WARC and Spotify have collaborated to release research on how digital audio can support CPG and retail brands in achieving effective outcomes along the marketing funnel.
The marketing effectiveness platform and the world’s most popular streaming audio service wish to highlight the fact that brands only allocate around 1% of their media investment to digital audio, despite findings that consumers spend around 20% of their media time on the channel.
‘Sonic boom: How digital audio can help Retail and CPG brands win the path-to-purchase’, displays the results of a survey with over 350 CPG and retail marketers from the USA, Canada, UK, Germany, France, Italy and Spain.
According to the research, 62% of marketers who advertised on music streaming services during the last 12 months regard them as ‘core to the media mix’. A further 64% plan to increase spend on podcast advertising, with 55% investing more in music streaming services.
Overall, sentiment towards digital audio is positive as marketers find that its rich first party data and high advertising receptivity help build incremental reach while increasing targeting precision.
Neuro-Insight recently found that digital audio’s average engagement levels are 14% higher than TV, 18% higher than social media and 23% higher than terrestrial radio. A whopping 81% of CPG brands also cite strong levels of listener engagement with regards to podcasting.
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“For advertisers, it’s critically important to gain awareness and drive loyalty by delivering on the consumer expectation that preferred brands know them and can provide relevant product offers and highly personalised experiences consistent with their particular needs,” Spotify global category development officer for retail, John Gregory, said. “It was our desire to better understand the current alignment between advertisers and consumer media engagement that prompted Spotify to launch this study with WARC.”
WARC director of insights Aditya Kishore added: “The challenge in determining the optimal media mix has intensified steadily in recent years for advertisers. This report developed with Spotify provides valuable insight into the media landscape across the two continents and the potential role for digital audio in navigating an era of extraordinary media fragmentation.”
