Research Briefing: Podcast networks test generative AI tools for ad sales
By Catherine Wolf • February 1, 2024 • 5 min read •
Ivy Liu
This evaluate is in step with queer data composed from our proprietary viewers of creator, company, imprint and tech insiders. It’s available to Digiday+ participants. Extra from the collection →
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In this week’s Digiday+ Analysis Briefing, we peek how podcast networks are testing generative AI for advert gross sales, why publishers are hesitant to add their chatbots to OpenAI’s GPT Retailer, and the procedure advert merchants are hoping opponents among streaming advert sellers will spur extra advert enhancements, as viewed in fresh data from Digiday+ Analysis.
52% of advertisers opt up by no methodology bought podcast adverts
Podcast networks are following within the footsteps of digital publishers by testing generative AI tools as a methodology to streamline their gross sales course of. For the interval of iHeartMedia’s third quarter earnings call in November, CEO Bob Pittman stated the corporate became offering just a few of its sellers with AI-enhanced tools to aid them prospect and discuss with podcast purchasers, to boot because the expend of AI tools for dynamic advert insertion to make stronger messaging and disclose for focused demographics.
Podcast network Acast added Collections+ to its self-aid marketing platform closing summer season. The AI-powered diagram pulls podcast and listener data from tons of sources to robotically community podcasts into contextual classes. This enables Acast to package smaller presentations from its catalog to fulfill advertisers’ briefs. Almost 40% of the podcasters who got requests from advertisers since Acast added AI tools had beforehand by no methodology labored straight with advertisers sooner than, in step with Acast’s chief product officer Matt MacDonald.
A 2023 deem about by Digiday+ Analysis and Sounds Winning stumbled on that extra than half (52%) of manufacturers and companies opt up by no methodology bought podcast adverts. Even though, 35% of respondents stated that they did belief to make investments in podcast marketing closing Twelve months.
Glenn Rubenstein, CEO and founding father of podcast advert company Adopter Media, stated a lack of sophistication in imposing podcast advert campaigns the expend of abilities love programmatic advert buying, advert targeting and frequency capping might perhaps per chance perhaps originate some advertisers hesitant to make investments within the channel. That can quickly commerce with the addition of generative AI tools, if Acast’s outcomes are any indication.
Insights and stats:
- “This day, two out of every three folks opt up listened to a podcast. And younger folks within the U.S. are spending almost about as great time with podcasting as they’re with linear TV. That’s why podcasts can no longer be an experimental bucket of your annual expend. They are in actuality a have to-aquire for advertisers shopping for prime price stammer at scale.” — Jeanine Wright, COO and gm at Wondery, a podcast network and creator
- No topic industrial enthusiasm, staunch budget allocation for podcast adverts is lagging. The bulk of advertisers (67%) who stated they at the 2nd possess podcast adverts at the 2nd devote 24% or much less of their media expend to podcasts.
- Bigger than one-third (37%) of respondents who stated they’ve by no methodology sold podcast adverts stated “no quiz from client manufacturers or my possess imprint” became the main motive that they had no longer sold adverts.
Read extra about podcast advert spending and strategies
Digiday+ Analysis digest
- “Will we be ready to develop that [make money] within the GPT Retailer? I don’t opt up any thought… I don’t know what the industrial mannequin in actuality is within the GPT Retailer but. I don’t deem anybody understands exactly how that’s going to work.” — Josh Jaffe, president of media at Ingenio
- Genuine under half of publishers respondents (49%) stated they were the expend of AI in Q2 2023. By Q3, 89% of creator pros suggested Digiday their company became the expend of AI.
- Ninety-one percent of creator pros stated in Q3 2023 that AI is the abilities that might perhaps opt up the biggest affect on their industrial over the following few years.
Read extra about publishers’ expend of AI
Previous skool TV-trend adverts pervade the streaming market, but advert merchants are hoping that increasing opponents among streaming advert sellers will spur extra modern advert alternatives. At CES closing month, Disney launched unique shoppable advert formats, as an illustration. Shoppable adverts were a number one advert innovation among platforms Digiday+ Analysis surveyed for a 2023 collection on advert-supported streaming companies and products. Streaming companies and products are also feeling power to expand their advert alternatives – and advert income opportunities – without overextending their advert loads.
Insights and stats:
- “The AVOD piece that I conflict with… is making determined that we’re no longer spamming the person. Seeing the equivalent advert time and all over again makes a viewer pissed off… [It’s important to make] determined that we’re ready to incorporate frequency caps and determined aquire guidelines to be determined you’re no longer hitting a person too great that it becomes wasteful.” — Cheryl Gresham, CMO and vp of promoting at Verizon Price
- Quick advert-break length (30 seconds or much less) and frequency capping tied in first situation because the biggest advert alternatives for streaming platforms to produce advertisers, with almost half (48%) of name and company respondents selecting every of those alternatives respectively, in step with Digiday+ Analysis’s deem about.
- Exclaim takeovers stood out as one other leading advert innovation among platforms. Tubi’s Complete Takeover gives advertisers 100% viewers reach for the interval of a explicit window of programming time, while YouTube’s First Establish lets advertisers possess the main advert a person sees on YouTube Select out stammer on CTVs and other gadgets.
Read extra about how advert-supported streaming companies and products stack upSearch evaluate from all Digiday Media Brands:
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