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Welcome to Scout! Each week, our team tracks down the best digital marketing articles, POVs, and reports—so you don't have to. Here’s what to read from the week of 9/9/22 - 9/15/22 to stay ahead of the curve:

What the death of The Queen has taught us about tragedy-social [:13]

To say something, or not to say something? That is the question. Or, at least, it has been for social media managers following the death of Queen Elizabeth II. What can brands learn from the mass marketing mourning of the past few days? Here, The Drum does a deep dive.

Roblox Jumps on Plan to Introduce Immersive Ads in Games [:02]

Metaverse, meet online advertising: gaming and entertainment platform Roblox announced it will be introducing “immersive” 3D ads into its virtual worlds beginning in 2023. With users spending less time on the platform and revenue slowing year-over-year—combined with the overwhelming majority of Roblox users being under the age of 18—will budget-sensitive advertisers be willing to roll the virtual dice? Or will the experimental allure of this new inventory prove too intriguing to pass up? 

What’s on the Horizon in Programmatic Advertising? [:06]

Over the past 15 years, programmatic advertising has exploded across the digital media ecosystem, now accounting for 90.2% of all US digital display ad spend. Where to from here? Check out this piece on the trends fueling programmatic’s continued evolution.

How Is the Economy Doing? [:08]

Confused about the economy? You aren’t alone. For advertisers trying to understand consumer sentiment amidst conflicting indicators, this graphic maps how conditions are faring for jobs, income, consumers, and production. (And for those looking for a deeper dive on advertising through uncertainty, join us for our webinar later this month.)

Why McKinsey sees ‘commerce media’ as the go-to media and marketing investment channel of the future [:03]

It’s no secret that e-commerce and retail media have made their mark on media buying and selling in recent years. And advertising experts now suggest that considering the two as one giant industry—commerce media—could be beneficial for stakeholders across the entire marketing ecosystem.

Takeaways for Marketers From the IAB’s State of Data Report [:04]

Privacy regulations are tightening, third-party cookies are (eventually?) going away, aaaaaand it appears the advertising industry is largely underprepared. At least, that’s what new research from the IAB’s State of Data 2022 (Part II) reveals. Here, Adweek breaks down the biggest takeaways from the report, as well as what marketers can do to close the “gulf in preparedness.”

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Programmatic advertising has a brief yet dynamic history. What began 15 years ago with a narrow focus on display banner ads has quickly expanded across the entire digital media ecosystem.

This year, it is estimated that programmatic will account for a massive 90.2% of all spending on US digital display inventory—a broad bucket that includes digital display (obviously!), digital video, connected TV (CTV), digital audio (as a subset of rich media), and, within that, podcast advertising. It is already consuming a hefty share of the market, and all signs suggest programmatic will maintain its incremental growth through 2024 as advertisers and publishers look to shed the burden of insertion orders and tap into the myriad benefits that automated purchasing offers.

The path to programmatic ubiquity was essentially laid by the real-time revolution and the pace of technological advancement that made digital the new frontline of the consumer experience. Marketers today must meet customers in the right place and at the right time, and programmatic helps satisfy this imperative—its automated processes and in-flight flexibility make the old ways of buying and placing ads (think RFPs, manual bid negotiations, and predetermined campaign windows) look somewhat primitive by comparison.

Here, we shine a light on the trends behind programmatic’s continued evolution, covering its widening scope across multiple formats, the growing popularity of private marketplaces (PMPs), the identity solution saga, and a whole lot more.

Video is experiencing huge growth (thanks to CTV!)

2022 marks the first year that video will account for more than half of all programmatic ad spending. It’s a transition driven primarily by growing investment in one key area: CTV—the next great frontier for brands. The influence of CTV is so profound, in fact, that without it, video’s share of programmatic spend would amount to only 39.7%.

The current excitement around CTV is fairly self-explanatory: advertisers are simply following cord-cutting (or cord never) consumers who are spending more time flicking between Netflix, Hulu, Amazon Prime, Disney+, Peacock TV, and other streaming services to watch movies, shows, and even live sports. By 2024, programmatic CTV video ad spend is projected to sustain its solid double-digit growth and likely play an even bigger role in the broader TV advertising market.

