There has never been a more critical yet complex time in audio to engage listeners. That is one of the key conclusions by AdsWizz in its new State of Audio Technology Report. But as it looks to the future, SXM Media’s sales arm sees a larger role for artificial intelligence. It says the AdsWizz Technology Innovation Lab is already at work developing and testing new tools to determine how they can help deliver better solutions to advertisers, especially small and medium sized businesses, as well as creators.
“AI audio innovations have already made a significant impact on the way brands interact with their audiences,” the report says, “as AI technology is becoming more agile, resourceful, and audience-centric.”
Among the potential uses for AI is to analyze listening preferences. AdsWizz says it expects the trend to continue, with new tools to support brands in preferences, behaviors, and demographic data, allowing marketers to produce more targeted and relevant audio ads, creating a more engaging experience. AdsWizz says AI can also be used to allow brands to better place their audio ads in the proper context. There are also AI-powered, voice-activated audio ad possibilities where the ads are triggered by specific voice commands or keywords. It says that will enable brands to deliver highly targeted and engaging consumer messages. There is also the potential to use AI to help create interactive audio ads.
In the meantime, the report points to growing opportunities for marketers as global digital audio listeners are projected to reach 1.52 billion by 2027. Worldwide digital audio ad spend is forecast to hit $11.13 billion in 2024 and rise to $12.82 billion by 2027, per Statista.
Much of that growth is being driven by podcast adoption. In 2020, the number of global podcast listeners was 332.2 million. By 2024, it is expected to reach 504.9 million, a 52% increase, according to eMarketer.
“The increasing popularity of podcasts and music streaming services has created new opportunities for content creators, businesses, and advertisers alike,” says Anne Frisbie, Senior VP of Global Business Development at AdsWizz. “The convenience and quality of audio content have led to shifts in consumer behavior, with more listeners turning to audio for entertainment, education, and information. As a result, the audio industry has experienced rapid growth, and we anticipate media investments in audio advertising to continue to grow as it catches up with time spent on audio,” she says in the report.
Contextual Targeting Gains Traction
Contextual advertising is playing a larger role at AdsWizz according to its State of Audio Technology Report. The company says from 2021 to 2022, there was a 32.4% increase in transcribed podcast shows in its portfolio, with 17.8 million episodes now transcribed. With the looming end of tracking cookies, it expects content-based targeting will continue to grow in importance as it provides insight into podcast content and therefore making it more transparent for advertisers. That transparency enables advertisers to go beyond just keywords with the ability to target concepts, topics, and interests within the podcast.
More publishers are also looking at transcriptions as a brand safety tool. The report says it has already proven to be an effective tool for publishers who cover topics that may not align with brands' identities or messages. For example, NPR leveraged proprietary podcast contextual targeting technology to ensure its advertisers could still run audio campaigns on the network’s content.
“Targeting helps advertisers to optimize their ad spend by minimizing wastage and improving the effectiveness of their campaigns,” said Molly Ponzo, VP of Product at AdsWizz and SXM Media. “By leveraging data and analytics to inform their targeting criteria, businesses can gain valuable insights into their audience's behavior, preferences, and interests, allowing them to create more impactful campaigns.”
The report predicts that in the future ad insights will be less of a request from ad buyers and become more of a demand. It also predicts that more third-party measurement providers will enter the audio business as brand safety technology is steadily gaining traction.
“The future of identity, data and privacy in the audio advertising will be driven by consumer demands of the user experience with a growing emphasis on privacy, security, and transparency,” says Maria Breza, VP of Audience Data Operations & Ad Quality Measurement at AdsWizz and SXM Media. “The industry will need to adapt quickly to new technologies, regulations, and consumer preferences while also delivering compelling and effective advertising experiences that drive engagement, loyalty and revenue.”
Download AdWizz’s State of Audio Technology Report HERE.