Interviews, insight & analysis on digital media & marketing

Brands are missing out on a big, untapped, audio ad opportunity

UK digital audio ad spend grew by 12% year-on-year in 2023, reaching £176 million, mostly driven by the 23% growth witnessed within the podcast category, according to IAB UK and PwC’s Digital Adspend report.

Alongside growing ad spend, there’s been huge growth in the number of people consuming digital audio on a regular basis in the last few years. The Spring 2024 release of RAJAR’s MIDAS survey revealed that 68% of the UK listens to digital audio, with adults listening to an average of 16 hours a week. So, it’s clear there is a massive opportunity for brands to reach audiences via the power of sound.

“Emotional engagement is one of the many reasons that we’ve seen digital audio continuing to expand across all demographics, hours, and reach. The digital audio universe is really expanding rapidly. There’s more content and more ways for audiences to listen,” said Natalie O’Shea, Head of DAX Audio Sales at Global, speaking at the NDA Live: Audio Advertising event.

“Digital audio really exploded in both listenership and ad revenue when it was first measured back in 2012, and it’s showing no signs of slowing down.”

Where digital audio really stands out above other channels is in its ability to capture and retain the attention of audiences. O’Shea pointed to Dentsu’s Attention Economy study to illustrate this.

The study found that digital audio delivers 56% more attention than TV and is 10 times more efficient than online video at holding people’s attention.

“We know that digital audio is expanding into every time and place in people’s lives more so than any other media. And that is really because it is a companion to every part of people’s lives throughout the day,” said O’Shea “Audio makes you feel something and, ultimately, this helps to drive attention.”

The sound of mobile gaming

Everybody should now be well-aware of audio channels such as radio, music streaming, and podcasts, and their advertising credentials, but there’s another nascent digital audio advertising route that may be worth consideration for brands.

Enter in-game audio advertising.

“I think we’re already familiar with the role of most audio – whether that’s radio as a companion, music on-demand to lift your mood, or podcasts to learn something new. But what mobile gaming provides to advertisers is an opportunity to reach audiences when they’re looking to be entertained, stimulated or distracted from their everyday lives,” O’Shea explained.

Mobile gamers tend to be in a “really relaxed and receptive frame of mind,” according to O’Shea. In fact, research found that 90% of users agree that mobile gaming provides relaxation and an escape from the stresses of life.

The “feel good, playful moments” delivered by mobile gaming provide “an alternative to doom-scrolling” on social media, with “audiences seeking pockets of little wins throughout the day,” added O’Shea.

For its mobile gaming audio ad offering, Global’s DAX partners with Odeeo, an in-game audio advertising platform. Working together, they have been able to produce positive results for clients such as Costa Coffee and EE.

Costa engaged with DAX with a view to raising awareness of its Costa Express service, while conveying the quality of the coffee on offer. The campaign increased awareness by 15%, trust by 10%, and positive perceptions by 12%.

Meanwhile, EE was one of the earliest test partners of Global’s new measurement solution, DAX ID, which – according to Global – is the only solution to measure all digital audio environments in one place. EE ads were run across DAX audio environments, with a conversion rate of 1.47% across the entire campaign. However, quite notably, the mobile gaming element of the campaign drove a response rate 50% higher than the overall campaign.

“It really is eyes-, ears-, and hands-on,” O’Shea said. “As a result, mobile gaming offers little moments for gamers that are actually big opportunities for brands.”

NDA Live: Audio Advertising took place in London, with headline partner Global and panel partner AudioStack. Alongside our partners, speakers included Heineken, GroupM Nexus, and Goodstuff.