Turn Up the Volume: How Programmatic Audio Can Transform Your Ad Campaigns

Audio content is on the rise, and so are audio ads. Streaming services, podcasts, and digital radio are increasingly common in customers’ everyday habits. Finally, advertisers can reach their target audiences when they really pay attention. As a result, programmatic audio advertising is becoming an essential part of any successful marketing strategy.

Let’s back these statements up with data. According to Statista, digital audio ad spending may constitute 011.78 billion in 2024, and this market will likely grow by 6.43% annually, reaching $16.09 billion in 2029. The number of listeners is also expected to increase significantly, reaching 1.6 billion by 2029.

The programmatic approach allows the combination of modern advertising tools and the benefits of the audio format. As a result, marketers can boost the efficiency and precision of their ad efforts. In this article, we’ll explain what programmatic audio stands for, list its benefits, and discuss programmatic audio trends.

What Is Programmatic Audio?

When we hear the phrase “programmatic audio,” typically, it’s about buying and selling digital audio ad inventory through automated platforms. In other words, it’s programmatic advertising explicitly focused on audio content.

So, all basic principles of programmatic advertising apply: publishers offer their ad inventory, and advertisers purchase it. Most often, it happens on ad exchanges, platforms that aggregate the inventory from many publishers. Real-time bidding (RTB) technology allows advertisers to bid on the inventory automatically. The winning ad gets to be shown to the customer.

In the case of programmatic audio, ads find the audience on digital audio platforms, such as music streaming services, podcasts, etc. For example, you can hear audio ads on Spotify.

How Does Programmatic Audio Advertising Work?

Most often, the process looks like this:

1. Advertisers use demand-side platforms (DSPs) to set up their targeting and bid on the inventory they are interested in.
2. Publishers utilize supply-side platforms (SSPs) to manage their inventory.
3. Both sides meet at an ad exchange, which facilitates the media buying and selling process.
4. An automated auction happens (it takes a few milliseconds), and the ad is served to listeners.

The length of typical audio ads is 15 to 60 seconds. Although there are various audio ad formats, here are the most popular:

• Pre-roll ads. You can hear them at the beginning of the audio before the main content starts. These ads are standard in podcasts and on streaming platforms.
• Mid-roll (inside the content). It makes sense to place such ads in the middle of the longer content, such as podcasts. For example, between sections, when there’s a natural pause in the flow.
• Post-roll. These ads aren’t the most popular because they are placed at the end of the content, after the main part (obviously, not all listeners will even get to them). Still, advertisers may use them to call the engaged customers to action.
• Native audio ads. If you want your ads to integrate more seamlessly into the content, you may consider this type. It means that the style of the ad is similar to the content, including the tone of voice, pace, etc.
• Dynamic audio ads. These ads are adaptable depending on a customer’s location, demographics, etc.

Also, audio ads can be placed inside mobile and video games, and some ads can be interactive, allowing customers to speak (for instance, on smart devices). The list of types isn’t complete, but now, you have at least an overview of the main options.

The Benefits of Programmatic Audio

Audio ads have all the benefits of programmatic advertising, such as efficiency and cost-efficiency, advanced targeting options, tracking performance metrics, and real-time optimization of campaigns based on the data. In addition, programmatic audio advertising is attractive for companies, no matter what side of the deal they represent, for the following reasons.

1. The Increasing Popularity of Audio Content

The quantity of podcast users has grown over the last few years. For example, one study discovered that in 2024, more Americans than ever are listening to podcasts and are spending more time on them than ever.

Why is it happening? The part of the answer is probably a growing screen fatigue. Audio content can distract people from their gadgets while allowing them to do something in real life, like walking, cooking, or gardening.

2. Intimacy of the Audio Format

Typically, we interact one-to-one with audio content. If we go for a walk listening to a podcast, it feels like someone’s talking to us. The headphones are in our ears, so nobody else can hear what we hear. Whether we like it or not, this creates an atmosphere of intimacy, hence, increases trust.

