1、THE RISE OF DIGITAL AUDIO ADVERTISING THE RISE OF DIGITAL AUDIO ADVERTISING1 1. Overview Foreword from Ollie Deane, Director of Commercial Digital at Global Over the course of a year, the digital audio industry has experienced unprecedented change. This years analysis reveals how perceptions of digi

2、tal audio have developed in the past 12 months and takes a definitive look at the factors driving the industry forward. This year, 86% of advertising agencies and 66% of brand advertisers said that they now see digital audio as a key part of their integrated media strategies. The rise of smart speak

3、ers has led to a surge in brands and advertisers prioritising digital audio as an essential part of their campaigns. Digital audio is already an important part of many listeners daily habits and advertisers are eyeing further opportunities to reach even more listeners, with the roll out of 5G enabli

4、ng widespread adoption of connected cars. Podcasts are now well and truly at the forefront of advertisers minds. With many forecasting that podcasts will achieve even more scale, 75% of advertisers plan to increase spend across podcasts in the next 12 months. The report identifies the growth of podc

5、asts as a key factor for driving change around the way audio is planned and bought. Contextual advertising across a range of verticals - from sport to business and well-being coupled with a range of different ad formats, has presented advertisers and agencies with many different options suited to a

6、wide variety of brands. Whilst interest in digital audio is stronger than ever, the proliferation of content and platforms can make for a fragmented marketplace for advertisers. As one of the pioneering platforms created to connect advertisers with the growing numbers of people listening to digital

7、radio and streaming music and podcasts, we see it as our responsibility to help demonstrate the real value of audio to brands and advertisers. The ability to target a listener at the right time, in the right place and in the right context, has always been and continues to be our focus at DAX. This f

8、ocus has driven us to improve our proprietary measurement tool, Listener Insight ID, to help advertisers understand exactly how audiences respond to their brands call to action. Advertisers surveyed were excited by growth in programmatic buying opportunities, however many lack awareness of attributi

9、on tools available and methods of effective measurement. Whilst its encouraging to see advertisers using insights from DAX to optimise their audio campaigns not everyone in the industry is aware of, or yet persuaded by, the benefits of digital audio and therefore we still have work to do in this spa

10、ce. Overall, its extremely positive to see confidence in digital audio at an all-time high. With 85% of advertisers and agencies set to increase their investment in digital audio within the next year alone, its undeniable that digital audio has become a major player in a mature advertising market. A

11、bout MTM MTM is an international research and strategy consulting firm, specialising in media, technology and advertising. MTM helps clients around the world understand and respond to digitally-driven change, providing award-winning consumer research, industry analysis, strategic advice, and support

12、 for new ventures, business development, and organisational change and transformation. For more information, please visit THE RISE OF DIGITAL AUDIO ADVERTISING2 2. Executive Summary Introduction to the research DAX, the digital audio advertising platform from Global one of the worlds leading media b

13、ase: advertisers and agencies (n=215) 2 % agreeing / agreeing strongly with statement: “thinking about the role of digital audio now and in the future, how much do you agree that digital audio is a great form of advertising for reaching consumers on the go”; base: advertisers and agencies (n=215) 3

14、% agreeing / agreeing strongly with statement: “thinking about the role of digital audio now and in the future, how much do you agree that digital audio is a great way to reach people while they are doing lots of different activities”; base: advertisers and agencies (n=215) 4 % agreeing / agreeing s

15、trongly with statement: “thinking about the role of digital audio now and in the future, how much do you agree that digital audio means advertisers can be really contextually relevant”; base: advertisers and agencies (n=215) 5 % agreeing / agreeing strongly with statement: “thinking about the role o

16、f digital audio now and in the future, how much do you agree that listeners are highly engaged with digital audio because of the great content thats available”; base: advertisers and agencies (n=215) 6 % who chose corresponding media in answer to; “which of these media are developing the most innova

17、tive opportunities for advertisers?”; base: advertisers and agencies (n=215) 7 % who chose corresponding media in answer to; “please choose any of the media you feel deliver against these attributes. - Targeting the right people at the right time”; base: advertisers and agencies (n=215) THE RISE OF

