In a world where media consumption evolves daily, the latest IAB report, Getting Audio & Podcasting on the Media Plan, makes a compelling case for why audio—and especially digital audio—deserves more attention and investment from advertisers.
Despite its explosive growth and unparalleled engagement, audio remains an undervalued medium in advertising budgets. Here’s a breakdown of the report’s key findings and why it’s time for marketers to rethink their strategies.
The Audio Investment Gap: A Missed Opportunity
Consumers are spending significant portions of their media time with audio, yet the corresponding ad spend lags far behind. According to the report:
- 31% of media time is spent with audio, but only 9% of ad budgets are allocated to the medium.
- Digital audio now accounts for 20% of U.S. adults' digital media consumption, but it represents only 3.1% of digital ad revenue.
This disparity underscores a massive opportunity for advertisers to tap into a growing and highly engaged audience that isn’t yet saturated with ads.
Why Audio Deserves More Attention
Explosive Growth in Digital Audio and Podcasts
- Digital audio listeners have nearly doubled in the past decade, reaching over 200 million weekly listeners.
- Podcasting has grown even faster, with weekly listeners increasing by 325% in the last 10 years to nearly 100 million.
- Podcast listeners tend to be younger, more affluent, and highly engaged, making them an ideal audience for targeted campaigns.
Unmatched Engagement and Attention
- Audio commands 56% more attentive seconds per thousand impressions than other media channels.
- Podcasts outperform social media and digital video in brand recall and purchase intent.
- With tools like programmatic audio buying and attention measurement, brands can now confidently measure ROI and optimize campaigns.
Synergy with Other Channels
- Pairing digital audio with CTV boosts brand familiarity, recall, and favorability.
- Even small shifts in media spend to audio (e.g.,1.8% for auto brands) can lead to double-digit increases in ROAS
Marketers who include audio in their mix enjoy a win-win solution. Across categories, audio has a direct impact of 74% to 83% on sales. Audio amplifies other media’s performance as well. It lends its influence synergistically: It makes your TV work harder. It makes your paid search work harder. Same for video. And so on…
Real-World Success Stories
The report highlights examples of brands leveraging audio effectively:
- New Balance: By targeting Gen Z basketball fans through podcasts, the brand achieved a 342% ROAS.
- Coca-Cola: A campaign using first-party data from SiriusXM Media and Dollar General Media Network drove a $6.57 ROAS and a 98% ad completion rate.
These success stories demonstrate how audio can deliver tangible business outcomes when integrated strategically into media plans.
Takeaways for Advertisers
- Rebalance Your Media Mix: Close the gap between audio consumption and ad spend to capitalize on this underutilized medium.
- Leverage Advanced Targeting: Use first-party data, contextual targeting, and attention measurement to maximize audio’s impact.
- Think Beyond Reach: Focus on engagement, attention, and brand lift metrics, where audio consistently outperforms other channels.
- Integrate Audio Strategically: Pair it with high-performing channels like CTV for synergistic effects.
Audio’s Moment is Now
The IAB report leaves little doubt that digital audio and podcasting are indispensable tools for modern advertisers. With its unmatched engagement, growing audiences, and measurable ROI, audio is no longer a nice-to-have; it’s a must-have. As consumers continue to embrace audio in their daily lives, the question for brands isn’t if they should invest in audio—it’s when. And the answer is simple: now.