The launch of Amazon Advertising back in 2018 set the stage for retail media networks. During the past three years, retail media has grown exponentially with large retailers like Kroger, Target, Dollar General, Walmart, and Home Depot following Amazon’s lead and creating their own retail media networks.
Brands spent $5 billion on retail media in 2020 alone. While online shopping and retail media networks were rising before the pandemic, COVID-19 also drove retail media networks' surge in popularity. Forced by the pandemic to opt for e-commerce shopping, consumers are altering their previous buying habits.
This shift in consumer behavior has resulted in a stronger connection between retail media and digital channels. Including retail messaging and offerings on retailer websites or mobile apps is merely one step. To see maximum benefit from marketing dollar spend, brands should take an omnichannel approach to their retail media strategy to utilize both in-store and out-of-store touchpoints, too.
After more than 18 months of increased comfort with the e-commerce world, consumers expect similar shopping experiences in physical retail locations. To meet these expectations and deliver a seamless customer experience across all advertising channels — including in-person experiences — retailers should consider Audio-Out-Of-Home (Audio OOH) to complement their retail media strategy.
3 Benefits of Adding Audio OOH to Retail Media Strategy
Audio Out-Of-Home — a new form of advertising — plays premium music and programmatic advertisements in-store. It creates a unique opportunity for retailers to talk to their consumers directly along the path to purchase using technology and capabilities similar to those available online, and offers several benefits when deployed as part of retail media strategy:
- Programmatic Capabilities: Audio OOH’s programmatic capabilities use data-driven technology to enable advertisers to target specific audiences based on product availability in-store, time of day and shopper demographics. Built-in flexibility allows brands to change the music and messaging to align with the advertisements running in other media channels. Audio OOH helps advertisers engage with consumers at different points along the buying consumer journey and provides an incredible opportunity to influence purchasing decisions.
- Customer Experience: Brands use Audio OOH to stand out from the competition by connecting directly with customers about their products, similar to “digital shelves” e-commerce sites use. Audio OOH technology enables brands to use consumer insights to curate tailored, relevant audio campaigns that resonate with the targeted buyer demographic. Personalized messaging and offerings increase brand awareness and engagement to help to strengthen their relationship with customers and build brand loyalty.
- Audibility, Measurement & ROI: Audio OOH advertising platforms provide metrics and analytics that track audibility, impressions, engagement, and more. It offers a unique advantage over other advertising channels because it can’t be blocked, skipped or fast-forwarded, and thus, ignored.
The influence of Audio OOH When Used Strategically
Audio OOH’s unique advantage enables it to help brands reach consumers directly at the point of purchase. In-store marketing influences 68% of consumers to switch to a different product or brand. The creative, strategic approach of Audio OOH messaging prompts consumers to leave their comfort zones and try new products. It can serve as an additional reminder for a forgotten item on a shopping list, further impacting sales.
To prove the effectiveness of Audio OOH so retailers can justify their media dollar spend, a report from the Interactive Advertising Bureau (IAB) found thatU.S ad and audio spending increased by 30% in the first half of 2019 to $1.2 billion. On top of that, advertisers are now including programmatic ads in their media planning to assist their marketing efforts and hone in on specific audiences.
Audio OOH positively impacts sales as a strong contributor to brand retail media strategies. By delivering relevant messaging and offers to shoppers, this platform helps retailers monetize first-party data or physical stores to produce ad revenue. It’s a win-win approach for everyone in the retail media landscape. This strategy elevates brands above their competition and — perhaps most importantly — delivers a more seamless, unique customer experience shoppers have come to expect.
-Paul Brenner, CSO and president of Audio OOH, Vibenomics
With more than 25 years of experience in media and entertainment and technology leadership, Paul Brenner served in several c-suite roles, including division president with Emmis Operating Company. 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, Brenner 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. After a successful launch, Brenner was promoted to president of Audio OOH to oversee all efforts surrounding revenue-generating activity and related partnerships and recently joined the DPAA Research Committee and new IAB Committee.