Beyond the Skip Button: Why Audio Ads Are Here to Stay
Guess what: it is imperative to keep an ear to the ground, or in this case, to the airwaves. The past quarter of this year witnessed an intriguing disparity in the performance of various digital platforms. While tech
behemoths like Meta faced a dip in their ad revenues, platforms like Spotify and SiriusXM, the parent company of Pandora, were serenading advertisers with the sweet sound of success. Notably, X-Twitter and YouTube have also thrown their hats into the audio ring by introducing podcast features, expanding the horizons for brands and content creators alike. What makes audio advertising such an attractive proposition is the intrinsic stickiness of its audience. Podcast listeners, in particular, exhibit a remarkable dedication to the content they consume. Whether they are jogging, commuting, or engaged in other activities, the habit of skipping ads that plagues visual mediums is significantly less pronounced in the audio domain. In this era of multitasking, audio advertising offers the versatility and engagement that modern advertisers
covet. The meteoric rise of podcast advertising exemplifies this phenomenon. In 2018, the global spending on podcast advertising stood at a modest $806 million. Fast forward to the present day, and this figure has soared to a staggering $2.6 billion. If projections are to be believed, by 2023, it will escalate even further, reaching an astonishing $2.8 billion. This meteoric ascent is nothing short of remarkable, constituting a
substantial 26.8% of all online audio investments. In stark contrast, global investments in radio advertising are poised to experience a 2.4% decline next year, underscoring the shifting tides within the advertising industry. I found that Nadia Gonzalez, the Chief Marketing Officer at Scibids, succinctly captures the zeitgeist when she remarks, "Audio ads are a strong format at the moment." The diverse array of ad formats and
the plethora of devices available to reach consumers have fueled the growing interest in audio advertising. From the ubiquity of earbuds and smart speakers to the immersive experience of in-car audio, audio advertising offers a multifaceted canvas upon which brands can paint their messages. The heart of the audio advertising revolution beats in rhythm with the affinity audiences develop for their favorite shows and creators.
Podcasts, in particular, have become a darling of advertisers for several compelling reasons. While the scalability of host-read ads may present challenges, they offer an intimate connection with the audience that is second to none. One article I read, the author, aptly points out that "Listeners have been found to not only understand but accept the value exchange of podcast advertising when it supports the content." Moreover,
the realm of podcast advertising boasts a unique and liberating feature - creative flexibility. Unlike the constraints imposed by a 30-second television spot, audio ads permit brands to experiment with messaging and storytelling. The reduced ad clutter within the podcasting landscape provides a pristine environment for the messages to resonate with audiences, fostering deeper connections that extend beyond mere auditory reception. The future of audio advertising promises to be a voyage into uncharted territories, replete with innovative ad formats. Shoppable and interactive ads are on the horizon, waiting to be explored. Paul Kelly, the Chief Revenue Officer of A Million Ads, boldly declares that podcasting, as an ad-supported medium, is "currently under-monetized." Imagine being able to add products to your virtual cart or save them to a bookmarking list while listening to your favorite podcast. This revolutionary
approach creates entirely new advertising surfaces, unlocking untapped potential during those moments when we are not actively consuming visual media. One of the most promising facets of audio advertising is its potential to resonate with a younger demographic. A study conducted in March 2022 by Triton Digital and Edison Research revealed that Spotify had secured its place as the top digital audio service for both teens and
adults in the United States. An astounding 35% of listeners aged 12 and older designated Spotify as their preferred choice. Notably, Spotify witnessed a remarkable 40% increase in average podcast listening for Generation Z during the first quarter of 2022, compared to the previous year. The impact of this demographic shift is profound. This year, more than a quarter of digital audio ad revenues are expected to originate from
podcasts, as per Adludio, a firm specializing in producing mobile ads for agencies and brands. However, Paul Coggins, the CEO of Adludio, posits that platforms like Spotify still have some distance to traverse in convincing advertisers of their effectiveness in reaching younger audiences. In the fiercely competitive race to capture the ears of the younger generation, industry giants like YouTube need to develop comprehensive ad solutions to earn the trust of privacy-conscious audiences. While audio advertising was once perceived as an undervalued asset, the paradigm is shifting. Attention metrics are emerging as the knights in shining armor, championing the cause of audio advertising by unveiling its effectiveness. Adelaide's AU metric is a prime example, empowering publishers like iHeart, NPR, and Audacy to showcase the performance of their ads, consistently surpassing benchmarks. However, measuring attention in the audio domain is no simple feat. Unlike visual content, gauging attention isn't as straightforward when listening to audio. Adelaide's approach involves a meticulous analysis of various factors, including ad placement, genre, and player functionalities. The results have been overwhelmingly positive, with ads on platforms like NPR and iHeart outperforming benchmarks by an impressive margin, often ranging from 11% to
