Technology for a sound world.

The State of Audio
Technology Report 2023

CONTENTS
Introduction

Brand Safety & Transparency

Growth of Audio

Identity, Data & Privacy

Audience & Content Diversity

Future Audio Advertising Opportunities

Waves of Innovation

Conclusion

Targeting & Insights

The State of Audio Technology Report 2023

INTRODUCTION
Turn the dial down andlisten up. Because digitalaudio is getting loud.

The digital audio market—streaming radio, on-demand radio,
and podcasts—has rapidly developed over the last few years,
with consumption and content creation aiming to ripen andmature. To add, the technology and tools powering thisecosystem have transcended its ability to empower publishers,
advertisers, and listeners alike.
But with the progress comes an impasse: the industry will needto constantly adapt in order to follow the changes in audio
consumption, with each new generation accelerating theevolution of audio engagement.

The State of Audio Technology Report 2023: INTRODUCTION

So, how do we meet the moment to face the challenges to
unlock opportunities that develop as fast as our industry
evolves?
Whether monetizing content or engaging listeners, it has
never been more critical to prepare for the waves of innovation
with the latest technologies.
With that, meet The State of Audio Technology Report 2023.
Based on proprietary data and in-depth interviews withindustry subject matter experts, our analysis digests the mostcritical trends, themes, and opportunities in audio adtech andour predictions for what's on the horizon.
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TECHNOLOGY FOR A
SOUND WORLD.
AdsWizz has the power to reach people, no matter where, when or how they'relistening. We have built an audio advertising technology platform trusted by publishers,
podcasters, and advertisers of all sizes—from global leaders to boutique specialists. Audio
advertising isn’t one size fits all; it’s about the right tool for the right job. And we havemade building those tools our mission for the last 15 years.
If you’ve ever heard an ad on a podcast or streaming radio station, we’re likely thetechnology that delivered and personalized that ad for you.
We've been pioneering audio ad technology since our inception in 2008. Our customers,
partners, and seasoned team members create an unrivaled network of audio experts—
this expansive network puts us in a position to see the big picture and develop
technology solutions that serve all the key players at a global level.

WINNEROCTOBER
2022

WINNEROCTOBER
2022

WINNERJANUARY
2021

NOMINATIONAUGUST
2022

NOMINATIONNOVEMBER
2022

Best Use Of
Technology By
A Publisher

Innovation In
Audio
Advertising

Most Innovative
Technology
Platform

Best Audio
Network

Best Useof Audio

The State of Audio Technology Report 2023: ABOUT ADSWIZZ

250M+
unique devices
per month

25B+

monthly audio
impressions

100+

countries reached

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GROWTH OF AUDIOThe rise of audio overthe last decade has
effectively transformed
the media landscape.

Global digital audio listeners are projected to reach 1.52B by
2027. Worldwide digital audio ad spend is forecast to hit $11.13B
in 2024 and rise to $12.82B by 2027.(1)Podcast adoption also continues to increase, consistently
showing up as one of the fastest-growing forms of media. In
2020, the number of global podcast listeners was 332.2M. By
2024, it is expected to reach 504.9M, a 52% increase.(2)With this ongoing expansion of audio and the increased
technological maturation, it's critical for publishing andadvertising leaders to be agile, reactive to industry
change, and adept at making pivots and well-informed
strategic decisions.
(1) "Digital Audio Advertising - Worldwide." Most recent update: March 2023.
(2) "Global Podcast Listener Forecast 2021–2025." Published October 2021.

The State of Audio Technology Report 2023: GROWTH OF AUDIO

4

The State of Audio Technology Report 2023: GROWTH OF AUDIO“

The increasing popularity of podcasts and music streaming services hascreated new opportunities for content creators, businesses, and advertisers
alike. The convenience and quality of audio content have led to shifts in
consumer behavior, with more listeners turning to audio for entertainment,
education, and information. As a result, the audio industry has experienced
rapid growth, and we anticipate media investments in audio advertising tocontinue to grow as it catches up with time spent on audio.
- Anne Frisbie, SVP, Global Business Development at AdsWizz
5AUDIENCE & CONTENT DIVERSITYState of PlayDEMOCRATIZING AUDIO FOR NEW GENERATIONS AND DIVERSE COMMUNITIESThe evolution of audio would not have been possible without
the support of a range of consumers. Digital audio reaches
younger and more diverse audiences, particularly Millennials
and Gen Z. In fact, streaming digital audio reaches 83% of 1834-year-olds and 84% of 18-24-year-olds.
Digital audio is growing particularly among Black and Hispanic
audiences, the latter, a major demographic with three out offive Americans having Latin roots.(4)When surveyed, 68% of Black Americans regard themselves asmusic fans and 70% of Hispanics declared they listen to moreaudio content today due to its accessibility.(3) In fact, within our
US Marketplace, Spanish language streaming content
increased 55.7% from June 2022 to December 2022.(5)(3) "If You Cut Your Audio Budget, You’re Missing Out." Published May 2023.
(4) "A Brief Statistical Portrait of U.S. Hispanics." Published June 2022.
(5) Available Monthly Impressions for Streaming Radio in AdsWizz US Audio Marketplace, 06/01/2022 vs. 12/31/2022.

