Audio advertising market shows promise amid 22% engagement gap

AdsWizz, the leader in audio advertising technology, released its comprehensive State of Audio Adtech Report 2025, revealing a striking disconnect between consumer engagement and advertiser investment. According to the report, audio accounts for 31% of consumers' total media time but receives only 9% of advertising budgets, creating a 22% gap that represents untapped potential for marketers.

The report, published in 2025, examines where audio advertising innovation stands and identifies key trends shaping the industry. The analysis draws from AdsWizz's extensive platform data, which powers 60 billion monthly dynamically inserted audio ad impressions across global markets.

The rise of programmatic audio represents a fundamental shift in how advertisers approach audio campaigns. AdsWizz data shows the platform powers two billion AdsWizz Marketplace impressions and four billion monthly impressions sold via third-party demand-side platforms. International adoption demonstrates strong growth, with France showing 80% of impressions sold through third-party DSPs.

Several technical innovations drive this expansion. Dynamic ad insertion (DAI) enables personalized listener experiences by adapting content based on location, time of day, or weather conditions. Dynamic creative optimization automates tailored ad variations that adapt in real-time to different environments using listener data such as location, daypart, first-party data, weather, and platform information.

Automated host-read ads combine the personal touch of traditional host endorsements with programmatic targeting capabilities. According to the report, publishers can achieve up to 25% additional ad spend with dynamically inserted host-reads compared to traditional approaches.

Enhanced Targeting Capabilities Transform Audience Connection

Advanced targeting capabilities represent a significant evolution in audio advertising precision. AdsWizz reports that contextual targeting now accounts for 60% of targeting dimensions on its platform, reflecting a broader industry shift toward privacy-compliant solutions.

The data reveals substantial growth in personalization adoption. According to the report, 50% growth among brands adopting personalization occurred in 2024, with budgets increasing 29% compared to the previous year. Culturally relevant ads demonstrate 156% higher emotional impact, emphasizing the importance of contextual alignment.

First-party data usage continues expanding as brands reduce dependence on third-party audiences. The report indicates 71% of brands and agencies are increasing their first-party data sets, moving away from historically heavy reliance on third-party audiences.

Technical implementation includes several sophisticated targeting methods. Music and emotion targeting allows advertisers to align ads with listeners' mindsets through data-driven approaches. Weather targeting leverages real-time data updated every 60 minutes to create hyper-relevant campaigns. Location targeting provides contextual enhancement by incorporating local events and geographic relevance. Multicultural targeting addresses diverse communities, which represent a projected $7 trillion in spending power by 2025.

Privacy-First Solutions Address Consumer Concerns

Privacy considerations drive significant changes in audio advertising strategies. Consumer skepticism remains high, with 61% of Americans expressing doubt about data privacy effectiveness despite 78% feeling confident in their ability to protect personal information.

Trust factors heavily influence consumer relationships with brands. According to the report, 71% of consumers would discontinue relationships with companies that fail to handle sensitive data responsibly, while 83% cite data protection as essential for earning their trust.

AdsWizz addresses these concerns through multiple privacy-focused solutions. Clean room technologies combine innovation with privacy commitment, offering advanced analytics that maintain rigorous privacy standards. The company recently partnered with LiveRamp's Clean Room, powered by Habu, through its parent company SiriusXM Media.

Identity solutions provide alternatives to declining traditional identifiers. The AdsWizz platform integrates with third-party ID solutions including NetID, ID5, RampID, and UID2, enabling effective transactions using preferred identifiers. Currently, 17% of US streaming inventory is ID-enriched, with continued growth expected as privacy-friendly solutions expand.

Predictive Audiences, powered by partnership with Comscore, offers advertisers access to over 300 finely tuned audience segments while maintaining ethical engagement standards.

Brand Safety Controls Enhance Advertiser Confidence

Brand safety measures have become essential components of audio advertising strategies. Over 60% of advertisers and agencies cite brand safety as a significant concern, while 69% of audio publishers now offer brand safety solutions.

Consumer behavior reinforces the importance of appropriate ad placement. The report shows 55% of consumers say ads near fake or incendiary content negatively impact purchase decisions, while 51% would consider discontinuing products or services if ads appear next to unsuitable content.

