For the most part, however, programmatic advertising on streaming audio has been challenging and it has been difficult for brands to push out customized content that is scalable. That could be changing with various technology platforms making enhancements that could make programmatic advertising more efficient.
At the same time, mergers and acquisitions could help improve the efficiency of audio advertising.
Earlier this year, PWC forecasted that streaming audio would provide a big boost to traditional AM and FM radio stations, reports Inside Radio.
PWC expects over-the-air advertising revenues to grow at a meager compound annual rate of 0.10% from 2017 to 2022, but AM/FM radio’s streaming revenues are expected to grow at an annual rate of 7.8% during the same period.
From a broader perspective, many brands have failed to embrace programmatic digital advertising on audio platforms, reports eMarketer. In an article earlier this year, the publication reported that only 13% of respondents to a survey of marketers by the Association of National Advertisers said they buy audio advertisements programmatically.
Yet, through most of 2018, firms have been developing technology enhancements that seek to make it easier for brands and marketing agencies to achieve scale with programmatic advertising on audio platforms.
During the spring months of this year, Google’s demand-side platform started accessing inventory for various audio platforms and Pandora purchased AdsWizz so that it could offer the firm’s technology platform to agencies and brands, according to eMarketer. Pandora has also made its inventory available to programmatic buyers. Spotify and a handful of other streaming services have also been selling advertisement programmatically.
Efforts to enhance programmatic advertising on audio platforms appear to have strengthened as the year has progressed. Just recently, E.W. Scripps Company, which runs a variety of local and national media brands, announced that it had acquired Triton, a provider of digital audio technology and measurement services, reports MarketWatch.
Triton offers a software-as-a-service (SaaS) business-to-business platform that facilitates the delivery of advertisements via streaming audio platforms while also providing measurement services. IHeartMedia, which offers iHeartRadio, is also jumping into the acquisition trend, reports The Drum.
IHeartMedia recently announced that it is buying Jelli, which provides technology that powers the media company’s SoundPoint audio-buying platform. The media company maintains that the acquisition will help advertisers improve how they target key audience segments by leveraging the scale of iHeartMedia's broadcast stations--both digital and radio.
With the acquisition, iHeartMedia can provide heavy data and innovation to advertisers in a manner that is similar to other forms of digital advertising.
Pandora, for its part, is also making technology enhancements, reports MarTech Series. The digital audio company recently said it has integrated the AdsWizz AdWave platforms with Google Display and Video 360 to expand its marketing reach.
AdWizz maintains that the integration allows for incredible scale for advertisers who use Google Display and Video 360 to distribute their content on Pandora, which is the largest ad-buyer-supported audio platform.
Big brands, meanwhile, are signaling that they are interested in audio by sponsoring musician’s creative efforts. Among other examples, United Airlines commissioned Berlin-based soul artist Charlotte Dos Santos to produce her own version of Gershwin’s classic song “Rhapsody in Blue,” reports Music Business Worldwide. The original version of the song has been used as theme music for United Airlines’ television advertisements and for preflight announcements.
Other examples include Mountain Dew’s Green Label subsidiary awarding $50,000 to indie rapper Kelechi to record a debut album and Toyota funding one of electro house musician Steve Aoki’s first tours. Even W Hotels has gotten into the act by releasing singles from alternative R&B musician Amber Mark.