How Audio Advertising Became a Blindspot for American Brands


The situation of the U.S. economy is still being determined; more marketers are adjusting how they use their media mix. In a recent survey conducted by WARC, the results showed that 96% of retailers and CPG marketers reported rethinking their marketing strategies and utilizing digital audio advertisements to provide a seamless path from purchase.

Based on Paul Kelly, chief revenue officer at the AMA, an audio-streaming ad tech firm, the audio channel is an untapped opportunity for numerous prominent brands, including retailers and CPG brands. He claims combining the Sonic brand with dynamic and programmatic creativity makes it feasible for companies to get more attention via audio channels than other media.

“In an ever-growing digital world in which visual content is the dominant element of the media landscape, audio offers an unmistakable and often ignored method of reaching and influencing the public,” Kelly says.

Although audio is usually viewed as an upper funnel, as a brand-developing channel- a relic from broadcast radio Kelly believes that technological advancements and new technologies have opened up the doors for more targeted targeting and the potential to create a more personalized experience.

“The competition and margin pressures in retail create an emphasis on lower funnel or performance-driven media,” he says. “You cannot implement an omnichannel strategy that is based on data in the absence of digital audio. Therefore, not only is the value of this channel often ignored on its own, its increasing position in the mix can increase the cost of opportunity.”

With the amount of duration Americans are spending with digital audio, it’s an astounding 1 hour and 40 minutes per day for the most common U.S. adult and 2 hours and 17 minutes daily for people who are active digital audio users as per information from eMarketer It’s obvious the audio industry in its present format is not being monetized to the fullest extent.

Despite his place in the industry of audio-based advertising, Kelly admits that the argument against audio, up until recently, was primarily audio. The audio was a fantastic medium to reach. However, it significantly hindered the other digital channels regarding addressability and measurement. He says that’s changed. Technology advancements in programmatic advertising enable precise targeting and tracking to increase advertising campaigns’ effectiveness. The advertising industry quickly recognizes that it must change its strategies to profit from the growing digital marketplace for audio.

Programmatic advertising has revolutionized targeting capabilities, which allows advertisers to reach specific groups by analyzing demographics, interests and behaviours. The accuracy ensures that advertisements are targeted to the correct people at the most appropriate time, increasing relevancy and efficiency.

Podcasting and streaming platforms have also seen a surge in popularity, creating a more prominent and affluent listenership for audio advertisements.

“The top CPG marketers are seeing results that resemble those in other formats and channels. Audio is now available in shoppable formats, such as social or commercial media and interactive formats, such as CTV and displays, as well as host-reads that endorse the creators of podcasts. This includes influential marketing,” he says. “They’re also able to use their customer information just like other channels, thanks to dynamic content that automatically adjusts or improves the message or call-to-action based on the individual’s purchase history and the customer’s product preferences.”

Kelly affirms that virtually each CPG and retailer knows that today’s customer journey is dynamic. This realization highlights the need to develop more omnichannel, integrated opportunities to adapt to changing dynamics.

Integrating Audio into Everyday Life


In light of the growing popularity of devices with voice activation and smart speakers, people are increasingly incorporating audio into their everyday lives. This creates a unique chance for brands to connect with the audience unobtrusively.

Kelly believes there’s an opportunity for retailers to create additional value by growing the voice share across all channels about other media. There’s also a “window for necessity” for retailers to close the monetization gap before the current levels of investment “calcify to become a base.”

“With all due respect to the constant pace of development across digital media, no single channel could boast the simultaneous convergence of technology advancement across three pillars which are the basis for every ad-supported media. These pillars comprise hardware and devices like smart speakers and connected vehicles. Content — think of voice-activated podcasts or even voice chats and ad technology, such as new ad formats, placements, creative and dynamic and insertion,” Kelly says. “This is an entirely new structure and space for audio and a completely new offering to advertisers.”



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