Streaming digital audio and podcast advertising is continuing to grow strongly according to the 2023 IAB Australian Audio State of the Nation Report released today which said that “despite greater economic uncertainty looming, agencies intend to increase expenditure in digital audio formats this year.”
The Report noted that 71% of media agencies intend to increase their investment in streaming audio in 2023 and 78% intend to increase their investment in podcast advertising.
“This years’ Report shows that brands and advertisers see the effectiveness of digital audio for engagement and reach but will need more proof of the effectiveness of audio for brand building,” said Natalie Stanbury, Director of Research of IAB Australia.
“This should be a top priority this year for all in our industry considering the role of long-term brand building to business success during and after economic downturns.”
Fieldwork for the report was conducted by independent research company Hoop Group across December 2022 and January 2022 with 249 survey responses collected.
The announcement of the findings comes after the recent release of the IAB Online Advertising Expenditure Report which found digital audio revenue reached $221.2m for CY22.
In its 7th year, the report, which covers usage and attitudes to advertising in broadcast radio, streaming digital audio, DAB+ and podcasts, found that 75% of media agencies now have streaming digital audio advertising as a regular part of their activity, while 70% of media agencies included podcast advertising as a regular part of their activity (increasing from 36% in 2020 and 59% in 2021).
The report goes on to say that integration of streaming digital audio and podcasts with other digital and audio channels is also more consistent according to the report with planning and buying digital audio in combination with other digital advertising types continuing to increase.
It adds that 80% of agencies now at least sometimes buy digital audio in combination with digital video advertising while 69% of agencies intend to buy digital audio bundled with other media opportunities (up from 51% last year).
Agencies also continue to buy audio advertising programmatically, with 82% of agencies intending to buy programmatic audio in the next year (up from 64% in year prior).
Respondents identified three key areas holding back audio advertising being a larger proportion of ad volume. Brands and advertisers noted their main issues as developing compelling creative and a lack of understanding across all formats, while the industry noted measurement and standardized metrics as an opportunity for improvement.
“One of the most pleasing results in the study is the marked increase in planning and buying audio in combination with other digital activity,” said Gai Le Roy, CEO of IAB Australia.
“There is great potential for digital audio to increase its share of the digital ad pie with eight in ten agencies who use digital audio now considering its use alongside digital video as well as the increase in omni-channel programmatic buying.”
The full report can be downloaded here