adserve products and services are currently being used across multiple digital platforms. Our focus is bringing new services to the market to drive integration between linear and digital. Here we interview our very own Simon Pearce to share his views about digital. As a founding member of the IAB digital audio council, one of the first to advertise on Spotify, and a long-time evangelist of all things digital audio, Simon is very well-placed to provide an insight into the market.
What does digital mean to you?
Digital, in the marketing sense, often refers to advertising delivered through digital channels such as search engines, websites, social media, email and mobile apps. So, where does audio fit in to this?
Digital audio has been defined as “Audio Content Streamed (or played back) on a Connected Device”, apps or websites for example.
Another important definition for digital that sets it apart from broadcast radio is its ability to deliver content on a one to one basis, whilst the linear nature of broadcast radio is one to many.
(It’s important to note that when digital is mentioned in this context it does not include DAB or DTV, which are digital broadcasts)
Digital audio has been defined as “Audio Content Streamed (or played back) on a Connected Device”, apps or websites for example.
Another important definition for digital that sets it apart from broadcast radio is its ability to deliver content on a one to one basis, whilst the linear nature of broadcast radio is one to many.
(It’s important to note that when digital is mentioned in this context it does not include DAB or DTV, which are digital broadcasts)
When is it really going to happen?
Data from RAJAR’s Midas Study (May 2018) shows that 24.8m people in the UK (45.5%) listen to audio online so there is an argument that digital audio is already a big part of the UK radio market. However, whilst the listening hours are still relatively low and technology relatively new it is going to take a few years before we see digital audio overtake broadcast radio.
What will this mean to the content provider, the brand, the agency, the listener?
Digital audio is a great opportunity for content providers as it enables more opportunities for distribution and it's often cheaper (potentially the end for costly transmitters). Increased opportunities for distribution provide increased brand extension and advertising opportunities. For example, a station could have one stream that provides music and sports bulletins whilst another stream plays just the music with an additional song playing during the sports bulletin.
Agencies can benefit from smarter and tighter targeting which cuts down on wastage and enables a raft of creative opportunities such as sequential messaging and targeted commercials.
The benefit to the listener is an increase in choice through the ways they can listen and what they can listen to.
Agencies can benefit from smarter and tighter targeting which cuts down on wastage and enables a raft of creative opportunities such as sequential messaging and targeted commercials.
The benefit to the listener is an increase in choice through the ways they can listen and what they can listen to.
What are the benefits of programmatic – and how can more customer demographic data ever be a bad thing?
Programmatic advertising will bring more efficiency to the advertising process by getting computers to do the work whilst enabling the executives' focus to be on optimization of campaigns.
Digitally enabled customer demographics allow for bespoke targeting with little to no wastage, meaning that campaigns can be more efficient. The more data available will lead to better targeting, especially if this is overlaid with second and third-party data. It’s a world away from the current broadcast advertising which is played out to everyone. 'Direct Buys' in the world of programmatic guarantee impressions against a specified audience. However, programmatic also enables the opportunity for real time auctions and real time bidding – something I’m sure we will see in the audio world.
Digitally enabled customer demographics allow for bespoke targeting with little to no wastage, meaning that campaigns can be more efficient. The more data available will lead to better targeting, especially if this is overlaid with second and third-party data. It’s a world away from the current broadcast advertising which is played out to everyone. 'Direct Buys' in the world of programmatic guarantee impressions against a specified audience. However, programmatic also enables the opportunity for real time auctions and real time bidding – something I’m sure we will see in the audio world.
Is the market ready for a market place?
The commercial radio industry is relatively young (established in 1973) and whilst the majority of the listeners may listen in a traditional way, trading has been relatively forward thinking. The main agencies have been using J-ET – the first ever industry trading system – for 18 years. The concept behind J-ET is trading via an application to provide guarantees, not too dissimilar to programmatic direct buys.
Earlier systems for programmatic trading have been in operation in the UK for 10 years and radio stations are, on the whole, used to, and comfortable with, the concept of a marketplace. Agencies are obviously used to the concept of marketplaces in other media markets and are unlikely to be put off using a radio marketplace.
Earlier systems for programmatic trading have been in operation in the UK for 10 years and radio stations are, on the whole, used to, and comfortable with, the concept of a marketplace. Agencies are obviously used to the concept of marketplaces in other media markets and are unlikely to be put off using a radio marketplace.
How can we ensure that, when it happens, adserve are going to be there with solutions?
We have a great understanding of the market already and have been meeting with our customers to understand their needs. We know that digital audio is going to grow and we’re confident that the service we’re building now will deliver our customers the solution they need.
