Google Bets Big On Audio Advertising For Brands To Engage With Users.

Google officially launched its audio advertisements to enable advertisers to reach consumers through streaming music and podcasts on YouTube, eyeing a sizable slice of the $1.7 billion audio ad market. Additionally, the business is introducing additional targeting possibilities for its "cost-effective" digital audio advertisements. With this move, Google will compete with audio streaming services like Spotify, Gaana, and TuneIn, which have previously only sold programmatic audio ad inventory through the Google platform. As part of its effort to connect music and podcast listeners, YouTube had already introduced its version of audio adverts in November 2020. Specific product categories, however, were not permitted to air audio advertisements.

Google made the announcement at Advertising Week New York. The statement comes at a time when the global advertising sector is struggling as a result of tight financial conditions, weak demand, and historically high inflation, which has led several companies to cut marketing budgets. The change attempts to improve the manner in which publishers may make money off of their content.

According to an Emarketer analysis, the potential for advertisers in the podcasting sector continues to soar on a global scale. Podcast ad revenue increased by 28.6% to more than $1.7 billion this year. Analysts predict that the industry will surpass $2 billion in 2023. The largest demographic of podcast listeners, according to experts, are members of Gen Z and Millennials.

According to experts, some industries, including cellphones, candy, dating apps, and video streaming platforms, have begun reaching Gen Z and millennial consumers (18 to 35 years old) via audio streaming websites like Spotify and Gaana.com with clever, personalized programmatic ads.

The following categories have all been included in this mix: BFSI, FMCG (Dabur, Mondelez, Reckitt, Nestle), Consumer Durables (Boat), OTT, dating apps (OkCupid), and Alcobev (Royal Stag, Mcdowells). Numerous brands have begun to include music in their 360-degree mix. According to Aditya Bathija, Director at Mammoth, PayTM, Britannia, and Gaana all employed their mnemonics to aid in recall.

According to Nitin Sabharwal, Managing Partner, North, iProspect India, “they had previously been engaged in industry-specific projects and trials.Since Google just recently launched audio and podcast advertising available to all advertisers, it is not particularly common in India right now.”

According to Kumar Awanish, Chief Growth Officer, Cheil India, “The majority of brands prefer to simply advertise on Google's YouTube platform. It is therefore expected that audio advertising will pick up shortly.”