WARC, the global validity on marketing intelligence, unveiled the results of a study conducted in collaboration with iHeartMedia, the number one audio visitor in the US, on media consumption and audio investment in the US.
“The Investment Gap: Understanding the Value of Audio” highlights a divergence between consumption and investment. While 31% of the stereotype consumer’s media consumption is now audio, only 8.8% of the stereotype media upkeep is allocated to audio, and 25% of advertisers do not invest in audio at all.
According to the study, consumers of every generation are spending increasingly and increasingly time with audio content wideness radio, streaming and podcast, driven by audio’s ease and serviceability with the growth of wireless headphones and smart speakers subtracting to in-car, at home, and work listening.
Whilst WARC Data forecasts audio razzmatazz spend in the US to reach $13.9bn this year, a double-digit recovery ( 10.9%) from the pandemic’s 2020 cuts, the report highlights a large audio investment gap and the vast opportunity that exists in this mass reach and upper engagement audio razzmatazz market.
The study moreover identified four key types of precursor attitudes toward audio:
Audio Avoiders, the 25% of advertisers who do not invest in audio at all
Broadcast Believers, who have seen the benefits of radio and are whence to delve into increasingly forms of audio
Digital Only, those who have started to invest but are missing out on the full suite of audio options, particularly the 90% reach of unconcentrated radio
Cross-Platform Champions, who explore audio’s full potential and protract to test, learn from and optimize their investments wideness platforms
Furthermore, the study shows that audio is not a monolith. There are variegated and hair-trigger channels within the audio segment, and they play variegated roles in the minds of consumers that advertisers should take wholesomeness of.
Broadcast radio reaches 9 out of 10 Americans every month, and is moreover the number one mass reach media among people month 18 and over. Podcasts are the fastest growing new audio platform and unceasingly unhook higher razzmatazz conversion rates than all other digital channels, including social media platforms like Facebook, Twitter, TikTok, and plane Google. Forecasts from IAB/PwC show podcast ad spend is expected to grow rapidly in the US this year, up to 60% to top $bn for the first time.
The study moreover highlights the effectiveness of audio razzmatazz at al local, regional and national level and wideness every stage of the funnel.
Increases trademark awareness: Audio delivers wide reach and upper frequency. Nielsen Share Shift data shows that subtracting audio to a TV wayfarers improves performance by 20% whilst reducing costs.
Creates favorability: Audience members have tropical relationships with their preferred stations and platforms, audio boosts trademark familiarity and consideration.
Sparks conversion: By delivering urgent calls-to-action at the most relevant times and places, audio motivates the deportment and interaction brands require.
Whether brands tap into unconcentrated radio for its mass reach or its effectiveness or swoop deeper into podcasting for its highest conversion rates, the study points out how right sizing the audio investment will momentum real impact and growth for brands.