The State of Audio Technology Report 2023: AUDIENCE & CONTENT DIVERSITY

6

FROM SOUND TO SCREEN
Audio has progressed from linear formats to on-demand in order to alignbetter with listener consumption preferences. Not only that, but content
creation (like the humble podcast) has a lower barrier of entry to reachlisteners, enabling a wildfire-like spread of content creation acrosslistening platforms. Paired with audiences consuming content outside of
streaming and podcasts in greater frequency (i.e., in-game, audiobooks,
CTV), it creates the perfect recipe for fragmented—but still engaged—
audiences.
In August 2022, YouTube was named the world’s most-used podcast
platform.(6) From our purview, mobile still reigns, with about 80% of audio
ads delivered across our platform. Within our US Marketplace, OTT and
CTV streaming audio ads have seen an uptick of 148% from June 2022 to
December 2022.(7) Video experiences that lack consumer engagement
would be better served by audio advertising, and we expect OTT and CTV
audio ad experiences to continue to grow even though it makes up asmall amount of audio advertising today.(8)But reaching target audiences across fragmented channels
is not only an efficiency nightmare, but it can also be costly, hinder
creativity, and result in a loss of customers.
(6) “YouTube Named as the World’s Most-Used Podcast Platform." Published August 2022.
(7) Available Monthly Impressions for Streaming Radio on “Digital Appliances” in AdsWizz US Audio Marketplace, 06/01/2022 - 12/31/2022.
(8) Available Monthly Impressions for Streaming Radio in AdsWizz US Audio Marketplace, 06/01/2022 vs. 12/31/2022.

The State of Audio Technology Report 2023: AUDIENCE & CONTENT DIVERSITY

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Skip Ahead - Predictions
So how can we get on the right frequency (pun intended) with new audiences acrossmultiple platforms?

Technology Bridges the Gap

Authenticity Matters

With an expanding variety of content and distribution
fragmentation, brands will covet streamlined buying that feels
familiar to current media buying practices, while still examining
the new ways to aggregate and curate their content to engage
listeners in an efficient way. We have the technology to do so,so let's tap into it!

To capture these audiences, advertisers need to meet themwhere they're at. We have the tools to navigate a cookielessworld (more to come on that later), and that is a major
strength in today's audio advertising tech.

New content can cause potential uncertainties, and that’s
where technology providers are on the hook for vetting new
inventory sources to minimize fraud and ensure quality content
and audiences are verified. Additionally, they can ease worries
by deploying brand safety solutions.
Brands will leverage innovative ad formats to communicate innew, impactful ways while measuring real-time effectiveness,
as seen with the rise in motion-activated and voice-interactive
audio campaigns this year.

The State of Audio Technology Report 2023: AUDIENCE & CONTENT DIVERSITY

But once advertisers reach their intended audience, theyneed to ensure it feels authentic. This applies to podcast
environments where a host-read style ad feels more native.
Authenticity even extends to language and dialect. SXMMedia research shows stronger brand recall when you
consider how you speak to your audience and whatcorresponds to your brand’s unique identity.(9)(9) "Striking a Balance to Deliver Authentic Ad Experiences." Published November 2021.

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WAVES OF INNOVATION
Say “Yes” to Learn More
In a world where Google and Alexa are just a spoken
command away, it's no surprise voice interaction is gaining
more traction in audio advertising. We saw more brands
leveraging technology to create a personal relationship withaudiences and elevate the listener ad experience to a digital
dialogue. Listeners can choose what happens next, like anaudio message with more info or a redirect to a landing
page. Lagardère, a leading French publishing company,
recently ran voice ad audio campaigns across podcasts
where listeners could interact with the ad to learn more
about tourism in Burgundy, France.

State of Play
There is a need and appetite for tools with simplicity, scalability, andefficiency at their core. This technology will be critical for publishers as
the temperature turns up on ad dollars in an unpredictable economy.
We're in the midst of an innovation renaissance, with advancements inaudio playing a part in expanding existing tools and capabilities into
new forms of media. It's an exciting time!

