It's booming
In 2018, audio reach and listeners are both at a record high and increasing. Driven by massive take-up of smart home devices - expected to increase 10 fold in the next 5 years - changes in listening habits and the explosive growth in podcasting, more audio is being consumed than ever before. Indeed, there is a strong trend emerging of people who are putting down their mobile devices and engaging online via the spoken word. As more audio is consumed, and with digital and online listening being able to micro-target individual listeners, then the case for audio advertising has never been stronger. This £23bn global market is increasing faster than any other segment of advertising spend.
Higher ROI than Online, TV and Print
Advertising on radio delivers a 7.7x return on investment which for most sectors was the best ROI when compared to TV, online, print or billboard.
Whilst much of the noise in the sector is generated by online, smart advertisers are realizing that for many types of campaign, audio advertising is simply the best and most cost-effective medium to drive exposure. For example, 35 million adults in the UK – more than half of the population – listen to 13 hours or more of radio every week. That’s more than double the time spent on Facebook and Twitter combined.
Furthermore, audio advertising catches listeners when they are most receptive. According to the research study “Media and the mood of the nation”, listening to the radio increases people’s happiness levels nearly twice as much as watching TV does and gives them four times the amount of perceived energy. That’s a critical finding for advertising, since, as reported in Psychology Today, people rely on emotions over information when making brand decisions. For the advertiser this translates into audio advertising as being the most effective medium for boosting consumer happiness and enhancing receptiveness to advertising.
Whilst much of the noise in the sector is generated by online, smart advertisers are realizing that for many types of campaign, audio advertising is simply the best and most cost-effective medium to drive exposure. For example, 35 million adults in the UK – more than half of the population – listen to 13 hours or more of radio every week. That’s more than double the time spent on Facebook and Twitter combined.
Furthermore, audio advertising catches listeners when they are most receptive. According to the research study “Media and the mood of the nation”, listening to the radio increases people’s happiness levels nearly twice as much as watching TV does and gives them four times the amount of perceived energy. That’s a critical finding for advertising, since, as reported in Psychology Today, people rely on emotions over information when making brand decisions. For the advertiser this translates into audio advertising as being the most effective medium for boosting consumer happiness and enhancing receptiveness to advertising.
It amplifies your other advertising spend
Whilst cross-media campaigns are more effective for most types of advertising, what has recently been discovered is just how effective audio advertising, especially on the radio, can be in this mix. Indeed, if an advertiser's budget allocates 20% share of spend to radio, research has found that the total campaign ROI increases by 8%. As such, audio advertising should become an essential ingredient in every cross-media campaign.
Take the combination of audio advertising and online. A major study by RAB, Media Monitors and Sequent Partners analysed over 2000 local radio ads across 6 different categories and showed that radio generated an average 29% lift in Google search activity. In other words, a modest investment in audio advertising can significantly amplify the impact of online spend. Smart brands are realizing that, in a crowded market place, audio advertising provides them with a far higher chance of conversion against those who don’t.
Take the combination of audio advertising and online. A major study by RAB, Media Monitors and Sequent Partners analysed over 2000 local radio ads across 6 different categories and showed that radio generated an average 29% lift in Google search activity. In other words, a modest investment in audio advertising can significantly amplify the impact of online spend. Smart brands are realizing that, in a crowded market place, audio advertising provides them with a far higher chance of conversion against those who don’t.
It Works - both at a local and national level
Whether you’re the local car dealer looking to increase footfall in the showroom or the global brand looking to raise awareness, success in advertising is achieved in the careful balance between content, reach and frequency. This makes audio advertising the best choice for both local and national advertisers, since it delivers low-cost, high-frequency and high-reach access to audiences who are psychologically best conditioned to be receptive to these ads.
As targeting is critical to drive ROI, audio market segmentation means that audiences can be easily identified and targeted. In broadcast, ads can be served to niche audiences in narrow geographic areas, whilst with digital this is taken further to micro-targeting where individuals themselves can be targeted with specific ads. In short, campaigns can reflect not only the audience being targeted, but where, how and when they are consuming their content.
It’s for that reason that the Top 10 advertisers in UK radio in 2017 increased their radio spend by 43% over the previous year. In other words, once they have seen the impact on audio advertising, top brands allocate more of their advertising purse to audio ads - because it works.
As targeting is critical to drive ROI, audio market segmentation means that audiences can be easily identified and targeted. In broadcast, ads can be served to niche audiences in narrow geographic areas, whilst with digital this is taken further to micro-targeting where individuals themselves can be targeted with specific ads. In short, campaigns can reflect not only the audience being targeted, but where, how and when they are consuming their content.
It’s for that reason that the Top 10 advertisers in UK radio in 2017 increased their radio spend by 43% over the previous year. In other words, once they have seen the impact on audio advertising, top brands allocate more of their advertising purse to audio ads - because it works.
In short, top brands are discovering that it’s never been easier to cost-effectively and repeatedly serve well-crafted ads to consumers in the most impactful time and location, when they’re most receptive and more willing to engage with the brand. That’s why, in the advertising landscape, audio is becoming the new black.
“At View TV Group we’ve been using adserve's Broadnet service to schedule commercials across both our radio and TV businesses to great effect. The team are always on hand to assist us and I’m confident that the growth plans the business has will only serve to strengthen our partnership.”
Jamie Branson
Group Chairman and Founder, View TV Group
Jamie Branson
Group Chairman and Founder, View TV Group