18、DIGITAL AUDIO ADVERTISING3 but some respondents lack awareness about the availability of measurement and attribution tools. It is evident that further industry education is required to ensure that advertisers understand how to attribute a return on investment to digital audio and digital audios pote

19、ntial as a powerful advertising medium is recognised. Four factors will drive further growth in digital audio The outlook for digital audio advertising is positive as more advertisers opt to build it into their media strategies. 85% of survey respondents said they will increase their investment in d

20、igital audio in the next 12 months8. Podcasts are a key driver, with 7.6 million people in the UK now listening to podcasts every week, an increase year-on-year of approximately 25%9, and further growth forecast. Another area driving future growth is the increased use of smart speakers. While 75% of

21、 digital audio is still consumed on PCs and smartphones, 17% of digital audio is now consumed via smart speakers0. Programmatic buying is also critical to future growth in the space. Digital audio, thanks to the targeting capabilities it brings, is increasingly being seen by buyers not as a sub-set

22、of radio but as a new and dynamic form of digital advertising. Finally, the ability to deliver location-based targeted campaigns across complementary media, including out of home, is one that will unlock more future value from digital audio advertising. 8 % selecting a year-on-year percentage change

23、 greater than 0% for either “streaming audio (radio or music)” or “podcasts” when asked: “how do you think your advertising investment in the following media will change in the next 12 months?”; base: advertisers and agencies (n=215) 9 Weekly reach, MIDAS Digital Audio Survey, Spring 2019 10 Share o

24、f hours by device, MIDAS Digital Audio Survey, Spring 2019 THE RISE OF DIGITAL AUDIO ADVERTISING4 UK listeners are consuming more digital audio than ever before, whether it is digital radio, podcasts or streamed music. Digital audio now reaches a record high of 28.3 million adults a week (+14% year-

25、on-year), which means that, for the first time, more than half of UK adults listen to digital audio each week. On average, each listener spends 12.9 hours per week listening to digital audio, adding up to a total of 365 million hours per week for the whole of the UK (+21% versus 2018). In the last y

26、ear, widespread adoption of connected devices, from PCs and smartphones through to smart speakers, and the growing availability of digital audio content, have seen UK audiences increasingly engage in new forms of listening. In response, advertisers and agencies have become ever more willing to use d

27、igital audio in their media planning and buying activity. Respondents to our survey stated that, on average, more than 40% of their advertising campaigns in the past 12 months had included digital audio up from 33% in our previous study. Advertising agencies are at the forefront of these bolstered l

28、evels of confidence as they see the exciting opportunities that digital audio offers. In particular, they like the innovative potential of digital audio, with 56% citing this as a positive factor. As media agencies increasingly embrace digital audio, they are bringing their clients with them. As a r

29、esult, we are seeing advertisers becoming more interested in digital audio as part of their media strategy. 86% of agencies and 66% of advertisers surveyed now see digital audio as an important part of most media strategies4. In turn, advertisers and agencies believe this growing confidence will tra

30、nslate into further growth next year, as more interest feeds greater innovation and ultimately, greater investment. “Everything is very positive from a digital audio point of view at the moment. Investment in digital audio has increased for most of our big advertisers and people seem really excited

31、to get on board with it.” Tom Coare, Head of Audio, OMD UK “Clients are showing a lot of genuine interest in digital audio; they are asking us a lot of questions about the medium and are very interested in how it has moved on in the last year or so.” James Weinberg, Head of AV, m/Six “In the past, a

32、dvertisers have asked “what does digital audio bring, whats the benefit of using that over traditional 100% linear radio? But now acceptance levels have definitely increased as the market matures and delivers proof points back to brands - meaning digital audio is a regular part of our audio plans.”

