Audio advertising boosts attention more than other formats. But how can advertisers turn up the relevancy dial?
From product recommendations to location-based push notifications, we live in a world of personalization – and now experts say it’s personalized audio advertising that is the future of brand engagement.
The numbers are certainly stacking up. The fast-growing digital audio advertising marketplace in the UK is worth £176m and is set to grow by 4.01% year-on-year. And recent studies have shown that advertising in podcasts, on radio and via music streaming platforms boosts attention more than other advertising. On average, 41% of audio ads generate correct brand recall compared to 38% of other formats, according to Dentsu.
Why are consumers tuning into audio ads more than ever before? And how can marketers get inside their ears?
Unpacking the audio boombox
The volume of the audio advertising market has been turned up high by advertisers’ rising interest in privacy-safe channels, soaring programmatic inventory and by consumers tuning into music streaming services and podcasts more than ever before. Little wonder the marketplace is currently pulling in nearly £200m a year.
Within this premium content environment, consumers are leaning more into a customized user experience. Eighty percent of listeners prefer personalized ads in their podcast experience, according to recent research from AMA. Currently though, 58% don’t find their podcast ads relevant. And that’s an expensive problem: respondents told researchers that they’d be more likely to purchase if the marketing was more tailored to them.
“Listeners want advertising that speaks directly to them, not just around them,” says Richard Williams, commercial director at AMA. “When ads are well-integrated and hit that sweet spot of timing and content, they’re not just heard, they’re listened to. Personalized advertising is the future of engaging podcast listeners.”
Tuning into AI-driven opportunities
Dynamic Audio Ads are giving brands the opportunity to reach listeners with unprecedented levels of personalization. These ads not only plug into listener demographics but also their location, purchase history and even the weather. For example, AMA’s Studio.AI tool automatically matches ad messaging with weather triggers, because an outdoor clothing brand mentioning how cold it is in a listener’s area that day is going to cut through more than one that doesn’t.
The relevant creative is tailored across millions of audio ads in minutes – boosting user engagement and conversion potential more efficiently and cost effectively.
“This shift is monumental, steering us away from one-size-fits-all generic creative ads,” says Williams. “By embracing this evolution, we’re not just reaching audiences but genuinely engaging them.”
So, what do marketers need to know now, to be able to dial into these new opportunities? Which AI-powered tools are giving brands better personalization, agility and efficiencies in planning and production?
Tune in… to synthetic voice
Synthetic voice is a software-generated replication of the human voice which allows brands to create countless ad variations without always having to pay for the time and expense of voiceover artist or celebrity spokesperson.
Its key benefits include speed, agility and localization. Voiceovers can be produced in minutes, allowing for quicker feedback processes and the ability to be more reactive. Meanwhile, dynamic scripts mean messaging, offers, stock levels or other relevant factors can be updated instantly. And every location can have its own relevant callout according to city or postcode area. For example, Red Bull used synthetic voice to deliver over 16,000 unique ad variants to listeners in the first fully AI-powered dynamic ad, for its recent Red Bull Culture Clash campaign.
Turn on… to dynamic creative
A third of podcast listeners tune in to their shows regularly. Encountering the same ad repeatedly becomes irritating, resulting in a negative brand experience. This is where dynamic creative, more than simply AI-driven creative, is essential. Creating millions of ads in seconds is pointless unless the most relevant and actionable version can be trafficked to each listener. Dynamic creative adjusts the ad content to suit each listener’s context, including features like message rotation to keep content fresh and engaging.
As well as avoiding ad fatigue, dynamic creative also means that marketers can add new lines, offers, products, seasonal moments and so on into a live campaign more easily and quickly – so they have always-on media without the cost of ongoing creative production.
Don’t drop out… of contextual insights
Context is everything when it comes to relevance and engagement. AI-driven contextual tools scan millions of data points about the listener’s environment to drive relevancy at scale. So, if it’s 9am, Monday morning on a rainy October day and you’re a Starbucks member, the ad might talk about commuting on a gloomy start to the week, so why not get a pumpkin spice latte pick-me-up on the way to the office.
For example, Sainsbury’s recent audio campaign was optimized based on contextual triggers, such as weather, day, time and audience segment, so that the brand could capitalize on summer moments, such as picnic deals, or meals to have at home when it was raining.
As the digital audio market continues to grow, marketers who tune into these technologies will not only stand out, but thrive, in a highly competitive marketplace.
For more advice and insights on how to unlock brand success with AI-powered personalized audio advertising, visit amillionads.com or email sales@amillionads.com.
