iHeartMedia and Magnite Unify Access to Broadcast and Digital Audio, Providing Advertisers with a Direct Path to Premium Inventory

Rhea-AI Summary

Magnite (MGNI) and iHeartMedia launch first-of-its-kind marketplace for programmatic media buys, providing access to iHeartMedia's broadcast radio, streaming radio, and podcast assets. Magnite's SpringServe technology enables data-driven real-time-bidding across iHeartMedia's vast audio inventory through a single activation channel. iHeartMedia reaches 90% of US adults monthly with its broadcast stations alone and its streaming radio and podcasts reach 57 million consumers, making it the largest digital audio company. The partnership aims to expand programmatic access to iHeart's audio assets and improve campaign efficacy by using real-time data to message the audience in the most engaging way possible.

Insights

Market Research Analyst

The partnership between Magnite and iHeartMedia to launch a unified marketplace for audio advertising represents a significant shift in the digital advertising landscape. By combining iHeartMedia's extensive audio content with Magnite's programmatic advertising technology, the initiative is poised to capture a larger share of media spend from advertisers seeking efficient, data-driven ways to reach their audience. This consolidation of audio assets into a single programmatic channel could potentially lead to a higher demand for audio advertising, given the ease of access and the streamlined process it offers to advertisers.

From a market research perspective, the integration of broadcast and digital audio inventory in a real-time bidding environment is particularly noteworthy. It indicates a trend towards omnichannel marketing strategies, where advertisers can seamlessly target consumers across different platforms. This could enhance the appeal of audio advertising and lead to increased competition among platforms to offer similar integrated solutions.

Furthermore, the fact that iHeartMedia reaches 90 percent of US adults monthly and has the largest reach of any digital audio company underscores the strategic importance of this marketplace in capturing substantial listener demographics. The move could incentivize other industry players to innovate and possibly consolidate, leading to a more efficient and competitive market.

Financial Analyst

The announcement of the strategic partnership between Magnite and iHeartMedia could have positive implications for Magnite's financial performance. As the largest independent sell-side advertising platform, Magnite stands to benefit from the increased volume of transactions that the new marketplace will facilitate. The partnership with iHeartMedia, a leader in audio content, provides Magnite with a competitive edge in the growing audio advertising sector, potentially leading to increased revenue and market share.

For iHeartMedia, the collaboration with Magnite to leverage programmatic advertising technology could optimize ad inventory monetization and attract a broader range of advertisers. This may result in a more robust revenue stream from its digital and broadcast assets. The deal could also be seen as a move to innovate within the audio advertising space, which may attract investor interest and potentially drive up the company's stock valuation.

Investors should monitor the uptake of the new marketplace and its impact on both companies' quarterly earnings reports. A successful implementation could lead to upward revisions in revenue forecasts and possibly enhance shareholder value.

Advertising Technology Expert

The creation of a marketplace that integrates iHeartMedia's broadcast and digital audio inventory with Magnite's programmatic advertising platform is a technological milestone in the advertising industry. The custom implementation of Magnite’s SpringServe ad serving technology showcases the company's ability to develop tailored solutions that address the unique requirements of audio advertising.

Programmatic advertising in the audio space has been less prevalent than in other media, like display or video. However, this partnership signifies a maturation of the audio programmatic market, offering real-time bidding capabilities that have been standard in other digital advertising markets. This development could increase efficiency and precision in targeting, as well as provide advertisers with more granular control over their campaigns.

The emphasis on data-driven approaches and the ability to reach a vast audience through a trusted environment may improve campaign efficacy and advertiser ROI. As the industry moves towards more direct programmatic access, Magnite and iHeartMedia's initiative could set a new standard for audio advertising, influencing future technological advancements in the sector.

Magnite’s custom technology solutions will streamline access to the largest audio and podcast publisher in the U.S.

NEW YORK, Jan. 09, 2024 (GLOBE NEWSWIRE) -- Magnite (NASDAQ: MGNI), the largest independent sell-side advertising company, and iHeartMedia, the number one audio company in the United States, today announced the launch of a first-of-its-kind marketplace that brings together iHeartMedia’s broadcast radio, streaming radio and podcast assets for inclusion in omnichannel programmatic media buys, providing the reach and efficiency that advertisers are seeking from audio.  