The State of Audio Technology Report 2023: WAVES OF INNOVATIONAI Voiceover for Podcast Ads
Inspired by the latest advancements in AI — as well as the
production barriers preventing many smaller businesses
from tapping into audio to promote their brand —AdsWizz's Technology Innovation Lab is developing a few
unique tools, using research to determine how these tools
can help us deliver better solutions for our advertisers,
especially SMBs, and creators. Stay tuned for more soon!

9How AI Audio Innovations Can Continue
to Empower Brands
Audience Insights and Personalization: AI analyzes
listening preferences, behaviors, and demographic
data, allowing brands to produce more targeted andrelevant audio ads, creating a more engaging
experience.

Skip Ahead - Predictions
THE FUTURE OF AI IN AUDIO ADVERTISINGAI audio innovations have already made a significant impact on
the way brands interact with their audiences. As AI technology
advances, we expect this trend to continue, with powerful tools to
support brands in becoming more agile, resourceful, andaudience-centric.

The State of Audio Technology Report 2023: WAVES OF INNOVATION

Contextual Relevance: AI allows brands to place theiraudio ads in the proper context to be more relevant,effective, brand safe, and suitable.
Voice-Activated Advertising: AI-powered voiceactivated audio ads are triggered by specific voicecommands or keywords, enabling brands to deliver
highly targeted and engaging consumer messages.
Interactive Audio Ads: AI helps create interactive audio
ads that engage consumers with brands in new andinventive ways.
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TARGETING & INSIGHTSState of Play
Targeting criteria can better monetize inventory and provide a positive, personalized listening experience with precise audiencetargeting and customized-to-fit campaigns.
Contrary to popular belief, digital audio can provide a wide variety of targeting beyond "music genre" and "podcast show level." Audio,
specifically podcasts, provides a type of targeting that leverages what makes it so unique and powerful—the content.

CONTENT STILL REIGNSTHE POWER OF FORESIGHT

In the past two years, we have seen an explosion of podcast
content becoming available for contextual targeting.
Contextual provides insight into podcast content, making it
more transparent for advertisers. This enables advertisers to go
beyond just keywords with the ability to target concepts,
topics, and interests within the podcast.

Have you ever wondered how many impressions you canbook in the next few months; perhaps deploy them during
breakfast time or even in pre-roll in Miami to mobile
listeners in their 20s? Inventory forecasting is an ideal tool tohelp anticipate future expectations for audio advertising.

From 2021 to 2022, there was a 32.4% increase in transcribed
podcast shows, bringing us to 17.8 million episodes
transcribed—that's over 1,000 years of nonstop content!(10)(10) Available Transcribed Podcast Shows in AdsWizz Podcast Repository, 01/01/2021 - 12/31/2022.

The State of Audio Technology Report 2023: TARGETING & INSIGHTS

Complex algorithms evaluate audio-specific metrics like ad
break duration, the maximum number of ads in an ad break,potential ad clashing, or whether a companion banner willcomplement the audio. Essentially, inventory forecastinguses campaign variables from the nature of audio
campaigns and then estimates the number of opportunities
for serving future ads. This differs from display advertising,where requests and impressions follow very closely in time,
and their numbers usually match. Interestingly, audio isgenerally effective post-listen, with ad breaks taking effectafter listeners disconnect, so the number of requests may behigher than the impressions delivered.
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Skip Ahead - Predictions
Harnessing the power of content-based targeting will continue in
its importance, especially as we navigate a world with the loss ofaudience IDs.
Anti-targeting has proven to be an effective tool for
noteworthy publishers who cover serious topics that can or
cannot align with brands' identities or messages.
For example, as a public broadcaster, National Public Radio (NPR)
is responsible for reporting on the war in Ukraine. But to ensure its
advertisers could still run audio campaigns on their content, they
leveraged proprietary podcast contextual targeting technology toensure brand safety (it even won an award). We already anticipate
more podcast publishers and brands looking to this technology toimplement brand safety measures.

The State of Audio Technology Report 2023: TARGETING & INSIGHTS“

Targeting helps advertisers to optimize
their ad spend by minimizing wastage
and improving the effectiveness of theircampaigns. By leveraging data andanalytics to inform their targeting criteria,businesses can gain valuable insights into
their audience's behavior, preferences,and interests, allowing them to create
more impactful campaigns. These
measures are a critical factor in the
success of audio advertising, delivering
personalized messaging that drives
engagement, loyalty, and revenue.