16%. The significance of attention metrics in audio advertising transcends mere numbers. Gina Garrubbo, CEO of National Public Media, emphasizes that audio ads resonate on a deeper level with audiences compared to other media. This research serves a threefold purpose: it captures the attention of the buy-side and clients, reinforces the belief of brands already using NPR, and empowers clients to advocate for the added value NPR
brings to the table. However, why stop at metrics when you can conclusively prove that audio ads command attention in a manner akin to their visual counterparts? Recent studies conducted by dentsu and Lumen Research shine a spotlight on the potency of audio ads. These studies reveal that audio ads generate over 10,000 average attentive seconds per 1,000 impressions (or APM), surpassing their visual counterparts by more than
50%. Notably, podcasts emerge as the stars of the attention economy, offering the highest levels of engagement across all audio formats and within the Attention Economy database. Audio ads do not merely captivate audiences; they deliver tangible results. They boast higher brand recall rates when compared to visual ads and drive a substantial uplift in brand choice. Beyond their effectiveness, audio advertising also stands out
as a cost-effective channel for advertisers looking to garner attention. For instance, podcasts offer an attention cost per 1,000 impressions (aCPM) of $2.80, significantly more cost-efficient than the benchmark of $4.30. As we inch closer to the future of audio advertising, it becomes evident that the chasm between consumer time spent with audio and advertising spend is narrowing. The resonance of audio ads with audiences and
their proven effectiveness serve as a clarion call for advertisers to invest more heavily in this medium. In the grand symphony of advertising, audio is no longer relegated to a background tune; it's poised to take center stage. As audio advertising continues to evolve and innovate, it promises to be music to both brands' and consumers' ears. So, get ready to turn up the volume and embrace the future of advertising -
audio style. The revolution has begun, and the symphony of success continues to crescendo.
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All the news you need today, in a format that isn't TL:DR summarized for the busy executive.
🤖 ChatGPT just got a major upgrade! It can now "see" and "speak," plus it's got complete internet access 🌐. Is this the birth of sentience? With the ability to browse the web for the latest info and do everything from fact-checking to planning vacations, it's a game-changer! Plus, if you're a Plus or Enterprise user, you're in
luck 🍀. Meta's AI is getting in on the action too, with 28 AI characters to chat with, including MrBeast and Snoop Dogg 🎉. And there's more! Meta's Emu, AI companions, and AI-powered photo editing are all in the mix. It seems like AI development is back in the fast and furious lane after a short summer break 🚀!
Uber recently handed over the reins of its global media account to Omnicom Media Group (OMG) after a thorough four-month review. This move comes as Uber, known for its swift pace, sought an agency that could match its tempo. With an annual spend of around $600 million on measured media and total advertising expenses of $1.7 billion last year, Uber's expectations were high. OMG's scope of work includes media strategy, planning, and buying across North
America, Europe, the Middle East, and Latin America. The decision factors? OMG's ability to deliver "best-in-class" services, top-notch strategy, digital media prowess, measurement capabilities, and a strong commitment to transparency and accountability. Uber's VP of Marketing, David Mogensen, noted that OMG's speed, agility, talent, technology, and strategic thinking set them apart. For OMG, this victory adds to their three-month-long winning streak, with notable wins for Beiersdorf, Under
Armour, Groupo Bimbo, Allwyn, and even global banking giant HSBC as a preferred media partner. 🚗💼🌍📈 #UberMedia #OMGWin In the world of marketing, Q4 isn't a time for complacency; it's an urgent call to action! A new white paper from Automated Creative and the WFA sounds the alarm, emphasizing the need
for advertisers to prioritize creative effectiveness and in-flight creative optimization. As the cost of living crisis looms, 64.1% of marketers feel the pressure to be efficient, with 44.7% anticipating budget cuts if Q4 doesn't deliver. Surprisingly, almost 1/3 of marketers aren't optimizing digital campaigns in-flight at all, and communication between creative and media is rated "poor" by 18.4%. The solution? Prioritize effectiveness and embrace in-flight optimization to avoid
avoidable risks. Amy Wright, Head of Strategy at Automated Creative, likens launching a Q4 campaign without in-flight optimization to launching a rocket without mission control. Brand success stories, like Jack Daniel's, demonstrate the value of in-flight creative optimization. Automated Creative is pushing the boundaries of automation with features like ChatGPT integration, transforming impressions into intelligence for clients like Bose, Mars, and Universal Music. Join their virtual event on
September 28th for an "Urgent Q4 Wake-Up Call." 🚀💰📈🌐📚📞ℹ️👔 #Q4Marketing #CreativeOptimization #AutomationInAdvertising
When the multicultural agency, Lerma, tasked the generative artificial intelligence tool Mid Journey with generating an image of a Hispanic or Latinx man at work, the outcomes were
quite disconcerting. Instead of diverse depictions, the team consistently received stereotypical images featuring a male figure sporting a prominent mustache and donning a sombrero. "No matter how we tweaked the prompts hoping for different results, the outcome remained the same," lamented Pedro Lerma, the agency's founder and CEO. Similarly, agency Alma utilized Mid Journey tools to showcase a proof-of-concept for its client, Rockstar Energy Drink, offering a sneak peek into what the
