Streaming audio climbs the charts with marketers but some want

Streaming audio is rising with charts and advertisers, but some want more certainty

Some find success with their access to podcasts and music distribution, but the results of the simulation can be challenging — and the price of advertising increases.

As a test this January, the type of bedding based on the magazine Sheets & Giggles Inc. spent $ 30,000 on digital audio ads and cut off its use of Facebook and Instagram. That was the change from January 2021, when the company spent about $ 200,000 on Facebook and Instagram ads, but nothing on digital audio.

The company’s advertising costs were down 75%, but sales dropped by only 10%, said chief executive Colin McIntosh. “That has been a great sign for me that we were spending on the wrong channels.”

One of the main drawbacks of some of the advertisers’ advertising options is under pressure. Apple’s measures to improve the privacy of its mobile users are undermining the value of digital advertising on Facebook and elsewhere. And the larger audience drawn by traditional television has been declining for years.

Against that background, digital audio audiences are growing. By early 2021, nearly 68 percent of Americans 12 and older said they had listened to audio online last month, up from 47% saying the same in 2014, according to a study by Edison Research and Triton Digital.

“You can’t deny the numbers: it’s a way, no doubt, to reach younger audiences, cable operators,” said Bryan Master, senior vice president and head of business cooperation at Omnicom Media Group.

Digital audio advertising has not yet merged with traditional radio, and advertisers continue to contribute billions of dollars to the Facebook portfolio of Instagram parent parent Meta Platforms Inc.

But retailers will spend $ 5.7 billion on digital audio commercials in the US this year, 14% off $ 5 billion last year, according to Magna, a media unit of the Interpublic Group of Cos. increased by 3%, said Magna.

Although Podcasts make up less than one-fifth of the market for digital audio commercials for major national brands, they have been the fastest growing segment. Major broadcast services are fighting for podcast makers and programs that can attract viewers and advertisers, with special podcast deals from “The Joe Rogan Experience” to “My Favorite Murder.”

Aside from small businesses and local advertising purchases, the trend of digital audio is even more astonishing: National advertisers working with major media companies for the first time spent as much money on digital audio in the US last year as they did on traditional radio, according to Standard. Media Index, whose research captures data from the disposal of national brands and major consumer advertising companies.

Such use of digital audio was the third most complete audio advertising in 2019, says SMI.

The number of advertisers tested by SMI often indicates that the market is moving forward, said Nicole McCurnin, SMI’s director of marketing information.

The influx of advertisers, among other things, increased advertising prices, however: Podcast CPMs — or the cost of appearing 1,000 viewers — rose to $ 26 in the third quarter of 2021, from $ 22 at the same time in 2019, rising even higher. broadcasting calls TV advertising a process, according to SMI data. The whole advertising industry was disrupted by 2020, but radio was the worst hit.

Podcasts, especially unwritten talk shows, can challenge the advertiser’s desire for what is called product safety. Mr. Rogan, who owns the most popular Spotify podcast, apologized earlier this year after a video was released showing how he and some of his guests had used the N-word several times in his program.

Impact Impact

Then there is the audience and performance of ads, which can be harder on digital audio than other digital ads and other established media, some experts say.

Advertisers know they need to try digital audio, said Mr. Master of Omnicom Media Group. “But can they forgive you and fix you, and be sure of their investment? And that’s when I think we haven’t broken that code yet, ”he said, referring to the wider advertising industry.

“Lack of transparency in inventory verification and audience rating, coupled with the need for [flexible] supply leading to rising prices, makes it difficult to justify investments,” he said. Master.

Advertisers create strategies to increase their influence — as well as attention to numbers.

Personal security alarm maker Birdie Love LLC has partnered with an agency to purchase host-read ads from podcasts promoting the company’s products She’s Birdie. He calculated that he received a refund of 1.5 to 1.7 times spent on ads for $ 150,000.

“But I think for us, it was difficult to track what kind of triangulation of attribution, even if we did it right,” said growth chief Richie Mashiko.

The work also seemed to take a lot of time. The list of popular programs is limited, for the first time, so advertisers should find new shows first. Then they have to set up discount codes, get hosted speaking points, build web pages linked to the show and finally calculate how well the ads worked.

“I think it’s difficult for small groups,” he said.

Even people who spend a lot of money on podcasts look forward to better estimates. Home security company SimpliSafe Inc. has been advertising on podcasts since 2014 and has become one of the largest middle-income consumers, according to a 2021 eMarketer report.

“We expect them to continue to have the opportunity to sharpen the information we receive by listening to the podcast and demographics,” Scott Braun, chief executive officer of SimpliSafe, said in an email.

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Sanjit
Sanjit

I am Sanjit Gupta. I have completed my BMS then MMS both in marketing. I even did a diploma in computer software and Digital Marketing.

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