Why Your 2025 Media Plan Needs to Include Digital Audio Advertising

It’s time to start putting media 2025 budgets in ink, but that’s hard to do knowing how much things will change between now and this time next year (or between now and January).

With that volatility in mind, it’s a good time to consider the adaptability, scalability, and customization offered by podcast and digital audio advertising. Plus, advertising through digital audio publishing platforms gives advertisers the power to ride the waves of innovation instead of fighting to play catch up.

With streaming audio and podcasts becoming increasingly popular, it's clear that digital audio should have a line item on your marketing budget. But for those looking to harness popular new media and listener fandom, digital audio should probably be a cornerstone of their media plans.

Here are the seven biggest reasons your 2025 strategy should include digital audio advertising.

1. Digital is on top.

Media experts have predicted digital audio will overtake terrestrial audio for the better part of the last decade, but in 2024, it became a solid reality. Listeners spend nearly 5 hours daily with digital audio, with 72% of that time dedicated to music.

Those increased engagement numbers mean that a significant chunk of their audience is listening to digital audio, and many are listening all day.

Combine that with the fact that there is less competing noise in the digital audio environment, and you’ll see that digital audio ads have been shown to outperform other formats with a 49% better impact on long-term memory than AM/FM ads and a 36% better impact than TV ads.

This media loyalty represents a golden opportunity for advertisers to reach their target audience with messages that will be heard and remembered.

2. Podcast audiences are growing and fiercely loyal.

There are more than 135 million podcast listeners in the US, a 350% increase in the past decade. Podcasting is an intimate medium, with podcast hosts speaking directly into their listeners' ears as they commute, work, run errands, exercise, and do chores.

Over four in 10 podcast listeners feel a connection to their favorite hosts, and over three in 10 say the host feels like a friend. As a result, more than 85% of listeners report being open to hearing ads on their favorite shows (especially when the host does the ad read).

3. Digital audio advertising offers advanced targeting.

Advertisers can target those listeners based on interests, behaviors, moods, and even specific moments in their day.

Place ads based on environmental cues, listening device type, music genre, podcast topic, and thousands of other data points. This precision ensures that your message reaches the right audience at the right time, maximizing the impact of your advertising spend and improving overall campaign effectiveness.

4. Multiple types and placements give budget flexibility.

Digital audio platforms offer a wide array of advertising options to suit various budgets and campaign goals. From traditional audio ads to dynamic ad insertion, sponsored content, and even interactive voice ads, the possibilities are diverse. This flexibility allows advertisers to tailor their approach based on their specific objectives and resources, making digital audio advertising accessible to businesses of all sizes.

Entry-level campaigns can start at any budget with self-service options like AudioGo, while high-end campaigns on popular shows require more investment.

5. Capitalize on incremental reach.

The biggest benefit of digital audio advertising comes in mixing and matching, capitalizing on the effectiveness of more impactful ad placements and supporting it with more affordable placements. Incorporating digital audio into your media mix can significantly boost your overall reach, and the diversification of media can save money.

Studies show that adding podcasts to streaming campaigns can increase reach by 33%, while combining podcasts with SiriusXM campaigns can result in a 64% increase in reach. This incremental reach is crucial for capturing audiences that may be difficult to engage through traditional media channels.

6. Measurable results give real attribution.

Traditional media has developed impressive analytical tools over the years, but the reality remains that we can only attribute so much customer activity to a mass media broadcast message.

Unlike traditional radio, digital audio advertising provides robust analytics and attribution capabilities. Advertisers can track key performance indicators such as ad impressions, completion rates, and direct response metrics. Brands can measure lifts in awareness, favorability, purchase intent, and more. This data-driven approach allows for continuous campaign optimization and clear ROI measurement.

7. Digital audio advertising is easy to start.

All you need is a good script and a good advertising partner. And creating an effective audio ads doesn't have to be complicated, especially if you find the right advertising partner.

At SiriusXM Media, we have digital audio advertising experts and in-house partners like Studio Resonate to help advertisers craft the perfect messages.

Are you ready to jump to digital audio advertising?

As we look towards 2025, it's clear that digital audio advertising is not just a trend but a necessity for effective media planning. The combination of engaged audiences, flexible ad options, precise targeting, and measurable performance makes it an indispensable tool for marketers aiming to stay ahead in an increasingly digital world.

We can help you craft a winning digital audio strategy for 2025 and beyond. Ready to amplify your brand's voice in the digital audio space?

Ready to see for yourself? Let’s talk.