A whopping 86% of ad agencies and 66% of brands consider digital audio advertising to be a key media strategy. According to research by DAX, the digital audio exchange by Global, investment across digital audio is set to grow over the coming year.
Among the 215 UK media company executives surveyed, 78% said that they will increase spending on music and digital radio campaigns. Another 75% would boost their spend on podcast ads, pointing to the growing confidence advertisers are having in the format.
“The findings in this year’s report show an extremely positive outlook for digital audio advertising, with 85% of advertisers planning to invest further in digital audio over the next twelve months,” said Ollie Deane, Director of Commercial Digital at Global.
Part of the reason for the popularity of audio ads includes the ability to target listeners “at the right time, in the right place and in the right context”.
At the same time, it’s becoming clearer what the “value proposition and opportunities in digital audio are”.
“As new technologies continue to emerge and we see campaigns tailored to listeners in connected cars, cross platform attribution and improved measurement tools will be essential for driving the industry forward,” Deane added.
76% of advertisers believe that the growth of smart speakers will enable them to more effectively target audiences at home. This is further bolstered by the 5G roll-out happening across countries.
Meanwhile, podcast advertising has enabled retailers and brands to contextualise their ads and 76% of advertisers said they planning to increase expenditure in this area. Podcasts are considered particularly effective for reaching commuters (85%).
Programmatic audio has also gained in importance as 73% of advertisers consider digital audio a great way to reach new audiences of all ages.
Over half of respondents (53%) considered digital audio to be the medium providing the most innovative opportunities for marketers above other media types such as social or digital video.