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How can Spotify grow its advertiser appeal? The music platform must tread carefully to attract advertisers while retaining customers.

Technology companies like Qsic are partnering with retailers to develop regionally targeted, contextual audio advertising programs. Existing digital screens are a natural fit for early in-store retail media testing. Self-checkout payment kiosks and some traditional point-of-sale checkouts have screens that can be used for dynamic advertisements.

Spotify and UMG expand their partnership: Companies offer new subscription tiers, premium content bundles, and artist-first royalty reforms.

How SiriusXM plans to compete with Spotify: After a failed music streaming venture, the company is reinvesting in its car business.

Use this chart: Marketers can use this chart to pitch exclusive audio content creation partnerships, determine audio ad budgets, and make the case for investing in digital audio due to its large listener base. Related Ä¢¹½AV reports:. US Digital Audio Forecast Overview 2024 (Ä¢¹½AV subscription required). Radio and Digital Audio Ad Spending Benchmarks: Q4 2024 (Ä¢¹½AV subscription required).

The danger of relying entirely on AI for audio ad creation is that it could be hard to tackle some of its inherent bias and lack of inclusivity. Our take: AI personalization as applied to audio advertising can exponentially increase listener engagement. And AI audio ads present a better use case than AI video ads, some of which have been harshly criticized.

In-store retail media is growing rapidly, with players like CVS and 7-Eleven using digital screens and audio ads near points of purchase, despite infrastructure challenges. Obstacles to growth: Advertising measurement challenges persist, as marketers seek to prove retail media’s incremental value, especially in physical stores, while third-party solutions attempt to bridge gaps.

CVS partnered with The Trade Desk and Vibenomics to offer self-service audio ads to shoppers in 6,900 stores. 7-Eleven plans to expand its Gulp Radio network to 5,000 stores by the end of 2024, and to all 12,000+ 7-Eleven, Speedway, and Stripes locations nationwide by the end of next year.

Note: Nonvideo rich media includes nonvideo ads which feature various levels of interaction (including scrolling, expanding, or clicking within the ad) such as splash screens, pop-up and pop-under ads, daughter windows, interstitials and superstitials, and digital audio ads for all formats mentioned.

Monetization via subscriptions limits digital audio ad slots. The relatively low ad spend reflects, in part, limited inventory. Audio subscriptions will account for 63.0% of digital audio revenues in 2024. Even when taking time spent into consideration, audio advertising remains low. Digital audio will earn 5 cents per user hour in 2024, compared with 8 cents for radio and 21 cents for TV.

That makes it crucial for Spotify to continue innovating in audio advertising, where its users are most engaged. Our take: The success of Spotify's advertising business depends on how well it can balance the needs of advertisers with user expectations. Spotify will need to ensure its fresh initiatives drive meaningful growth in ad revenues without compromising the user experience.

Vibenomics and Stingray Advertising are combining their networks to offer in-store audio advertising across 25,000 grocery, convenience, home improvement, and drug stores. Schnucks Markets is bringing Instacart’s smart Caper Carts to select locations to offer shoppers personalized and contextually relevant promotions as they move through the store.

of omnichannel advertising solutions and services: onsite native display and sponsored product ads on Lowes.com and the Lowe's app; omnichannel programmatic activations across display, video, connected TV, streaming audio and podcasts, and digital out-of-home with Yahoo DSP; offsite advertising placements including email, paid search, and social media with partners like Google, Meta, and Pinterest; and audio

There are challenges in adapting audio ad formats for TV screens, making Spotify’s effort one to watch.

In 2018, 57.8% of US digital audio revenues came from subscriptions. This year, the figure will be 64.1%. Audience-approved. Digital audio listeners are increasingly opting to reduce the number of ads they hear. In 2023, there will be 7.1 million more US paid digital audio subscribers than last year, totaling 142.5 million people.

Most brick-and-mortar stores already have audio systems, making the implementation of audio ads easier. Audio ads are part of a larger in-store retail media approach.

Making the case for investing in audio ads in 2024. Podcast advertising in 5 charts. US adults spend a fifth of their daily digital media time with digital audio. Global Podcast Listeners Forecast 2023 (Insider Intelligence subscription required).

Now, advertisers will be able to use customer data from Macy’s and Bloomingdale’s to run a wider range of display, CTV, and audio ads via the ad tech vendor’s platform.

It also began testing two new in-store ad formats—in-store demos and in-store audio ad spots—to provide advertisers another way to connect with new and hard-to-reach customers. International sales. The company plans to reach $200 billion in gross merchandise volume in foreign markets within five years, which is double its current rate, said Judith McKenna, president and CEO, Walmart International.

In 2018, 57.8% of US digital audio revenues came from subscriptions. This year, the figure will be 64.1%. Audience-approved. Digital audio listeners are increasingly opting to reduce the number of ads they hear. In 2023, there will be 7.1 million more US paid digital audio subscribers than last year, totaling 142.5 million people.

Walmart continues to make enhancements to its retail media network, Walmart Connect, by adding new partnerships and expanding in-store media formats like product demos and audio ads. Special delivery: Walmart has been building its logistics capabilities, which the company is now leveraging for internal and external purposes.

Early results from Lowe’s beta roll out show in-store audio ads lifted both incremental sales and return on ad spend. This is a good sign considering performance-driven paid media is the top advertising capability and media investment most critical to retail marketers worldwide, per a November 2023 survey from MediaOcean.

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Walmart has introduced audio ad spots to Walmart Radio, giving advertisers the ability to purchase ads by region or by store so they can more accurately target consumers. Hy-Vee is using digital displays installed in aisles, across meat and seafood counters, and in food courts to enable ad partners to reach shoppers in-store.