What Is Programmatic Audio Advertising?
- Adwords PPC, Digital Marketing

What Is Programmatic Audio Advertising?

Understanding Programmatic Audio Advertising & How It Works

Do you remember listening to…

“I’m lovin it…”

And do you recognize which product made the jingle…

Finger’ lickin good…”

Well, we all know it’s KFC. 

These audios immediately remind us about Mcdonald’s and Colonel Sanders’ KFC, global favorites. 

These catchy audio ads remain memorable because of their repetitive broadcast and positive association with their audiences. 

Similarly, digital audio ads have risen to compete in the advertising field. 

But, how does on-air advertising work on digital platforms? Can you even map if it’s useful for your brand?  

Music and podcast streaming services like Spotify, SoundCloud, iTunes, etc., effectively use digital audio ads to their advantage.

How? 

Digital advertisers use programmatic audio advertising to allow marketers to promote their brands, services, or products digitally with effective AI tools to ensure success. 

So, What is Programmatic Audio Advertising?

Programmatic audio advertising represents automated ad placement into online audio broadcasting content like podcasts, music-streaming services, and digital radio.

Programmatic audio covers desktop, mobile, smart gadgets, and in-app platforms. 

Programmatic advertising is an automated system selling ads and ad spaces using technology to achieve mainstream success in advertising. 

With programmatic advertising companies, it is easier for advertisers to influence their target audience while building brand awareness.

Programmatic audio advertising is, therefore, an umbrella term that covers all aspects of buying and selling digital advertisements in audio form.

To make a digital ad live online, ad slots and inventories can be brought through real-time bidding by authorized buyers or programmatic advertising companies.

Why is Programmatic Audio Advertising so Effective?

According to Statista, more than 500 million listeners are tuned across various digital audio streaming platforms.

On average, an individual spends about 2 hours and 6 minutes listening to audio and streaming services.

Most people prefer tuning into digital audio streaming platforms while multitasking while driving or during a workout as their source of entertainment. 

  • Audio ads offer a higher customer engagement rate. 
  • Digital streaming services also do not allow skipping ads, nor do people feel eager to block light ads. Hence, making them extremely effective. 

The rising profitability of digital audio ads has made programmatic audio advertising popular among marketers. 

Despite its popularity, advertisers hesitate to invest in programmatic audio advertising chiefly due to unclear knowledge and its impact.

Hence, let’s try to understand how programmatic audio advertising works. 

How Does Programmatic Audio Advertising Work?

Globally, brands and businesses buy or bid on programmatic audio advertisements with the help of programmatic advertising companies

In simple terms, to place your programmatic audio ad, you will have to choose which audio/show or time you would want to advertise around. 

For audio clips, you have a pre-roll, midroll, and post-roll. 

As an advertiser, pick your placement and duration of the ad. Pre-rolls are usually shorter than mid-rolls. 

After making your pick, you will have to make your bid to get your desired spot and win engagement on your brand marketing.   

What Is Programmatic Audio Advertising?
What Is Programmatic Audio Advertising?

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  • Choosing programmatic audio advertising has become easier with the development of the Digital Audio Ad Serving Template (DAAST) in 2014 by IAB (Interactive Advertising Bureau).
  • By using VAST, marketers can choose to place ads before, during, or after any audio/podcast/song/ad, etc.
  • For advertisers who wish to cut the chase to get the job done, professional programmatic advertisers help you do it at ease. 

Crucial Steps Involved in Programmatic Audio Advertising

To capitalize on programmatic audio advertising like a pro, here’s what you need to know: 

Make a Data-Driven Informed Decision While Bidding For An Ad Space

With accurate digital-out-of-home (DOOH) planning, marketers choose their target audience wisely. 

Hence, make sure you are making a data-centric informed placement based on the habits and interests of your targeting audience. 

Focused Demand-side Ad buying:

Advertisers need a demand-side platform or a marketplace on which publishers list advertising inventory to buy an ad inventory.

This is a platform where you can place your requests and bids for a specific ad spot. 

For example, Amazon DSP is a demand-side platform for buying programmatic audio ads.

Real-time Bidding (RTB)

The last crucial step to having your audio ad live is to bid in real-time; this process could last for seconds. 

Authorized buyers with an ad server can use RTB to bid on ad inventory. 

Companies and marketers can also hire a programmatic advertising company to do the bidding for them. 

    •  Google has been offering programmatic audio ads through Spotify, Soundcloud, and Google Play Music, allowing brands to buy the ads using their DoubleClick Bid Manager.
    • SoundCloud partnered with AppNexus to make its audio and video inventory available to advertisers.
    • Pandora holds a private audio marketplace available for buyers looking to transact programmatically.

Now that we’ve gauged the working of programmatic ads, let’s quickly assess if programmatic audio ads are worth the hype: 

Some of the popular music platforms you can buy your ad space on are:
  1. Apple Music 
  2. Audible
  3. Spotify
  4. Youtube music
  5. Amazon Prime music
  6. Soundcloud 

Is it Worth Investing in a Programmatic Audio Ad Campaign? 

Research conducted by eMarketer has proven that in recent years, marketers should expect digital audio ad spending to hit  $6.76 billion by 2023 and $7.89 billion by 2025.

This implies that more and more companies are investing in programmatic audio ads. 

Is it Worth Investing in a Programmatic Audio Ad Campaign? 
Is it Worth Investing in a Programmatic Audio Ad Campaign?

According to the Internet Advertising Bureau, revenue generated by digital audio ads grew to $4.9 billion in 2021-2022. 

Spotify alone has generated 20-25% of its revenue from its self-serve programmatic ad platform and other automated buying features.

Consumers find audio ads relevant and entertaining and are usually tolerant towards them.

Thus, helping you hold your audience to hear about your brand, product, or service.

Top Reasons to Invest in Programmatic Audio ads Yourself
Top Reasons to Invest in Programmatic Audio ads Yourself

Top Reasons to Invest in Programmatic Audio ads Yourself

If you are considering running programmatic audio ads, here are a few factors that can add to your delight: 

Delivering the right message at the right time is important. 

For instance, if you run a fitness business, airing the message amidst a sports-persons podcast will pump your audience to join the club. 

Hence, bidding for an ad spot online during that show will make it worth it. 

  • While purchasing a programmatic audio ad, you can target specific customers based on demographics, locations, interests, etc. 
  • You can reach a wider audience with compelling audio of approximately 30 seconds. 
  • The right voice, duration, ad slot, and timing will create a resonating lasting impression in the minds of your listeners.  

Therefore it is worth investing in programmatic audio ads for the growth of your business. 

Remember that customer or audience research before developing ads, bidding for ads slots, etc., is a must.  

Moreover, choosing the right audio distribution channel is an essential marketing strategy. 

With the right message and audience, brands could easily capitalize on their growth on audio ad platforms.

What Is Programmatic Audio Advertising?

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