Screens dominate the advertising landscape, but consumers are listening as well as watching. Harry Menear sounds out how the latest audio ad tech is a great equaliser...

Whether through high-impact DOOH displays, programmatic video, or in-feed social ads—video is where the money is. However, if you look at the numbers a little more closely, it’s clear that, not only is audio advertising carving out a powerful niche, but it might be one of the most effective places to spend your ad budget. 

From podcasts to smart speakers or in-game environments, audio advertising is expanding beyond traditional radio spots, offering brands new ways to engage audiences. The shift isn’t just about reach, however; it’s about precision, personalisation, and seamless integration into everyday listening habits.

Today’s Consumers are Tuned In to Audio

In a world where everyone’s phone, watch, car, and fridge is a screen, you might be forgiven for thinking that audio can’t possibly compete with visual advertising, in much the same way that the radio couldn’t compete with TV – like black and white couldn’t hold up to technicolour. Kieran Mills, head of broadcast at Mediaplus UK (formerly Total Media), reflects: “Many predicted that audio would be the first traditional medium to decline rapidly, given the explosion of digital channels competing for consumer attention. However, not only has it survived, it has thrived."

Podcasts have flourished in the digital world, with 42% of the British public now tuning in weekly – a massive jump from just 14% five years ago, with the medium getting a massive boost during the pandemic when half the world seemed to be starting a podcast for the other half to listen to while they made sourdough bread. As Mills notes, “Podcasts provide advertisers access to highly engaged and loyal audiences, making them an increasingly valuable channel.”

The reach and impact of podcasts is pretty remarkable, as Katherine Erskine, Media Lead at Wavemaker UK, highlights with the BBC’s launch of The Traitors Uncloaked podcast on BBC Two, hot on the heels of the hit series’ finale. 

“If someone suggested to the BBC five years ago that a podcast would be taking the BBC’s primetime slot on a Friday night, I doubt anyone would have believed it,” she says. The Traitors Uncloaked podcast launch chalked up more than double the average audience for a BBC Two slot. It’s no wonder that even the BBC have considered including ads in their podcast content in an attempt to close their widening funding gap. 

Podcasts might be the digital audio success story in terms of listenership, loyalty, and giving the folks at Hello Fresh something to do with their money, but even more dated sources, such as radio, remain dominant players in audio advertising. In the UK alone, radio reaches almost 90% of the adult population, with listeners tuning into over 20 hours of radio content a week on average.

Even with the explosion of podcasts, Daniel Tjondronegoro, CEO and co-founder at Beatgrid, reminds us of the power of traditional audio content. “Broadcast radio on smart speakers is perfect for flash sales or hyper-local offers. Digital radio quietly delivers massive incremental reach,” he says, warning that “advertisers obsessed with podcasts alone are leaving opportunities on the table.” Mills underscores this advantage, adding that radio offers “greater reach and a lower cost per impression than podcasts.” This affordability, coupled with radio’s continued stronghold on daily listening habits, makes it an indispensable part of the modern audio advertising mix.

Moreover, radio’s programmatic evolution allows for greater targeting and flexibility. Brands can now leverage real-time data to optimise their ad placements across digital and traditional audio platforms, ensuring campaigns reach the right audience at the right moment. As advertisers explore the growing opportunities in digital audio, radio remains a powerful, cost-effective foundation that continues to deliver results.

Radio advertising offers inviting margins to advertisers, as well as extensive listenership, while podcasts provide deep audience engagement, traditional radio still dominates in scale. However you slice it, audio isn’t a medium that lacks an audience. But, does that audience buy more or less than consumers watching ads rather than just listening to them? 

Immersion without Intrusion — The Audio Edge 

Audio ads might have reach and the ability to be heard by loyal audiences, but can they be more than mass communication or micro-influencing campaigns? Lee Climpson, partner and production director at Transmission Productions, argues that a unique strength of audio as an advertising medium lies in its ability to be present in bigger slices of our days. “Audio ads have exploded, thanks to podcasts, streaming services, and smart speakers,” he says, adding that “Brands are loving how immersive (but not annoying) audio can be.” Unlike video or display ads, audio can reach people in moments where their visual attention is divided – while commuting, working, exercising, even falling asleep.

Tjondronegoro expands on this point: “Brands chasing video-heavy strategies are burning money while audio sneaks in through the side door, capturing attention in contexts video can’t touch – commutes, gyms, cooking sessions, and morning runs. Audio doesn’t just extend reach; it hacks daily routines, embedding brands directly into consumers’ habits and lives.”

This integration into daily life gives audio a distinct advantage over visual ad formats. Unlike video (or even print), which demands a consumer’s full attention, audio can deliver messages passively yet effectively. This allows brands to engage consumers during ‘in-between’ moments, where other forms of advertising struggle to make an impact.

