Audio
An expanding market full of advertising possibilities
Audio
An expanding market full of advertising possibilities
Audio, a Huge Opportunity for Effective Advertising
The Audio Market has expanded radically to include all kinds of new channels and products for advertising and sponsorship opportunities, and for which advertising effectiveness testing is more critical than ever.
ABX is the market leader in evaluating audio effectiveness with 28,000+ tested radio and podcast ads to date and 470,000+ across all media types and variables. In addition to radio and podcasts, ABX measures advertisment and product integration effectiveness for any audio platform such as short-form video, streaming audio, smart devices, music videos, movies, and more.
In the largest ever creative effectiveness study, ABX tested 40,000 total ads across all media types for creative effectiveness using the same rigorous methodology. Only ABX measures ads from all media types in the same survey, allowing a clear comparison of creative effectiveness of one media type versus another, and replicating real world consumer viewing. Findings include:
- ABX: AM/FM radio creative effectiveness is 92% of TV at one-fourth of the CPM.
- Remarkably, ABX also found that high scoring, highly creative AM/FM ads outperformed 48% of TV executions.
AM/FM Radio remains the dominant audio platform even though many Americans have abandoned traditional TV for streaming. According to Edison Research’s Q4 2022 “Share of Ear,” AM/FM radio has a massive 73% share of U.S. ad-supported audio. AM/FM radio audience shares are over 15 times larger than ad-supported Pandora and 18 times larger than ad-supported Spotify. In fact, a P&G story reported by AdAge found among persons 18-49, AM/FM radio now beats TV in average audience and weekly reach, a historic first. See the Westwood One post HERE.
Audio Market Segment Highlights
The Global Music Streaming market size was valued at $29.45 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 14.7% from 2022 to 2030. The rising penetration of digital platforms and the growing use of smart devices are anticipated to boost the market growth over the forecast period. Platforms that allow users to listen to audio and podcasts and watch music videos are examples of music streaming services. Moreover, the expanding podcast genres on these portals are propelling the market growth. (Grand View Research Music Streaming Market Size & Share Report, 2030)
Audio Market Segment Highlights
Source: Statista 2023
Podcast Advertising revenue alone was estimated at $1.73 billion in 2022 and is projected to grow to $2.5 billion by 2024, as reported by Statista. In addition, there were 67 million podcast listeners in the US in 2017, and Statista reports an increase of 40 million to more than 107 million by the end of 2023.
Sample ABX Chart From Yearly Podcast Study
The Power of Audio
Sight, Sound, And Motion Superiority Is A Myth
“ABX’s creative analysis of thousands of TV and AM/FM radio ads reveals the best-testing AM/FM radio ads outperform 48% of all TV ads even without sight, sound, and motion.” – Pierre Bouvard, Chief Insights Officer of the Cumulus Media | Westwood One Audio Active Group
Key takeaways:
- Haircare and skincare: AM/FM radio ads perform very close to TV ad effectiveness for highly visual personal care categories
- Quick service restaurants: AM/FM radio ads perform very closely to TV ads in a category that has valued showing beautiful shots of food
- Nielsen: 61% of TV ads are not seen; Most exposures occur when consumers gaze at their phone or are out of the room
- Games of Thrones: Audio trumps video with greater cognitive and emotional processing as audio books beat the TV show in consumer engagement
CLICK HERE to read full article by Pierre Bouvard and download ABX report.
ABX Advertising Benchmark Index (www.adbenchmark.com), is a techno-research company focused on driving ROAS & ROI through their Global Integrated Single Solution. Marketers, through the ABX Global Multimedia/Multi Channel Platform, are able to evaluate the effectiveness of all their creative and copy across all media types and channels, and against their competitors’ and other ads, representing approximately 90% of global ad spend.
Our solutions are designed by the Visionaries, Inventors, and Pioneers who helped create the methodologies used by legacy marketing research firms. Need something not listed on our site? Other valuable consumer data is also available for making informed, time-sensitive business decisions.