Podcasts, streaming & on demand Radio & audio planning & buying Channel planning, media mix selection
There are significant opportunities for brands and retailers to leverage the strengths of digital audio to keep pace with the evolving path to purchase, according to new research co-authored by WARC and Spotify.
Why it matters
Most sectors are being disrupted, but none more so than Retail and CPG. Strategic decisions are becoming ever more complex as brands search for the most effective response to the cost-of-living crisis, the growth of ecommerce, changing consumer expectations, shoppers’ desire for more personalized experiences and the splintering of the media landscape.
Sonic boom: How digital audio can help Retail and CPG brands win the path to purchase, based on a survey of over 350 CPG and retail marketers and six in-depth interviews with industry experts, explores current thinking around the media mix, and how digital audio can support CPG and retail players in achieving effective outcomes along the marketing funnel.
Key insights
As the path-to-purchase evolves and marketers seek improved ROI, 96% of retail and CPG marketers are rethinking their media strategies. Deploying a wider range of media channels is their top priority.
Consumer demand for digital audio is growing, but there is still a striking imbalance between share of investment and share of consumption. Amongst consumers aged 16-64 in the US, digital audio platforms now command 21.5% of all time spent with media, but 1.1% of CPG media budgets.
As marketers seek to take advantage of the digital audio boom, investment in digital audio is on the rise. Last year, US retailers increased their spend on podcasts by 52% and invested 38% more in music streaming services.
Sentiment towards digital audio is positive, especially in North America. The platforms generate strong levels of audience connection and brands are confident this pulls through into receptivity.
Neuro-scientific research underlines the opportunity, with average engagement levels higher than terrestrial radio (+23%), social media (+18%) or TV (+14%).