Marketers have been taking full advantage of the efficiency and comprehensive targeting of Programmatic Display. The next thriving thing in the eco-system right now is Programmatic Audio as brands have identified it as one of the most effective channel to reach millennials.
The world’s most commonly used audio streaming platform, Spotify stepped into the game of Programmatic in July 2016. They opened their gates via Rubicon Project, AppNexus and The Trade Desk and made they inventory biddable in real time. With 70 million active users Spotify monetized its service and offering.
The following chart from 2016 by eMarketer forecasts budgets allocated to digital audio ads:
With these developments and availability of audio inventory programmatically there obviously are challenges coming with it and some of them are listed below:
Programmatic audio are great for brand awarness and retention however are not so effective when it comes to driving website traffic. One of the potential reason for this can be a user who is interested in the audio ad however would not be clicking through the companion banner as the music is playing in the background.
Marketers can use multiple platforms (DSPs) to run programmatic campaigns however the difficulty is standardize reporting for the activity. Most of the platforms are built to report back on programmatic display and videoed campaign but not audio.
NZ being a small market has low inventory available. With telecom companies like Spark offering free Premium subscription to users drops the inventory further.
Obviously at the current rate of technology improvement these challenges will be overcome in near future however these are some of the hurdles while buy audio inventory programmatically.