When do you stream music and podcasts? While exercising? In the car? When you’re relaxing on the couch? Regardless, of your preferred listening habits, more often than not, when you are doing so, you are fully immersed in that content.
This is why digital audio advertising is so effective. It reaches potential customers when they are fully engaged. In addition, it targets them based on their location, demographics, and interests, presenting them with products and services that they want or need at a time when they are most receptive.
Audio streaming is on the rise, with Statista reporting 10 percent year-on-year growth between 2021 and 2022 of music streaming users and a further eight percent growth forecast for 2023.
Furthermore, a 2022 study conducted by We Are Social and Hootsuite has found that the average time Malaysians spend streaming music daily (1 hour 36 minutes) has now surpassed the time they spend listening to broadcast radio (55 minutes). Add to this another 39 minutes per day listening to podcasts and the numbers start to stack up.
Similarly, the average time Singaporeans spend streaming music daily (1 hour 43 minutes) surpasses broadcast radio (1 hour 2 minutes) and is growing drastically year-on-year.
These stats demonstrate where potential customers are residing, and therefore where businesses should be advertising to get the biggest bang for their buck.
What exactly is, digital audio advertising?
Digital audio ad campaigns serve audio advertisements to a specified target audience at regular intervals while they are streaming music or podcasts through music streaming services (e.g. Spotify, Tunein), digital radio stations (e.g. iHeart Radio), and podcast networks (e.g. Acast).
Some platforms also include banner ads with click-through buttons to be simultaneously served on-screen with the audio or allow call-to-actions such as ‘shake your phone’ or ‘say “book now”’ to drive enquiry. These companion ads further encourage conversion from the listener.
How effective is it?
One of our automotive dealership clients recently ran a week-long digital audio ad campaign to promote their re-opening after a city-wide lockdown. This campaign, which saw highly targeted audio ads served to relevant customers on various streaming platforms, was hugely successful. It resulted in over 268,000 unique listens, from which they received 147 clicks through to their website and 18 quality leads into the dealership.
So, what is it about digital audio advertising that makes it such an effective way of reaching and converting customers?
It is highly targeted
Digital audio advertising gives businesses the ability to refine audiences at a granular level, allowing you to target potential customers based on their location, demographics, and interests. This means that you are likely to receive a better return on investment because the advertising is more contextually relevant to your target audience, as opposed to being blasted to the general population like on traditional broadcast radio.
It delivers better reach
Customers can be reached based on the audio content they enjoy. Be it a true-crime podcast or adrenaline-pumping songs for the gym, your ads will be played to your target audience, whether they’re at home or on the go.
It engages listeners to take action
Audio ads have a 24 percent higher recall rate than traditional display ads. Surveys also show that 60 percent of podcast listeners made a purchase after hearing an audio ad. This demonstrates the level of engagement listeners have when they are streaming a playlist or podcast, and the increased likelihood they have of converting.
It is cost-effective and can be tracked
Compared to traditional radio advertising, digital audio ads have lower associated costs. They are also more targeted, meaning you are only advertising to your desired audience, yielding a higher conversion rate and therefore a better return on investment. In addition, audio ads provide in-depth data insights so advertisers can clearly track campaigns and better understand ad performance.
As programmatic campaigns continue to grow in popularity amongst advertisers, it is important for businesses to understand which forms are delivering the highest returns, and make educated decisions about how to distribute their budgets. Over the last 12 months, our team has witnessed some impressive results from digital audio advertising and ranks it highly as a key ad medium for clients wanting to drive more leads into their business.
It’s time you hit play on a digital audio ad campaign.