Scott Simonelli, co-founder and CEO of Veritonic, an audio research and analytics platform, believes with more people listening to audio and podcasts, advertising dollars will shift during the remainder of the year in unexpected ways.
Veritonic conducted a study in June 2023, showing how brands measure the success of their media-spend mix. Only 63% of brands measure it quarterly, while 33% opt for an annual evaluation. And 4% of brands do not measure it regularly at all, potentially missing out on crucial optimization opportunities.
The study also analyzed where audio fits into marketers’ media mix buying strategies, and how it may influence buys for the remainder of the year.
“The industry is missing a set of tools to measure changing budgets,” Simonelli said. “This is just my hypothesis, but it has left people in a really uncertain place. Changes in landscape, budget, and a lack of tools to look at it more frequently. Also, audio has become a larger part, up from zero just a few years ago.”
The data shows more than 60% of marketers are uncertain whether their media-mix strategy works. Some 70% are concerned about missing their targets and worried about what’s working and what is not. And they have no idea whether they have an edge over other companies, Simonelli said.
In fact, 72% of brands fear that the advertising initiatives of competitors may outshine their own, as competitors find more immersive ways to reach their target audience. And 14% of brands expressed uncertainty about whether their current media spend mix effectively engages the intended demographics and target audiences.
“I’m really surprised at the lack of creditable data in the media mix,” he said. “I’m not surprised in the audio advertising world, because podcast advertising is still immature. We’re still trying to develop standards.”
U.S. podcast ad revenue is forecast for growth, with total podcast ad revenue projected to rise 25% to $2.28 billion in 2023 and $3.2 billion in 2024, according to research from PwC for the Internet Advertising Bureau. The study released in May.
Nearly 42% of the U.S. population consumes podcasts monthly, with 75% of podcast listeners having made or considered a purchase after hearing a product or service promotion on their favorite shows, according to Veritonic.
The Veritonic data also shows 66% of brands’ senior management has challenged the efficacy of their company’s overall media spend, indicating a need for optimization.
Concerns regarding potential decrease in brand lift and overall market share came in more than 72% of brands as the months in 2023 tick by.
With 66% of brands worried about declining TV viewership and reduced engagement on social media platforms, changing audience habits have become a challenge.
When it comes to allocating budgets, brands reported social media as their primary spending channel, followed by video, streaming audio, display, and podcasts.