Of course, the lion’s share of programmatic video ad spending still takes place on mobile—66.6% in 2022—but it’s worth mentioning that ad spending on non-video formats on mobile will still account for more than half of mobile programmatic display ad spending through 2024 (54.8%). However, given the rising tide of social video advertising, propelled by the TikTok juggernaut, it’s likely that video will continue gaining share of mobile programmatic display.

Private marketplaces are growing in popularity

Over the years, the vast majority of programmatic business has funneled through direct buying methods. Today, they account for three-quarters of all programmatic transactions—a dominance attributable to the influence of social media, where the bulk of display ads are purchased directly at a fixed price via a particular platform and then served programmatically. That share looks set to stay as it is through 2024, but what’s especially interesting here is the story within the other 25%—the RTB side of the coin.

Indeed, a notable shift is occurring here as advertisers continue to pull more and more media dollars away from the open exchange and plug them into PMPs. The reasons behind this trend? Greater control and increased transparency. In open auction transactions, anyone can buy or sell ad inventory without either side knowing who’s on the other end. In the customized, invite-only environments of PMPs, however, advertisers and publishers can work together directly, helping advertisers insulate themselves from brand safety risks and the growing threat of ad fraud while reaching targeted audiences with better precision.

The significant growth of CTV also contributes to this shift in buying behavior, since the vast majority of programmatic ad spending in CTV transacts through programmatic direct and PMP deals.

Programmatic is expanding its reach across emerging channels

There’s no denying that CTV is this year’s MVP of programmatic digital display, but there are a few other channels seeing increased programmatic penetration—namely, linear TV, digital out-of-home (DOOH), and podcasts. Increased programmatic investments in these areas indicate that advertisers are expanding their horizons, evolving their omnichannel strategies, and embracing new ways to deliver brand messaging with higher levels of targeting and efficiency.

Here are a few key stats:

Privacy and identity resolution still up in the air

Programmatic advertising was effectively built on the connective tissue of third-party identifiers, so it’s no surprise the ongoing privacy and identity saga is the most important force reshaping programmatic today.

Back in July 2022, Google once again announced it is delaying third-party cookie deprecation in its Chrome browser—this time until the second half of 2024. This has been widely positioned as the de facto deadline for the industry to have reliable alternative targeting and measurement solutions in place. But here’s the thing: we’re already in the “cookieless future.” Non-Google browsers like Apple’s Safari, Mozilla’s Firefox, and others stopped supporting third-party cookies years ago, so it’s not really a “future” problem—it’s a “now” problem.

Recent research published by the Interactive Advertising Bureau (IAB) paints a stark picture of the industry’s inactivity in this area, spanning across brands, agencies, publishers, and adtech companies:

These numbers show that organizations throughout the advertising industry must inevitably take more action to address the new measurement reality.

As of right now, there are a handful of privacy-friendly targeting solutions on the market. You’ve got universal IDs that are based on a persistent data signal such as an email address. There are cohort-based solutions, which aggregate user data and place individuals into targetable groups (for example, Google Topics). Then you’ve got seller-defined audiences that leverage publisher first-party data. And finally, there are contextual targeting tactics that work by serving ads based on similarity between the characteristics of the ad and the content adjacent to it.

Each of these comes with benefits and limitations, and advertisers would do well to start exploring any and all solutions that are available to them and determine what combination may make the most sense from a goal and data strategy perspective (that is, if they’re not doing so already!)

In essence: don’t wait!

The Evolution of Programmatic Advertising—Wrapping Up

The programmatic advertising landscape is an incredibly complex beast. It involves a smorgasbord of moving parts, and it is in a perpetual state of evolution. Here, we didn’t even touch upon the mounting regulatory pressures facing Big Tech around the world, how programmatic can be effective in the world of B2B, how marketers can assess whether they’re ready to bring programmatic in-house, how programmatic may fit into the metaverse, and the value between direct and third-party measurement.

The good news, though, is that all those topics are covered in our webinar, Programmatic Advertising: The Automation that’s Dominating Digital, featuring eMarketer analyst Evelyn Mitchell. Check it out on-demand to get an overview of where programmatic advertising is today and where it’s heading tomorrow.

Fraud is having a moment. From Fyre Festival to Theranos to "Inventing Anna," it often feels like we are in a golden age of deception.

