Audio Ads CPM Rates 2023

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Last updated on January 26th, 2023 at 04:21 pm

This is the digital age we are living in right now, with digitalization taking place throughout the world. Nowadays, there is almost nothing that cannot be done without the internet. Be it buying and selling stuff, banking, or payments internet provides all sorts of services. So, it obviously makes a lot of sense to create audio advertisements. Everyone in advertising would understand the importance of audio and visual ads as a marketing strategy. Unlike videos, audio can be easily available to the audience anywhere thus making audio creatives a strong sellers. Early movers to the audio advertising world are at a massive advantage. Radio is something that is available even to the lower strata of society, thus audio advertising has a greater reach. In today’s fast-moving world where everything is a competition, people barely stop to notice and watch something. Audio ads have a solution to this. We can listen to the audio while we do our work.

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  • The newest form of advertisement is known as the audio ad, known as Pay Per Play. to state the exact definition audio ads are short messages which play only when a user lands on a page. They are around five seconds long. These Pay Per Play Ads are also placed only on those websites which are beneficial and relevant to the advertiser. Even Google has officially gotten involved with programmatic audio ads.

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    Advantages of Audio Ads: Benefits

    • PPP (Pay per play) does not interfere with other forms of ads, so technically, it is just extra money that a webmaster gets by simply adding a code to their site.
    • Using audio one can reach their targeted audience in a much better way.
    • People generally listen to audio advertisements on their mobile devices. Based on the location added to the device, the consumer might come across an advert about a food joint in that area; this may push the person to go and check out the retail place or food store.
    • Too big and too effective.
    • Apart from digital radio, digital audio also includes podcasts, emerging voice integrations and music streaming services (the latter now worth $251 billion on its own).

    Audio Ads Format

    • Shake me™ Interactive audio format- the listeners are able to directly interact with the ad without unlocking their phones. They just have to shake their phone to execute some tasks. The campaigns found using this format have seen a much higher response rate than traditional mobile display advertising.
    • Intelligent targeting for audio.
    • Dynamic creatives through which audio messages can be customized based on listener data.
    • Ad sequencing to help tell a story.

    These formats are all from AdsWizz, where digital audio advertising experts provide programmatic audio advertising for advertisers and publishers through server-side ad insertion on streaming servers.

    Programmatic Audio Ads CPM Rates

    The average CPM (cost per mile) for a digital audio advertising campaign is less than a quarter of what is paid for a display video ad and around a sixth of the cost of in-stream video inventory. Programmatic audio ads are by far one of the best methods to convey a brand message and make an emotional connection with the customers. Here we take a look at the audio ads CPM rates of two very popular music streaming companies- Pandora and Spotify. 

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    Pandora Average CPM

    Pandora has more than 78 million monthly users and 1300 audience segments based on age, generation, sex, location, hobbies, etc. This gives the advertisers a huge pool of targeting options which are crucial to meeting their target audience. Similar to any online advertising platform, Pandora gives a plethora of targeting options when compared to traditional radio stations. Millennials can easily be targeted based on music preferences, age, and other parameters. You need to commit to a minimum monthly spend of $1500 and the CPM rates for their ads are as follows

    • Visual: CPM rates are anywhere between $5 to $7
    • Audio: CPM rates are anywhere between $8 to $12
    • Video: CPM rates are anywhere between $15 to $25

    Spotify Average CPM

    Spotify has more than 100 million active monthly users and can be targeted based on on age, generation, mood, location, language, device, activities, etc. This also gives the advertisers a huge pool of targeting options which are crucial to meeting their target audience. Advertisers need to commit to a hefty monthly spend of $25,000 on the Spotify network and thus only the major brands are able to partner with Spotify. The average Spotify CPM rate hovers anywhere from $5 to $30.

    How to Get Started with Audio Ads?

    There are quite a few ways to get to a successful Audio ad, which are:

    • A conversational tone always helps i.e. try and engage in a conversation with the listener through the ad.
    • Quite similar to the previous point, address the individual.
    • Keep the brand’s proposition simple and to the point. Do not complicate it and confuse the listener which may lead to an agitated customer.
    • Make sure the listener knows what the next step is. The audio ad should not only inform the customer about the brand or product but also let them know how to go about next.
    • Visualise how the ad should be in your mind first and then execute it.
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    Audio Ad is an amazing opportunity for marketers to get to know their customers. Almost all online streaming platforms provide advertisers with myriad features of targeting and are easy to get started. Digital audio buying is increasing and programmatic ad firms are making it more robust by adding their technology. Over the last 2 years, we have seen an increasing demand for audio buying since marketers are seeing additional opportunities in the ad format and we expect audio ads CPM to only increase in the coming years. Feel free to share your experience with audio ad buying in the comments section!

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