Audio advertising 101: Learn the basics of digital audio ads
In August 1922, New York City's WEAF aired the first radio ad: a whopping 15-minute commercial for new apartments in Jackson Heights, Queens.1
More than 100 years later, audio advertising is one of the most powerful marketing channels around. With today's abundance of streaming platforms, mobile devices, and content formats, people can listen to any type of audio they want—where and when they want it. And advertisers can reach them directly with powerful messages.
They just need the right tools and resources.
Luckily, you're in the right place for that. Our breadth of digital resources will help businesses of all sizes get up to speed and become certified experts on digital audio and video ads. Head over to our News & Inspiration hub to get started—but first, let's cover off the basics of digital audio ads and video ads.
What is digital audio?
Digital audio encompasses any kind of audio listened to through an internet connection. The main types include:
- Downloaded audio, like songs, albums, and podcasts.
- Live-streamed audio, like broadcasts from radio stations.
- On-demand audio, like music, podcasts, talk shows, radio, audio clips, and voiceovers.
Digital audio also spans devices and experiences. Thanks to smartphones, smart speakers, and wireless headphones, listeners can enjoy audio content in almost any environment.
In addition to that reach, digital audio offers a level of personalization that radio never could. Listeners can create customized playlists, share songs with friends and family, and curate their listening experiences for any moment—whether they're cooking, commuting, studying, working, or taking time to relax.
What is digital audio advertising?
Digital audio advertising allows advertisers to connect with audiences while they're already enjoying the content they love—like playlists, video podcasts, or digital radio shows.
Spotify offers two main types of ads:
Audio ads. Audio ads on Spotify allow brands to connect with music lovers and podcast listeners through personalized messaging. These ads can include clickable CTA cards for user engagement, as well as Canvas for Advertisers, which displays looping visuals alongside audio ads.
Video ads. Video ads on Spotify come in two primary types: regular Video ads and Opt-In Video ads. Regular Video ads play with the sound on during active browsing sessions, appearing between songs and including a companion banner with a customizable CTA. Opt-In Video ads start with sound off while users are listening to music, giving them the choice to interact with the ad or let it play silently.
Why are digital audio ads effective?
Online audio advertising opens up a whole new world of audience outreach for brands, providing valuable opportunities to drive engagement and revenue.
With podcast ads, for example, advertisers can reach listeners during screenless moments like the daily commute. With add-on features like Canvas for Advertisers and formats like Video ads, they can also catch users when they're actively looking at their devices—like when they're curating a playlist, discovering new music, or engrossed in a video podcast.
Here's a quick look at why digital audio ads, including podcast advertising, are so effective:
People are listening. Nearly half (47%) of people over the age of 12 in the U.S. have listened to a podcast in the past month.²
39%
...They're also watching. At Spotify, we've seen a +39% increase in average daily streams of video podcasts.³
Context is key. Advertisers can reach Spotify users with messaging that matches the content and tone of what they're already engaging with.
62%
Podcast ads drive results. Almost two-thirds (62%) of listeners take action—like searching for a product, purchasing the product, or simply talking about it—after hearing an ad during a podcast.⁴
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Test digital audio for small business advertising and more
You don't need a massive budget or flashy recording equipment to get into audio or multi-format advertising on Spotify. Ads Manager can help you build your campaigns and tap into our audience of over half a billion monthly active users (MAU)—including 388 million ad-supported MAU.5 In fact, with our suite of tools and resources, you can record and mix your custom audio ad in as little as 48 hours.
Now, more than a century since the first radio ad aired, advertisers ranging from big brands to small businesses have access to the tools they need to harness the full power of digital audio ads—and reach their audiences in more personalized and engaging ways.
Ready to learn more? Get started with Ads Manager today.
The original version of this story has been updated to keep these insights fresh and relevant to your marketing plans.Sources & References