Advanced solutions provide real-time transparency and control. AdsWizz partnerships with companies like Barometer and ArtsAI allow brands to verify contextual alignment mid-flight through instant insights and suitability reporting. Brand suitability tools from Comscore analyze content contextually, ensuring ads align with brand values beyond simple keyword blocking.

Invalid traffic filtering protects advertising investment by eliminating bots and fraudulent domains before they compromise campaigns. This technology ensures ads reach verified, authentic audiences while strengthening campaign authenticity.

Multi-Platform Content Consumption Creates New Opportunities

Consumer behavior demonstrates increasing multi-platform engagement with audio content. The report reveals 31% of weekly podcast listeners use YouTube as their preferred listening platform, while 59% of US podcast listeners use both audio and video platforms.

Video integration shows particular strength among younger demographics. According to the data, 84% of Generation Z podcast listeners prefer podcasts with video components, and 45% of listeners seek additional content from podcast hosts on YouTube and social media platforms.

Technical solutions address this omnichannel consumption pattern. Second screen retargeting pairs audio ads with display banners across web and app platforms, retargeting listeners within two days of hearing an ad using precise device IDs or IP addresses.

AudioPixel technology transforms interactions into measurable outcomes like website visits and purchases while prioritizing user privacy through anonymized data. Voice-activated ads enable real-time, two-way interactions through simple voice commands, adapting to multiple languages and response times.

Industry Predictions for 2025 and Beyond

Several key trends will shape audio advertising development. Automation will drive faster, more intelligent campaigns through advanced AI capabilities enabling real-time decision-making for hyper-personalized ad delivery. Synthetic Voice Ads and similar technologies will reduce barriers and costs for audio advertising campaigns.

Programmatic podcast adoption will accelerate significantly. SiriusXM Media reported 33.5% year-over-year increase in podcast programmatic revenue in the US during 2024, with 25% of total US digital audio spend transacted programmatically.

Contextual targeting will become the cornerstone of digital advertising strategies worldwide. Currently representing 60% of all global targeting dimensions on AdsWizz platforms, this approach provides relevant and privacy-first solutions that align with evolving consumer expectations.

Open ecosystems will gain advantage over walled gardens as listeners break down traditional platform barriers. Content creators seek to reach audiences wherever they consume content, driving platform-agnostic strategies that enable broader audience reach.

Identity solutions will advance through publisher-advertiser alliances, reshaping the digital advertising ecosystem to provide seamless audience targeting, enhanced measurement, and privacy compliance. Solutions like UID2 and ID5 will bridge gaps left by declining third-party identifiers, leading to increased eCPMs and improved bid rates.

Anne Frisbie, SVP of Global Business Development at AdsWizz, emphasized the unique position of audio advertising: "Audio isn't just another channel—it's the pulse of digital connection. Sound commands attention, creates lasting impressions, and fosters deep brand loyalty in a world saturated with visuals."

Franz Bernstein, VP of Ad Product at SiriusXM Media & AdsWizz, highlighted the evolution toward comprehensive audience engagement: "We're redefining audio as a versatile and powerful pillar of digital engagement. It's no longer just about delivering ads—it's about reaching listeners wherever they are with personalized, contextually relevant, and privacy-first experiences."

The report demonstrates that audio advertising technology has reached a maturity level that enables sophisticated targeting, measurement, and optimization capabilities previously available only in other digital channels. For marketing professionals, this represents an opportunity to leverage an underutilized medium that offers intimate audience connections and measurable performance outcomes.

Case Study: Hyundai Campaign Demonstrates Technology Integration

The report features a detailed case study showcasing how advanced audio advertising technology delivers measurable results. Hyundai Turkiye's campaign for the IONIQ 6 EV demonstrates the practical application of multiple AdsWizz technologies working in coordination.

The campaign utilized programmatic audio technology to precisely target listeners, dynamically delivering in-game audio ads based on behavior and context. AudioPixel technology tracked conversions from ad exposure to actions like scheduling test drives, achieving a 1.3% conversion rate and generating over 8,000 leads.

