Digital audio ads are big money earners for companies, such as Google as IAB reveal that revenue made as a direct result of digital audio...
Digital audio ads are big money earners for companies, such as Google as IAB reveal that revenue made as a direct result of digital audio ads hit $1.6 billion last year. By the end of 2018, music streaming services are set to be used by 1.2 billion people, according to DoubleClick. With the value of the US digital ad market growing to $88 billion it’s only natural for a big businesses to cash in on the action. But will audio advertisements prove to be as successful as Google’s previous ad campaigns?
Why Programmatic Audio Advertisements?
Unsurprisingly, Google isn’t short of cash. Forbes ranks the multinational technology company as the second most valuable brand in the world with a value of $132.1 billion. However, to stay at the top of the list and to keep their financial outlook healthy, Google have to prove that they are an innovative leader in the technology industry and give advertisers what they want. Research from WideOrbit shows that 85% of American radio buyers are keen to buy real-time audio ads in order to reach their core customers. Meanwhile, no one can deny that programmatic ads sell. Spotify made $115 million from their ads during the first three months of the year, while Pandora made an impressive $215 million during the same period.
How Google aim to make 1.2 billion
Programmatic Solutions Partner MightyHive tested digital audio ad buying for one of their clients and had great success using Bid Manager. The trial returned 7.5 million impressions and more than 7,500 clicks across multiple platforms. Additionally, ad completion rates exceeded 95% and a click-through rate of 0.11% was achieved. Therefore, there is no doubt that Google aim to increase these figures amongst their own brand. Audio advertisements are also good earners for businesses such as Google as they are priced higher than alternative forms of advertisement, as they are priced on a CPM basis, cannot be skipped by listeners and are available on all major technical platforms, meaning a substantial return is all but guaranteed.
In an industry where other audio providers have proved that the financial return is high, Google’s new programmatic audio advertisements are set to make them billions and firmly cement their future as a leader in the technology industry. Audio ads are highly sought after and their clever design yields results and financial return that any business would lust after.