Built from a custom implementation of Magnite’s SpringServe ad serving technology, the marketplace enables advertisers to transact with a data-driven approach via real-time-bidding across iHeartMedia’s vast broadcast and digital audio inventory through a single activation channel. 

IHeartMedia reaches 90 percent of all US adults monthly with its broadcast stations alone and its streaming radio and podcasts reach 57 million consumers with high-quality ad-enabled content, the largest reach of any digital audio company. Its leadership position in audio extends across multiple platforms including more than 860 live local broadcast stations, its iHeartRadio digital service available across more than 250 platforms and 2,000 devices including smart speakers, smartphones, TVs and gaming consoles, and podcasts as the #1 podcast publisher in the world according to Podtrac. 
   
“With today’s consumers spending a third of their media time with audio, expanding programmatic’s access to iHeart’s audio assets is imperative for the industry,” said Brian Kaminsky, Chief Data Officer and President of Revenue Strategies for iHeartMedia. “Not only are we expanding what role programmatic can play for advertisers, we are also improving the efficacy of their campaigns by allowing them to use real-time data to message their audience in the most engaging way possible, in an environment of trust and interest. We’re excited to expand our partnership with Magnite because they have proven expertise in programmatic and the ability to build technology fit for the unique needs of audio advertising to take its place in omnichannel.” 

“Establishing more direct connections within the advertising supply chain benefits both publishers and buyers and we’re proud to build technology to facilitate this for the largest media owners in the world like iHeartMedia,” said Sean Buckley, Chief Revenue Officer at Magnite. “We’ve worked closely with iHeartMedia to develop bespoke and new-to-market solutions for podcast and audio. Consolidated paths will continue to gain momentum and we look forward to continuing to pave the way in this effort.” 

“The premium audio marketplace created by iHeart provides PMX clients with direct programmatic access to scaled, high-quality audio inventory,” said Jay Askinasi, CEO, PMX US and Chief Growth Officer, Publicis Groupe. “As we expand our PMX Lift solution to connect across platforms, including audio, it will be important to have this combination of broadcast and digital assets and data to achieve better efficiency, control and analytics and drive greater value and insights for our clients.”

About Magnite 
We’re Magnite (NASDAQ: MGNI), the world’s largest independent sell-side advertising company. Publishers use our technology to monetize their content across all screens and formats including CTV, online video, display, and audio. The world's leading agencies and brands trust our platform to access brand-safe, high-quality ad inventory and execute billions of advertising transactions each month. Anchored in bustling New York City, sunny Los Angeles, mile high Denver, historic London, colorful Singapore, and down under in Sydney, Magnite has offices across North America, EMEA, LATAM, and APAC. 

About iHeartMedia 
iHeartMedia, Inc. [Nasdaq: IHRT] is the leading audio media company in America, reaching over 90% of Americans every month. iHeart’s broadcast radio assets alone have more consumer reach in the U.S. than any other media outlet; twice the reach of the next largest broadcast radio company; and over four times the ad-enabled reach of the largest digital only audio service. iHeart is the largest podcast publisher according to Podtrac, with more downloads than the next two podcast publishers combined and has the number one social footprint among audio players, with seven times more followers than the next audio media brand, and the only fully integrated audio ad tech solution across broadcast, streaming and podcasts. The company continues to leverage its strong audience connection and unparalleled consumer reach to build new platforms, products and services. Visit iHeartMedia.com for more company information. 

Media Contact:

Kar Yi Lim
klim@magnite.com

Investor Contact:

Nick Kormeluk
nkormeluk@magnite.com

FAQ

What did Magnite (MGNI) and iHeartMedia announce?

They announced the launch of a first-of-its-kind marketplace that brings together iHeartMedia’s broadcast radio, streaming radio, and podcast assets for inclusion in omnichannel programmatic media buys.

What technology is Magnite using for the marketplace?

Magnite is using its SpringServe ad serving technology to enable data-driven real-time-bidding across iHeartMedia's audio inventory.

How many US adults does iHeartMedia reach monthly?

iHeartMedia reaches 90% of all US adults monthly with its broadcast stations alone.

What is the reach of iHeartMedia's streaming radio and podcasts?

iHeartMedia's streaming radio and podcasts reach 57 million consumers, making it the largest digital audio company.

What is the goal of the partnership between Magnite and iHeartMedia?

The partnership aims to expand programmatic access to iHeart's audio assets and improve campaign efficacy by using real-time data to message the audience in the most engaging way possible.