How to Recession-Proof Your Ad Spend
SVP of Research and Insights
There are so many factors planners have to take into consideration, while they shift media dollars around to craft the optimal scenario that will hit advertiser goals. The economy, shifting media habits, brand KPIs, channel efficiency and effectiveness… and the list goes on.
One of the biggest challenges now is to find a new home for those TV dollars that are no longer reaching wide or deep. Should they go to CTV with $25+ CPMs or to social media because everyone seems to be buying something they didn’t know they needed off of TikTok? The fact of the matter is, consumers’ time, attention and money are on Audio.
Audio doesn’t just check on the classic pillars of reach, resonance and impact. It adds to them:
Audio has reach, with authentic connections. 96% of P13+ listen to audio daily.1 And they trust what they hear. Whether listening to terrestrial or digital radio, or a podcast, audiences indicate they are more likely to trust what they hear than what they watch on a screen. 2
It brings quality and precision to audience targeting. Did you know that 74% of US adults make time for audio in their daily lives and 40% move daily activities around audio3? Sports, news, music and other formats are inextricably woven to our rituals. Audio is the one medium that can take audiences deep into moments of me-time, parenting, exercising, food preparation and otherwise.
It yields high returns. Audacy’s Audio Amplification study with Neustar showed that moving inefficient dollars to audio will increase audio ROAS in double digits in auto, retail, financial service and telecom sectors.4
Audio’s effectiveness arches from awareness to trial. And it even brings customers back to re-purchase products. When it comes to closing the deal with customers, audio reigns above other media, including social, CTV, video and search. Radio is ahead of TV across all stops of the consumer journey.
Audio Moves Audiences Across The Funnel5
(A18-54, Example read: Radio ads increase awareness among 55% of U.S. adults A18-54 and drive 50% of them to try products.)
|CTV (incl. SVOD)||43%||40%||36%|
Takeaway: Especially in times when there is pressure to seek efficiencies, without sacrificing strong outcomes, Audio should be top of mind for media investors and planners. It is the one medium that delivers reach, engagement and impact in scale.
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1 Edison Research, Share of Ear, Q3 2022. Audio consists of AM/FM, streaming and podcasts.
2 Audio Amplification: Engaged Impressions Study, Alter Agents, August 2020
3 Audio Rituals, Alter Agents, July 2022
4 Neustar, Audio ROAS, May 2021
5 Nielsen Commspoint Influence, Planning Insights, Channel Ranking, MRI Simmons, 2022. Social includes Facebook, Instagram, YouTube, Twitter, TikTok, Snapchat and Pinterest. The analysis takes reach and cost (CPM) into consideration.