Second-screen retargeting complemented the audio advertisements with follow-up visuals on other platforms, ensuring consistent messaging and additional engagement touchpoints. The campaign earned recognition as an AdExchanger Award nominee for Innovation in Audio Advertising.

According to AdsWizz, the integration demonstrates how combining programmatic precision with creative execution drives both engagement and measurable business outcomes for advertisers.

Technical Infrastructure Supports Global Scale

AdsWizz's technical capabilities provide the foundation for these innovations. The platform processes 16 billion monthly dynamically inserted audio ad impressions and facilitates four billion monthly audio impressions sold via third-party DSPs. Additionally, the company transcribes 40 million podcast episodes for brand safety and contextual audience support.

The company's Simplecast platform handles 550 million monthly podcast downloads, while the AdsWizz Marketplace powers two billion monthly audio impressions. This scale provides the data foundation necessary for the sophisticated targeting and optimization capabilities detailed in the report.

Why this matters for the marketing community: The audio advertising landscape has matured beyond simple broadcast-style placements to offer sophisticated targeting, measurement, and optimization capabilities. The recent surge in programmatic advertising investment, with 72% of marketers planning increases in 2025, positions audio as an increasingly important component of digital media strategies. Spotify's expansion of automated podcast buying to 170 million listeners across 12 markets demonstrates how major platforms are democratizing access to audio inventory through programmatic channels.

Timeline

• January 21, 2025: Comscore releases State of Programmatic Report showing 72% of marketers plan to increase programmatic investment
• January 2025: AdsWizz publishes State of Audio Adtech Report 2025
• February 3, 2025: AudioGO launches Dynamic Pricing automated bid-based model for audio advertising
• February 15, 2024: Audiohook and Sounder launch episode-level contextual targeting for podcast advertising
• February 26 & March 5, 2025: IAB Australia schedules Audio Summit events in Sydney and Melbourne
• March 28, 2025: Frequency launches Premium Publisher Network combining host-read authenticity with programmatic efficiency
• July 11, 2025: Spotify expands automated podcast buying to 170 million listeners across 12 markets
• July 15, 2025: Triton Digital announces partnership with ekoz.ai for AI-powered voice cloning in podcast advertising
• October 23, 2024: Disney extends Magnite partnership for programmatic advertising, expanding into Latin American markets
• January 10, 2024: iHeartMedia and Magnite launch omnichannel audio advertising marketplace

Key Terms Explained

Programmatic Audio

Programmatic audio refers to the automated buying and selling of audio advertising inventory through technology platforms using real-time bidding mechanisms. Unlike traditional audio advertising that requires manual negotiations and direct sales relationships, programmatic audio uses algorithms and data to execute transactions within milliseconds. This approach enables advertisers to target specific audiences across multiple audio platforms while optimizing campaign performance through continuous data analysis. The technology has transformed audio advertising by providing scale, efficiency, and precision targeting capabilities that manual processes cannot match, making it accessible to advertisers of all sizes.

Dynamic Ad Insertion (DAI)

Dynamic ad insertion represents a sophisticated technology that delivers personalized audio advertisements by adapting content in real-time based on listener data and contextual factors. This system can modify ad content based on location, time of day, weather conditions, listening platform, or user behavior patterns. DAI enables publishers to maximize revenue by serving the most relevant advertisements to each individual listener while maintaining content flow and user experience. The technology supports both live and on-demand audio content, allowing for targeted messaging that feels natural within the listening environment.

Contextual Targeting

Contextual targeting focuses on placing advertisements based on the content environment rather than individual user data, making it a privacy-compliant solution for audio advertising. This approach analyzes podcast topics, music genres, show themes, and episode content to match relevant advertisements with appropriate listening contexts. According to the report, contextual targeting now accounts for 60% of targeting dimensions on AdsWizz platforms, reflecting the industry's shift toward privacy-first advertising strategies. The method enables advertisers to reach engaged audiences without relying on personal data collection while maintaining campaign effectiveness.

Host-Read Advertisements

Host-read advertisements involve podcast hosts personally recording promotional messages in their own voice and speaking style, typically incorporating products or services into natural conversation flow. These advertisements leverage the trust and relationship hosts have built with their audiences, resulting in higher engagement rates and brand recall compared to traditional pre-recorded spots. The format benefits from perceived authenticity and personal endorsement, but traditionally faced scalability challenges. Recent technological advances, including automated host-read capabilities, now enable programmatic delivery while maintaining the personal touch that makes these advertisements effective.

