High-speed internet connectivity and mobile devices have made digital audio an integral part of our daily lives. It offers significant opportunities for consumers, brands, and retailers alike to leverage the strengths of digital audio.
The diverse and dynamic digital audio landscape, including podcasts, audiobooks, and music streaming services among others, offers listeners a wealth of options. It also gives advertisers an excellent opportunity to reach and engage with their target audiences. Brands are eager to reach the right people at the right time. As such digital audio is an attractive option to expand reach and drive conversions.
Gap in Digital Audio Listenership and Media Investment
According to a research “Sonic Boom: How Digital Audio Can Help Retail and CPG Brands Win The Path-To-Purchase” by WARC with Spotify, consumer demand for digital audio is growing, but there is still a striking imbalance between the share of investment and share of consumption. It stated that 96 percent of retail and CPG marketers are evolving their approach to advertising, they are deploying a wider range of media channels.
Aditya Kishore, Director of Insight, WARC, says as new platforms and formats proliferate online, being able to effectively target and reach audiences is becoming increasingly complex. He believes the growth of digital commerce and retail media has also contributed to the growing complexity, because as the purchase journey shifts, so do the best ways of reaching consumers along it. “Today’s omnichannel imperative means that brands must rethink their media mix not only for transactional availability but also their branding and media presence. Digital commerce has also shortened the customer transition from upper to lower funnel.”
Moreover, research has identified a gap in digital audio listenership and media investment. Digital audio commands about 20 percent of media time from consumers in the U.S. and several European countries, but media investment in digital audio hovers around 1 percent among retail and CPG brands.
Justin Faiber, Global Category Development Officer – Consumer Products, Spotify, said as consumers are “always on” and the ways consumers engage with advertising from brands is in constant change, they found it essential to highlight digital audio’s place as a marketing lever within the media mix that brands can’t overlook.
Digital Audio to Boom
A study says digital audio is expected to account for 29.6 percent of all the time spent on mobile in 2023. Digital audio advertising offers audience targeting options similar to those used in other advertising verticals, like mobile, video, display and cross-device campaigns. Advertisers can use it for target campaigns based on demographies, geolocation and device type. Given the growing number of mobile users, advertisers have a greater opportunity to reach consumers where they spend a significant amount of their time.
Furthermore, advertisers can track audience behavior during and after an ad, including listen-through rates, completion rates, and post-listen conversions. The data can be used to make data-driven decisions and optimize ad campaigns for better results. It’s appealing as people can use headphones for more intimate listening experiences.
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And advertisers can use audio to command the listener’s attention to convey the message effectively, increase engagement and gain conversions. Overall, the immersive nature of audio makes it easier for advertisers to increase campaign engagement. It is less disruptive, and helps keep ads fresh and relevant.
