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In the US, audio advertising is taking over, specifically podcasts. According to IAB, podcast ad spending will surpass $2 billion this year. Podcasts account for about one-third of digital audio advertising spend, and we can expect that to increase over time. Here are 5 trends, according to Ad Monsters, that we can expect to see this year when it comes to podcasting and digital audio advertising:
1. Out with the Old and in with the New: Terrestrial Radio and Digital Platforms
The shift has already begun, as most listeners listen via Pandora, Spotify, Apple Music, SiriusXM, and more. About 70% of media experts see this shift continuing. Consumers put empathy and transparency at the core of their messages as brands need to build trust with their audience. “Consumers of all ages now spend more time listening to podcasts than they did in 2020, with Gen Z (+5 minutes) leading the way and brand discovery via ads on the radio and music streaming ticking upward since this time two years ago. In Q4 2021, 18% of US podcast and music streaming listeners discovered new products/ brands via podcasts. Hosts can cater ads to their style, which consumers in eight markets prefer.” Said Laura Connell, Senior Trends Manager at GWI.
2. Videocasts on YouTube
Podcasters often utilize YouTube to upload their content, and in 2023 experts predict this only to grow. Donald Albright, President and Co-founder of Tenderfoot TV, talked about how posting clips of your show on YouTube helps with your marketing.
3. Saturated AVOD Market
No matter if you are in the car, at home, at work, or at the gym, people are streaming audio. Audio is the most budget-conscious consumer choice due to the large market and precise targeting. According to IAS, 62% of experts say that ad-supported digital audio streaming will expand to match adoption rates in 2023. Additionally, 61% of those experts say that ad-supported digital audio steaming will continue to become more popular. From the consumer side of things, it is most likely that one-third of consumers will consider purchasing from a brand after hearing the ad on a smart speaker.
4. Rise Up: Programmatic Audio
According to eMarketer, programmatic podcast ad spending will make up a portion of the increase in total podcast ad spending, reaching 10% by 2024. This year, in 2023, we expect to see more programmatic audio ads. Connell says, “We’re likely to see major players in the audio-streaming industry expand their offerings – like Spotify, which now offers audiobooks alongside music and podcasts."
5. New Audiences, Endless Opportunities
In 2023 we can expect podcasting to expand into a mix of creator-host read advertising combined with inventory that is audience segmented and targetable. According to the experts at ad monster, the podcast listener boom has not only impacted advertiser spend, but the number of podcast advertisers grew by 42% in the US, which is expected to increase significantly in 2023.
Adomotive is here to help if you’d love to enter the audio marketing world and learn more about podcast advertising!
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