Digital audio consumption far outpaces adspend finds Xaxis report

09 Sep,2020

By A Correspondent

 

GroupM India’s programmatic advertising arm Xaxis’s new Audio Playbook finds that India devotes an average of 19.1 hours per week to listen to music, more than seven per cent higher than the global average. Despite the high adoption rate , only 71% of advertisers commit less than ten per cent of their total ad investment to digital audio channels

 

To understand the drivers, challenges and adoption of programmatic audio, Xaxis surveyed 107 agency and advertiser participants, and 25 publishers and media owners.

 

For agencies and advertisers, mobile devices are believed to have the highest audience reach. According to publishers, the four most important metrics for clients running programmatic audio advertising are – Brand awareness (71%), Advertising recall (71%), Reach and frequency (54%) and the listen through rate (54%).

 

The future of digital audio industry looks optimistic where the number of smartphone users in the country is estimated to reach 829 million of the total population of 1.4 billion by 2022, as a vast majority of advertisers believe that mobile devices (94%) are the most effective means to reach audiences. While the Indian music industry is also expected to grow at CAGR of 15.8% between FY19 and FY24; audio streaming is expected to be the key catalyst for this growth.

 

Bharat Khatri

Said Bharat Khatri, Country Head, Xaxis India: “Programmatic advertising for audio in this country is at a very nascent stage but the future of the digital audio advertising industry looks bright in India. Soon digital will surpass broadcast as an audio consumption channel. Today over 200 million users use music streaming services. Yet, we have realized that audio is an undervalued and underutilized area by the advertising industry. As internet access via mobile grows, we believe that audio advertising can provide an edge to the advertiser and brands.”

 

Rita Sahajpaul

Added Rita Sahajpaul, National Head of Product and Marketing Science, Xaxis India: “India is only at the start of its journey in digital audio advertising, but new data suggests that this category is about to take off in this nation in a big way. Explosive smartphone adoption has led to a 17x increase in content consumption. A staggering 97% of people listened to music through their device in the past three months, and they devote an average of 19.1 hours per week to the activity. The growing demand for more content is increasing the popularity of podcasts, music streaming services and online radio, especially among the 18-34 age group. Audio streaming is gaining popularity with the influx of domestic and international platforms, along with the power of data and AI, opportunities for advertisers looks bright with programmatic digital audio advertising.”

 

 

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