HOW ‘TOTAL AUDIO ADVERTISING’ CAN GAIN $6 BILLION IN UNTAPPED REVENUE
In today’s crowded media environment, marketers for brands search high and low to find meaningful connections and maximize their advertising budgets. To assist me, I’d like to share this tip: Tune into total audio by leveraging the advantages and reach of radio over the air and digital audio, directing more advertising dollars to local radio stations, podcasting and digital streaming to optimize their spending on ads and boost conversion.
A 2023 study by the data analytics company Neustar (now TransUnion) finds that national brands have left an estimated $6 billion in revenue on the table because they were not correctly using audio to promote the products or services.
- Who wouldn’t want to be a part of that revenue pie?
Brands often ask us at Audacy whether they should put their audio content on local radio or digital audio. The answer, in simple terms, is both. According to a new audio attribution study, if advertisers bundle over-the-air advertising with podcasts and digital streaming, they can expect a 1.5x return on investment.
- Audio increases brand recognition, improves customer purchase intent, and boosts sales. However, many brands must invest more adequately in audio, leaving billions of dollars in revenue potential. In a time when companies have to demonstrate ROI and maximize their ad dollars, audio total is a resounding call to give advertisers more excellent value for their money.
The audio is booming.
For experienced marketers, the time could be better. Consumers today have a massive interest in everything related to audio, and a multi-platform audio-related ad campaign taps into the strengths of each channel.
From local radio to podcasts and online streaming services, Americans are tuning in to a constant high level. Take a look at these captivating (or ears-catching) statistics on the audience:
- Ninety-six per cent of Americans listen to audio daily.(3)
- Two hundred million Americans aged 12 and older listen to online audio weekly.(4)
- Seventy-three per cent of Americans listen to AM/FM radios in the car, 37% listen to online audio, and 38% listen to podcasts.(5)
- Eighty-nine million Americans older than 12 are listening to podcasts weekly.(6)
National advertisers have been consistently underinvested in audio, not only by a small amount. Neustar looked at three years’ worth of media investment throughout Fortune 100 companies and reported that specific industries must invest as much as 12 per cent in audio. In contrast, others are underinvested by 25%, and a few by more. When companies boost their audio investments and invest in audio, they can increase revenue.
In all industries, audio is improving its
Media mix provides an increase.
In sales through ad-directed advertising that exceeds 30 per cent
According to Neustar’s research, entertainment companies stand to gain from all audio. They have seen the benefit of a 30% increase in sales driven by ad advertisements and a rise of 24% from audio-based digital ads. Retailers are also doing well, with a rise of 31% from digital audio and 6% from radio.
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