Why Programmatic Audio Will Become A Marketer's Dream Sponsored By The Trade Desk, Digiday Programmatic Summit, May 24th, 2016
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Programmatic audio is a growing opportunity for brands and advertisers. Consumer adoption of mobile devices is driving increased use of audio services, with mobile expected to reach 50% of ad inventory by the end of the year. This shift to mobile creates a massive opportunity for programmatic audio advertising, as the infrastructure now exists to consolidate digital audio buying onto programmatic platforms. Programmatic audio allows for powerful connections with engaged audiences and rich data targeting, providing marketers a valuable new channel.
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Why Programmatic Audio Will Become A Marketer's Dream Sponsored By The Trade Desk, Digiday Programmatic Summit, May 24th, 2016
- 2. Programmatic Audio: The Marketers Dream • We have a new golden age of audio in front of us all. • Consumer shift to mobile devices will continue to drive increased adoption of audio services. • Mobile as a whole will reach 50% of ALL avails by the end of this year according to leading SSPs • This creates a massive opportunity for brands and advertisers for programmatic audio.
- 3. Why is audio viable? Source: IDC, 2014. Includes on 2000 2014 USA 43 87 China 2 49 Brazil 3 58 Russia 2 70 The Space Between Us
- 4. Source: IDC, 2014. Includes online and mobile display and video advertising. 2.5 33 52 The Device
- 5. How does it work? • Audio is a mobile world. • Mobile will account for 50% of the programmatic ecosystems request volume….in 2016 • The infrastructure exists to consolidate digital audio buying into programmatic platforms now.
- 6. What does this mean for marketers and agencies? • Mobility creates a personal connection on a global scale • Apps ‘exist’ with their consumers and engage with them throughout their day • Powerful connections with engaged audiences + rich data for targeting….a marketer’s dream.
- 7. The Canary Speaks • This is a global medium and growing….a new golden age is here. • Digital Audio will make one of the fastest transitions to programmatic of any channel we have seen. • Audio is a viable channel for programmatic buyers now. I’ve got good news this time
- 8. Thank you Tim Sims VP of Inventory Partnerships tim.sims@thetradedesk.com
Editor's Notes
- Intro The Trade Desk is an Omni Channel Demand Side Platform and DMP servicing agencies and buyers around the world. We are pure play on the buy side. our goal is pretty simple….consolidate as much of the media plan into one platform in a transparent way to power buyers to make great decisions. That ties into our topic today of course…..mobile….
- The canary is a symbol (albeit somewhat of a dire symbol) of things to come….and in this case…….it represents a symbol of what will happen to a very old medium…..radio. Radio is 110 years old in the United States. This first AM broadcast in the US was on Christmas eve in 1906 in Massachusetts. For context, galatoire’s around the corner on bourbon street opened in 1905. So Galatoire’s is as older than radio. I’m not sure how they told anyone they were there since the first radio ad didn’t run until….1922….in New York City. I’m sure they ran a print ad in the times or the picayune (they were two papers then)– but I digress. A lot has happened over the last 110 years, but the radio business has remained relatively unchanged., Distribution has gotten much broader, music tastes have changed, consumption devices got smaller and more portable, podcast replaced the news….but now we have entered a time and place that will change this 110 year old business forever. The biggest driver has been a mass shift to mobile devices. This in turn opens up massive swaths of inventory into the programmatic ecosystem. Digital audio is mobile and highly global. Digital Audio will shift to programmatic soon. They are a perfect marriage of scale + an engaged audience that really allows programmatic buying to do its job – find consumers at scale to deliver relevant messages in perfect context. Let find out why. I WANT TO TAKE A STEP BACK AND TALK ABOUT THE FORCES AT PLAY THAT GOT US TO THIS PLACE THEN WHAT THIS MEANS FOR CONSUMERS AND ADVERTISERS.
- World Bank data Internet users (per 100 people) Went from basically no one had the internet to 1.2B people in less than a generation in some of the largest countries in the world. Incidently these 4 countries represent about 42% of global GDP The sleeping giant in all of this is India. Only 18/100 have internet a few years ago. Under indexing for usage. And they are one of two countries with 1B+ people. What do people do with all this internet access?.....
- Mostly they access content through their smartphones. 2.5 Billion smartphones on the planet by 2018 Represents 33% of the worlds population – one out of every three people on the planet will have an internet connected device in their pocket 52% of all phones on the planet will be smart phones STATS FROM EMARKETER So we have a developing world that gained access to the internet in less that a generation and how did they (in most cases) access this new world….through the device. This lead to…a change in make up on our own ecosystem… What does this mean for audio…
- A ROBUST APP ECOSYSTEM WAS BORN Pandora has 80M active listeners in the US Spotify is rumored to be crossing the 100M user mark soon. There are other massive players in this ecosystem (not least of which apple). Massive consumer shift to mobile which produces…massive scale. 50% of ALL requests in programmatic will be mobile. This is no different for audio. Most of these listeners are accessing services on mobile devices around the world. oRTB 2.4 will release fields for audio but the infrastruture exists today to enable a programmatic campaign. Programmatic media buying is becoming the driving force of efficiency for marketers across all screens – and allowing the ability to tie everything together in a single platform. Audio is now in the mix. So what does this mean for marketers…
- Audio extends an omnichannel vision for marketers….how can I see all of my channels in one place and tie stories together and communicate a message across multiple screens and formats. Programmatic audio extends that vision into new territory. How did my spotify campaign affect my display and video campaigns? Pretty cool. From a marketers perspective audio has several other big advantages: 1. These apps are deeper connections than anything that can be found on the web. Spotify has a .com – did anyone know that? They do. They don’t invest much into that experience and its atiny % of their users….but they do have one. 2. The mobility factor of the apps above make them very personal. They are part of our lives. Yesterday I checked the weather, checked email, read digiday, turned on spotify, got on the subway, ordered an uber to head to the airport, checked in on my delta app. That was my day before noon yesterday. Data . These apps for daily utility provide an enormous amount of value The dataset created by the activity on scaled apps in enormous. Leads to advertising products….deterministic age and gender targeting based on login data with pandora and spotify The targeting that can be unlocked through buying platforms is amazing. Right person, right place, right context, emersive experience. I am ‘with’ the consumer on their daily journey. Very powerful stuff.
- Show of hands -- How many of you in the audience have pandora, spotify or some audio streaming service on your phone? OK basically everyone. Historically our canary is a symbol of bad things to come….and in this case……. the future is not dire at all….in fact the opposite…..we have good news. Digital Audio is here. We are in a new golden age of audio thanks to the proliferation of the device. As a result audio will make one of the fastest transitions to programmatic of any medium we have seen. The pipes are laid. This is possible now. Great content and the mobility factor of digital audio, + the ability to curate your experience generates scale and data….this leads seamlessly to…programmatic. We are in a prime position to deliver relevant messages to a global audience of active listeners. Thank you.
- THANK YOU.