Sadly, digital advertising has not been spared in this fraud feeding frenzy, with countless articles covering the much-loathed scourge that is ad fraud. But while ad fraud is no doubt a very real concern for advertisers, the industry has come a long way since the "Wild West" days that marked the early stages of programmatic, with new tools and best practices to help identify and prevent its impact.

To get all the latest, we reached out to Ian Trider, Basis Technologies' VP of RTB Platform Operations, for a breakdown of all things ad fraud and some tips for how advertisers can detect, minimize, and avoid it.

Q: In the simplest terms, how would you describe ad fraud?

Ad fraud is the practice of serving digital ads that a) have no chance of being viewed by a human user, or b) are misrepresented.

Q: Ad fraud is often described as non-human or robotic “bot" traffic. That can mean a lot of different things. Can you give examples?

Bots are software programs that perform functions automatically. There are legitimate and illegitimate bots.

Googlebot is an example of a legitimate bot. It is Google's “crawler" or “spider"—the software that automatically visits websites to build Google's search engine. Legitimate bots identify themselves, and discounting that traffic is a standard requirement in industry guidelines for impression and click counting.

Illegitimate bots attempt to simulate human web surfing for the purpose of generating paid ad impressions.

It is important to understand, though, that there are types of traffic fraud that are technically served to humans, but the traffic is still unacceptable. Examples include: impressions generated when web sites are loaded as pop-unders on porn and piracy sites, or domain spoofing, where impressions claim to be on a respectable, known site, but are actually served somewhere else. This “human traffic fraud" is a significant problem too, especially in video. Bots are a part of the problem, but not the entire problem.

Q: Does bad inventory constitute as ad fraud? Does ad stacking count as ad fraud?

"Bad" needs further definition. Inventory that is bad because it doesn't achieve the performance goal of a campaign is not fraud. Inventory that is bad because it has undesirable characteristics (fake news, adult content, etc.) is not fraud.

Ad stacking (placing multiple ads on top of each other) is fraud, because the hidden ads are impossible to view. An important distinction to note here: Unlikely to be viewed and impossible to view are not the same thing. A placement may have very poor viewability, such as a 728x90 banner at the very bottom of a news site, but it is possible to view it—most users just won't scroll that far. A stacked ad cannot be viewed under any circumstances.

Q: So, there's a connection between viewability and ad fraud?

Yes, but not the one that might be expected. Fraudsters want fake impressions to look desirable, and making them appear viewable is one such way. There is actually a positive correlation between gross viewability and fraud: Highly viewable inventory is more likely to be fraudulent.

This is why viewability data should always be reported net of fraud—but even so, fraud detection is an inherently imperfect science. While it should not be assumed that high viewability is a sign of fraud, extremely high viewability on unfamiliar sites that seem unlikely to have the traffic they have is certainly a sign to be cautious of.

Q: Who creates the bot traffic?

It depends. Websites are sometimes set up containing fake or low-quality content, and ads are placed on the sites with the intention of sending bot traffic there. The creators of those sites undoubtedly know exactly what they're doing.

In other circumstances, especially when significant volumes of bot traffic appear on what appears to be a legitimate site, the publisher may have engaged in traffic buying (increasing the traffic to their website by paying other companies to bring visitors to the site). This is a fairly common practice, and there are ways to do it that are quite likely to result in real, human users (i.e. content ads via Facebook). However, these sources are relatively expensive. When the goal is to make more from advertising than it costs to bring the user to the site, publishers find themselves pursuing cheaper and more questionable sources of traffic. Breaking even requires visits that cost more than a few pennies each—and at this price, there is a substantial danger of bot traffic. Often, this traffic flows through multiple traffic brokers, and these brokers won't necessarily ask many questions, resulting in selling of traffic with unknown origins.

Innocent publishers can also be victims of a drive-by—bots are designed to look human. Only visiting one site is not very human looking, so bots may visit popular publishers to appear more realistic in their behavior. This can cause bot traffic to occur on sites that are not engaging in traffic buying at all.

Q: What are some of the negative impacts from ad fraud and why should advertisers care?

People buy things. Machines do not (at least, not yet...) The point of advertising is to get people to buy things, so serving ads to machines instead of people is a waste of money. Ad fraud also tarnishes confidence in the industry overall, affecting even very clean sources—buyers' skepticism about traffic quality will be reflected in the CPMs they're willing to pay.

