Audio advertising in podcasts, audiobooks, and music streaming has proven to be a compelling space for capturing attention.
PodPoll 2025 found that 69% of 25-34-year-olds listen to podcasts each month, while 54% of regular listeners consume 1-3 hours of podcast content per week.
Investment has also grown to $313 million in 2024, up 17.8% year-on-year, according to the IAB’s 2025 audio advertising state of the nation report.
However, Stephanie Famolaro, senior director of business development at The Trade Desk, told Mediaweek that despite audio being such an immersive ad environment, brands treat it like an “afterthought” rather than a core channel as an investment in the media mix.
“Brands that look at audio as its core channel, not just complementary, will be the ones seeing massive uplift in performance.”
She explained that while most advertising channels compete for attention with other media, audio stands apart as it offers an undivided experience.
“In fact, audio is the second most-engaged channel in Australia. Unlike visual media, audio doesn’t require full attention to be impactful yet often ends up capturing it anyway.”
“Audio thrives on immersion and intimacy. Whether it’s an energising podcast or a gripping audiobook, the medium resonates with listeners on an emotional level.
“This creates an opportunity for brands to connect with audiences when they’re most receptive, whether they’re focused or alone with their thoughts.”
Famolaro noted that The Trade Desk’s report, ‘The untapped opportunity of omnichannel’, found that people leaned into audio, especially during commuting, exercising, and unwinding.
“This means that advertisers can reach audiences in a high-attention, low-distraction environment, which drives better memory encoding, stronger emotional connection, and higher trust.”
She explained that The Trade Desk’s research revealed audio ads excel in driving long-term memory retention, motivation, and brand recall.
“Podcasts draw strong engagement, with 26% of listeners strongly remembering ads, and 31% indicated high trust in podcast ads. When audio is integrated in an omnichannel campaign, it delivers 2.1x stronger memory encoding, 1.8x deeper brand affinity, and 1.5x more attention compared to using the channel in isolation.”
Turning up the volume on audio measurement
The IAB audio advertising state of the nation report noted that measurement and evidence of effectiveness as the key hurdles for growth in streaming digital audio and podcast advertising.
To help provide information and clarity on these data points, Spotify brought its Ad Exchange offering to the Australian market earlier this year.
It gives advertisers access to the platform’s base via real-time auctions as well as measurement capability and standardising audience data, which has been a barrier in audio advertising.
The partnership gives The Trade Desk’s clients access to around 7 million podcast titles and 170 million monthly listeners worldwide.
Famolaro said it allows advertisers can plan, buy, and measure podcasts alongside BVOD, video, and display within one omnichannel strategy powered by the industry identity framework, Unified ID 2.0 (UID2), The Trade Desk’s unencrypted alphanumeric identifier.
“By combining UID2 with audio, brands can achieve identity-led precision, unify frequency across channels, and better connect with audiences in moments of high attention.”
She noted that podcasts are treated as an integrated growth driver in the media mix, not just a siloed channel.
This ensures audio sits in the same workflows and measurement frameworks agencies use for BVOD, video, and display, and is integrated into the same omnichannel strategy.
“Advertisers can more effectively manage frequency capping, identity targeting, and cross-channel reporting across all formats in one place.
“That means audio isn’t an add-on, it’s integrated into the same omnichannel strategy.”
Sound strategy, louder impact
Famolaro said that agencies and marketers should treat audio as a core pillar of their omnichannel strategy and not just an add-on.
“With logged-in identity solutions like UID2, brands target precisely and coordinate messaging across audio, BVOD, display, and DOOH for stronger engagement and frequency control.
“The shift from multichannel to true omnichannel is also critical. Instead of buying channels in isolation, an audience-first advertising strategy allows brands to align message, timing, and storytelling across touchpoints.
“When measured against the same outcome metrics as BVOD, mobile and display, audio proves its role in reducing ad fatigue, boosting engagement, and driving ROI.”
She noted that brands are recognising the measurable role of audio in driving outcomes as part of a connected media strategy.
“Audio builds the memory encoding and emotional connection that influences decisions over time.
“In Australia, omnichannel campaigns using audio saw significantly higher encoding and brand connection, which are critical for shifting purchase intent.
“Brands are now combining that with real-world metrics, like site visits, app engagement, or retail lift, to prove the full value of audio beyond top-of-funnel awareness.”
Spotify has also combined audio and video ads on the platform, which has increased purchase intent by 27% and incremental sales by 66% compared to audio-only ads, according to The Trade Desk.
Famolaro noted that more brands are expected to design campaigns that move between audio and video content, mirroring how people use Spotify.
“Programmatic platforms make it possible to sequence messages across formats, using audio to build intent and video to deliver a strong call to action.
“Instead of buying channels in isolation, advertisers are building connected narratives across touchpoints, which leads to stronger performance.”
The next frontier: targeting, creative, measurement
Looking ahead, Famolaro noted that the wave of innovation in programmatic audio will come from three specific areas: Targeting, Creative, and Measurement.
For targeting, Famolaro said identity solutions like UID2 give advertisers cross-device reach and frequency control.
“By unifying people, households, and devices into a single graph, we can deliver precision at scale while keeping audio integrated into omnichannel strategies.”
Brands now have creative tools that streamline audio ad production and are lowering barriers to entry, which allow for scope to test and refine messaging efficiently.
The biggest opportunity is measurement. Famolaro said while advertisers want audio to be held to the same ROI standards as other digital channels, the industry needs to solve podcast measurement where downloads, streams, and identifiers can vary depending on distribution platforms.
Famolaro concluded: “There are still innovations to be made in how podcasts are consumed and how measurement is standardised across formats before we can talk about true outcome-based reporting.”
Top image: Stephanie Famolaro