[Marketing Week] Bob Koigi: How podcasts are powering the audio advertising market
Global audio advertising market is taking pride of place as audio becomes increasingly appealing for brand advertising since it can be presented in an open environment. Podcasts are driving this renaissance as audiences increasingly adopt podcasts as their means of media consumption
With an increase in the adoption of podcasts, audio companies have reported a huge influx of users in the genre. Companies have also reported significant revenue generation from audio advertising through podcasts. According to a report by IAB, podcast ad revenue increased by 19% year-on-year in 2020. Despite the pandemic, revenues from podcast advertising increased to $842 million in 2020, increased from $708 million in the year 2019.
For example, Veritonic, the industry’s comprehensive audio research and analytics platform, has announced that Ranieri & Co., the ANZ podcast company launched by former TRIBE executives Rob Ranieri and Nick Randall, has selected its audio Attribution solution to enable the company and its clients to accurately track and measure podcast ad performance.
This comes as news emerged that Apple may soon launch ads on Apple Maps and its owned storefronts beyond the App Store as it seeks to aggressively expand its advertising business from $4 billion to “the double digits,” Bloomberg reports.
Though Maps is expected to be the next platform for ads, they could also soon arrive on Apple Podcasts and Books, among other apps.
In advertising, the global digital advertising market reached a value of nearly $486.0 billion in 2021, having grown at a compound annual growth rate (CAGR) of 18.5% since 2016.
Growth in the historic period resulted from the strong economic growth in emerging markets, increased internet penetration, government initiatives in developing economies, rising penetration of e-commerce, increased availability of mobile devices, rapid development in technology, an increase in social media usage and the impact of COVID-19.
In mergers and acquisitions, Premium brand and experience design studio ShopTalk has joined DEPT, one of the fastest growing digital agencies in the world.
With clients including Arm, Heinz, Innocent, and Piëch, ShopTalk specialises in combining talent and technology to create impactful brand experiences. The London-based agency will bolster DEPT’s creative practice in the UK, while opening up DEPT’s full service offering to ShopTalk’s existing client base.
And Accenture has agreed to acquire Romp, a brand and experience agency in Indonesia renowned for its creative talent and innovative services across branding, creative and performance marketing.
The move will strengthen Accenture Song’s (formerly Accenture Interactive) ability to deliver creative and tech-driven brand experiences for clients across Southeast Asia.
In appointments, ITV has announced the appointment of Mother’s Niki Garner as the new Director in charge of ITV’s in-house advertising agency, ITV Creative. Niki takes on the role following the departure of Matt Scarff earlier this year.
EssenceMediacom, GroupM’s newest media agency that combines Essence and MediaCom, has appointed Jill Kelly as its U.S. CEO. Kelly, whose new role will be effective October 1, previously served as GroupM’s Global CMO. She will lead the merged agency, which launches in January 2023, in the world’s largest ad market.
And on brands and sustainability, Carlsberg Group has launched its new Environmental, Social and Governance (ESG) programme, Together Towards ZERO and Beyond (TTZAB) which contains updated targets and new focus areas. These include a roadmap to achieve net zero carbon emissions across the entire value chain by 2040, from the barley in the fields to the beer in hand.
While Deutsche Bank is introducing a comprehensive package of energy saving measures in its German operations that will help the bank save an additional 4,900,000 kWh of electricity each year.
This is equivalent to the average annual consumption of around 1,600 two-person households. The plan will reduce short- and long-term energy consumption and supports the German government’s energy saving efforts.