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Listen up!: Finding the right digital audio ad

Adi Pinco, July 11, 2022

Takeaways:

  • There are three main ways digital ad space can be purchased: manual ad insertion, dynamic ad insertion, and programmatic ad insertion.
  • Manual insertion is the traditional way to purchase ad space and, until recently, has been used for the majority of ad placements.
  • Dynamic ad insertion is the most popular way digital audio ads are placed and offer greater targeting options.
  • Programmatic insertion is in its infancy but offers more personalized messaging thanks to better targeting.
digital audio ads
Photo by ConvertKit on Unsplash

Like a lot of people, we feel lost these days if left commuting without our favorite podcast, or winding down at the end of the day without Alexa playing the radio in the background, or if on the treadmill without our well-curated gym playlist. Digital audio has become a staple of our daily lives.

Brands have taken note of our growing love of digital audio, with increased spending over the last few years on all areas. Highly effective due to its personal nature, and with endless creative possibilities, the growth of these formats has been music to many advertisers’ ears.

But like any other advertising channel, brands diving into digital audio need to buy their advertising slots in an effective, scalable, and context-appropriate manner if their campaigns are going to grab the ears of consumers.

For those still struggling to get their heads around the world of digital audio ads, let’s look into the three main ways that space can be purchased.

1. Manual ad insertion 

This is the traditional way to purchase ad space, especially for podcasts. Usually, brands will negotiate directly with publishers or podcasters. Ads are then ‘baked’ into the audio, meaning they are part of a single audio file that cannot change. Hosts or artists can read these ads out, blending seamlessly into the content.

Until recently, a majority of ad placements were run using this method – in 2019 52% of podcast ads were purchased manually. The method also chimes with consumers, with the often personalized tone, familiarity of a host’s voice, and naturalistic insertion leading to a 71% brand recall.

The downside is that these kinds of placements can be taxing to implement and lack true scalability. As the market for digital audio continues to expand, these individual insertions will be time-consuming for advertisers and may cause brands to miss out on potential audiences. 

2. Dynamic ad insertion 

Dynamic ad insertion (DAI) is currently the most popular way that digital audio ads are placed, seeing explosive growth during the pandemic. Second best to manual podcast insertion in 2019 with around 48% of placements, it now accounts for 84% of podcast ads.

In short, DAI differs from manual insertion in that publishers mark spots within an audio file where ads can be inserted. Advertisers are then able to serve ads the moment audio is downloaded. It’s basically a win-win for brands and creators – ad messaging can be kept up-to-date while back catalogue can continue to be monetized.

DAI gives advertisers greater targeting options, meaning audiences to be found via genre, geotargeting, and even specific episode titles. Data signals can also be harnessed with DAI to serve ad messaging dependent on variables such as time, or even weather data. The use of audience data overlays from third- or first-party data is also possible.

Despite this, murkiness about the true measurability of DAI hampers its effectiveness. While advertisers can see downloads of a podcast, whether an advert was actually listened to remains somewhat a mystery.

3. Programmatic insertion

Programmatic is still very much in its infancy within the digital audio space. Though effectively used on many music streaming platforms – Spotify has Private Marketplaces (PMPs) and Programmatic Guaranteed (PG) buys available to advertisers – the podcast space is slower on the uptake. Only 1.7% of podcast revenue was generated through this buying method in 2021 (compared to 67% for display advertising back in 2019).

Its growth in the space could lower the barrier for entry for smaller brands and creators alike. More personalized messaging can also be served into the ears of listeners thanks to better targeting abilities.

There are however currently big question-marks over the brand safety solution in the audio space. While targeting via show type or description is possible, the ability to screen on an episodic level is not yet effective enough – the recent Joe Rogan vaccine denial scandal would give any advertiser cold sweats. As the technology develops and industry-wide safety standards are implemented, programmatic will start becoming a real contender in the digital audio space.

Any further questions on audio ads? Want to get further into the details on programmatic? Or do you have any other publisher-related questions? Get in touch with our team.

