It comes as no surprise to see digital radio (audio) numbers escalating. Nevertheless, all the bells and whistles to follow bring forth some interest.
eMarketer estimates that by 2017, “Digital Radio listenership will grow to 57.8% of the population”. Mutually, ad dollars being spent in the digital audio sector will also grow. However, those ad dollars might be spent in a slightly different way than usual.
The International Data Corporation (IDC) expects for one in five radio dollars (approximately $4 billion) to be booked programmatically by the year 2020. As defined by Prohaska Consulting programmatic buying is, “the process of executing media buys in an automated fashion through digital platforms such as exchanges, trading decks, and demand-side platforms (DSPs). This is an alternative to the traditional use of manual RFPs, negotiations and insertion orders to purchase digital and other platforms.”
So, why is digital making this switch into the programmatic world? Well, simply put, it’s easier and more detailed.
Easier – no longer do buyers have to ask for a proposal, negotiate for the best price, and send in an insertion order in order to make a buy. Now, buyers’ impressions (radio spots) are purchased automatically through a bidding format.
More detailed – Programmatic allows for layers upon layers of targeting with the use of app-login data, first-party registration data, and other third-party data.
So instead of just targeting a person who probably listens to alternative music during the hours of 6am – 8am, advertisers can now target that 28 year old male who loves alternative, drives to work between 6am – 8am and has also been eagerly searching for the perfect diamond ring, wedding venues, houses on the market, and all-inclusive resorts. That extra piece of information opens tons of doors to advertisers to specifically target the soon to be married male in contrast to a 28 year old male who loves alternative and lives in his parent’s basement.