- Molly Ponzo, VP of Ad Product, AdsWizz & SXM Media- Molly Ponzo, VP of Product, AdsWizz and SXM Media

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BRAND SAFETY & TRANSPARENCYState of Play
Transparency is top-of-mind for advertisers, consisting of various controls,
such as defining CPM within a budget, knowing when ads run, and access tocampaign reporting. Marketers reported significant shifts across nearly all
business verticals in how they evaluate, measure, and budget across media
channels. The opportunity for brands is to acquire more data and valuable
insights. Essentially, it is about knowing what kind of inventory is purchased,
who the publisher is, the podcaster, the episode, the context, and theinventory type.
With greater visibility into the impact of ad campaigns, advertisers haveclarity on where money gets spent and how much budget reaches intended
publishers. Data enhancement facilitates visibility into market trends
and helps unlock more revenue. With data-rich inventory, buyers can feel
confident that their money is being wisely spent. Contextual targeting ismore efficient, and there's a greater depth of creative personalization withimproved reporting capabilities.
Additionally, reaching the right audience is the most effective method forincreasing conversions. With the right tools, it is possible to draw an accurate
map for campaigns and ensure each ad delivers safely to the intended
audience.

Skip Ahead - Predictions
As we move ahead, we anticipate less of a request
or demand and more of a requirement frombuyers for the insights they need. Those who canunveil this data in privacy-friendly ways will win.
Brand safety technology is steadily gaining
traction as marketers lean into verification
technology to ensure more seamless targeting.
Look out for more third-party measurement
providers entering this space!
Furthermore, we can expect industry
prioritization on audio and display/video
distinctions, the evolving definitions of GARM
categories, and their relevant applications inaudio.

The issue of transparency is one of the core
concerns of advertisers for a range of controls.
The State of Audio Technology Report 2023: BRAND SAFETY & TRANSPARENCY

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IDENTITY, DATA & PRIVACY
The shifting
shifting data
data &&
The
privacy landscapelandscape cancanprivacy
be hardhard toto navigate.
navigate.
beState of PlayThe fast-evolving data and privacy landscape will take time tosettle. Successful publishers and advertisers must respect theircustomer’s privacy preferences as such audience data—thisfoundation for successful advertising campaigns will become
more challenging to access and use.
With a high reach, podcasts continue to peak, and advertisers
are taking note. However, selling a diverse podcast inventory
and enabling advertisers to reach the right audience withoutaudience identifiers is challenging.

The State of Audio Technology Report 2023: IDENTITY, DATA & PRIVACY

For a long time, podcasts have functioned without traditional
forms of audience data, such as mobile IDs or cookies, data thatconventional media is heavily reliant on. With increased concern
about consumer privacy and any perception that their data
usage may be in violation, advertisers and media sellers arealways looking to reach audiences in a scaled, careful manner.
For streaming audio, conquering targeting, identity, andmeasurement headwinds requires thorough planning to ensure
advertising campaigns offer relevance to users, respect privacy
and data protection, and deliver a positive return on investment.

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Skip Ahead - Predictions
Advertisers and media sellers will continue to openly embrace consumer-focused, privacy-conscious technology options
representing a new era of identity (in culture and technology) based on shared interests and passions that will give them access todata-driven capabilities like never before.

FIRST PARTY DATAPROBABILISTIC IDENTITY SOLUTIONSAs audiences consenting to cross-platform identity matchingdwindles, those that remain will become increasingly important for
future probabilistic targeting and measurement solutions.
Advertisers and publishers should invest in first-party data while
exploring the options to quickly transfer those user segments totrusted partners through security-conscious data transfer solutions,like privacy-first cross-platform identifiers and clean rooms.

Predictive Audience segments are an industry-first, cookie-freetargeting capability paired with AdsWizz AI Transcription Technology.
They are privacy-friendly, powered by context and consented user
identifiers, and allow advertisers to reach over 300+ audiences (without
relying on scaled 1:1 user identity matches).

CONTEXTUAL TARGETING
Contextual targeting has come a long way from the essential
solutions available in the early days of digital advertising. When usedwith first party data and contextual signals, data scientists can create
scaled offerings strongly correlated to desired audiences. Predictive
Audiences is an example of AdsWizz innovating in that space lastyear, and we are investing in additional offerings that can support
streaming environments in 2023.

The State of Audio Technology Report 2023: IDENTITY, DATA & PRIVACY

Advertisers and publishers select relevant segments based on TV
viewership, over-the-top (OTT) consumption, and consumer behaviors
related to automotive purchase or location data. This capability delivers
ads on episodes that include topics the audience has a high affinity for.
The methodology used for predictive assignments involves AI-basedalgorithms and panel-based correlation determination.
Embracing technology that augments the days of old (with rich data)
has proven highly effective and shows no sign of slowing down.

