Streaming Audio Climbs the Charts With Marketers

Marketers are spending big on digital audio. This year alone, marketers will spend $5.7 billion on digital-audio ads in the U.S., up 14% from $5 billion last year, according to Magna, a media unit of Interpublic Group of Cos. Traditional radio advertising will total $11.3 million, by comparison, up 3%, as reported by WSJ.com. “Some 68 percent of Americans aged 12 and older said they listened to online audio in the previous month, up from 47% who said the same in 2014, according to surveys.” Podcasts are the fastest growing segment, and spending on ads during podcasts reached the same level as radio for national advertisers last year. Placing an ad in a podcast is more work than for radio, making it more difficult for small teams. Teams have to prepare discount codes as well as talking points for the hosts and webpages tied to the show. They then have to compete for more limited inventory compared to other formats, including searching for new shows. Even then, it’s a bit risky for brands as they have less control over the content of the show that could negatively impact the brand if a host deviates inappropriately. But still, it’s a growing category drawing more and more advertisers. Podcast hosts are influencers themselves, some with larger followings than others, so it’s another form of influencer marketing, not just straight advertising. Brands continue to seek alternatives to traditional digital advertising and ways to meet their customers where they are, so podcasts are a natural fit, despite the potential drawbacks. https://www.wsj.com/articles/streaming-audio-climbs-the-charts-with-marketers-but-some-want-more-certainty-11648227771?page=1