People often listen to podcasts and music when they’re focused on a task at hand and otherwise tuned out of media — like exercising, running errands, or commuting. Instead of forcing people to stop what they’re doing and look at a screen, audio formats fit naturally into their daily routines. In short, audio ads are an opportunity for marketers to create a uniquely additive experience.
Despite audio’s benefits, some advertisers are underutilizing it because of common misconceptions. For example, some marketers may believe that younger generations would rather scroll a visual feed than stream audio content. But 62% of young people surveyed said that “social media makes [them] feel more lonely while Spotify makes [them] feel less lonely.”1
We’ll compare these misconceptions against data and learn what makes digital audio an important addition to a marketer’s omnichannel ad strategy.
Myth no. 1: Audio consumption is flat
If you thought general excitement around podcasts was cooling, think again. After a string of breakout hits from — Serial to The Daily to Call Her Daddy — podcasts and digital audio are now familiar to many and the channel is growing.
In fact, digital audio audiences have spiked over the last year. Seventy-six percent of the U.S. population over age 12 say they have listened to audio online in the past month, according to an Edison Research report. The report also notes podcasts represent a growing share of this audience, with nearly half of surveyed respondents (47%) having heard a podcast in the last month, up 12% from 2023.2
Advertisers have taken notice, with digital audio ad spending projected to surpass $7 billion this year in the U.S., according to forecasts from Emarketer and the Interactive Advertising Bureau (IAB).3,4 The IAB estimates that ad spending on digital audio grew 18.9% in 2023 — faster than any other channel.
That said, digital audio still commands only a tiny share of digital ad spending, growing from 2.2% of the overall market in 2020 to about 3.1% in 2023.5 The numbers indicate an opportunity for you to efficiently reach audiences at scale in a less-cluttered advertising environment.
Myth no. 2: Audio audiences are distracted
A key strength of audio is its ability to set the tone and mood for different activities and contexts. Because of the channel’s unique and integral role in consumers’ daily lives, you might assume — incorrectly — that it’s a high-distraction medium.
Research from The Trade Desk Intelligence found that audio is highly effective at connecting with users when they are energized and motivated. This often (but not always) happens early in the day.
When included as part of an omnichannel advertising campaign, audio offers 3.4 times greater connection and 1.9 times greater immersion, according to the research — facilitating both short- and long-term memory creation. Plus, with audio, audiences experience 2.9 times lower cognitive fatigue relative to other channels.6
Myth no. 3: Podcast advertising is less transparent
Historically, podcast ads have been highly manual. They are often hard-coded, or read by the host, which can make them feel more akin to influencer marketing. And while the medium has evolved to include more biddable media and better measurement, podcasts are still sometimes perceived as a “leap of faith.”
But a growing number of marketers are finding that podcasts can deliver performance. And they’re generating useful insights that can be applied to future ad buys.
For example, Orangetheory Fitness worked with The Trade Desk on a programmatic podcast campaign targeted toward a wide range of content genres. By targeting users who were in a fitness frame of mind specifically while they listened to their favorite podcasts, the boutique gym franchise gained valuable insights about how various genres perform. It learned that website visitors originating from health and wellness podcasts drove a 33% lower cost per site visit and 59% lower cost per booking. It plans to use these insights to help inform future podcast campaigns.
Get started with digital audio on our platform
Want to reach your customers while they’re listening to their favorite music, radio stations, and podcasts? The Trade Desk has partnerships with the largest audio platforms in the world, including Spotify, Pandora, SoundCloud, and iHeartMedia.
Want to learn more about The Trade Desk Intelligence’s omnichannel research?
Download The Untapped Opportunity of Omnichannel, a research report from The Trade Desk Intelligence.
Ready to discover what programmatic audio ads can do for your campaign? Contact us.
Sources:
1. Spotify, first-party data, January 1, 2024 to February 29, 2024 versus January 1, 2023 to March 1, 2023.
2. Edison Research, The Infinite Dial, March 2024.
3. Emarketer, “Digital Drives Growth in Audio Ad Market, as Radio Broadcast Advertising Shrinks,” May 2024.
4. Interactive Advertising Bureau and PricewaterhouseCoopers, Internet Advertising Revenue Report, April 2024.
5. The Trade Desk Intelligence and PA Consulting, The Untapped Opportunity of Omnichannel, U.S., U.K., 2024.
6. Magellan AI, Top Podcast Advertisers, August 2024.