Programmatic Audio Advertising: Best Practices for Publishers
Programmatic audio advertising has emerged as a powerful tool for publishers to monetize their content and reach targeted audiences. By leveraging technology and data, publishers can automate the buying and selling of ad space, ensuring efficient and effective ad delivery. To maximize revenue and optimize ad performance, it's essential to adhere to best practices in programmatic audio advertising.
Platforms like Spotify, Apple Music, and Pandora offer a vast library of music, podcasts, and other audio content, attracting millions of users. This surge in audio streaming popularity has created new opportunities for advertisers to reach targeted audiences through programmatic advertising.
Numbers tell be themselves. By the end of 2025, there are expected to be more than 144 million monthly podcast listeners in the U.S. alone. At Spotify, there are 433 million global monthly active users, up 19% from last year. The average US adult spends more than 2 and a half hours (2:42) each day listening to audio, but advertisers spend only 4.5% of their ad budgets on audio, predominantly in traditional radio.
Understanding Programmatic Audio Advertising
Programmatic audio advertising involves the use of automated systems to buy and sell ad inventory in real-time. Unlike traditional audio advertising, which relies on manual negotiation and placement, programmatic advertising utilizes algorithms and data to match advertisers with the most relevant audiences.
Key components of programmatic audio advertising include:
Ad exchanges: Platforms where ad inventory is bought and sold.
Demand-side platforms (DSPs): Tools used by advertisers to manage their ad campaigns and bid on ad inventory.
Supply-side platforms (SSPs): Platforms that help publishers manage their ad inventory and sell it to advertisers.
When an ad impression becomes available on an ad exchange, the SSP sends information about the ad space to the DSPs. The DSPs then analyze the ad space and determine if it matches the advertiser's targeting criteria. Using real-time bidding (RTB), the DSPs bid on the ad space, and the highest bidder wins the impression.
Programmatic audio advertising offers several benefits for publishers, including:
Increased revenue. By automating the ad buying and selling process, publishers can maximize ad revenue through efficient inventory management and competitive bidding.
Targeted audience reach. Programmatic advertising allows publishers to precisely target specific demographics, interests, and behaviors, ensuring that ads reach the most relevant audience.
Improved ad performance. Real-time bidding and data-driven optimization enable publishers to deliver ads that are more engaging and effective for both advertisers and listeners.
Unlike display advertising in video, programmatic audio lacked robust specifications and delivery standards for many years. This hindered broader adoption from both advertisers and publishers. However, the IAB addressed this challenge by developing the Digital Audio Ad Serving Template (DAAST) in 2014. This standardized template provided a framework for delivering audio ads.
In 2018, DAAST functionalities were incorporated into VAST 4.1, a popular IAB standard for video ad buying. This move streamlined programmatic audio buying by leveraging existing infrastructure. VAST 4.1 introduced the "adType" attribute within the "Ad" element, allowing for audio-only ad creatives. Additionally, terminology shifted from "video player" to "media player" to reflect the broader applicability. The current version of the document is VAST CTV Addendum 2024.
Leading Providers of Programmatic Audio Ads
1. Google
Google, a pioneer in digital advertising, was one of the early adopters of programmatic audio. In 2018, Google announced its partnership with Spotify, SoundCloud, TuneIn, and Google Play Music, enabling brands to purchase audio ads through their DoubleClick Bid Manager. This move significantly expanded the reach and accessibility of programmatic audio advertising.
2. SoundCloud
SoundCloud, a popular platform for sharing and discovering audio content, has embraced programmatic advertising. The company has partnered with AppNexus to offer programmatic audio and video inventory through its marketplace, providing advertisers with a wider range of options.
3. Pandora
Pandora, a leading provider of music and podcasts, has launched its own private audio marketplace. This platform allows buyers to purchase ads programmatically, offering greater flexibility and control over their campaigns.
4. BBC
The BBC, a renowned British broadcasting corporation, has partnered with the podcast provider Acast to pioneer programmatic audio advertising. This collaboration has allowed the BBC to monetize its podcasts while maintaining editorial integrity.
5 Best Practices for Publishers in Programmatic Audio Advertising
1. Inventory Optimization
Audience Segmentation: Divide your audience into distinct segments based on demographics, interests, and behaviors. This allows you to target ads more effectively and increase ad relevance.