Building an ad tech strategy: 3 elements publishers must master

Adi Pinco, April 28, 2022

Takeaways:

  • Publishers should explore different inventory allocation opportunities to determine which mix best aligns with their business model.
  • Yield management strategies need to be employed to maximize revenues.
  • Publishers are responsible for complying with policies and data protection regulations.
ad strategy, ad tech

Building an ad-tech strategy is perhaps the most challenging aspect of being a publisher. A simple Google search will reveal thousands of ad tech companies, each claiming to offer the best monetization methods and strategies. It’s easy for publishers to quickly become overwhelmed and get lost in a sea of advice and recommendations. 

The result is publishers with overly complicated or underperforming tech stacks, misconfigurations, policy compliance issues, and many other problems, all of which amount to lost revenues and other consequences. 

Creating the right ad-tech strategy is a lot like cooking. Just as you balance flavors to suit your tastebuds, you need to find the right ad-tech mix to achieve your business goals.

In this post, we’ll cover the ingredients you need to make your ad-tech stack sizzle. With the right in-house expertise, you can follow it and create a workable, revenue-generating machine. 

1. Supply allocation 

When it comes to allocating inventory, publishers have several options. How inventory is divided among demand sources can significantly impact revenue, so publishers must do this with great care. Since publishers have different business models and strategies, there’s no one-size-fits-all approach. Publishers should evaluate various opportunities and determine which types of deals are most beneficial.

Let’s look at some of the most common types of deals.

Private marketplace 

Private marketplace deals (PMP) are invite-only auctions in which a selected group of advertisers get bidding priorities before inventory is made available to all other advertisers. Publishers determine minimum costs, and the advertiser with the highest offer wins.  

Direct deals

Direct deals are struck between sellers and buyers without ad exchanges or intermediaries. CPMs are pre-negotiated and higher than open market rates because deals are for premium inventory.

Programmatic guaranteed and preferred deals

With preferred deals, publishers sell premium inventory to a preselected group of advertisers at fixed prices. Advertisers bid in real-time, and the winner is determined by the highest bid or the advertiser that offers the pre-negotiated price. Guaranteed deals are similar but come with a fixed number of impressions. 

Remnant inventories

Remnant inventories are suitable for open auctions as real-time bidding is open to many advertisers. Demand will vary, but publishers can still get an acceptable price for unsold ad inventory. 

2. Yield management 

Yield management is a variable pricing strategy that enables publishers to sell inventory for the best price. Publishers usually alter prices based on demand, demand sources, seasonality, or user behavior. Yield management allows publishers to maximize fill rates and earn the highest CPMs possible. 

Here are a few ways publishers optimize their yield management strategies. 

Demand partners 

Publishers need to think carefully about the demand partners they work with, adding them to tech stacks to test their value. Some supply-side platforms (SSPs) and demand-side platforms (DSPs) have commitments or relationships with agencies to provide certain opportunities for buyers. Other demand partners might specialize in specific geo-locations or verticals, which can benefit publishers.

Header bidding 

Header bidding, which occurs outside of ad server auctions, gives advertisers a ‘first look’ at a publisher’s inventory, allowing them to choose high-priority impressions. Impressions are auctioned to all partners simultaneously, and the highest offered price determines the winner.

Varied ad formats

Some ad formats are more valuable to advertisers than others. To maximize profits, publishers should offer a variety of traditional and non-traditional ad formats, including video, application, interstitial, native, and anchor or sticky ads. Advertisers will pay a premium for ads that provide a better return on investment (ROI), resulting in more revenue for the publisher. 

A/B testing 

Every yield management strategy should include an A/B testing component. Publishers can test new technology, ad formats, header bidding solutions, and more against what they already use to determine which mix provides the best yields. 

3. Stay on top of everything!

The ad tech industry is no longer the wild west it once was. Today, organizations such as the IAB have been working to clean up the ad supply chain and restore confidence for both publishers and advertisers. Publishers that follow the rules, implement privacy policies, cookie compliance, and data protection measures can capture the revenue that would otherwise be headed toward non-compliant publishers.  

