Media agencies plan to spend more on streaming audio and podcast advertising this year.
Almost three quarters (71%) intend to increase investment in streaming audio in 2023 and 78% in podcast advertising, according to the 2023 IAB Australian Audio State of the Nation Report released today.
The analysis comes just two days after the release of the IAB Online Advertising Expenditure Report, which found digital audio revenue reached $221.2m for CY22.
The report found that 75% of media agencies now have streaming digital audio advertising as a regular part of their activity, while 70% of media agencies included podcast advertising as a regular part of their activity (increasing from 36% in 2020 and 59% in 2021).
Integration of streaming digital audio and podcasts with other digital and audio channels is also more consistent according to the report, with planning and buying digital audio in combination with other digital advertising types continuing to increase.
Four out of five (80%) of agencies now at least sometimes buy digital audio in combination with digital video advertising while 69% of agencies intend to buy digital audio bundled with other media opportunities (up from 51% last year).
Agencies also continue to buy audio advertising programmatically, with 82% of agencies intending to buy programmatic audio in the next year (up from 64% in year prior).
Brands and advertisers said their main challenges were developing compelling creative and a lack of understanding across all formats, while the industry said measurement and standardised metrics were an opportunity for improvement.
Natalie Stanbury, director of research of IAB Australia, said: “This years’ report shows that brand and advertisers see the effectiveness of digital audio for engagement and reach but will need more proof of the effectiveness of audio for brand building.
"This should be a top priority this year for all in our industry considering the role of long-term brand building to business success during and after economic downturns.”
Gai Le Roy, CEO of IAB Australia, said: “One of the most pleasing results in the study is the marked increase in planning and buying audio in combination with other digital activity.
"There is great potential for digital audio to increase its share of the digital ad pie with eight in ten agencies who use digital audio now considering it’s use alongside digital video as well as the increase in omni-channel programmatic buying.”
The Audio Advertising State of the Nation Report is supported by 15 different media and tech companies, as well as industry body Commercial Radio and Audio.
Fieldwork was conducted by independent research company Hoop Group across December 2022 and January 2022 with 249 survey responses collected.
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