Digital audio advertising braces for growth in 2017

Girl with headphones looking at her iphone. Text overlay “70% of adults 25-54 listen to online radio every month”

Digital audio advertising poised for further growth

Digital audio advertising is making leaps and bounds. According to the 2017 Infinite Dial, an annual study conducted by Edison Research and Triton Digital, digital audio listenership has increased across online radio, streaming services, and podcasts.

Some significant findings in the study:

  • 70% of Adults 25-54 listen to Online Radio Monthly

  • That number increases to 87% for 12-24 year olds

  • Average Weekly Listening Time of Online Radio is up 2 hours and 31 minutes since Q2 2016, reaching 14 hours, 39 minutes

  • Of the Total U.S. Population Ages 12+, an estimated 112 Million have listened to a podcast.

How will this growth benefit audio advertisers?

With increasing listenership across streaming audio channels, programmatic audio platforms will see their landscape and capabilities evolve as well.

Open-Exchange Audio CPMs Will Decrease

Not significantly for a while, however. Audio inventory is still seen as premium by publishers, many of which still sell spots on traditional radio ad models. That said, private marketplace deals will likely become more accessible / publishers more negotiable on pricing, and more 2nd price auctions will become available.

More Sophisticated Targeting and Attribution Capabilities Will Become More Sophisticated

Demand-side platforms (DSPs) have distinct advantages over buying direct from audio publishers like Pandora. Segmenting inventory on publishers like Spotify, iHeartRadio and SoundCloud allow DSPs to make data-powered decisions beyond traditional registration data.

With digital audio advertising still being in its early form, advents to targeting and attribution will happen quickly, allowing advertisers delivering their audio via a DSP to take greater advantage of the data that comes back.

Transparency Will Fall into Focus

As with every new format that becomes available via programmatic means, publishers are scared. Inventory that could be sold for 3x the rate is being sold in milliseconds before their eyes. Why make it publicly known they're available on the open exchange when :30 audio ads with a $10 CPM could go for $30?

Advertisers, however, won't stand for a lack of transparency for long, and it will only be a matter of time before brand safety advocates such as Double Verify will make tools for monitoring inventory available.

Learn more about the study: The Infinite Dial 2017