Audio advertising top priority for advertisers, agencies: Survey
A staggering 66 per cent of consumers plan to increase their investment in Audio over the next 12 months, according to a study in the Europe Digital Audio Advertising Report 2023, released through GroupM Nexus, the media investment division of WPP and IAB Europe. The research involved 549 agencies, advertisers and publishers across the 29 European markets, using information gathered through the survey carried out through GroupM Nexus, utilizing the national IAB network, from May through June 2023.
An astounding 47 per cent of the respondents to surveys from agencies and advertisers said that audio advertising was their preferred option. Buyers cited three significant factors that drive audio advertising as its ability to boost broad media plans (65 per cent), increase brand awareness (55 per cent), and focus on particular audiences (48 per cent). The report also showed diversification in investments across various audio formats and channels. The majority of investors directed their investment toward streaming (59 per cent) and podcasts (59 per cent) as well as online radio (57 per cent).
Marketers are optimistic regarding the use of digital Audio in advertising. In particular, 66 per cent of buyers intend to invest more in this area in the coming 12 months, with almost one quarter (24 per cent) anticipating an increase between 11 per cent to 30 per cent in the amount they spend. These projections show overwhelming confidence in digital music as a successful method of reaching the right audience.
Daniel Knapp, Chief Economist at IAB Europe, highlights that digital Audio has surpassed all other advertising channels in Europe between 2018 and 2022 in terms of average annual growth. Because of the increased demand, the pandemic served as an impetus for the rise of digital Audio, especially for podcasts. In addition, advancements such as improved measurement, streamlined buying and automated purchasing have all led to the market’s growth. The emphasis of the advertising business on attention, quality in reach and safety of the brand makes digital Audio an attractive investment opportunity for advertisers and an effective platform for publishers to use the context. The expectation is that the European music market, which was EUR772 million in advertising spend by 2022, will reach EUR1 billion in 2025.
Marketers surveyed ranked incremental reach (46 per cent) and innovative activation such as dynamic creative advertising optimization (DCO) (43 per cent) and targeting efficiency (42 per cent) in the top 3 drivers of the digital audio budget. These three factors are likely to significantly impact attracting additional investment over the coming 18-24 months. Seventy-six per cent of agencies and advertisers plan to boost their music advertising spending during this time. Interactive ads that use smart speakers are the most significant change to increase budgets for digital Audio and are followed by dynamic audio advertisements. Cross-channel insight and activation technology, together with sophisticated targeted contextual advertising, are significant opportunities to increase the amount of digital Audio. The ability to draw consumers’ attention, trigger actions, and run informed cross-channel campaigns is crucial to increasing the amount of advertising spent.
Audio advertisements are expected to engage with viewers primarily through mobile devices, as per seven out of ten marketing professionals polled, followed by laptops and desktops (48 per cent) and tablets (44 per cent). The widespread use of mobile devices as audio devices provides an excellent opportunity for marketers to interact with the public all day. Respondents to the survey also believe that people can view audio ads through game consoles, connected TVs and standalone radios, which highlights Audio’s broad audience reach.
Harry Harcus, GroupM Nexus EMEA, highlighted the vast potential of Audio as a channel. Both buyers and publishers expect significant growth in the coming years. Audio, as a medium that can reach highly engaged people at times when visual counterparts aren’t well, can be an integral part of broader plans for buyers and improve publishing options for media. The advancement of technologies that allow audio advertisements can unlock the potential of cross-channel optimization and efficiency, which makes audio advertising more appealing and increases revenues for publishers.