and streaming video.
Audio consumption takes place in a wide range of spaces, with 59% listening at home, 26% in the car, 12% at work and 3% at other locations, providing an opportunity to reach your target audience in the space that best suits your messaging. Podcasts also allow you to reach your audience when visual media is not available for consumption, as 89% of listeners tune in while doing chores, 86% while driving, 82% while getting ready, 80% while cooking and 71% while exercising.
Podcast listening, the newest form of digital audio, has blown up within the past few years as 47% of the U.S. population tunes into the medium every month. Podcasts create the ideal space for advertisers as they foster deeper, more intimate connections, where 65% of listeners feel a personal connection to the host. As a result, 93% of podcast listeners say they do not mind hearing ads in podcasts, and 59% say they’re likely to pay attention to a podcast ad.
Audio is effective
Digital audio ads have seen proven success, with above-average brand recall and brand choice performance, and 50% higher audience attention than benchmarks across video, TV, social and display.
Podcast advertising is a special medium that performs at every level of the purchase process. It drives upper-funnel awareness, with 75% of listeners saying they learned about a product and 78% researching a product that was advertised. It also performs with mid- and low-funnel metrics, with 74% visiting an advertiser’s site after hearing an ad, and 57% purchasing a product. Adding podcasts to your programmatic mix creates the opportunity to drive strong full-funnel success.
Audio amplifies performance of other mediums
Rather than choosing between audio and CTV for your programmatic strategy, a study by Nielsen and SiriusXM found that running both drives the strongest results. Audio outperformed CTV in aided ad recall; however, when run in conjunction, performance skyrocketed, with brands seeing a 12% increase in aided recall and a 14% increase in message association.
Programmatic activation creates the perfect ecosystem for cross-channel media buying, providing brands with the opportunity to centralize frequency management and make holistic optimizations.
Programmatic buying ties it together
Digital audio, consisting of music streaming, podcasts, connected home and connected vehicle, can all be bought programmatically. There are inventory prioritization advantages to buying audio programmatically with some media partners. At SiriusXM Media, programmatic is placed at the top of the ad stack, meaning the programmatic auction is held before serving Direct IO campaigns. By doing so, programmatic clients can pick and choose their preferred users, which provides a premium programmatic auction experience.
Digital audio is already an advertising powerhouse. By adding DSP functions like third-party data, performance-based optimizations, and cross-campaign frequency management, programmatic audio wins.
