The benefits of Programmatic Radio in 2022

programmatic radio

As of 2020, AM/FM broadcast radio only accounts for 39% of the audio Americans listen to each month. Listening audiences have more diverse preferences than ever. Keep reading to learn more about programmatic radio!

Satellite radio, podcasts, and digital streaming services all compete for significant shares of the pie. 

If you want to run an audio ad campaign, you can’t afford to ignore digital audio markets. And, if you want to create a digital audio marketing project, take advantage of programmatic radio advertising. 

What is Programmatic Radio?

Programmatic radio is an audio-oriented adaptation of programmatic advertising. 

Programmatic advertising is a method of buying and selling ads. It ensures your ads get in front of the audience you’re aiming for. And, it uses AI and advanced analytics to get you the best ad space at the best price. 

Programmatic advertising works with bidding processes. It automates your bid on targeted keywords, publications, and formats in real-time.

Programmatic radio takes programmatic advertising programs and uses them to buy targeted ads on audio markets. For many, this includes targeted advertising on:

  • Digital audio streaming platforms
  • Satellite radio
  • Podcasts
  • Terrestrial broadcast radio
  • Syndicated radio programs

Studies show that the typical American listens to 18-32 hours of music each week, and much of that listening happens online. Programmatic radio lets you find the listeners most likely to enjoy your product.

How Can Programmatic Radio Enhance Digital Audio Ad Campaigns?

Digital audio campaigns offer a lot of space for creativity without spending a whole lot on production. And, they tend to have a wider reach than similarly low-cost digital advertising, like Google search ads.

While you may be able to prominently display your search ad to the right audience, chances are the average user will just skim past it without reading it. 

In contrast, audiences tend to listen to audio ads to completion the majority of the time. 

With programmatic options, digital audio gets even better. There are seven key benefits of programmatic advertising for audio. 

1. Reduce CPM Costs

Programmatic radio services empower you to reduce your CPM (cost per 1000 impressions) with your audio ads.

Compared to other digital media channels, like YouTube or Instagram videos, ads on streaming audio or podcasts get your information in front of the same number of audience members for less. 

Currently, the average CPM for an ad on Spotify ranges from $18 to $25. Contrast this with YouTube’s pre-roll ad rate average of $100 to $300. 

Programmatic bidding gets you the best rates in a medium that’s already a good deal. 

2. Connect With Highly-Engaged Listeners

Because programmatic advertising is targeted, you have an opportunity to connect with highly-engaged listeners with your ad.

Audiences for podcasts, talk shows, and music genres are already reliably segmented.

People also tend to have more of their identity invested in music genres and audio programs than they are with other mediums. 

Engaged listeners are less likely to switch to a different activity when an ad plays. This gives your ad a higher conversion potential than your ads may have elsewhere. 

3. Enhance Messaging With Dynamic Audio Advertising

Dynamic audio advertising lets you create many variants of your media assets for an ad. This lets you personalize the message in highly specific ways to different targeted audiences.

Programmatic radio services make it easy to adapt messaging based on consumer data.

It also streamlines the process of repositioning a digital audio ad for terrestrial radio. One study shows AM/FM radio ads tend to lift the performance of digital marketing campaigns by 18.3%, on average. 

4. Cut Ad Production Costs—Without Losing Your Audience

Audio ad formats are standardized. Digital audio and radio ads don’t require you to spend as much time editing and reformatting the creative as other dynamic ad formats do.

As a result, it’s easy to produce ads fast. It also doesn’t cost as much as other types of ad production do.

Advertisers can also repurpose an audio ad for video with simple text animation. There’s no need for pricey video production. 

5. Increase Brand Awareness

The best way to build brand awareness and recognition is with repetition. Studies show that learning a statement by hearing it repeated makes the statement more memorable.

It’s also likely to be more recognizable, and the listener is more likely to associate diverse stimuli with the information, than statements people encounter without repetition. 

People are also more likely to believe repeated information. This effect is so widespread, it has a name: the Illusory Truth Effect.

Audio ads give you a greater opportunity to make your brand’s message memorable and believable than comparable ad formats.

With programmatic services, it’s easier to target the right listeners, then re-emphasize your message throughout their listening experience. 

6. Leverage Advanced Analytics

Programmatic radio services give you advanced analytics, both regarding your campaign and your target audience as a whole. This lets you understand your marketing campaign in real-time.

With advanced analytics, you can iterate your messaging in response to new data. You can also leverage analytics by bidding on undervalued slots, foreseeing a level of engagement that isn’t yet reflected in the market rate.

Programmatic services bid on your behalf automatically, so you won’t miss any opportunities. 

7. Boost Return-On-Ad-Spend

Audio ads get cost less per mille than video, yet often have a wider reach. Programmatic radio services can boost your returns on even a limited ad spend budget.

Using programmatic radio ads in marketing is similar to focusing on warm leads in sales. Warm leads are people who show some degree of interest in your product, or whom you know have a problem that your service solves. 

Usually, warm leads have already engaged with a brand’s content on its website, through social media, or ads. In some cases, they’ve been referred by a current client or have met with a salesperson.

Programmatic audio advertising services can replicate elements of this experience for the listener. Targeting can focus on audience members who are most likely to want what your brand is selling.

Re-targeting lets you create progressive messaging, which builds on the listener’s knowledge of previous messaging to draw them in. 

These strategies reliably boost companies’ ROAs. 

Go Media Shark: Digital Marketing That Drives Sales

Digital audio advertising, AM/FM ads, and programmatic radio services all drive up marketing campaigns’ rates of success.

Whether you want broad reach with an affordable CPM, or you want better data and more potential to iterate, programmatic radio ad services might be just what your brand needs. 

If you’re interested in what programmatic advertising can do for your brand, why not talk to our experts?

At Go Media Shark, we’ve gotten results for thousands of brand clients. Contact us today, and discover where programmatic advertising can take you.

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