Traffic monitoring (trust & safety)

To instill a sense of trust and safety for advertisers, publishers need to monitor their traffic and understand their traffic sources. Publishers that don’t do this consistently will undoubtedly suffer from invalid traffic (IVT). Those with high IVT rates will see revenues and reputation diminish, and persistent IVT can cause publishers to lose access to Google products and other third-party partners. 

Policy compliance 

The ad tech industry and supply chain have suffered due to poor business practices and malicious actors. Nowadays, reputable programmatic platforms require publishers to meet standard compliance terms. For example, many platforms, including Google, won’t monetize publisher content that promotes illegal activity, including harmful or derogatory content, sexually explicit content, and much more. 

Data protection 

Data protection regulations vary by region and country. They include laws such as the EU’s GDPR, California’s CCPA, and Brazil’s LGPD. It is a publisher’s responsibility to make sure they comply with local laws and properly obtain user consent to collect data. 

Should you whip up your own ad tech stack?

As we mentioned earlier, it depends. Does your team have the right ingredients – the required knowledge, experience, and development skills?

While we encourage you to explore your options, we also know that sometimes publishers can be the most successful by focusing on the business activities they do best and allowing an expert like Total Media Solutions to do what it does best – provide publisher revenue management services.  

If you don’t want to waste more time or miss out on monetization opportunities, reach out to us. We’ll get you cooking in no time!

How publishers can take advantage of first-party data

Ben Erdos, February 10, 2022

This article was originally published on New Digital Age on January 12, 2022.

Written by Ben Erdos, Chief Services Officer at Total Media Solutions.

Ben Erdos, New Digital Age, Chief Services Officer

The past year has been eventful in digital media; particularly around privacy as regulation tightens and Google reiterates its intention to phase out third-party cookies. 

The good news is that publishers can position themselves in a way to make the most of these changes. With no single scalable identity solution yet available, first-party data has come to the fore. But, what makes it so valuable? 

Getting closer to audiences 

Publishers are increasingly seeing opportunities from deeper, more holistic relationships with their audiences. A greater understanding of what current users respond well to can help  publishers adapt experiences accordingly and even reinvent themselves in line with those preferences. Not only that, but more detailed information can highlight demographic gaps, provide more insights for user acquisition strategies, and help publishers expand their offerings in a way that caters to untapped audiences.

Critically, first-party data will also act as a life-line for publishers who need to maintain their advertising revenues going forward. In a world where third-party data is unavailable to marketers looking to reach their audiences, they are increasingly reliant on data publishers themselves can provide to compare with target profiles. 

However, success in this depends on publishers creating the conditions for a reciprocal situation where their audiences are comfortable trading data for better experiences. Not only that, consumers need to clearly understand what information they will be sharing and what they get in return. 

How to make it meaningful

With the introduction of GDPR in the EU in 2018, the publishing industry had to adjust to creating frameworks to gain not just consent from its users, but meaningful consent – that is, consent in which a user actively opts into the collection of their data.

As we move to the post-cookie world, meaningful consent will only become more important. By collecting data in a way that is clearly defined, publishers not only stay on the right side of regulations but also gain user trust. Audiences don’t want to feel pressured into giving their data and want to know how exactly their data is used – a clear on-page design can assist this.

Take, for example, the current cookie consent forms that are required on every site currently operating in regions that adhere to GDPR. Though the temptation may be to add logos, push users towards certain choices and obscure the finer print, having a clear, simple form ensures meaningful consent and establishes trust. As a result of these efforts, users will feel secure to share more data with publishers and a more mutually beneficial relationship can exist.

Third-party data is on its way out and has already been phased out in many cases, which means publishers should start reaping the rewards from first-party data strategy now. It will mean they are in a strong position to secure advertising revenues when the transition away from third-party cookies takes place fully. And a renewed prioritisation of meaningful consent for data exchange can redefine the relationship with audiences in a way that opens up greater opportunities for both parties. 


Curious to learn more and see what strategy suits your site best? Reach out to us here: