Digital Media is dynamic—it’s crucial to keep up with digital trends to strategize and deliver successful campaigns. Digital Media has grown tremendously, from standard display advertisements to endless creative solutions and channels, including those trending now: digital out of home (DOOH) and digital audio.
Overall the revenue generated from digital ads has shown an uptick in spending toward non-traditional channels, including DOOH and audio advertising. In fact, DOOH media is predicted to more than double its total market value, from $12.5 billion in 2016 to $26 billion by 2023. U.S. podcast ad revenues are predicted to cross the $500 million mark in 2019, a 28% increase from 2018’s revenues.
New Technology Is Revitalizing Old Formats
Of course, out-of-home billboards and audio ads (aka radio ads) have been around for decades. They’re the original location and native advertising methods, but as soon as they were digitized, these channels quickly became far more valuable to both advertisers and consumers. Due to their digital nature, it’s easier than ever to zero-in on target audiences and eliminate waste, ultimately increasing the return on advertising spend (ROAS).
The Rise of Targeted DOOH Solutions
Consumers are constantly surrounded by digital advertising, beyond their desktop and mobile screens. DOOH executions span from billboards, gas stations, and taxis to bus stops, gyms, and even doctor’s offices. Each type of venue serves as a unique opportunity to reach a target audience where it matters most. Additionally, targeting capabilities are boundless. Today’s technology allows advertisers to target audiences based on proximity, consumer behavior, time of day/week, weather conditions, and much more.
Popular Venue Types
- Gas stations
- Bus shelters
- Street furniture
- Doctor’s offices
- Convenience stores
- Transportation Hubs (Airports, Train Stations, Etc.)
DOOH venues are smart. When a consumer is exposed to a DOOH ad within a certain vicinity of the location, their mobile device ID is collected. With this information, we can retarget our audience throughout the duration of the campaign. This data can also be used to measure consumer foot traffic and provide path-to-purchase analytics. Plus, they’re 100% viewable.
The Expanding Digital Audio Advertising Market
Consumers dedicate time every day to streaming audio – over 14 hours every week on average. Whether it be working out, commuting, working, or driving, we can access consumers everywhere. With statistical evidence of the enormous role audio plays in our lives, how could advertisers ignore it?
Don’t confuse digital audio with the local radio stations we tune into in while driving our cars. On demand services like Spotify or Pandora, and streaming stations like iHeart Radio, are the digital revenue platforms where advertisers are choosing to allocate a large portion of their advertising budgets. And those companies are investing big in digital ads to make sure they stay at the forefront of this quickly evolving industry.
What Is Programmatic Audio Advertising?
Programmatic audio advertising is the automation of the selling and insertion of ads into audio content, including music-streaming, podcasts, and digital radio. The big players are investing big in it, adding validity to and leading the way for the industry. Past issues with clear specifications and delivery standards have been addressed, and the IAB proposed Digital Audio Ad Serving Template (DAAST) in 2014.
All signs point to 2019 as being the year that programmatic audio advertising takes off. Why? The volume of available streaming audio content, across music and spoken word, has seen astronomical growth in recent years. Additionally, Google, The Trade Desk, Adobe, and others debuted programmatic audio ads through their DSPs, giving brands the ability to advertise on audio platforms the same way they’ve been purchasing all their other programmatic inventory.
Similar to DOOH, digital audio comes with advanced targeting capabilities. Advertisers have the opportunity to target consumers on a behavioral level and serve ads based on their exact point of interest (POI). On many occasions, audio ads work in tandem with banners. Companion banners, for example, are offered by several audio services including Pandora and Spotify.
Successful advertisers continue to strengthen their campaigns by including non-traditional channels such as DOOH and audio. Both serve as great tactics for upper-funnel initiatives and overall brand awareness. As digital trends evolve, it is important for advertisers to stay on pace with new creative solutions so they can evolve with the trends and their target audience.