In the “2023 U.S. Podcast Advertising Revenue Study” the IAB predicts that programmatic podcast buying will continue to grow in response to advertiser demand for contextual audience targeting and the improved access to first party data that generates advanced user insights*. And according to eMarketer, this growth curve should be pretty steep with programmatic podcast ad revenues reaching $166M in 2023 and then $257M by 2025**. With all this increased demand for programmatic podcast advertising, we wanted to share our expertise around the reasons for this growth as well as provide some compelling insights into why your brand should be taking advantage of the buying method.
What is Programmatic Podcast Advertising?
Programmatic podcast advertising is the automated selling and insertion of ads into podcast inventory and it allows advertisers to make audience-based buys. The process of buying podcast ads programmatically is very similar to other types of programmatic buying like digital and video that advertisers are accustomed to. While brands have been slower to adopt programmatic podcast advertising than they have these other channels – the marketplace and technology infrastructure that supports it has matured to the point where it is now an appealing and efficient way to place podcast buys.
The Time is Right to Invest in Programmatic Podcast Advertising
Buying podcast inventory on an audience basis has profound efficiencies. We work with our advertisers to define their target audience and then use the most efficient combination of inventory and networks to reach those people. By being laser-focused on finding and reaching your brand’s audience, we are able to eliminate a great deal of potential waste. While some podcasts may index high for your target audience – you are still reaching people outside your desired demo with direct buys. Programmatic buying ensures you are only reaching your target audience.
2. Creative Testing
There are significant opportunities to test, learn and refine your creative. Let’s face it, we often don’t know if our podcast creative will work until we try it. With programmatic podcast advertising, we often advise our clients to “go wide” and test a few different spot lengths, messages or calls-to-action. We can easily test :15, :30 or :60 versions of your creative and very quickly understand what is working and then optimize your buy.
3. Closed Loop Attribution
One of the core challenges of podcast attribution is the way a “listen” is captured. When a podcast is downloaded by a user, it is recorded as an ad exposure. But as most of us know, we often download a podcast episode and then listen to it later. This poses attribution challenges when the attribution window is too short and doesn’t account for the time it may take for the user to listen to the episode and then take the desired action. With programmatic advertising, we are able to do a reconciliation of all actions that are taken on an advertiser’s website and accurately attribute them to the podcast ad.
4. Greater Control
While it may seem contradictory that advertisers have greater control over their buys in programmatic than through direct buys – there are many reasons why this is the case. First and foremost, your team at Ad Results Media places the buys themselves and can instantly modify the buy parameters as needed. Using programmatic you are very quickly able to see what is performing for your brand and what is not. Our team will go in and optimize on your behalf. And furthermore, we can cancel programmatic buys that are not performing directly through the DSP. This is very different from direct buys which may or may not have a cancellation policy that we need to adhere to.
5. First-Party Data-Informed Targeting
Using the data captured on an advertiser’s site, we are able to build audiences based upon who is actually converting and what attributes they have. Unlike digital look-a-like audiences that simply extend the reach of a buy, using programmatic podcast buying we are able to find more people that not only look like our target audience but closely resemble those who have already converted. Over time, we are able to build very efficient targeting pools that convert with even greater efficiency.
The team at Ad Results Media is leading the way in terms of supply path optimization for the podcast advertising space. We are working with our partners to ensure a seamless and efficient buying process for all of our clients. Reach out to our team today to hear more about how we can help you with your programmatic podcast buying needs.
*2023 U.S. Podcast Advertising Revenue Study