Since its adoption into the G2 taxonomy in late 2020, the Digital Audio Advertising category on G2 was meant to provide an amplified outlet for a new take on a traditional ad method.
The early days of radio included advertising from the start, but the framework for success and reach looks a bit different these days.
Often an overlooked advertising method, audio could be an untapped resource for you and your ad teams.
Audio advertising for the 21st century
If you are unfamiliar with digital audio advertising software (or audio programmatic advertising software), this tool helps companies automate the selling and insertion of ads into digital audio content.
Podcasts, digital radio, and music streaming are the most common content this software works with.
Many creators often implement advertising as a monetization tool for their podcast content. While some prefer to take a more fluid approach by making in-content mentions, which can have higher costs and brand associations, others use the more traditional route of scheduling and running ad hoc audio ads on various platforms.
Another example of audio advertising is when streaming services offer a “with ads” or an “ad-free” version. This is a great opportunity for advertisement since many users prefer not to pay the extra fees for no ads, which offers a broader audience range.
Tip: Many platforms you know and love (like Spotify!) have their own audio and podcasting advertising capabilities. As you find which avenue might be right, consider if your current content platform offers audio advertising capability.
How popular is it?
From an ad spend scenario—one would say it is pretty popular.
According to Statista, ad spending in the digital audio advertising market is projected to reach $10.14 billion in 2023. Most of the spending comes from music streaming (around $7.16 billion), while the rest comes from podcasts ($2.99 billion).
The basics of success in audio advertising are similar to any other marketing campaign by understanding the nature of the campaign and the budget. But since creating an audio ad is a bit less plug and play than creating a branded static image—are campaigns worth the time and effort?
Investing in your advertising strategy
One call out from our G2 data below is that the return on investment (ROI) for digital audio advertising software is lower than that of social media advertising software and video advertising software. While the margin between the three is slim, it is interesting to note that two of the most used and familiar advertising methods need more time to reach success.
Average time for ROI indicates the average number of months required by the product to see a full return on investment. This is based on the ROI question on G2’s review form, which asks reviewers how long it took to see a full return on their investment.
Diversifying your audience reach through a new medium
Although putting together an audio advertising campaign may be more challenging—the rewards can be enticing. In addition to being able to craft personal and informative messages to a new audience, there is also an opportunity to expand your audience in a new medium.
As out-of-home (OOH) media continues expanding, learn about the benefits of digital audio advertising.
Edited by Shanti S Nair
by Amal Joby
by Cody White
by Jeffrey Lin