Q: How prevalent is ad fraud in the industry and how bad is the situation?

Estimates vary substantially. There is a baseline of suspicious traffic that will occur everywhere. Again, fraud detection is imperfect, and it isn't always possible to have smoking gun evidence of fraud. That said, this baseline level should be well under 5% of impressions. DoubleVerify reported that global fraud rates are down significantly to just 1.4% of overall impressions, but volume remains steady. Significantly elevated levels of fraud can be found in pockets—certain sites, certain sellers, etc. Sometimes common sense will indicate where fraud might be a concern, but in other cases it's not obvious.

Q: How can marketers detect ad fraud and proactively avoid it?

Here are a few fraud prevention strategies:

Q: What are some best practices for buying quality inventory?

In addition to the avoidance tactics above, here are a few strategies:

  1. Don't buy just anything. Allowlist sites you want to buy.
  2. Avoid middlemen. Use PMP deals to ensure you are receiving inventory directly from the publisher. (This helps avoid misrepresentation.)
  3. Be willing to pay real prices for real users. Low CPMs are less likely to meet publisher price floors on quality inventory.

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Interested in other Basis Technologies resources that will help you understand and combat ad fraud? Reach out today.

Each month, Basis Technologies’ Programmatic 101 series tackles a different facet of programmatic advertising—from best practices for buyers, to competitors in the space, to trends you should know.

Programmatic is dominating digital. According to eMarketer, it will account for over 90% of display ad spending this year—and the tide is rising for other digital channels as well, including both linear and connected TV. 

But as programmatic has brought automation, transparency, and accessibility to the advertising landscape, that same landscape has grown increasingly competitive. To cut through the noise, it's imperative that programmatic media buyers don’t “set and forget” their campaigns. 

To that end, let’s walk through four of the most common mistakes media planners and buyers make when it comes to programmatic advertising—and how to avoid them. 

1. Launching Without a "Test and Learn" Plan

One of the many advantages of a programmatic campaign is the amount of targeting, creative, and inventory that’s available. This variety allows advertisers to test hypotheses around their target audiences, creative formats, and messaging. Unfortunately, when effective controls aren’t set up in the building phase of a campaign, these tests can quickly become underfunded or inconclusive. 

Instead of winging it, advertisers can succeed by: 

2. Utilizing Too Many Providers and Segments  

When building a programmatic tactic, it can be tempting to layer on a variety of targeting options to ensure that each dollar is spent as efficiently as possible. What advertisers might not realize, however, is that low scale, the use of multiple data providers, and Boolean logic (a fancy way of referencing the selection of "and” or “or” between segments) are the top three ways to drive up CPM and negatively impact performance.  

Instead, advertisers should always look to use the same data providers, and default Boolean logic to "or” whenever possible. They should also keep an eye on formats that can be difficult to scale within smaller geotargets (zip code, city, small DMAs), such as audio

3. Assigning Multiple KPIs To the Same Tactic   

While programmatic advertising can address all aspects of the funnel, it’s important to understand where each tactic can work best. For example, contextual targeting is great way to drive consideration or purchase, while prospecting should be utilized to cast a wide net for awareness. On the other hand, the audio format isn’t well suited to a cost-per-acquisition KPI, and first-party audiences shouldn’t be held to an efficient CPM. 

Instead of assigning multiple KPIs to the same tactic, advertisers should differentiate accordingly. For example, create one line item that’s focused on awareness-driving tactics and formats, and a separate line item that’s focused on driving conversions and executing against first-party data.  

4. Optimizing Without a Schedule  

Advertisers spend a significant amount of time evaluating what KPIs and benchmarks should be used, but often don’t spend enough time outlining what types of optimizations will be made and when.  

Instead of skipping your optimization plan, we recommend adhering to minimal optimizations (pacing, bids, and line items) daily and focusing on creative and tactic optimizations on a weekly to bi-weekly cadence. This presents an opportunity to align the campaign’s “test and learn” plan with its optimization schedule to ensure there is enough time to apply learnings to drive performance.  

Programmatic Advertising Best Practices—Wrapping Up 

Programmatic has revolutionized the advertising space, but the sole incorporation of programmatic technology isn't a silver bullet for winning campaigns. By avoiding these four “no-no’s,” advertisers will be well on their way to programmatic success.

