Listen Up! Why audio is captivating audiences

Podcast listeners in the USA have an even gender split of 52% male and 48% female. Listeners tend to skew affluent, with 42% high income. In addition, 37% have a university degree, and 57% work full time, and significantly, 56% say they are not bothered by audio ads (Source: GWI). American podcast listeners tune into an average of 8 podcasts per week, averaging 5.1 different shows per week. However, competition is fierce, as of February 2021 there are over 1,750,000 podcasts and 43 million episodes available to choose from. This is where the growth of programmatic in this space will help brands reach their audience through specific shows that previously they might not have considered previously. Currently, mid-roll ads account for 76% of revenue, and announcer-read ads increasing from 27% to 35% in 2020.

Like all media channels understanding your target audience and their behavior/habits before matching this to the media, usage is essential. For example, 59% of podcast listeners tune in while doing their daily chores, 52% listen while driving, 51% while cooking and 44% while exercising. Picking genres that your audiences are interested in and the time of day they are likely to listen to requires careful planning.

According to Neilsen in their Podcasting Today report, the news is a preferred genre on weekdays between 6-10 am and 3-7 pm, whereas comedy is preferred in the middle of the day mid-week. Women prefer content centered on family, children, health/fitness, true crime, and education whereas men prefer sports, technology, and politics. Direct-to-Consumer brands make up the bulk of advertiser market share at 19%, Pharmaceuticals have doubled their share YoY by 9%, showing that bigger brands are moving into the space.

Even with the growth of audio, there are still common questions from brands, particularly concerning measuring campaign results and the metrics used to determine the impact of ads.

For example; which data can be obtained from the current technology regarding the audience of digital audio? Or; how can we know the impact of a specific advertising action in the business? Though still being asked are starting to have answers available. Let’s dig into some of these.

Digital audio content can be accessed in two different ways: the web browser or an application installed on the device (computer, smartphone, tablet, etc.). In both cases, user behavior can be tracked using platform-specific systems; third-party tracking codes, which send signals when predefined targets are reached; or by analyzing the session information stored in the cookies.

The measurement tools used will differ depending on the type of data one wishes to obtain. For example, podcast producers will be interested in knowing their listeners’ demographic profile, location, and listening patterns, while an advertiser will focus on counting the number of reproductions of their spot and determining the effects it has had on their target.

Google provides a specific analytical tool for podcast creators (Podcast Manager), which enables the minute-by-minute study of listener behavior. This establishes average listening time and monitors how engagement evolves. Spotify provides brands with insights on impressions (plays) ads are getting, along with reach and frequency of listening metrics, and additional

The IAB suggests a series of digital audio metrics to quantify reach and effectiveness. The most basic would be those related to ad playback and would be used to determine the number of times the ad has been heard as well as the Listen Through Rate (LTR), meaning, the number of times the advertisement was played until the end.

In addition, it is also possible to evaluate the user’s response after exposure to the campaign. When advertisements are launched with a visible banner on screen, the traditional digital analytics options become available, in other words, to track the number of impressions, clicks, and the Click Through Rate (CTR), as well as analyzing subsequent web browsing behavior or lead generation.

Ultimately, the results of digital audio can be calculated by implementing post-listen surveys to measure brand recall and purchase intent.

The big players in this space such as iHeartMedia, SiriusXM, and Spotify are focused on growing their creator bases. This may suggest that supply isn’t keeping up with advertiser demand and that they might have to make more expensive exclusive content acquisitions. These digital audio players will face three big content challenges:

1. Live audio – how to make this medium compelling?
2. Scaling Partnerships – for example, sports partnerships are a big opportunity to drive scale.
3. Premium content subscriptions – will listeners pay more for premium content?