Your Guide to Programmatic Audio Advertising

As a part of the 2020 omnichannel strategy, LiquidM is committed to developing and offering all major advertising channels, formats, and ad units to marketers across the globe. Anticipating the upcoming release of our programmatic audio solution we want to review the rise of the programmatic audio, explore its benefits, and reflect on the reasons why brands should consider including it in their advertising strategy.

The chances are high you are using streaming services to access audio content when, where and however you like. If so, you are not alone. According to Midia’s research, the streaming market accounted for 304.9 million music subscribers globally at the end of June 2019. And that’s just the latest figure we could get our hands-on.

Driven by the spread of the always-on lifestyle, IoT, and mobile device usage, the demand for digital audio content is continuously growing. Based on the eMarketer report, an average US mobile app user spends more time listening to audio content than engaging in any other type of activity. 

The increased popularity of podcasts, digital radio, and music streaming services have opened up new opportunities for businesses to reach users in a more efficient and engaging way. The first attempts to monetize digital audio were made as early as 2013. But it was only in 2018 that big players like Google officially launched their audio advertising solutions. With major contenders stepping up their audio game, the channel has finally received the recognition needed to ignite its adoption across the market. 

So let’s talk about why programmatic audio is the next big thing on the Ad Tech market and we’ll start from the very basics.

What is the Programmatic Audio?

Programmatic audio is an automated process of buying ad placements and inserting ads within digital audio content such as podcasts, streamed music, and online radio.

While “programmatic” is an umbrella term that refers to the automated nature of the selling/buying process, “audio“ is merely an additional creative format that is now available to digital advertisers. In the on-going fight for users’ attention, advertisers are bound to optimize resources and follow to where their audiences were. And their audiences are increasingly streaming music and listening to podcasts. 

A different way to approach programmatic audio is to look at it as a revamped version of the traditional radio ads that comes with all the perks of digital advertising. Features such as precise targeting, real-time reporting, and advanced optimization capabilities may not surprise seasoned programmatic buyers but are in fact revolutionary for traditional broadcast media buyers. But more on it to come below. 

How Programmatic Audio Works 

The industry’s first attempt to standardize the audio advertising ecosystem was the IAB’s Digital Audio Ad Serving Template (DAAST) developed in 2014. DAAST provided guidelines for audio ad delivery, execution, and reporting up until 2018 when it was merged into VAST 4.1. Despite fundamental sensory differences, video and audio shared enough similarities to be merged into a single spec. Since the deprecation of DAAST, VAST 4.1 is the primary framework overlooking programmatic audio advertising.

In addition to providing common standards and governing principles, IAB has also outlined a number of the most widely used formats for audio advertising:

• Recorded Spots (sometimes referred to as Linear Ads) – prerecorded standard 15, 30, or 60 second-long tracks that run before (pre-roll), during (mid-roll), or after (post-roll) a featured audio content. The spots can run by themselves or with other units back-to-back (Ad Pods). 
• Companion Ads – a clickable visual element that can accompany audio ads. 
• Native Ads – the ads are typically recited by the podcast’s host and may contain endorsements. These irregularly-timed units can be inserted dynamically or integrated into the content permanently. Similar to the Recorded Spots, Native Ads can run in pre-, mid-, or post-roll positions. 
• Rewarded Audio – identical to Rewarded Video, these are 5-15 second-long in-game audio ads that provide a bonus or unlock an achievement upon the audio completion.
• Branded Channels/Playlists – customized channels and playlists that can be branded by the advertisers on the streaming platform.
• Branded Podcasts – podcast segments, episodes, series, or individual shows produced by the creators on behalf of a brand. created on be.
• Voice Activation Ads – an interactive voice-enabled audio ad that prompts users to engage directly with the ad using their own voice. A few companies have already implemented Voice Activation Ads in the marketing campaigns. Here’s a real-life case study from Mazda’s Continuous Dialogue Ads that describes the campaign goals, execution, and final results. 

Audio Ads can reach audio audiences on a number of devices, including:

• Mobile
• Desktop
• Smart Speakers (Amazon Echo or Google Home-like devices)
• In-car Dashboards (Apple CarPlay or Android Auto) 

While mobile and desktop are two mediums programmatic buyers are well aware of, Smart Speakers and devices designed for in-car media consumption are the crucial factors to be reasoned with. Both show tremendous growth in device usage and primarily target audio listeners. 

If you want to learn more about all devices that can be used for audio advertising, we suggest you read the IAB article Recommendations for Marketers in a Screenless World. It gives a detailed account of each device as well as lists the particular benefits of using one over the other. Among other things, it is a good educational piece to be added to your audio knowledge base.

Major Benefits of Programmatic Audio

There are numerous reasons why advertisers turn to audio advertising or should consider adding this new format to their marketing plan.

Audience Size

As you might have guessed from our introduction, one of the major benefits of audio advertising is the size of its audience. Only in the US, an estimated 192 million users consume digital audio content monthly.