In recent years, audio has become a popular advertising channel due to its wide reach, high engagement levels, and ability to drive impact effectively. With the emergence of new listening devices such as smart speakers and connected cars, brands now have more options to explore various advertising formats and reach a broader audience.
Audio Advertising involves creating, producing, and distributing ads through various audio platforms such as radio, music streaming services, and podcasts. This approach offers the ability to build brands in real time by customizing ads based on user preferences, locations, and current dates and times. This adaptability results in a higher return on investment, with podcast ads generating an average return on ad spend of $2.42, as reported by Podsights in 2020. By 2024 podcast advertising spend is expected to surpass $2.5 billion.
Audio Advertising can take different forms, such as catchy tunes, background music, or distinctive sound effects that quickly reinforce brand messaging. For instance, car dealerships can use location-based targeting to reach listeners within the vicinity of their showroom and promote their latest car models with irresistible audio ads. Similarly, music streaming services can tailor their audio ads based on the listener’s genre preference and recommend the latest releases for them to enjoy on their platform. Dynamic creative that provides real-time pricing or deals connects particularly well with price-conscious consumers, driving them towards stores and resulting in a crucial return on investment (ROI).
The reach of Audio Advertising is vast, making it an ideal way to establish brand awareness. A recent study by Edison Research’s Infinite Dial 2023 found that 75% of Americans aged 12 and above have consumed online audio content in some form within the last month. Approximately 83% of adults in the United States also listen to the radio on a weekly basis, further highlighting the broad audience that Audio Advertising can reach.
Audio Advertising can also be highly engaging, offering a unique opportunity for brands to connect with their audience. New technologies like smart speakers enable advertisers to have a dialogue with listeners and build stronger relationships. For example, ads on smart speakers can be interactive, allowing users to ask questions and receive information about products or services in real time. This type of engagement is not possible with traditional forms of advertising, making Audio Advertising a compelling option for brands looking to establish long-term relationships with their audience.
Compared to visual ads, Audio Ads are perceived as less intrusive by audiences, increasing the likelihood of conversions and sales. Audio Ads can be seamlessly integrated into a listener’s experience, making them more likely to engage with the brand. This is particularly true for podcasts, which have gained in popularity in recent years.
Targeted audio advertising offers brands a significant opportunity to connect with a highly engaged audience, as the number of monthly podcast listeners in the United States has surged from 75 million in 2018 to an expected 164 million in the year 2024.
Audio Advertising has proven to be highly effective and efficient, with comparable results to other mediums. Radio ads outperform digital ads across several metrics, including ad recall, brand awareness, and purchase intent, according to a study by Westwood One. Similarly, a study by Tapestry on behalf of The Guardian found that 65% of podcast listeners paid attention to podcast ads more than TV ads.
As advertisers seek more results-driven ways to advertise, Audio Advertising is set to continue its renaissance as a leading channel for advertisers and marketers in the future. Advertisers need to take notice of the opportunities that Audio Advertising provides to reach a broad, engaged audience and build stronger relationships with their customers.