Audio out-of-home advertising is reinventing personalization

Do you remember the first time you received a personalized ad? Perhaps you discussed a product with a friend, and the next day, an advertisement for that product popped up on social media. It almost makes you think someone’s listening to your conversations, doesn’t it?

Over time, consumers have become increasingly skeptical about ads like these — and for good reason. A 2019 Accenture study found many customers felt brands communicated in a way they felt was too personal — and 71% of those customers worried how the brands had acquired personal information they hadn’t voluntarily shared.

First-, second- and third-party data make it possible to generate hyperpersonalized ads. But these data collection efforts fall short. Consumers find these methods invasive and a breach of trust — and the data collected is often inaccurate. Google’s third-party cookie is going away, and Apple has made recent changes to its Identifier for Advertisers (IDFA), but no one has clarified the effect of these changes on advertisers’ or marketers’ abilities to reach and remarket consumers.

Many advertisers have begun leveraging AOOH as a more significant part of their brand and marketing strategy to improve reach, frequency and overall business outcomes.

It’s not so much that customers don’t appreciate ads targeting their interests — the concern lies in the methods marketers use to collect data and how consumers can maintain control over what personal data they choose to share. Interestingly, as consumer demands for personalization have increased, according to the 2021 State of Ad Personalization report, half of marketers have yet to invest in ad personalization.

Personalization and data play a vital role in the success of marketing and advertising campaigns today. Brands and their marketing departments must think outside the box and use a more targeted medium not predicated on invading privacy but designed, nevertheless, to provide a unique, personalized experience for in-store shoppers: audio out-of-home (AOOH) technology.

AOOH technology does not request the use of personal data to work effectively. Instead, it focuses on the in-store customer experience. AOOH broadcasts premium music and programmatic advertisements to enrich customer experiences and reach shoppers directly at the point of sale, influencing buying decisions and positively impacting sales.

The current generation of personalization and data collection

In the marketing world, personalization has many nuances. Ultimately, marketers see its goal as providing a unique experience to every individual based on personal preferences and data. The current generation of personalization in marketing is not about collecting cookies or third-party data, merchandising or guesswork.

Today’s personalization focuses instead on delivering the right content, the right offer, the right channel and, most importantly, the right sequence of events generating value exchange between the brand and the consumer.

Although consumers don’t trust superpersonalized ads, they still expect brands to offer a personalized experience. Ninety-one percent of consumers polled in another Accenture study indicated a willingness to shop brands with some form of personalization.

On the other hand, personalization in audio advertising has seen significant growth over the past 15 years, as reflected by a willingness by brands to invest in this medium. A recent report predicts an astonishing 84% growth in digital audio ad revenue for 2025 compared to 2019.

Companies analyze the data captured through AOOH campaigns to gain insight into foot traffic, basket size and more at various store locations nationwide. How might insight gathering look? Take the partnership between market research company IRI and Vibenomics, my company’s AOOH advertising platform. This collaboration enabled IRI to measure the direct sales impact of customers’ exposure to AOOH advertising in five specific categories: Shampoo and conditioner, skincare, dry packaged dinner mixes, pet food and adult beverages.

IRI analyzed the level of spend across a feasible number of stores and time period. The results found an average of 18.8% sales lift across the five categories with a 34.1% lift in the adult beverages category. Overall, IRI saw a 3:1 return on ad spend (ROAS).

Why personalization paves the way for the audio industry

Audio has evolved from its humble (and louder) beginnings as a blunt megaphone when broadcast radio offered the only option for advertisers. The 204 million digital audio listeners — or two-thirds of all digital media consumers listening to Spotify, Pandora, Apple Music and other apps — have made digital audio the second most popular digital activity for U.S. adults.

Digital apps offer addressable audio inventory, enabling advertisers to focus on content for specific individuals in lieu of blasting generic, undifferentiated messages to mass audiences. AOOH delivers personalized, one-on-one customer experiences and generates strong ROI — the perfect, secret weapon advertisers are searching for.

Advertisers need to target customers with creative personalization. That said, audio ads speak to listeners individually with contextually relevant content that cuts through the noise. Rapid technological advances, like AOOH, have enabled advertisers to take a more thoughtful approach to personalized audio. The industry has made great leaps in three key ways:

Make data-driven marketing more creative

Data-driven personalization allows advertisers to tailor audio ads to context in real time. It’s Friday night after a long week, and the last thing you want to do is cook. Imagine hearing that food delivery ad as you’re peering reluctantly into the refrigerator? The ad is perfectly timed and relevant to your current situation.

Marketers can create thousands of permutations of the same audio ad. Listeners hear the one ad most appropriate for the immediate context. For example, the music and advertisements played in an Indianapolis Kroger differ drastically from an LA Kroger. Studies show the effectiveness — successful sale outcomes — of using data to create personalized, unique in-store experiences for consumers when people hear these advertisements at the point of purchase.

Amplify brand recognition and buying behavior

Seventy percent of buying decisions occur after entering the store. We may have turned off the car radio, but now that’s not the last place for audio to reach us. In-store audio messaging inspires 20% of shoppers to change their minds at the point of purchase — the perfect opportunity for brands to influence behavior and drive sales performance. Consumers can’t block, skip or fast-forward AOOH.

Many advertisers have begun leveraging AOOH as a more significant part of their brand and marketing strategy to improve reach, frequency and overall business outcomes.

Choose emotive storytelling

To create an emotional connection with listeners, advertisers should take a page from how people talk naturally and instinctively to one another. AOOH offers a unique opportunity to create a story for its listeners. Ads that combine curated music playlists connected to consumer interests will resonate more. Customers will more likely listen and engage while shopping or obtaining services.

AOOH offers both marketers and advertisers an opportunity to reach customers more effectively. It drives demand and helps customers understand their choices beyond the exact products they always buy. AOOH’s ability to personalize without invading your privacy is the secret sauce advertisers have been looking for.