Ad Placement Optimization: Strategically place ads within your content to minimize disruption and maximize listener engagement. For example, consider placing short pre-roll ads before longer episodes and mid-roll ads during natural breaks in the content.
Ad Frequency Management: Limit the number of times a listener hears the same ad to avoid ad fatigue. Use ad frequency capping to ensure a positive listening experience.
2. Data Management and Analysis
First-Party Data Collection: Collect and analyze data about your audience, such as demographics, listening habits, and engagement metrics. This data can be used to inform your targeting strategies and improve ad performance.
Data Partnerships: Collaborate with third-party data providers to enhance your audience targeting capabilities. For example, partnering with a location data provider can help you target ads to listeners in specific geographic regions.
Ad Performance Tracking: Monitor key ad performance metrics, such as impressions, clicks, click-through rates, and conversion rates. Use this data to identify successful campaigns and optimize your ad strategy.
3. Ad Format Selection
Audio Ads: Choose the most suitable audio ad format for your content, such as pre-roll, mid-roll, or post-roll ads. Consider the length of your content and the desired ad placement.
Companion Ads: Use companion ads (display ads that accompany audio ads) to provide additional context and enhance the ad experience.
Native Ads: Integrate ads seamlessly into your content to create a more engaging experience for listeners.
4. Yield Management
Dynamic Pricing: Adjust ad prices based on demand and inventory availability to maximize revenue. Use dynamic pricing algorithms to optimize your ad rates.
Real-Time Bidding: Participate in real-time auctions to sell your ad inventory to the highest bidder. RTB can help you achieve higher ad prices and maximize revenue.
Private Marketplaces: Negotiate deals with preferred advertisers outside of open exchanges. PMPs can provide more control over your ad inventory and potentially higher ad rates.
5. Ad Quality and Viewability
Ad Verification: Ensure that your ads are served to real users and prevent ad fraud. Use ad verification tools to monitor ad quality and ensure compliance with industry standards.
Viewability: Optimize your ad placements to improve viewability, which is the percentage of an ad that is visible on a user's screen for a certain amount of time. High viewability rates are essential for maximizing ad revenue.
How to Start in Programmatic Audio as a Publisher
If you're a publisher looking to enter the world of programmatic audio advertising, here's a step-by-step guide to get you started:
Assess Your Inventory
Evaluate your content. Determine the suitability of your audio content for programmatic advertising. Consider factors like audience size, engagement levels, and content quality.
Identify ad formats. Decide which ad formats (pre-roll, mid-roll, post-roll, companion ads) align best with your content and audience preferences.
Choose the Right Technology Partners
Select an SSP. Partner with a reputable SSP that offers the features and capabilities you need to manage your ad inventory effectively.
Consider a DMP. If you have significant first-party data, a DMP can help you enhance audience targeting and ad personalization.
Leverage Data and Analytics
Gather data on your audience, ad performance, and campaign effectiveness.
Leverage data to inform your ad strategy, optimize campaigns, and improve targeting.
Explore Different Ad Formats and Pricing Models
Experiment with ad formats. Test various ad formats to determine which ones resonate best with your audience.
Consider different pricing models. Explore options like CPM (cost per thousand impressions), CPC (cost per click), and CPV (cost per view) to find the most suitable pricing model for your business.
Partner with Advertisers
Build relationships. Connect with advertisers and agencies to understand their needs and preferences.
Offer targeted advertising solutions. Showcase how your ad inventory can help advertisers reach their target audience effectively.
Programmatic audio advertising offers publishers a powerful opportunity to monetize their content and reach targeted audiences. By following best practices and leveraging the right technology, publishers can maximize revenue, improve ad performance, and stay ahead in the competitive digital audio landscape.
Publishers looking to monetize their website or app with Blasto have two main options. Prebid, an open-source tool, allows publishers to integrate Blasto alongside other ad exchanges, potentially leading to higher bids through real-time competition. Alternatively, publishers can connect directly with VAST integration. Regardless of the method chosen, Blasto offers publishers access to a wider pool of advertisers, potentially increasing their revenue through programmatic advertising. Please contact Oleksandr to start the integration within our platform: oleksandr.b@blasto.ai.
