Why Audio Merits Larger Ad Investment
WARC STUDY EXPLORES TRUE VALUE OF AUDIO
To make the most of their investment, advertisers should be placing ad dollars proportionately to how consumers are spending their time. But new research from leading marketing intelligence company WARC finds a massive disjoint between audio consumption levels and advertising investment.
According to the new study "The Investment Gap: Understanding the Value of Audio," conducted by WARC in September for iHeartMedia, audio (broadcast radio, online radio, and podcasts) makes up 31% of the average person's day yet earns only 9% of advertising spend. This off-balanced trend holds true for all demographics, especially so among younger consumers, males, Blacks, Hispanics, and those in higher income brackets. Advertisers would need to triple their investment in audio to adequately match audience behaviors.
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THE AUDIO OPPORTUNITY
WARC finds that audio offers ample opportunities and advantages for all types of advertisers willing to "bridge the investment gap," regardless of their current level of their interest and experience with the medium.
• "Audio Avoiders," the 25% of advertisers that do not currently spend in audio will benefit from stepping into the audio space to grow their reach and share of audience attention.
• "Digital Onlys" and "Broadcast Believers," brands that already advertise in a particular type of audio, will benefit from exploring outside their current audio box to find additional solutions to meet their goals.
• "Cross-Platform Champions," the audio investors truly seeing the range of audio's value, are investing, testing, and learning to optimize their usage of the proper audio platforms to best achieve their advertising objectives.
Whatever their level of engagement, brands that invest in audio stand to grow their reach, efficiency, and share of audience attention. They are tapping into large, receptive audiences listening at opportune moments and places, independent of a screen. And they are utilizing a trusted medium that drives results up and down the purchase funnel. From broadcast, to streaming, to podcasts, consumers are listening, and it's time for brands to invest more to engage them.
Radio Delivers Healthy Dose of Web Engagement
RADIO WORKS FOR VITAMIN, NUTRIENT, AND SUPPLEMENT BRANDS
McKinsey values the global wellness market at more than $1.5 trillion. With the growing number of medicines, devices, supplements, trackers, procedures, apps, and more, available to consumers, wellness brands need to make sure they break through and resonate with consumers. New research from the Radio Advertising Bureau shows just how valuable radio can be to vitamin and nutrient brands looking to grow their business.
The RAB conducted an analysis of more than 15,000 vitamin/nutrient ads tracked by AnalyticOwl throughout 2021 to decipher radio's impact on online consumer actions. Radio ads led to over 5,000 additional consumers visiting the tracked sites, translating to a +7% lift in website traffic. Radio was a key driver of awareness and engagement, as evidenced by the influx of web visitation occurring on days when radio spots air, compared to days with no radio activity. On-air days outperformed off-air days by more than +228%.
The RAB's analysis shows that radio is an effective tool for brands looking to drive web engagement. Whether they are traditional brands or direct-to-consumer, vitamin, nutrient, and supplement brands know that listeners take action when they hear ads.