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“The future of identity, data and privacy in the audio advertising will be driven by consumer
demands of the user experience with a growing emphasis on privacy, security, and transparency.
(But advertising can't be left behind.) The industry will need to adapt quickly to new technologies,
regulations, and consumer preferences while also delivering compelling and effective advertisingexperiences that drive engagement, loyalty and revenue.
- Maria Breza, VP of Audience Data Operations & Ad Quality Measurement
AdsWizz and SXM MediaThe State of Audio Technology Report 2023: IDENTITY, DATA & PRIVACY16

FUTURE AUDIO ADVERTISINGOPPORTUNITIES
Podcasts are (still) on
an upward trajectory.
Returning to audio’s growth this year—from listening and creation booms to advertising spend increases—podcasts are on an
upward trajectory. As digital audio hits new highs - advertisers can see this as an opportunity to move more of their budgets toaudio in all forms, and we're placing our bets on Connected TV (CTV) and Gaming. To boot, the IAB UK introduced CTV, audio, andgaming to its Gold Standard certification.(11) As gaming, audio, and CTV advertising become more prominent facets of media
mixes, IAB UK is widening the scope of its Gold Standard guidelines to boost transparency across the breadth of advertisingchannels.
(11) ”IAB UK Introduces CTV, Audio and Gaming to its Gold Standard Certification.” Published October 2022.

Audio and CTV
CTV is just one of the platforms for which publishers are evolving
and expanding inventory, yet new publishers dominate demanddelivery with little insight into the inventory and brand quality.
Video publishers can expand their fill with audio ads that do noterode video CPMs and have been vetted and curated by audio
technology vendors.

The experience is different as listeners are visual viewers, andthe inventory environment is a display slate with audio addelivery. A display slate is a set of typically static images
relating to the channel's content. There are opportunities foradvertisers to include high-res display banners or QR codes in
conjunction with audio to provide the right user experience.

The State of Audio Technology Report 2023: FUTURE AUDIO ADVERTISING OPPORTUNITIES

17

“

Netflix's initial steps into ad-funded video present advertisers with access to audiences previously
out of bounds. We can expect a rush towards new and different kinds of advertising. Brands eager
to hop onto the opportunity of reaching a new global audience, especially an audience that isopen to advertising in exchange for services at a lower price, CTV can be an opportunity for video
demand and audio inventory for buyers, helping brands break into CTV without a heavy financial
investment.

- Scott Walker, SVP of Ad Platform, AdsWizz & SXM Media“

Both CTV and gaming have great potential as platforms for audio advertising with opportunities toreach audiences in new and innovative ways due to their increasing popularity and engagementlevels. CTV offers a highly targeted and measurable advertising channel for businesses to reachviewers with personalized ads. At the same time, gaming provides a captive audience with highengagement levels, making it an attractive option for advertisers looking to get younger
demographics. We look forward to seeing continued growth in both these platforms.
- Marsha Fischer, VP of Strategic Partnerships, AdsWizz

The State of Audio Technology Report 2023: FUTURE AUDIO ADVERTISING OPPORTUNITIES

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Audio and Gaming
Gaming is an option for brands to connect with coveted hardto-reach audiences. Since audio and gaming are highly effective
in capturing audiences' attention and engagement, audio
advertising offers gamers a unique ad experience.
Non-disruptive experiences make audio advertising in gaming
so compelling; gamers can listen to an ad without it interrupting
gameplay, unlike video ads that require them to pause, watch
and listen. Ad content must be highly relevant to the player toguarantee engagement and interest.
To further guide buyers and publishers while also confronting
pervasive tech challenges, advertising solutions need toaugment the capabilities of their targeting tools, for example,
identifying the device players are using to ensure the best audio
ad format.
For audio adtech to better understand gaming demand andinterest, the industry needs to align with stakeholders to identify
those blind spots and attributes not supported by the platforms
and enhance the in-game ad monetization, which is critical for
attracting publishers.

The State of Audio Technology Report 2023: FUTURE AUDIO ADVERTISING

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CONCLUSION

Cue the Outro Music
Whether driving brand expansion, optimizing revenue andmanaging multiple demand sources, or producing audio content,
there has never been a more critical yet complex time in audio toengage listeners.
With that in mind, as a stakeholder in the budding and expansive
media ecosystem, it’s crucial for you to react to changes inTechnology for a sound world.

listener consumption and buying behaviors by meeting audience
expectations and offering more meaningful experiences.
Connect with us now to learn more about harnessing thepower of audio that drives results with passion, innovation,and solutions.

contact@adswizz.com
www.adswizz.com