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Want to learn more about programmatic best practices? Check out AdTech Academy, a learning hub designed to demystify all things adtech!

Welcome to Scout! Each week, our team tracks down the best digital marketing articles, POVs, and reports—so you don't have to. Here’s what to read from the week of 9/2/22 - 9/8/22 to stay ahead of the curve: 

The Definitive Guide to What’s In and Out in Ad Tech in 2022 [:03] 

It’s NY fashion week in the US, which presents the perfect opportunity to get wise on what’s in vogue. Make sense of what's in and what’s out in adtech with this handy guide from Digiday—just make sure you’re not wearing white while perusing, because Labor Day has come and gone... 

Amazon Ads Top Engagement Ranking, but TikTok Holds Innovation Crown [:03] 

Marketing Dive lays out the juiciest nuggets from Kantar’s latest Media Reactions report, which ranks channel perceptions among consumers and marketers. This year, Amazon claimed the number one spot, knocking TikTok to number two, followed by Spotify. Also of interest: For the third year in a row, consumers reported favoring “real world” marketing over metaverse messaging. 

Why Audio is Digital Advertising’s Fastest Growing Category [:08] 

Speaking of Spotify, the digital audio category in general is booming so hard you might want to buy some earplugs. Here’s a look at the channel's rise in consumption and spend, as well as what makes the format so unique. 

How Companies Can Be Proactive—Not Reactive—on Social Issues [:06] 

Now more than ever before, consumers expect brands to take a stance on social issues. The imperative to know when and how to respond has been a major theme at conferences like SXSW this year, but for many brands, best practices remain murky. Here, DEI consultant Lily Zheng clears the waters. 

Netflix to Launch Cheaper Ad-Supported Subscription Tier in November [:03] 

Love a good brawl? Then you won’t want to miss Netflix’s latest swing at Disney+: The OG OTT giant has reportedly bumped up the launch of their ad-supported tier to November to get ahead of Disney+’s planned launch in December. PS: If you’re looking for a roundup of all the latest news surrounding Netflix’s launch, Marketing Brew has got you covered.   

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Recently, Basis Technologies held its first in-person New Hire Orientation since March 2020. We’ll be providing new hires with the option of attending their orientations either virtually or in-person from now on. To celebrate the occasion (and to get an inside look at Basis NHO!) we asked one our newest Beeps—Eric Nelson—to share his experience.

(Oh yeah, and if you’re interested in joining the team, be sure to check out our Careers page!)

What I Learned at New Hire Orientation

Upon my start at Basis Technologies, I was invited to our New Hire Orientation, where 13 of the company’s newest hires descended on our Chicago headquarters to participate in a three-day journey through the purpose, people, and power of our organization.

The agenda was exciting, and the structure was clear: We’d learn the “why” behind the company on Day 1, explore the “how” on Day 2, and dig deep into the “what” on Day 3 (very Simon Sinek.) The event’s organizers—members of our amazing Talent and Development team—introduced and reinforced major points through videos, demos, guest speakers, and fun team activities. The structure provided an immersive, engaging onboarding experience that all baker’s dozen of us agreed was the best in which we’d ever taken part.

This illustrated, to me, Basis’ attention to detail, its care for its users, and its mission to do the most comprehensive work possible to achieve prime satisfaction. I left Chicago smarter and clearer about our roles and goals at Basis Technologies, armed with information and driven by inspiration.

Here are my four biggest takeaways from New Hire Orientation:

Takeaway #1: Our culture is second to none.

From the top of the company to the newest hire, we believe we do our best work when we are our best selves. Our culture is impressively people-first, and it shows in our benefits and perks, but also in the way we speak to each other—with reverence and respect, enthusiasm and empathy.

Sure, our schedules are enviably flexible. Yes, our sabbaticals and parental leave let us prioritize ourselves and our families. And wow, do we have access to multiple mental health services, including the chance to just take a day off when you need to clear your head. But this goes beyond checkmarks on a modern recruiter’s “to-do list.” Leadership offers these benefits because they want to—not because they feel like they have to. To paraphrase one famed television drama: When our minds are clear and our hearts are full, we can’t lose.

