Today, users on the go consume podcasts, streaming music, and other audio-based content with frequency. Audio is an easy way to stay informed or entertained on a commute or at the gym. However, as advertising budgets increasingly target this growing medium, HUMAN has noted, potential risks. Similar to what we've observed with other emerging media formats, the rapid growth of audio advertising inventory may create new security and privacy vulnerabilities.
Recent fraud data underscores the need to protect audio inventory. In 2023, HUMAN observed that approximately 1 in 20 audio bid requests were fraudulent, resulting in a higher bot rate for audio advertising compared with other digital channels such as connected TV (CTV), web, or mobile. This prevalence of fraud undermines advertisers' confidence in the reliability of their metrics and the overall effectiveness of their audio campaigns.
According to eMarketer, the average U.S. adult spends more than 2.4 hours daily listening to audio content. However, advertisers allocate only 4.5% of their budgets to audio, primarily in traditional radio. Just like the shift from linear TV to CTV, digital audio offers advertisers the opportunity to reach audiences with more precision than traditional radio; however, realizing the value of this new attention will require trust in order to truly scale.
While the industry looks to adapt to accommodate and protect this new landscape, understanding the current challenges of audio becomes key to safeguarding the value and future growth of programmatic audio inventory.
The challenges of audio advertising
The challenges of audio closely resemble the challenges of CTV. Limited third-party JavaScript integration, lack of advertising standards, vulnerabilities in server-side ad insertion (SSAI), rapid expansion, and a lack of transparency all combine to threaten trust in programmatic audio inventory.
- Limited support for third-party JavaScript hinders advertiser measurement and tracking capabilities while also restricting network telemetry and ad verification, making it more difficult to detect and monitor fraudulent activities across the open internet.
- Lack of standardization has led to a fragmented ecosystem, leaving the door open for fraudsters.
- SSAI vulnerabilities give fraudsters access to manipulate server-to-server communication, allowing them to generate fake ad impressions.
- Rapid expansion in audio has increased the number of publishers and platforms offering audio inventory, which comes with an increased risk of untrusted sources.
- Transparency remains limited, as visibility into the intermediaries involved and the origin of ad inventory continues to be opaque.
While many of the challenges in audio mirror the challenges of CTV, one remains unique: audio ads can be served anywhere. Unlike CTV, which is an environment that is always on a specific type of device, audio can exist in any environment. This provides fraudsters an opportunity to hide in numerous types of traffic.
Defending audio ad inventory from fraudsters
The industry knows these challenges well, but if left unchecked, they can impact the growth and trust of programmatic audio inventory.
The industry needs to proactively address IVT in audio. Acknowledging the problem, raising awareness, and having open discussions regarding the different types of ad fraud in audio and how all parts of the ecosystem are impacted today is necessary to combat existing challenges. Beyond awareness, continued education is core to understanding the latest audio ad fraud trends and the best techniques for protection.
To address digital fraud, signal is critical. The strength and diversity of signal is what allows fraud to be uncovered, the stronger the signal, the easier it is to identify fraud. In audio, fraudsters can manipulate SSAI servers to deliver fake impressions and spoof devices, making verification more complex. The adoption of client-side verification telemetry and publisher watermarks is essential to increase signal strength and enhance data accuracy to allow advertisers to spend with confidence.
Industry participants can’t fight fraud alone. Effective fraud prevention in the audio industry demands industry-wide collaboration. Establishing a standardized audio taxonomy, as well as standards, is imperative to improve transparency throughout the supply chain. Taking this approach will empower us to outpace fraudsters and realize the potential of the audio industry.
How HUMAN can help
To learn more about how audio-based inventory is at risk, and how the HUMAN platform can safeguard it, check out HUMAN’s Ad Fraud Sensor and Ad Fraud Defense.
