By Paul Brenner, President of Audio OOH and CSO Vibenomics
The internet dramatically expanded the modern advertiser’s tool kit because of one simple but transformative development: access to data. With users regularly sharing personal data online and web cookies tracking every click, marketers and advertisers have been able to gain unprecedented insight into consumer behavior. This strategy produces great results for marketers. But, with Apple announcing new IDFA updates that, among other changes, require apps to ask users for permission to collect and share data, advertisers are faced with the challenge of finding other ways to gain insight into consumers and their individual needs.
This puts Audio Out-of-Home (Audio OOH) technology at a unique advantage. Being an extension of retail media in brick-and-mortar focused companies, Audio OOH relies more on the knowledge of the in-store audience and is location-specific, not device-specific. This technology is not seeking out personal information or requesting the use of privacy to meet the needs of a marketer. It’s focused on enhancing the in-store customer experience while also reaching shoppers closest to the products at the point of purchase, ultimately affecting buying decisions.
More regulations and limitations are making it increasingly challenging for advertisers to gain consumer insights. Here are the changes occurring in the industry and why Audio OOH advertising should be seen as a new go-to when looking to enhance the customer experience and adhere to privacy concerns.
How Privacy Rules Are Affecting the Ad Industry
Last year, companies were expected to spend $332.84 billion on digital advertising, with plenty of that spending driven by advertisers’ ability to target customers based on their web-browsing histories, physical locations, app usage, and other information. But a surge in privacy regulations around the globe has marketers, advertisers, and platforms scrambling to make sure they are compliant with new laws and pending regulations. Naturally, data privacy is at the forefront of people’s minds, especially with foreign election interference and personal information leaks by major corporations. Meanwhile, advertisers are questioning as regulations mount, how will the digital ad business be affected by greater privacy requirements?
Looking ahead, advertisers and others in the ecosystem, including ad-tech companies, agencies and more, will need to become more transparent about how consumer data is being used. It’s crucial to let consumers know how their data is being handled to improve their trust with a brand.
What Sets Audio OOH Apart from the Rest
Advertisers have new opportunities to reach consumers where it matters most, especially with voice and audio. There has been a significant increase in audio advertising as both brands and platforms realize its value and power. For example, video giants like YouTube announced audio-only advertising as an option for people who use its site to listen, but not watch, content. With this in mind, digital audio is a growing area for advertising because it’s getting easier to target more creatively, without invading listener privacy. Audio OOH technology targets specific audiences in a way that cannot be blocked, skipped, or fast-forwarded because it’s not being controlled by a newsfeed algorithm or plagued by ad fraud.
With 20 percent of shoppers changing their minds at the point of purchase because of what they hear in-store, advertisers have a perfect opportunity to influence behavior, convert investments into results, and increase sales performance. By combining ads with entertaining music that ties back to a customer’s interest, consumers are more likely to engage with the audio while making a purchase and take advantage of a product or service. A new wave of buying behavior is here and brands need to leverage Audio OOH in their media plans to find better ways to reach their target audience with new advertising and content channels. With profound growth in retail media channels, there has never been a better time to investigate the opportunities within Audio OOH advertising.
This is only the beginning. The privacy bubble is starting to burst and advertisers and marketers alike are quickly pivoting their efforts to include Audio OOH technology in their marketing strategies to reach customers in a privacy-conscious world. Not only does Audio OOH allow advertisers to reach the right people, but reporting tools can help them understand how an audio ad influenced a customer’s path to purchase. Having access to this type of product-level transactional data is going to be essential as advertisers continue to battle strict privacy regulations.
About Paul Brenner
With more than 25 years of experience in media & entertainment and technology leadership, Paul Brenner served in several c-suite roles including division President with Emmis Operating Company[NASDAQ:EMMS]. As President of NextRadio/TagStation, his work focused on global innovation through FM Chip activations in all smartphones for audience measurement, improved in-car user experiences, and data attribution platforms for all broadcast radio. In 2019, Paul joined Vibenomics as Chief Strategy Officer to help develop the go-to-market strategy for the company’s first-to-market Audio Out-of-Home™ advertising solution. Following a successful launch, Brenner was promoted to President of Audio OOH to oversee all efforts surrounding the revenue-generating activity and related partnerships.
A location-based Audio Out-of-Home™ advertising and experience company that powers audio channels for retailers, giving brands the ability to talk to shoppers directly at the point of sale. With its powerful cloud-based technology, licensed background music library, data integration capabilities, full-service team of audio experience experts, and network of on-demand professional voice talent, the company provides the right revenue-enhancing vibe for over 120 advertisers in more than 6,000 locations across 49 states, reaching over 200 million people.
Delivered through flexible plug-and-play, proprietary, IoT enabled media players, Vibenomics dynamically broadcasts hyper-targeted, on-demand audio advertisements and curated playlists within any combination of locations across its swiftly growing national footprint, unlocking a powerful new shopper marketing channel for reaching consumers during the critical final footsteps along the path to purchase. Through a first-of-its-kind partner program, retailers can receive a portion of revenue for all advertisements sold by Vibenomics that play within their locations, giving them the ability to monetize their private airwaves and transform a legacy expense into a new profit center.