Takeaway #2: We’re constantly improving…

Digital advertising cannot have—and can never have—a “set it and forget it” mindset. We’re always looking to improve our products, our processes, and our people. That might mean ideating and prioritizing new features based on client feedback, removing redundant steps to get those features in our clients’ hands faster, or ongoing professional development for our sales, service, product, and marketing teams. Some call it “kaizen,” some call it “continuous improvement,” but for us, it just comes with the territory.

Takeaway #3: …Because we want to create Raving Fans.

In the end, we want our users to be happy. Actually, we want them to be more than happy. We want the people—the agencies, brands, media buyers, ad ops, accounting, VPs, C-suite execs—who experience our product and services to be Raving Fans of Basis. We want every interaction to be positive if not uplifting, productive if not prolific. We want marketers to realize success in their ad campaigns, to learn from our educational content, and to feel like their brands and their budgets are safe in our hands. Satisfying our customers—creating Raving Fans—is truly embedded in the fabric of our organization.

Takeaway #4: 2023 is going to be big.

We got a sneak peek at some of the capabilities our product team is working on for next year, and they’re impressive. I wish I could go into more specifics here (sadly, I have been sworn to secrecy) but we have some real game changers in the pipeline—features that will turn our already powerful omnichannel platform into a superpower. And it’s all happening in response to our clients’ needs, with the goal of making them more productive, efficient, and beyond satisfied.

To put it as Simon Sinek might: With everything we do, we believe in the success of people. We invest in our infrastructure, we provide value to our clients, we take great care of our people, and we always have an eye on the horizon. It just so happens we’re in the adtech game.

And I, for one, am ready to play.

Want to learn more about Basis Technologies’ guiding principles, workplace culture, and benefits? Check out Life at Basis Technologies.

“Did you hear the one about audio advertising? The conversion rates will be music to your ears!”

...OK, so terrible puns aside, there’s no denying that digital audio—and digital audio advertising—is having a moment. More people are listening than ever before, and advertisers are rushing to join in on the fun.

The numbers behind this phenomenon are fairly remarkable: the percentage of Americans who consume streaming audio has more than doubled since 2012. Fifty-six percent of millennials and Gen Z say audio provides them with an escape from too much visual stimulation. The number of US digital audio listeners is projected to hit 239 million by 2026—more than 2/3 of the entire population. And yes, you heard right: the majority of all daily audio listening is now happening on digital devices.

The rise of podcasts, smart speakers, and connected cars highlights how nimbly digital audio serves as a companion for our routines and an integral part of our daily lives. Audio is flexible, ubiquitous, and unique in its ability to follow a user throughout their day. Watching videos and scrolling through social feeds lock us to our screens, but we can listen to music or a podcast while going for a jog, doing the dishes, riding the bus, or focusing on work. And for digital marketers, audio enhances screenless experiences and offers more moments for advertisers to intentionally connect with their audiences.

Yes, audio is everywhere—and the opportunities are seemingly endless. Audio is digital advertising’s fastest growing category, and annual US digital audio ad spend is expected to top $8 billion by 2025. 

So, what makes audio so unique, why is the category booming, and why should digital audio advertising be a larger part of your media conversations? Let’s take a look at just a few of the reasons.

Digital Audio is Having a Moment

Audio content is surging, audio ad tech is maturing, and just about everyone is listening. 

In 2022, listeners will spend an average of 97 minutes per day with digital audio—nearly a half hour more than they’ll spend on social media.

Listeners have embraced audio in some key ways since the start of the pandemic, and advertisers are taking notice: 

People gravitate toward audio because it affects mood, triggers emotional reactions, and invokes the imagination in ways no other medium can. In 2020, as COVID-19 disrupted nearly every aspect of our day-to-day lives, listeners turned to audio as a mood enhancer (82%), a welcome distraction (67%), and a way to find necessary companionship (34%). 

Podcasts, in particular, have been booming, seeing 200% growth over the past five years alone. What’s more, listeners build trusted and long-standing relationships with their favorite podcasts, so it make sense that in a poll of Stitcher/Midroll listeners, 86% said they had taken action due to a podcast ad.

As for who’s turning in? Well, in short: it's pretty much everybody. Audio listeners range across the board—from Gen Z and millennials to boomers and seniors; men, women, and non-binary individuals; and people of all geographic and ethnic backgrounds—but some of the most promising and exciting developments in the digital audio space pertain to younger listeners.