3. Undivided Customer's Attention

Listeners of podcasts and other types of audio content are less prone to distractions. The first reason is you can’t listen to two podcasts simultaneously. Second, you usually listen to audio content in a quieter, less distracting environment.

4. Audio Has a High Engagement Potential

Combining the last two factors opens a window for creating a brand and consumer bond. That’s why programmatic audio may become a gem of the marketing strategy.

There’s evidence that 74% of consumers at least once visited a website after hearing an ad on a podcast they listen to regularly. 72% of respondents considered a new product or service, 69% gathered more information about a company or product, and 65% purchased a product or service.

To summarize the benefits of programmatic audio, this ad format allows companies to efficiently grab users’ attention even when multitasking. In addition to all the strong sides of programmatic advertising, high audience engagement makes audio ads an attractive option for marketers.

To balance this praise for audio programmatic advertising a bit, let’s discuss its challenges.

1. Fewer platforms. There are much fewer audio streaming and podcast platforms than websites that provide ad placement options. So, to achieve the best results, marketers must diversify their efforts and keep looking for new ways to publish audio ads, such as in-game advertising.
2. Increased competition. Due to limited inventory, advertisers may face obstacles, such as higher CPM (cost per mile) and difficulties launching big-scale campaigns. Again, this challenge requires advertisers to think creatively and always be open to new opportunities.
3. Limited ability to translate the brand essence. Unlike display or video ads, programmatic audio does not include visuals. If your brand is used to expressing itself with images, it may be challenging for the marketing team to create convincing and relevant audio content. Still, challenging doesn’t mean impossibly, right? Now, you are entirely aware of the benefits of programmatic audio and its potential problems. The biggest issue that can prevent companies from creating digital audio advertisements seems to be the lack of creativity, an surmountable obstacle. Most importantly, the potential gain outweighs the challenges by far.

What Are the Most Pivotal Programmatic Audio Trends?

Almost every aspect of digital advertising evolves as innovations continue to appear. Programmatic audio is no exception. In 2024 and beyond, the following five trends deserve special attention.

1. Voice-Activated Ads

The growing popularity of voice assistants and smart speakers generates new opportunities for advertisers to create audio ads. These ads get delivered by the customer’s virtual assistant (say, Amazon’s Alexa, Apple’s Siri, or Google Assistant), for instance, when a client asks to find something on the internet.

Some of these ads may also offer an interactive experience. For example, a customer may hear a restaurant’s ad with a special offer ending with “Say ‘Order now’ to get your meal or say ‘Learn more’ to find out about other offers.” As a result, a client can make a purchase without touching the phone or even looking at the screen. The easier it is for a customer to learn about your product, the higher the chances of them engaging with your company.

2. Dynamic Ad Insertion For Podcasts (DAI)

There are two main ways to deliver your ad to the audience within a podcast. The first is “baking in,” i.e., integrating the advertisement into the audio content once and for all. The second way is DAI, which means including ads in specific places of the podcast temporarily.

Dynamic ad insertion allows connecting to the target audience when it can be the most beneficial. Advertisers can choose the time of day and duration of the campaign, and ads will be automatically removed from podcasts when they expire. Also, marketers can change ads in older episodes of the podcast if there’s a need for an update.

Moreover, limiting the campaign to a few podcasts is unnecessary. With DAI, advertisers can buy a wide array of ad inventory, and algorithms will decide where exactly to place the ads based on the chosen criteria.

3. 3D Audio Ads

This is one of the most innovative yet completely natural programmatic audio trends. People enjoy real experiences, and 3D ads can provide them thanks to immersive audio technologies.

Such ads can create an illusion of a specific environment (for example, a beach) or movement (e.g., a car approaching). Sure, a customer can achieve the best effect of presence when using headphones.

One prominent example is a campaign launched by Spotify and Fuze Tea. They created a 3D audio ad and targeted customers streaming Chill, Sleep, and Yoga playlists. The results were remarkable: a 3.5x increase in ad recall and a 1.8x increase in brand awareness.

