It’s time to invest in the right kind of digital
Opinion
The latest AA/Warc Expenditure Report shows digital audio was the fastest growing medium in Q1. Bauer Media’s Simon Kilby argues that advertisers should seize the opportunity to invest in trusted digital platforms beyond the US tech giants.
Over the past few years, I’ve not been shy in sharing my views on the dangers of increased advertising spend with the tech giants.
I’ve written articles, presented on stages and had more conversations than I can remember with my peers, about my belief that ad land is asleep at the wheel when it comes to this continued growth in spend. Not once has anyone disagreed with the general view I have presented, that our industry needs to review its relationship with the likes of Meta, X and TikTok – but agreeing with the principle is one thing, as we all know, ultimately money does the talking.
Today’s WARC figures have left me with contrasting feelings, as I think they highlight two of the competing media trends of recent times – the fight for trusted ad platforms vs the appetite for more digital first advertising.
The new numbers represent one very positive headline, in which digital audio is the fastest growing advertising medium in Q1 – with a huge 22% year on year growth. Audio is a platform that can deliver it all, bringing high quality targeting, huge audiences, unrivalled connection and brand safe environments.
Whilst audio is the fastest growing medium, the appetite for trusted, digital platforms is clear – with strong growth in this area for TV, Publishing and Outdoor. Mediums which deliver big audiences, in a trusted environment.
The remarkable growth of digital audio is a story that should be celebrated. Here at Bauer Media, it’s been a key area of investment for our business, launching our own digital audio product audioXi last year – a transformational moment for the way that we work with our partners.
The audioXi team have, in a matter of months, built an industry renowned product, using quality first party data, that is providing something new and exciting to the advertising market. As we embrace innovation and the potential of artificial intelligence, we’re making audio advertising something that businesses of all sizes can do, reducing barriers to entry and so, providing an alternative to Meta and Google for small businesses.
It’s a great example of investment in the right kind of digital. There are many great trusted and regulated platforms for digital advertising, rather than the toxic social platforms which are causing harms to both our industry and society.
Whilst these latest numbers give me reasons to be cheerful, the continued growth of investment in big tech makes it evident that there is still a need to fight for the future of advertising. Social media has seen 17.7% growth in Q1 YoY, a stark reminder that these companies continue to have a grasp on marketing spend. I’ve talked at length about the dangers of this continued investment in these US giants – and I think everyone in our industry knows the threats associated with it.
Despite the concerns over the rise in big tech investment, the growth of spend in platforms like audio is a ray of light for anyone concerned with protecting regulated media channels. Brands can achieve targeted results, in high-quality environments – something I’m sure any responsible marketer wants.
The WARC figures are a tale of two stories. Yes, the continued rise in spend on social media should be a concern for our industry, but digital audio’s spectacular growth is also something that anyone invested in the future of UK advertising should be excited by.
Simon Kilby is managing director at Bauer Media Advertising