Gen Z, Millennials, and Audio

Digital audio is proving especially popular among millennials and Gen Z listeners.

More than half of adults ages 18 to 29 are listening to streaming music every day. Zoomers and millennials listen to an average of 18+ hours of audio a week, with much of that coming from streaming audio and podcasts. In the US, Gen Z accounts for nearly 1/4 of all podcast consumption. What’s more, 27.8 million zoomers listen to at least one podcast per month, and that number is expected to surpass 40 million by 2024.

And streaming audio means more to young adults than just background noise. A Spotify study found that 73% of Gen Z and millennial Americans use audio to cope with stress and anxiety. And 54% of zoomers say they’ve started listening to more podcasts to help stay informed and entertained.

With younger generations so invested in digital audio, it’s no surprise that advertisers are investing there as well.

Programmatic Audio Advertising

To connect with this growing listener base, advertisers are pouring money into audio. And, much like the rest of the digital advertising world, audio advertising is growing increasingly programmatic. US programmatic digital audio ad spent surpassed $1 billion in 2021 and is projected to grow to $1.84 billion by 2024, continuing a trend of double-digital year-over-year growth. Programmatic podcast spend in the US is also booming, with experts anticipating those numbers to double in the next two years to $237.9 million. As programmatic audio inventory increases—and as programmatic continues to cements its place as the dominant digital media buying method—so too will those numbers.

Get the Guide on Digital Audio Advertising

Want to learn more about digital audio advertising strategies and better understand how it can impact your media plan? Check out our Audio Advertising Guide.

Welcome to Scout! Each week, our team tracks down the best digital marketing articles, POVs, and reports—so you don't have to. Here’s what to read from the week of 8/26/22 - 9/1/22 to stay ahead of the curve: 

As the FTC Begins its Lawsuit Against Kochava, Some See the ‘Warning Sign’ to Adtech While Others See an Uphill Battle [:06] 

Never a dull moment in the ongoing saga of data privacy regulation and enforcement! The Federal Trade Commission has launched a lawsuit against Kochava, an adtech startup that buys and sells geolocation data. Here, experts speculate on the FTC’s strategy in targeting a smaller company, their chances at winning in court, and what it all means for the rest of the adtech world. 

Sephora’s $1.2M CCPA Settlement Sends a ‘Strong Message’ to Brands [:04] 

In other data privacy news, Sephora has been compelled to “make up” more than just faces: In the first enforcement action of the CCPA, California’s attorney general recently announced a settlement with the cosmetics retailer over alleged violations. 

How Marketers Will Reach Consumers Without Third-Party Tracking [:04] 

Google may have given us a raincheck on the deprecation of third-party cookies, but marketers continue to explore creative methods of capturing meaningful consumer data. Although the methods vary—from web3 and the metaverse to polls integrated into website design—a fundamental emphasis on consumer experience and trust remains. 

Going Deep on Live Sports Advertising Opportunities [:08] 

Adding to an already complex CTV advertising landscape (and a growing list of must-have streaming subscriptions for exasperated viewers), more and more sports broadcast rights are moving from linear TV to streaming platforms. Here, learn how advertisers can effectively reach and connect with sports fans in the digital age. 

Netflix Names Snapchat Execs as its First Advertising Leaders [:02] 

Netflix has tapped Snapchat ad executives Jeremi Gorman and Peter Naylor to lead the development of its global ad strategy and business as the streaming giant steps into the advertising world. This represents a huge blow for Snap, effectively leaving them rudderless without two of its top liaisons to the ad world. Kind of makes you wonder: What the heck is going on with social media? 

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After more than two years of living in a COVID-stricken climate, the world was ready for things to get back to normal. Instead, market factors like high interest rates, rising inflation, and plunging stock prices are now plaguing the economy, leaving advertisers and marketers in a new age of uncertainty. Brands are pulling back budgets and advertisers are left wondering: what do we do next?

In this webinar, Basis Technologies’ Media Innovations and Technology team, Noor Naseer and Kaitlin O’Brien, look to provide some answers. Together with host Ryan Manchee, Noor and Kaitlin help break down how advertisers and marketers can approach the complexities of this continued economic downturn. They explore: