Eight out of 10 media buyers have bought streaming digital audio advertising, according to IAB Australia’s inaugural Digital Audio Advertising: State of the Nation trade survey.
The study shows that half of agency respondents surveyed are either already buying programmatic audio inventory or expect to do so in the next 12 months.
The study was commissioned by the IAB Audio Council in collaboration with Commercial Radio Australia (CRA) and executed by independent research firm Hoop Group.
Podcast usage is expected to increase in 2017 with three in 10 respondents planning to trial podcast advertising – on top of the 38 per cent who have already incorporated it into their buys. Brand awareness is cited as the most common and main objective for broadcast, streaming and podcasts, followed by support for promotions.
Agencies are using the same team for broadcast radio and streaming digital audio planning and buying.
“The importance, seen in the strength and growth, of audio streaming is evident in these findings,” said Venessa Hunt, GroupM head of mobile.
Far from being about the migration from broadcast, Hunt believes the study emphasises how changing consumer habits are unlocking new moments and new ways for brands to engage.
“With audio streaming in our pockets, consumers enable the opportunity to have a soundtrack to their lives all the time,” said Hunt. “With the increase in accountability and measurement of these advertising environments, those brands without an audio streaming strategy will miss out on those moments in our lives. The cost of inaction will be felt as competitors take advantage of this space in a personal and highly targeted environment.”
Commissioned by the IAB Australia Audio Council, the study was sponsored by ARN, Eardrum, Nova, Pandora, Southern Cross Austereo and Spotify.
IAB Australia CEO Vijay Solanki believes digital audio and audio programmatic will grow significantly in 2017.
“With over 12 million Australians now consuming music and other audio content on their devices every month, this is an increasingly important channel for marketers to reach consumers in a wide range of locations and moods This study, which has truly been an industry collaborative project, provides the market with key information on how to optimise these opportunities,” said Solanki.