Digital Audio Is On The Rise, As Ad Buyers Face Shifting Audience Habits.
Two out of three Americans will be a listener to digital audio in 2024. Americans are more engaged with streaming audio services than with YouTube, Netflix, or Hulu. The most recent forecast by eMarketer estimates that three-quarters of internet users will be streaming music and podcasts in the coming year.
“In the evolving landscape of digital media consumption in the U.S., digital audio is set to play a significant role,” said Michael Holmquist, Director of Media Strategy and Investment at the firm that performs performance marketing Tinuiti. On an eMarketer webcast, he cited statistics that show that the average adult is likely to devote between an hour and forty-three minutes every day to listening to digital audio. “While this explosive growth in digital audio listenership may be slowing, it’s important to note that the overall number of listeners continues to rise,” Holmquist declared.
Analysts at eMarketer estimate they will predict that U.S. adults will spend more time per day listening to digital audio than with Facebook, and Holmquist believes that podcasting is a “standout growth” area. Although the audience for digital audio is projected to increase by 1.4 percent this calendar year, eMarketer forecasts that the U.S. podcasting audience will grow by 4.6 percent when it adds 5.7 million new listeners.
The latest report also shows that the majority (57.5 percent) of audio-streaming users are expected to stream more than one audio podcast each month, which amounts to 129.9 million – which is about the amount of Instagram’s U.S. user base.
“Although an era of explosive growth might be behind us, podcasts are still getting new listeners at a faster rate than digital audio overall,” Holmquist declared. He also said that eMarketer data indicates that digital audio has reached more Americans than traditional television viewers. “We expect this trend to continue with the gap between digital audio and TV widening further,” he added. “This is also due to the ease of access to audio – you just need to use the phone to download a playlist or an audio podcast and listen. Digital audio is destined to become an all-encompassing medium.”
Advertising spending is expected to be a follow-up. The eMarketer forecast shows that podcasts account for a significant portion of all digital audio advertisements currently and are projected to grow to 4 billion dollars by 2024. Holmquist says a lot of that increase to the development of dynamic ads and the pixel that is attached to these spots, which have enabled advertisers to monitor their podcast’s performance.
Although eMarketer data indicates an increase in advertising on digital audio, Tinuiti’s Senior Manager for Client Strategy and Analytics, Rachel Alaynick, believes it will benefit audio all around, even broadcast radio. “We often see streaming audio being used as a proof of concept for audio as a whole because it has the lowest CPMs and the fewest barriers to entry,” she added.
In the same way, Alaynick views run-of-network ads as an opportunity to test the effectiveness of the potential of a podcast for a brand because they don’t require the cost of a host read ad. “If your audience is there on that podcast, you should see some lift – and then you can follow up with a host read,” she added.
Alternative To Shrinking TV Audiences
The advantages of digital audio come in a period of change in the media industry, particularly when traditional television viewers are decreasing. Alaynick claimed that the “massive reach” of digital audio means that it could be integrated into various columns of an organization’s marketing funnel and allow a company to reach out to people that the TV-based marketing campaign can’t.
“There are some high-profile podcast programs that also drive mass reach as consumers [are] regular listening to their favorite shows,” Alaynick stated. Alaynick added that the digital audio format is more efficient than other channels, including broadcast radio.
But since host-read advertisements can be the costliest, Tinuiti advises customers to avoid putting all of their money into them and instead make use of run-of-network purchases. “You’re going to get a more diverse media mix, and you’re going to have stronger reach,” Tinuiti said.
Holmquist claimed that digital audio could also be an effective addition to a TV campaign that hasn’t reached the huge audiences of old.
“TV viewership is declining, and the digital audio listenership is growing, so there’s a chance to test into both if that’s what you’re looking for,” he stated. “We can think of audio as an alternative to television ads. Both are very powerful and reach drivers.”
Holmquist is also of the opinion that there are many synergies to a video advert, which is served to listeners via their listening apps.
“You may have an audio spot that says one thing and then create a video spot that says something very similar, and they can also work together,” he added. “Everything will complement each other.”
Also Read:- Digital Audio Advertising: Essential for Multi-Channel Marketing