Report: Streaming, podcasts top choice for digital audio advertising

Brand awareness is a key driver for digital audio advertising, with streaming and podcasts favoured by advertisers according to latest Interactive Advertising Bureau report into audio advertising

Digital audio advertising is reaching maturity, with 90 per cent of advertisers choosing streaming services and some 75 per cent opting for podcasts, according to the 2020 Interactive Advertising Bureau (IAB) Audio Advertising State of the Nation report.

Now in its fourth year, the report found agencies turn to podcast advertising to help build brand awareness, particularly for podcast advertising, with almost half of agencies using podcasts primarily for branding. However, while brand awareness is the top objective of audio advertising, only one third of ad buyers are tracking this metric and only 25 per cent are tracking sales.

When it comes to streaming and podcasts, reach, frequency and completion are the most common metrics for both, although the report finds agencies are more confident in measuring these metrics for streaming audio, compared to podcasts.

IAB Australia CEO, Gai Le Roy, noted the evolving market in digital audio advertising, developing from experimentation “into a more strategically driven brand-building approach to digital audio advertising, reflecting the growing consumer consumption of audio formats, particularly podcasting”.   

The report also finds call to action spots are most popular format of streaming audio and have increased in usage strongly year-on-year, while programmatic audio advertising space is attractive to harness data and targeting and, in a challenging ad market, price is increasingly playing a part in choice of advertising.

In terms of creative development, the IAB report finds it’s one of audio advertising’s greatest strengths, yet also the greatest challenge. The ease and speed of audio creative development has proven to be a great attraction for agencies; however only 17 per cent of media agencies are regularly tailoring their creative to suit different audio environments. The report noted creative is the most important part of a successful campaign achieving impact.

IAB Audio Council co-chair, Richard Palmer, said the report shows the market is embracing the branding potential of the different audio formats, but needs to go further in developing unique creative for the various digital audio formats.  

“Over the next twelve months we anticipate the industry will come to understand the need to move from repurposing existing ads and instead look to produce creative campaigns tailored to suit the environment in which it appears,” he said.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page, or join us on Facebook: https://www.facebook.com/CMOAustralia.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Why these voice assistants are so popular nowadays? Maybe I should get one too? I am really curious.

Jill Kim

Aussie brands jump on voice-interaction bandwagon following Amazon Alexa's local launch

Read more

Your page is very helpful. Thank you for sharing with us

Eriona Ajvazi

10 brands making a positive difference to a world in crisis

Read more

Extremely insightful and well written. Thanks for the great article!

Nicole Brodie Nahum

Why COVID-19 makes it more important than ever to move at the speed of the consumer

Read more

Blockchain is one of the fastest growing technology in today's digital era. Industries like banking and finance are already using blockch...

Aniket Singh

Can blockchain deliver on its big advertising promises?

Read more

Great article Emma. So many gems in there. Awesome to have you in the team!

One Small Step Collective

Why COVID-19 makes it more important than ever to move at the speed of the consumer

Read more

Blog Posts

How can organisations debias their decisions?

​People whose personal details and experiences signal they come from racially diverse backgrounds are less likely than anglo or Caucasian candidates to make it through the first cut in recruitment processes. Even if the organisation says it values diversity.

Dr Karen Morley

Author, commentator

Is your marketing team adapting quickly enough to the COVID-19 crisis?

The impact of coronavirus is far reaching with the true impact on the economy and businesses is unknown. While there are a few categories and brands experiencing growth, for the most part the crisis is wreaking havoc for large and small operators across many sectors including entertainment, tourism, retail, fitness, services and the list goes on.

Teresa Sperti

Founder, Arktic Fox

Why COVID-19 makes it more important than ever to move at the speed of the consumer

There is no doubt the challenges we are facing as businesses, advertisers and audiences with COVID-19 are all unprecedented. But with this comes an opportunity to take stock and re-evaluate current strategies, plans and processes to drive efficiencies and relevance in today's market.

Emma Macey

General manager, SuperNova Media

Sign in