Elie Kauffmann, head of sales EMEA at Audion, highlights the response audio advertising elicits in consumers. “Its intimate nature creates a deep emotional connection, making it highly engaging and persuasive,” she says. These sentiments are shared by Julia Rast, global senior director of emerging innovation at GroupM Nexus. “We see consumers find podcasts ads trustworthy, relevant, and useful,” she states, “and they are, therefore, incredibly powerful in persuading consumers.”

Research backs up this effectiveness. Studies show that audio ads command 50% more attention than the benchmark of their visual counterparts, reinforcing their ability to cut through distractions and leave a lasting impression. This higher engagement makes audio a uniquely powerful medium for brands looking to connect with audiences in a meaningful way.

The Power of Programmatic and Targeted Audio Ads

Advancements in programmatic audio advertising have made it easier for brands to deliver highly targeted and data-driven campaigns. Programmatic advertising makes it easier to target the right people and, according to Ed Mullins, director of inventory & partnerships at StackAdapt, as a result: “In 2024 alone, it was projected that 75% of programmatic ads will be placed through direct channels, reflecting how publishers are prioritising programmatic deals within their ad stack.”

Platforms like Spotify, Octave, and DAX enable brands to leverage detailed audience insights and behavioural data to craft highly personalised campaigns. One example of the power of targeted ads comes from Mills and Mediaplus UK. “For Greene King Pubs, we leveraged digital audio targeting to drive footfall,” Mills explains. “We delivered hundreds of geo-targeted ads, dynamically adjusting messaging based on the listener’s location, directing them to the nearest Greene King pub.”

Elie Kauffmann also notes how this advancement is making waves in the industry. “One of its most impactful applications is dynamic creative optimisation (DCO) for audio, which allows brands to deliver hyper-personalised messages tailored to each listener’s context, behaviour, or location.” This level of targeting, she argues, is a game-changer, allowing brands and advertisers to move beyond broad demographics, tailoring their messaging based on real-time contextual data. Programmatic ads open up new worlds of opportunities thanks to advancements in reporting capabilities. Mullins notes that, “Advancements in audience targeting and real-time reporting have made audio advertising more precise than ever.” Programmatic audio’s ability to provide insights on a granular level ensures that advertisers can continuously refine their strategies for maximum impact. 

With access to real-time performance data, brands can optimise campaigns on the fly, adjusting creative elements, targeting parameters, and budgets to enhance engagement and ROI. As the industry continues to embrace automation and data-driven decision-making, the role of programmatic audio will only grow, offering brands an unparalleled ability to connect with audiences in meaningful and contextually relevant ways.

AI-Powered Audio Advertising 

AI is playing a critical role in transforming audio advertising. From creative optimisation to real-time performance tracking, AI-driven strategies are helping brands fine-tune their messaging and maximise ROI. Rast notes that, “AI-driven creative optimisation, contextual targeting, and hyper-personalisation are here today, not in some distant future. The question isn’t if AI will shape audio – it already has. It’s whether brands will finally get serious about harnessing it properly, or remain stuck churning out ads nobody remembers.”

One area where AI is making a particularly strong impact is personalised audio advertising. Mills highlights the effectiveness of AI-powered personalisation, stating, “Personalised audio advertising powered by AI-driven dynamic creative has been around for some time and has been shown to increase effectiveness by 15%–30%.” By leveraging AI, brands can generate tailored ads that adapt to listener preferences, demographics, and even real-time contextual factors. This level of precision ensures that advertising messages resonate more deeply with audiences, improving both engagement and conversion rates.

Beyond personalisation, AI also addresses long-standing measurement challenges in the audio space. “Audio’s always been mostly cookieless, which is a double-edged sword,” Rast explains. “While this helps to future-proof the channel, it does mean that attribution has been a hurdle. This has historically been a limiting factor, but the tide is starting to turn." Improving cross-platform reporting and attribution models will enable advertisers to better assess the effectiveness of their audio campaigns, ensuring that audio continues to be a key player in omnichannel marketing strategies.

The possibilities seem boundless, as advertisers unlock AI’s potential in exciting advancements. Mills offers up new developments in consumer data analysis. “Our cutting-edge AI acoustic wave recognition technology analyses voice patterns to decipher the hidden layers of sentiment within them,” Mills explains. “By detecting subtle shifts in speech patterns, we reveal the true motivations driving consumer behaviour, which often contrast sharply with what people claim to believe.”

However, drawbacks to utilising AI are already apparent. “Advertisers are understandably hesitant to use it at scale, given audio's intimate nature. Disrupting that with a synthetic voice could backfire,” notes Rast. “That said, technology is advancing rapidly, and some AI-generated voices are becoming indistinguishable from real ones.”

By embracing AI-driven personalisation while maintaining a human touch, advertisers can navigate this evolving landscape and ensure that audio advertising remains both effective and authentic.