Agencies plan to increase investment in streaming audio and podcasts in 2024.
According to IAB Australia’s Australian Audio State of the Nation Report, 61% of agencies surveyed plan to lift spend in streaming audio and 64% of them in podcasts.
While digital audio revenue reached $265.8M in 2023, the report also found a 90% of agencies have used audio advertising this year, with 83% of media agencies including streaming digital audio advertising as a significant or regular part of their activity.
Gai Le Roy, CEO of IAB Australia, said digital audio and podcasting has been one of the fastest growing areas of the digital advertising ecosystem over the last 12 months.
"The results in the latest Audio Advertising State of the Nation Report indicate that this will continue throughout 2024," Le Roy said.
"With buyers appreciating the complementary nature of audio with other digital opportunities, we are likely to see digital being increasingly included in omni-channel campaigns and welcoming a range of new advertisers to the power of audio advertising."
Richard Palmer, co-chair of the IAB audio council and director of marketing development (APAC) at Triton Digital, said there’s no doubt the future sounds good for audio digital.
"I look forward to the IAB Audio Council’s continued collaboration to help the industry make the most of these opportunities in creative, privacy compliant and effective ways," Palmer said.
Report respondents stated the greatest opportunities for audio digital advertising growth is its targeting and personalisation, standardising ways to measure incremental reach, attribution, and cross-platform effectiveness along with improving programmatic supply.
Ad buyers also identified the use of AI, particularly around content and ad creation, as a potential driver of future growth in digital audio and podcast advertising.
Brand building was again named as the dominant campaign objective for media agencies using digital audio advertising (87% using streaming audio and 80% using podcast advertising for brand awareness), with fewer buyers using it for lower funnel activities such as increasing sales or conversions (33% for streaming and 30% for podcast).
Audience attention and engagement was seen to be the key driver for audio investment (62%) followed by incremental reach (52%) and ability to complement other media (50%). These last two point towards the power of audio to supplement other channels, a power that is not lost on buyers with eight in ten media agencies commonly buying digital audio advertising in combination with other media, most often with other digital display advertising (including digital video).
Data and targeting continued to be the predominant driver of buying digital audio advertising programmatically. In a year of greater accountability, price rose to be the second most important driver for purchasing programmatically.
Entertainment and lifestyle podcasts were the most popular genre for agency advertisers, with buyers also expressing a preference for advertising in Australian podcast content.
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