- Google is making programmatic audio ads available through its DoubleClick Bid Manager, a company blog post announced. Marketers can access ad inventory from several music streaming platforms, including Google Play Music, Spotify, SoundCloud and TuneIn, with Pandora to be available soon.
- Demand for audio is growing, with 85% of U.S. radio buyers expressing interest in buying audio ads in real-time to reach their target audiences, according to WideOrbit research cited by Google. More than half of buyers say buying audio ads programmatically can streamline workflows, and 75% believe the process offers the benefits of real-time optimization and reporting. Music streaming services are expected to grow their user base to 1.2 billion in 2018, according to the blog post.
- Programmatic platform MightyHive has already seen success using Bid Manager to buy audio ads programmatically on Google Play Music, per Google. The strategy helped the company reach new audiences for an unnamed consumer packaged goods client, delivering 7.5 million impressions and 7,500 clicks across mobile, web, desktop and app. Ad completion rates exceeded 95%, and the campaign had a click-through rate of 0.11%.
As music streaming platforms and audio formats like podcasts and sponsored playlists reach new levels of maturity, marketers might welcome the ability to buy their ads programmatically through DoubleClick, as programmatic technology allows for easier implementation of campaigns at scale. Spending on digital audio inventory is small compared to other digital channels, but is on the rise.
Digital audio advertising grew 39% to reach $1.6 billion in revenue last year, according to estimates from the Interactive Advertising Bureau. Music streaming platforms have, in turn, tried to build out their advertising products, with some successful results. Spotify, in its first earnings call since going public in April, said that its programmatic revenue increased 94% year-over-year, according to AdExchanger. Direct-sold sponsorships still comprise most of Spotify's revenue, but the company launched a self-serve platform in September, which is spearheading its programmatic growth.
Buying digital audio ads programmatically is somewhat new, but marketers have continued to support buying digital display ads programmatically. By 2019, nearly two-thirds of all digital display ads will be programmatic, accounting for an estimated $84.9 billion, according to Publicis Groupe Zenith.