33、Michael Williamson, AV Planning Director, Manning Gottlieb OMD 3. Confidence in digital audio advertising has grown in the past year 11 MIDAS Survey Spring 2019 12 % agreeing / agreeing strongly with statement: “think of the campaigns youve worked on in the past 12 months, for what proportion have y

34、ou placed, planned or bought, created digital audio advertising?”; base: advertisers and agencies (n=215) 13 % who chose corresponding media in answer to; “which of these media are developing the most innovative opportunities for advertisers?”; base: agencies (n=147) 14 % agreeing / agreeing strongl

35、y with statement: “thinking about the role of digital audio now and in the future, how much do you agree that digital audio is part of your media strategy”; base: advertisers and agencies (n=215) THE RISE OF DIGITAL AUDIO ADVERTISING5 Greater industry confidence in the last 12 months is partly due t

36、o the proposition of digital audio advertising becoming clearer. Agencies and advertisers are noting that digital audio performs well across a number of metrics in terms of targeting and engaging listeners. Digital audio is an effective way to reach and target listeners Digital audio also has the ab

37、ility to reach audience segments, notably younger listeners, which other media struggle to reach. 73% of survey respondents believe that digital audio is a great way to reach audiences of all ages5. They also think it is effective in reaching listeners in a variety of contexts, for example reaching

38、consumers on the go (85%)6, and while they are doing lots of different activities (79%)7. Advertisers and agencies also appreciate the efficiency of digital audio in providing a cost- effective way to reach audiences in these different contexts. The ability to buy programmatically and precisely targ

39、et ads to engaged listeners based on granular data is seen as a key strength of digital audio. 81% of survey respondents think that digital audio means advertisers can be really contextually relevant8. Moreover, agencies value the fact that programmatic audio doesnt face the same challenges as other

40、 digital formats, with virtually no ad blocking, ad fraud and high brand safety. Digital audio provides new creative opportunities Digital audio is increasingly perceived by agencies and advertisers as a rich creative medium that allows brands to tell stories to audiences who are seeking deeper enga

41、gement from all their media interactions. 78% of survey respondents think that listeners are highly engaged with digital audio because of the great content thats available9. 4. The value proposition of digital audio advertising is becoming clearer “The younger the audience, the higher percentage of

42、spend that goes into digital audio is a general rule of thumb. We use it to deliver cost efficient reach versus younger audiences such as the 16-34 age bracket.” Michael Williamson, AV Planning Director, Manning Gottlieb OMD “Digital audio gives us the sophistication of targeting either on a locatio

43、n basis or by a particular type of audience. It delivers cost-effective coverage and better frequency capping.” Andrew Roscoe, Head of Brand, Sponsorship and Celebrity, Shop Direct Group “No one talks about brand safety in audio because its 100% brand safe. Thats a huge positive. Its all cleared con

44、tent, theres no user generated content on there, theres no risk in going into digital audio. It shouldnt be underestimated how useful that is.” Michael Williamson, AV Planning Director, Manning Gottlieb OMD 15 % agreeing / agreeing strongly with statement: “digital audio is a great way to reach audi

45、ences of all ages”; base: advertisers and agencies (n=215) 16 % agreeing / agreeing strongly with statement: “thinking about the role of digital audio now and in the future, how much do you agree that digital audio is a great form of advertising for reaching consumers on the go”; base: advertisers a

46、nd agencies (n=215) 17 % agreeing / agreeing strongly with statement: “thinking about the role of digital audio now and in the future, how much do you agree that digital audio is a great way to reach people while they are doing lots of different activities”; base: advertisers and agencies (n=215) 18

47、 % agreeing / agreeing strongly with statement: “thinking about the role of digital audio now and in the future, how much do you agree that digital audio means advertisers can be really contextually relevant”; base: advertisers and agencies (n=215) 19 % agreeing / agreeing strongly with statement: “

48、thinking about the role of digital audio now and in the future, how much do you agree that listeners are highly engaged with digital audio because of the great content thats available”; base: advertisers and agencies (n=215) THE RISE OF DIGITAL AUDIO ADVERTISING6 The potential to deliver dynamic cre

49、ative via digital audio, for example, where an advertiser can deliver multiple variations of an ad for different listeners based on their profile, is increasingly recognised. Although it is already widely used, agencies believe digital audio is still under-utilised and represents a significant opportunity. Digital audio can work for standalone campaigns or as part of a wider media mix Digital audios role in a campaign is changing, as the media is increasingly considered as a key component to the wider digital media mix and not just a complement to traditional radi