Audio Out-of-Home (AOOH) is the evolution of legacy in-store messaging and music. Marketers continue to benefit from the effectiveness of digital out-of-home (DOOH) as an innovative way to reach customers, however, the consumer audio industry is booming with more options than ever.
Whether it’s streaming, podcasts, or new entrants, there’s no debate that advertisers have jumped back on the audio bandwagon to reach listeners.
Visuals alone are no longer sufficient for a solid retail marketing strategy, and AOOH is a new opportunity to continue consumer momentum, but reaches consumers in the same environments as digital. It’s enabling brands to reach customers right at the point-of-sale, delivering all the benefits of data-driven decision-making, programmatic automation, and measurement of results.
AOOH has recently skyrocketed in the marketing and advertising space.
For example, a report from the Interactive Advertising Bureau (IAB) found that U.S ad and audio spendings increased by thirty percent in the first half of 2019 to $1.2 billion. On top of that, advertisers are now including programmatic ads in their media planning to assist their marketing efforts and hone in on specific audiences.
The Digital Place-Based Advertising Association (DPAA) reported that 63% of media planners are now relying on programmatic advertising which will continue to drive growth into 2024.
With so many advertisers now relying on programmatic and audio advertising, it’s becoming a need-to-have, not a nice-to-have, in your marketing mix. Here are three reasons why AOOH advertising should be a crucial component of your company’s marketing and advertising strategy in the coming year.
Utilizing an ad method that’s specific, applicable, and scalable
What is so appealing about this space is the way brands are utilizing digital’s strengths to propel audio advertising to the next level. By connecting with consumers in locations where they shop, AOOH provides an opportunity to capture a specific audience’s attention where and when they are ready to spend.
Audio Out-of-Home platforms give marketers access to target groups based on time of day, shopper gender and age, product availability, and more personalizing factors. This allows advertisers to not only accurately target potential buyers, but also help understand how their advertising efforts influence the customer’s path to purchase.
Elevating buying behavior and brand recognition
The ability to integrate advertisements throughout target buyers’ interest areas during highly programmed content allows brands to enter into a market that they wouldn’t normally have access to. Audio advertisements are placed within premium audio content that supports the retailer’s buyer demographic, which assists in ensuring the customers are interested and engaged in these ads.
These advertisements have the ability to assist in promoting brand identity all while still engaging with customers through music. Monetizing AOOH also has the ability to impact how customers spend their money. For example, customers can often overlook physical marketing materials in-store, but are most likely to notice the special promotions through custom audio announcements, and therefore, take action on those promotions.
Increasing customer engagement rates
Advertisers can elevate customer engagement rates by incorporating AOOH into their strategy. By integrating ads into premium music playlists that tie directly to shoppers’ interests, they are more inclined to take advantage of promotions or services because they’ll already be listening. In fact, 16% of impromptu purchases are guided by in-store advertising. By having specific ads designed for the space your customers are already in, you are able to resonate with them to drive interest and revenue.
This positive impact on customer experience can be seen firsthand from companies and commercial locations that have made the switch to audio advertising. For example, Evan Moody, VP of Strategy and Planning at Dentsu Aegis Network identifies AOOH as an outlet to provide distinction when customers are most vulnerable to the ads directly at the stores.
Through research, it was found that salience is the number one driver of purchase. By utilizing AOOH to create that product salience directly at the point of sale, companies are able to see a 25% conversion.
For example, GetGo Cafe + Market (formerly Ricker’s) championed the AOOH space within 56 Indiana locations, and the outcome speaks for itself. Grippo’s potato chips ran 200 audio advertisements per week at 44 locations. When comparing sales year over year, the brand saw a 20% lift in product sales. Another example comes from the American Dairy Association, who ran a week-long holiday-themed audio advertisement that included 115 spots throughout the week in all 56 Indiana locations. Compared to the prior year, the American Dairy Association had a 4% increase in milk sales.
A new wave of buying behavior is here. Brands that jump in and integrate AOOH advertising into their marketing mix will be leaders in this movement, targeting more specific and engaged audiences in a way that has shown success, not only for the brands being promoted, but the retailers and host locations as well. As consumer behaviors and habits continue to evolve, advertisers and marketers should take the opportunity to be a part of this revolutionary change and continue to seek out creative ways to target customers across a sea of different outlets — and right now, Audio Out-of-Home is the perfect start.
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About the Author: With more than 25 years of experience in media & entertainment and technology leadership, Paul Brenner served in several c-suite roles including division President with Emmis Operating Company [NASDAQ:EMMS]. As President of NextRadio/TagStation his work focused on global innovation through FM Chip activations in all smartphones for audience measurement, improved in-car user experiences, and data attribution platforms for all broadcast radio. In 2019, Paul joined Vibenomics as Chief Strategy Officer to help develop the go-to-market strategy for the company’s first-to-market Audio Out-of-Home™ advertising solution. Following a successful launch, Brenner was promoted to President of Audio OOH to oversee all efforts surrounding revenue-generating activity and related partnerships.