Digital audio measurement gains standardized approach to solve investment gap
Despite 80% of Americans listening to digital audio monthly, the channel attracts only 2.9% of advertising spend.
The Interactive Advertising Bureau released a comprehensive guide on June 24, 2025, addressing chronic underinvestment in digital audio advertising through improved Media Mix Model measurement. The "Measuring Digital Audio in Media Mix Models: A Beginner's Guide" tackles the persistent gap between consumer attention and advertiser spending in the audio space.
Digital audio commands 20% of all 18+ time spent with digital media, exceeding two hours daily according to the guide. However, as of April 2025, audio investment dropped to just 2.9% of total digital advertising revenue at $7.6 billion out of $258.6 billion industry-wide. This represents a decline from 3.1% recorded in late 2024.
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Summary
Who: The Interactive Advertising Bureau's Media Center, working with industry partners including Nielsen, SiriusXM Media, Horizon Media, Ad Results Media, and the Getting Audio & Podcasting on the Media Plan working group.
What: Publication of a comprehensive guide establishing standardized measurement practices for digital audio in Media Mix Models, addressing chronic underinvestment in audio advertising despite strong consumer engagement.
When: Released June 24, 2025, following working group formation in March 2024 and industry research conducted throughout 2024-2025.
Where: The guide addresses the global digital advertising ecosystem, with specific focus on US market data showing audio's 2.9% revenue share versus 20% time-spent share.
Why: To close the persistent gap between consumer audio consumption (80% monthly listenership) and advertiser investment, by providing measurement standards that enable Media Mix Models to accurately account for audio's marketing contributions alongside other digital channels.
According to IAB research, the investment imbalance persists despite compelling performance data. Audio generates 56% greater attentive seconds per thousand impressions than other media forms. A Neustar analysis showed that a 1.8% shift of media investment into audio produced a 23% increase in overall return on advertising spend for automotive advertisers.
The core issue centers on measurement standardization rather than audio's effectiveness. "I think when audio isn't producing strong results in Mix Models, it's probably because it hadn't been planned for with enough media weight," explained Rich Tunkel, Nielsen's General Manager for Audio, during an October 2024 webinar. The guide emerged from a working group launched by IAB's Media Center in March 2024.
Historical measurement challenges stem from fragmented data delivery to modeling companies. Joe Macarak, SiriusXM's Director of Measurement Partnerships, noted that "audio data for MMM has been historically collected and delivered by legacy Google streams on media suppliers' behalf, misrepresenting channel and platform effectiveness." This fragmentation contrasts sharply with standardized measurement practices in other digital channels.
Media Mix Models have gained critical importance among advertisers. IAB's 2025 Outlook Study identified cross-channel media measurement and MMM improvement as top advertiser priorities. A 2024 eMarketer survey ranked MMM as the number one method advertisers trust most for measuring outcomes at 30.1%, ahead of web analytics at 20.2%.
The measurement gap creates a self-reinforcing cycle. Ashley Fitzgerald, Ad Results Media's Director of Analytics, explained that "in most Marketing Mix Models, audio is represented by a single input: spend. But because audio budgets are typically just a small fraction of what other channels receive, the model often doesn't detect enough signal to assign meaningful impact."
Technical solutions require comprehensive data delivery standards. The guide outlines specific requirements including creative campaign names, product details, marketing objectives, buy types (direct, indirect, programmatic), media types (streaming audio, podcasting, satellite), and geography breakdowns. Location data presents particular challenges since audio measurement often lacks the granular geographic information that other channels provide.
Successful implementation already shows promising results. Horizon Media's standardized data collection allowed them to prove audio's value alongside traditional and digital channels in their models for the first time. Ad Results Media achieved consistent lifts in audio's modeled return on investment after standardizing delivery and integrating pixel-tracked user engagement data.
The timing proves crucial as digital audio measurement faces increasing scrutiny. Privacy regulations and fragmented measurement systems have complicated cross-channel attribution. John Fix, former Procter & Gamble Senior Media Analyst, emphasized that large brand advertisers want MMMs to "tell me explicitly what levers I can pull" rather than providing directional insights alone.
Data accuracy requires "as run" rather than planned metrics. Audio campaigns frequently deliver actual impressions exceeding planned volumes, but measurement systems often report planned figures to modelers. This discrepancy skews models and distorts audio's apparent contributions, particularly when actual performance surpasses expectations.
Platform standardization efforts are expanding. SiriusXM Media developed an MMM dictionary enabling standardized data passage to modeling companies. The taxonomy includes fields like campaign IDs, start and end dates, cost types, delivered DMAs, and platform specifications. Ad Results Media enhanced MMM signals through features including show names, host details, spot placement types, daypart information, and demographic composition data.
The measurement standardization addresses broader industry trends. Connected TV advertising demonstrates how proper measurement drives investment, with CTV's media budget share projected to double from 14% in 2023 to 28% in 2025. Audio advertising requires similar measurement infrastructure to achieve proportional investment levels.
Industry collaboration continues through the Getting Audio & Podcasting on the Media Plan working group. Contributors include major platforms like Spotify, Amazon Ads, iHeartMedia, and SiriusXM Media, alongside agencies such as Horizon Media, Carat, and Hearts & Science. The group focuses on refining measurement input standards and supporting consistent data delivery to MMM companies.
Implementation challenges vary by organization size and technical capability. The guide acknowledges that sufficient media weight remains necessary for model detection, echoing broader programmatic advertising trends where 72% of marketers plan increased programmatic investment in 2025. Audio requires similar strategic commitment combined with measurement rigor.
Lauren Russo, Horizon Media's EVP Managing Partner for Innovation & Performance Audio, stressed that "agencies and brands should implement a uniform, standardized naming convention that aligns with the data feed to ingest into their Analytics model. Otherwise, it will break the data, and you'll need to troubleshoot to deliver customized reporting in the required format."
The guide positions audio measurement within evolving privacy landscapes. Marketing Mix Modeling resurged as a privacy-safe measurement solution as attribution modeling faces limitations from data collection restrictions. Audio's measurement standardization aligns with industry-wide shifts toward comprehensive, privacy-compliant measurement frameworks.
Technical appendices provide implementation templates. The guide includes SiriusXM's MMM dictionary draft and Ad Results Media's enhanced variable list. These resources offer practical starting points for media suppliers and measurement companies seeking standardized audio data integration.
Future developments will expand measurement capabilities. The working group continues meeting throughout 2025 to refine data input requirements and support industry-wide implementation. The end goal establishes audio representation in MMM comparable to other media channels, enabling strategic optimization across podcasting, streaming, and platform variations.
Timeline
- March 2024: IAB Media Center launches Getting Audio & Podcasting on the Media Plan working group
- October 2024: Nielsen's Rich Tunkel speaks about audio measurement challenges at IAB webinar
- Late 2024: Audio investment drops to 3.1% of digital advertising revenue
- April 2025: Audio investment further declines to 2.9% of $258.6 billion total revenue
- June 24, 2025: IAB publishes comprehensive measurement guide
- Ongoing 2025: Working group continues refining measurement standards for industry implementation