Circa 59% of marketers are already utilising the capabilities of programmatic audio to some extent in Europe, but their spend is low. Over three quarters of marketer respondents (79%) invest less than 10% of total ad spend on audio, and two-fifths of them (41%) allocate no budget to programmatic audio.
Marketers are conservative in their approach to devoting significant budgets to digital audio, but they recognize that it complements the media mix (63% of respondents), let them reaching specific audiences (59%), and that digital audio raises brand awareness (58%).
Those are some outcomes from de research carried out by Xaxis in collaboration with IAB Europe, aimed to understan the drivers, barriers and adoption of programmatic audio advertising in the current changing audio landscape.
Main barriers for the growth of marketers’ investment in audio marketing
Despite marketers are interested in increasing their spend in audio marketing there are two strong barriers to progressing with audio investment.
The first one, having a clear understanding of the impact of programmatic audio trading on total revenue (49%). The second barrier is the availability of technology (44%).
Main drivers pushing up programmatic audio investment
The key advantages that programmatic audio can provide marketers and therefore push thier investment up are: achieving targeting efficiencies ( for 63% of respondents) and taking advantage of data insights (44%).
Device choice a key to success: Mobile leads the roster, Intelligent Home Voice Assistants in the last spot
The majority of respondents agreed that to reach audiences, device choice is important.
Among devices mobile ranks at the top top (88% of marketers/ 89% of companies in the sell side). With 61% of marketers and 73% of sellers mentioning it Laptop/desktop follows Mobile. Then they come inmediately behind in-car (59%/50%), tablet (46%/51%) and Home device/Assistants come at the bottom of the line with 37% of marketers and 51% of sellers mentioning these devices.
Digital audio, a €1Bn market by 2024
The report forecast is that digital audio advertising is set to become a €1Bn market by 2022 driven by podcasts, music streaming services and digital radio.
As it happened in the Display segment, when it started to be traded programmatically, the programmatic share of audio advertising is still small but will increase with the connected car, as a key driver of growth.
Image over the headline.- Elisabeth de Meuron, commonly known as Madame de Meuron with an ear trumpet. Photo under Public domain found on Wikimedia Commons.
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