campaign targeting a multicultural audience might entail. 🖥️🤦♂️🎨🍹 Marketing budgets have experienced a downturn, with a notable decrease in brand-building investments, according to The CMO Survey conducted by Deloitte LLP, Duke University’s Fuqua School of Business, and the American Marketing
Association. While 45.1% of companies attribute this dip to inflationary pressures, only 17% report an increase in budgets. Nevertheless, optimism abounds, with 49% of marketers feeling more hopeful about the economy than the previous year, anticipating a 7.2% increase in spending for the coming year. Notably, there's a pronounced shift toward integrating artificial intelligence (AI) into marketing processes, with over 60% adopting AI within the past year. Despite a drop in diversity,
equity, and inclusion (DEI) spending, less than half of the surveyed companies view DEI as a top priority, as it has yet to demonstrate a strong impact on various key performance metrics. The study sheds light on the evolving landscape of marketing strategies and priorities in an ever-changing economic environment. 📉💰📈🤖🌐 #MarketingBudgets #AIinMarketing #DEI #CMOSurvey 📜 Policy updates: YouTube is cutting loose! They've just revamped their Advertiser-friendly content rules, allowing creators to monetize content on once-taboo topics like sexual and domestic abuse, abortions, and eating disorders—just keep it classy and non-graphic. Why the change? Creators felt unfairly warned for discussing controversial subjects. Remember, there's a fine line between education and exploitation, so
tread carefully, creators and advertisers! 🤔
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ADTECH’S SECRET SAUCE: IT’S NOT ALL ABOUT THE CODE If you're anything like me, it's all too tempting to get caught up in the glitzy allure of cutting-edge software and groundbreaking products.
Adtech companies, often driven by an unwavering belief in their innovative solutions as the ultimate game-changers, have been swept away by the irresistible current of technology. As the adtech industry continues to grow, it is becoming increasingly important for companies to differentiate themselves from their competitors. According to Joe Zappa, the Founder of Sharp Pen Media, the key to this differentiation lies in the
quality of service and caliber of individuals backing the product. Adtech companies often place a steadfast faith in their software or product, but this can lead to a focus on features and functionality rather than the overall customer experience. By prioritizing customer service and investing in top talent, adtech companies can set themselves apart in a crowded marketplace. READ FULL STORY
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LEAD GENERATOR FACES MILLIONS IN MONETARY PENALTIES FOR ALLEGEDLY VIOLATING FTC’S TELEMARKETING SALES RULE On September 1, 2023, an Illinois federal court ruled in the matter of Federal Trade Commission v. Day Pacer LLC, et al. (N.D. Ill. Sept. 1, 2023) that Day Pacer (f/k/a EduTrek) and company executives violated the Telemarketing Sales Rule (TSR) by allegedly making millions of calls to telephone numbers on the National Do Not Call Registry. The court also ruled that they violated the TSR by providing “substantial assistance” to a third-party marketing partner
while allegedly knowing that the marketing partner was calling telephone numbers on the DNC registry. READ MORE
Nandini Jammi: The Woman Who Cost Breitbart 90% of Its Ad Revenue and Exposed Pubmatic’s Support for Hate Speech and
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publishers of hate speech and disinformation. Jammi is the co-founder of Check My Ads, a non-profit organization that helps brands regain control of their ad placements and avoid funding bad faith publishers. She is also the co-founder of Sleeping Giants, a grassroots movement that exposed how thousands of advertisers were unwittingly supporting Breitbart News, a far-right website that promotes white nationalism, misogyny, and
conspiracy theories. READ FULL ARTICLE
EMILIE COTTER TAKES THE HELM AS AUDI’S CHIEF MARKETING OFFICER In a pivotal move signaling Audi of America’s
determination to navigate the ever-evolving automotive landscape, the luxury automaker announced the establishment of a groundbreaking brand marketing team. Leading this visionary endeavor is the seasoned Emilie Cotter, who has been appointed as the Head of Brand Marketing and Communications, holding the esteemed title of Chief Marketing Officer. This strategic restructuring is set to harness the power of integration, aligning
brand strategy, marketing efforts, and external communications with a singular aim: to accelerate growth and propel consumers toward an electrifying automotive future. READ FULL HIRING ARTICLE
METAVERSE MIRAGE OR DIGITAL DESTINY? THE GREAT UNVEILING In a world where trends come and go like fleeting neon lights on a nighttime boulevard, the metaverse has emerged as a captivating
enigma, oscillating between exuberant optimism and skeptical scrutiny. However, a newly published report from Market.us dares to defy conventional wisdom, painting a compelling picture of the future. This report, akin to a guiding torch through the digital labyrinth, boldly predicts that the metaverse will experience an annual growth rate exceeding 40 percent, transforming its current $64 billion value into a staggering $2.3 trillion by 2023. Such a forecast evokes the excitement of prospectors
seeking gold in uncharted territories. Yet, amidst this fervor, there are whispers of doubt from some quarters, dismissing the metaverse as a relic of past buzzwords. The central question that lingers, akin to an insistent itch, is whether these conflicting narratives reflect diverse interpretations of a complex fusion of gaming and interactive experiences. READ THE ARTICLE
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