4. Experiments With New Content Formats

Podcast hosts never stop developing new, exciting formats to differentiate themselves from other content creators and attract a bigger audience. Recorded podcasts remain the most widespread type, but live podcasts are quickly gaining popularity. Interactive audio content is also earning its place in customers’ hearts.

If your company aspires to get the most out of audio programmatic advertising, you should monitor innovations in audio content and brainstorm new ways of integrating your ads. Also, it makes sense to combine advertising in various content pieces because each may attract specific segments of your target audience.

5. Humor Is the King

Let’s face it: the world isn’t a trouble-free place, but the sense of humor improves everything. That’s why we included it in our list of programmatic audio trends. Many inspiring ad campaigns are based on humor. For example, the insurance company Geico created a series of audio ads called ”Disclaimer.” They last 30 seconds, and over two-thirds of this time is devoted to the disclaimer.

The ad starts with a typical marketing statement, such as, “I just saved hundreds of dollars by switching to Geico. I feel like I’m on top of the world!” Then, the long disclaimer starts, full of clever jokes in a “lawyer’s” language. Ads like this are fun to listen to. They also raise brand awareness and increase the audience’s loyalty.

Programmatic audio can be a powerful tool, especially if you constantly monitor trends and new opportunities. Staying open-minded and creative is the key to your campaigns’ success.

Final Tips and Thoughts

As we approach this article’s end, we’d like to give you some final advice on optimizing your marketing efforts by including audio ads in them.

• If you’ve chosen traditional podcast advertising, define the moment to insert your ad carefully. The completion rate is the highest for mid-roll ads. Pre-roll ads are in second place, and post-rolls occupy the third. Still, you should also consider your goals. Maybe the least popular format will deliver exactly what you need.
• Quality is not to be saved on. Listeners will only have their ears to appreciate your message. The sound should be of top quality, with no compromises.
• Keep in mind ad fatigue. It’s less common in audio than in display ads, but still may present a problem. So, create non-intrusive ads.
• Make audio ads a part of your omnichannel strategy. For example, in the case of the “Disclaimer” campaign, Geico produced both audio and video ads and eventually won awards.

By now, you’ve already learned about programmatic audio, its main benefits, and trends to watch. Before saying our goodbyes, we’d like to emphasize one final thought.

Programmatic audio advertising isn’t just a convenient set of tools but also an opportunity to reach your audience and establish a meaningful bond. Quality audio ads can provide customers with information about your products and valuable experiences. So, including them in your campaigns can make a real difference.

• What is programmatic audio?

  It’s programmatic advertising, explicitly focused on audio content. It’s about buying and selling digital audio ad inventory through automated platforms.

• How does programmatic audio advertising work?

  Usually, it looks like that. Advertisers use demand-side platforms (DSPs) to set up their targeting and bid on the inventory they are interested in. Publishers utilize supply-side platforms (SSPs) to manage their inventory. Both sides meet at an ad exchange, facilitating the media buying and selling process. An automated auction happens (it takes a few milliseconds), and the ad is served to listeners.

• What are the most common types of audio ads?

  Pre-roll (at the beginning of the audio before the main content starts), mid-roll (inside the content), and post-roll (placed at the end of the content, after the main part) ads.

• What are the benefits of programmatic audio?

  Some of them are audio content's increasing popularity, the audio format's intimacy, the undivided customer's attention, and the high engagement potential of audio ads.

• What are the most relevant programmatic audio trends?

  First, voice-activated ads delivered by the customer’s virtual assistant, like Amazon’s Alexa, Apple’s Siri, or Google Assistant, are increasing in popularity.

  Second, dynamic ad insertion for podcasts allows connecting to the target audience when it can be the most beneficial, choosing the time of day and duration of the campaign, and changing ads in older podcast episodes if there’s a need for an update.

  Third, more and more companies are starting to produce 3D audio ads that can create an illusion of a specific environment (for example, a beach) or movement (e.g., a car approaching).