Marketers are planning to invest more heavily into programmatic audio over the next 18 months, according to new research from Xaxis and IAB Europe.
Over half (59%) of respondents said they were already using programmatic audio to some extent, but complained that speed was slow. The findings demonstrate that programmatic audio is still in its early stages with understanding and knowledge on the topic in need of improvement.
Just 15% of respondents on the buy-side were confident in their understanding of programmatic audio compared to 30% on the sell-side.
Meanwhile, 79% said they invested less than 10% of total ad spend on audio and 41% allocated budget to programmatic audio.
Based on the answers of 499 buyers and publishers in Europe, 60% of marketers are planning to increase their programmatic audio spend over the next 18 months.
“Audio’s high level of consumer engagement married with the efficiency of programmatic delivery and brand safe environments creates a highly appealing media channel for brands,” explained Daniel Knapp, chief economist at IAB Europe.
Buyers and sellers expect mobile devices to reach their audiences through audio ads more effectively than laptops or in-car audio ads.
Among the core drivers for buyers to invest in audio is a desire to create a more complex media mix (63%), reach a specific audience (59%) and raise brand awareness (58%). Meanwhile, sellers are looking to enhance their ad offering (66%), increase ad revenues (64%) and improve the user experience (38%).
“Programmatic audio is the future,” said Alex McGibbon, VP of client solutions, Xaxis. “There is the potential for Europe to lead the way in cementing it as an essential component of today’s media mix. There is an obvious appetite to increase knowledge and understanding of programmatic capabilities and if addressed, the opportunity to boost programmatic audio spend over the next 18 months.”
Among the main barriers to adoption are availability of the technology, costs of technology and publisher partnerships.