Xaxis, in association with IAB Europe, finds 60% of marketers believe there is an opportunity to increase their programmatic audio spend – but there are challenges to overcome
LONDON: Investment in programmatic audio is set to rise, with the majority (60%) of buy-side respondents looking to increase their programmatic audio spend over the next 18 months.
According to new research from Xaxis, the outcome-media company, conducted in association with IAB Europe, the full potential of audio is not being realised within Europe. Although 59% are already utilising the capabilities of programmatic audio to some extent, spend is low – over three quarters (79%) invest less than 10% of total ad spend on audio, and two-fifths (41%) allocate no budget to programmatic audio.
Surprisingly, confidence is low, with only a small proportion of buy-side marketers (15%) feeling confident in their understanding of programmatic audio. However, when speaking to the sell side, this is doubled with 30% stating confidence in programmatic audio understanding.
Despite the fact marketers are conservative in their approach to allocating significant budgets to audio, the top three drivers for investing in audio advertising are recognised as complementing the media mix (63%), reaching specific audiences (59%), and raising brand awareness (58%). The majority of respondents agreed that to reach audiences, device choice is important, with mobile ranking top (88%) followed by laptop/desktop (61%), in-car (59%) and tablet (46%).
For marketers, the key drivers for investment in programmatic audio are achieving targeting efficiencies (63%) and taking advantage of data insights (44%). However, two strong barriers to exploring audio investment are having a clear understanding of the impact of programmatic audio trading on total revenue (49%) and the availability of technology (44%).
“Programmatic audio is the future,” commented Alex McGibbon, Vice President of Client Solutions, Xaxis. “There is the potential for Europe to lead the way in cementing it as an essential component of today’s media mix. There is an obvious appetite to increase knowledge and understanding of programmatic capabilities and if addressed, the opportunity to boost programmatic audio spend over the next 18 months.”
Daniel Knapp, Chief Economist at IAB Europe, commented: “Audio’s high level of consumer engagement married with the efficiency of programmatic delivery and brand safe environments creates a highly appealing media channel for brands.”
The European report can be found at: https://www.xaxis.com/programmatic-audio-advertising-in-europe-report
The research aimed to understand the adoption and development of programmatic audio advertising across Europe and was conducted via an online survey between April-May 2019. 499 responses were delivered from buyers and publishers – both from across 30 markets – and from stakeholders with pan-European and global remits.
Xaxis is The Outcome Media Company. We combine unique brand-safe media access, unrivalled programmatic expertise, and 360-degree data with proprietary artificial intelligence to help global brands achieve the outcomes they value from their digital media investments. Xaxis offers managed programmatic services in 47 markets, including North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa.
For more information, visit www.xaxis.com
About IAB Europe:
IAB Europe is the European-level association for the digital marketing and advertising ecosystem. Through its membership of National IABs and media, technology and marketing companies, its mission is to lead political representation and promote industry collaboration to deliver frameworks, standards and industry programmes that enable business to thrive in the European market.
For more information, visit www.iabeurope.eu.