AudioPixel Technology

AudioPixel represents measurement technology that transforms audio advertisement interactions into measurable business outcomes such as website visits, purchases, and lead generation. The system operates by tracking listener behavior following audio advertisement exposure while prioritizing user privacy through anonymized data collection. This technology bridges the gap between audio advertising exposure and concrete business results, providing advertisers with insights into geographic, demographic, and behavioral trends. AudioPixel enables attribution modeling that connects audio campaigns to tangible actions, helping justify investment and optimize campaign performance.

First-Party Data

First-party data consists of information that companies collect directly from their customers and audiences through owned channels, websites, applications, and direct interactions. This data type has gained significant importance as privacy regulations limit third-party data usage and cookie deprecation affects traditional targeting methods. According to the report, 71% of brands and agencies are increasing their first-party data sets, moving away from heavy reliance on third-party audiences. First-party data provides more accurate audience insights while maintaining compliance with privacy regulations and building consumer trust through transparent data practices.

Brand Safety

Brand safety encompasses measures and technologies designed to protect advertiser brand reputation by ensuring advertisements appear in appropriate content environments. This concept has evolved beyond simple content blocking to include contextual analysis, real-time monitoring, and sophisticated filtering systems. The report indicates that over 60% of advertisers and agencies cite brand safety as a significant concern, while 69% of audio publishers now offer brand safety solutions. Advanced brand safety tools analyze content themes, sentiment, and context to prevent advertisements from appearing alongside inappropriate or harmful content.

Voice-Activated Ads

Voice-activated advertisements enable real-time, two-way interactions between listeners and brands through voice command technology. These interactive formats allow users to engage with advertisements by speaking simple commands to visit websites, redeem offers, or explore products without interrupting their audio experience. The technology adapts to multiple languages and response times, ensuring campaigns can connect with diverse audiences across various platforms. Voice-activated ads represent the evolution of audio advertising from passive listening experiences to active engagement opportunities that drive immediate consumer actions.

Clean Room Technology

Clean room technology provides secure environments where multiple parties can analyze combined datasets while maintaining strict privacy controls and data protection. In audio advertising, clean rooms enable advertisers and publishers to gain insights from aggregated audience data without exposing individual user information or sharing sensitive business data. AdsWizz partners with LiveRamp's Clean Room, powered by Habu, to offer advanced analytics that are both rigorous and privacy-safe. This technology allows for sophisticated audience analysis and campaign optimization while ensuring compliance with privacy regulations and maintaining consumer trust.

Second Screen Retargeting

Second screen retargeting pairs audio advertisements with visual display advertisements across web and mobile platforms, creating coordinated multi-touchpoint campaigns. This technology identifies listeners through device IDs or IP addresses and delivers complementary visual messages within two days of audio advertisement exposure. The approach leverages consumers' multi-device usage patterns to reinforce brand messaging and increase campaign effectiveness through repeated exposure across different media types. Second screen retargeting bridges the gap between audio engagement and visual reinforcement, creating comprehensive advertising experiences that drive higher conversion rates and brand recall.

Summary

Who: AdsWizz, a SiriusXM company and leader in audio advertising technology, released the comprehensive industry report examining current market conditions and future trends.

What: The State of Audio Adtech Report 2025 reveals a 22% gap between consumer audio engagement (31% of media time) and advertiser investment (9% of budgets), while documenting advances in programmatic audio, enhanced targeting, privacy solutions, brand safety controls, and multi-platform content consumption.

When: The report was published in January 2025, analyzing 2024 data and providing predictions for 2025 and beyond.

Where: The analysis covers global audio advertising markets, with specific data from the United States, France, and other international markets where AdsWizz operates its platform serving 60 billion monthly dynamically inserted audio ad impressions.

Why: The research addresses the need for industry understanding of audio advertising's evolution from traditional broadcast methods to sophisticated programmatic capabilities, helping marketers capitalize on underutilized opportunities in an intimate, high-engagement medium while navigating privacy regulations and brand safety requirements.