I’m sure we’ve all got a favourite radio ad stuck in our heads somewhere. It’s a trusted and reliable format for advertisers but many are unaware of how much audio has developed in the past few years - and how much more is just around the corner.
These are exciting times for audiophiles and the figures speak for themselves.
More than 60% of the UK adult population listen to digital audio every week, offering advertisers a potent mix of engaged listeners, high-quality content and immersive ad formats.
According to the IAB UK’s annual Digital Adspend report, spend on digital audio has almost doubled between 2020 and 2022, with advertisers investing £186 million in it last year. As part of this, adspend in podcasts has boomed from £33 million in 2020 to £76 million in 2022.
That growth is set to continue.
Why consider audio?
Audio is an intimate, one-to-one format that allows brands to speak directly to consumers in a way that improves consideration.
It has always been a great tool for raising awareness but technological advances mean we can now apply targeting in ways that weren’t previously possible, making it even more appealing for brands.
By adding dynamic targeting around criteria such as location, or conditions, like the weather, it becomes addressable like never before.
Technically speaking
Of course, technology is at the forefront of this change. Developments such as smart speakers open up huge creative possibilities and allow brands to communicate further down the purchase funnel, encouraging consumers to click on a link, or receive more information, for example.
Tesco used smart speakers for a Christmas campaign partnering with Say It Now to successfully deliver its first-ever actionable smart speaker ad campaign that enabled UK customers to access special offers and set notifications as part of The Tesco Christmas Party campaign.
And it worked. Customers engaged with smart speakers at a higher rate than expected – 28% of listeners requested a reminder or link to be sent to them, compared to a benchmark of 15-20%. In total, 2,300 reminders were sent.
Inventory explosion
With the growth of streaming and podcasting over the past five years, audio can be front and centre of media planning.
The choice of supply has increased massively to include a wide range of radio stations, streaming services and podcasts that allow a closer fit for brands than ever.
This growing inventory is a great way of reaching diverse audiences that mainstream media often can’t, and it’s getting easier to buy.
We're talking with our clients a lot about People & Planet (diverse supply and sustainability); brands are becoming more aware that they need to actively reach diverse audiences across all media plans as it is both more inclusive and better for performance. And GroupM has prioritised building working relationships with DE&I publishers to be included in our supply mix.
In the past, a problem has been that clients who wanted to work with players such as Dax, Bauer, Spotify, or a podcast platform like Acast, had to deal with them separately.
By providing a single point of access to an integrated supply, companies like GroupM are helping drive inefficiency and duplication from the system. By working directly with the best media providers, we’ve curated premium inventory at the best cost, helping brands spend their budget wisely and safely.
Out of the silo and on to the airwaves
Audio is no longer a siloed choice – cross-channel buying is a reality, and the opportunity to link audio with other media such as digital out-of-home or video, is really exciting. Crucially, you can measure it, so it’s not a hunch, but an informed, backable decision.
Omnichannel is the key phrase, ensuring that all media are working together most effectively. A big opportunity for growth next year will be brands focusing on cross-channel solutions which reach their audiences across multiple touch points, are measurable and drive greater efficiencies.
It makes so much sense in terms of efficient media planning and advertisers’ appetite for this is strong as they know that their audiences engage across many different touch points.
Creative push
Because audio is such a one-to-one environment, you have a 100% share of voice compared with display where there can be multiple ads on a page. It’s also a dynamic medium that offers the ability to push creative boundaries, by changing an ad treatment based on the location for example.
Ads can be targeted by availability in store, and we increasingly look to combine audio with other channels such as OOH based on geoproximity to maximise brand awareness and consideration. You could even change the style and voice of ads based on region, so you could incorporate local dialects, take note of local weather conditions, or even an area’s ethnic mix, to make the ads feel better targeted and more inclusive.
What’s next
Confidence in digital audio will continue to rise as buyers and publishers see opportunities to increase investment in the coming 18-24 months.
Advertisers already know the value of audio but there’s so much more to come. What we can do next in terms of targeting and links with other channels will really push the boundaries. Add in the diverse and inclusive supply, and it makes a compelling case to turn up the volume on audio.
Chris Moodey, director client leadership, GroupM Nexus