Home » Are You Listening? 71% Of Media Agencies To Increase Audio Streaming Investment

1 March, 2023

Are You Listening? 71% Of Media Agencies To Increase Audio Streaming Investment

Young couple is sitting on a sofa in their apartment looking up and holding their hands to plug their ears as a neighbor upstairs is having a party and playing loud music or renovating the apartment

Digital audio streaming and podcast advertising are set for a strong 2023 with 71 per cent of media agencies planning to boost investment in streaming and 78 per cent planning to increase podcast advertising.

The data comes from the IAB’s Australian Audio State of the Nation report. It also found that three-quarters of agencies now have streaming digital audio advertising as a regular part of their activity and 70 per cent of agencies regularly spend ad dollars with podcasts — up from 36 per cent in 2020 and 59 per cent in 2021, respectively.

The report, now in its seventh year, covers attitude and spend across broadcast radio, streaming digital audio, DAB+ and podcasts.

“This year’s Report shows that brands and advertisers see the effectiveness of digital audio for engagement and reach but will need more proof of the effectiveness of audio for brand building,” said Natalie Stanbury, director of research of IAB Australia.

“This should be a top priority this year for all in our industry considering the role of long-term brand building to business success during and after economic downturns.”

The IAB also uncovered that agencies more frequently integrate streaming digital audio and podcasts with other digital and audio channels. Four-fifths of agencies now at least sometimes buy digital audio in combination with digital video advertising. Almost 70 per cent of agencies intend to buy digital audio bundled with other media opportunities, compared to just 51 per cent last year.

More than four-fifths of agencies intend to buy audio space programmatically this year, as well up from 64 per cent last year.

However, those advertisers not spending with audio said that they cannot develop compelling creative and lack understanding across all formats. They also noted that measurement and standardisation metrics need to be improved.

Gai Le Roy, IAB Australia’s CEO, commented, “One of the most pleasing results in the study is the marked increase in planning and buying audio in combination with other digital activity. There is great potential for digital audio to increase its share of the digital ad pie with eight in ten agencies who use digital audio now considering its use alongside digital video as well as the increase in omni-channel programmatic buying.”

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