Though marketing budgets are under scrutiny in this tight economy, it might make sense to consider integrating audio advertising into your marketing mix. That’s because listener growth is picking up for podcasts and audio formats overall. Audio ad formats also have unique features to help marketers.
Here are five reasons your marketing team should think about audio advertising.
We forecast that by 2024, digital audio will make up a fifth of all time spent with digital media in the US.
“We see TV viewership declining and digital audio listenership growing. So that’s really a chance to test [placing ads] into both and see what you’re looking for,” said Michael Holmquist, director of media strategy and investment at Tinuiti, in a recent webinar.
While the double-digit growth phase for podcast listeners ended in 2021, the channel is still gaining listeners faster than digital audio in general, according to our forecasts. In 2023, the number of US podcast listeners will grow by 4.6%, faster than the overall digital audio growth at 1.4%. The total US podcast audience is expected to surpass 150 million by 2027.
But that doesn’t mean there aren’t challenges.
Adult Spotify and Pandora users spend 51 and 49 minutes listening to audio daily, respectively. That’s more time spent than on most social media platforms, according to our forecasts. TikTok, which leads time spent, averaged 53.8 minutes per day from its US adult users.
“Audio has massive reach and it’s just going to be continually growing as it has more and more users looking at it. And it’s also an opportunity to drive lower-funnel results, to fit into different cogs of your marketing funnel,” said Holmquist.
Streaming audio ads are notably unskippable, offer robust targeting features, and typically have a shorter lead time compared with other options.
Streaming audio and podcast RONs are the most efficiently priced, which will drive efficiency through the funnel, while a host-read ad can lead to the most responsiveness, but is the most expensive medium, according to Rachel Alaynick, senior manager of client strategy and analytics at Tinuiti.
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