New White Paper Examines the Audio Investment Gap

RADIO ONLINE | Tuesday, December 3, 2024 | 3:20pm CT

WARC Advisory and Audacy

A newly released white paper from WARC Advisory and Audacy delves into the barriers behind audio's under-utilization as an advertising medium, addressing misperceptions that hinder investment. Entitled "Breaking Down the Barriers Behind the Audio Investment Gap," the report incorporates insights from 21 experts across leading brands, agencies, measurement firms, and audio publishers to provide a comprehensive perspective.

Audio consumption has surged, driven by the rise of streaming services and podcasts. Edison Research reveals that Americans now spend an average of 220 minutes daily on audio, accounting for one-third of total media consumption. This trend spans all age groups, with those aged 55-64 increasing their audio time by 39% since 2020, and 16-24-year-olds seeing a 21% rise.

Despite its growing popularity, audio garners just 8.4% of advertiser spend, according to WARC Media data. To align investment with its share of ad-supported media consumption, spending would need to nearly triple.

Audacy SVP of Research & Insights Ray Borelli emphasized the untapped potential of audio. "We see time and again the positive results that come when brands increase their audio spend. However, investment is constrained by perceptual barriers. This white paper aims to dispel those myths and highlight the opportunities available to marketers."

WARC Managing Editor of Research & Advisory Paul Stringer echoed this sentiment, citing evidence that audio drives significant brand impact. "A gap remains between investment and consumption. This paper digs deeper to understand why, inspiring advertisers and agencies to give audio the attention and investment it deserves."

The report underscores audio's ability to deliver high levels of reach, attention, targetability, and full-funnel impact:

• Reach: Audio reaches 96% of Americans daily, with broadcast radio alone reaching 84%. Podcasts attract 34% of weekly listeners.

• Attention: Podcast ads generate 10,630 attentive seconds per thousand impressions (APMs), compared to 4,430 APMs for TV.

• Targetability: Audio campaigns can now be tailored to consumer interests and behaviors, enhancing relevance.

• Path-to-Purchase Impact: Studies show that audio boosts organic search volumes, paid search impressions, and conversion rates, and enhances social ad performance.

The paper also highlights audio's trust and cultural relevance. Radio campaigns significantly increase brand trust, penetrate local communities, and act as a media multiplier alongside other platforms. Sports radio listeners, for example, are three times more likely to search for a sponsor's brand and four times more likely to purchase a product.

However, misconceptions about the need for visual assets and difficulty integrating audio into broader campaigns persist. The report counters these concerns by showcasing audio's unique ability to build trust and engage communities.

Concerns about measuring audio's effectiveness are addressed by highlighting advancements in analytics tools. Techniques like pixel-tracking and attribution models now enable brands to link audio ad exposure to online and in-store conversions, offering actionable insights to optimize campaigns in real time.

The full white paper is available for further details on these findings and recommendations is available here.