3 Ways In-Store Ads Boost Retail Media Results
2021 was a record year for ad spending. According to Forbes’ projections, audio ads were up to $16 billion in 2021. Mirroring this growth is the increase in attention to data privacy, which has made it harder for advertisers to connect with their target audiences. In response to these privacy changes, advertisers have begun looking beyond standard digital ads to other approaches equipped to support the creation of meaningful touchpoints at the point of sale.
Compared to traditional advertising strategies, retail media is still in its infancy, but increased demand is driving innovation. According to AdWeek, 74% of brands have dedicated budgets for retail media networks in 2022 — triple last year’s number. Brands seeking data-driven marketing solutions value the ability of retail media networks to harness the power of zero- and first-party data.
Within retail media strategies, many marketers are turning to audio in-store ads to drive engagement. Here’s how AOOH can foster immersive experiences, help marketers target key shoppers, and shift in accordance with demand.
AOOH creates immersive customer experiences
AOOH allows marketers to engage shoppers at the point of sale. Shoppers navigate the store focused on their surroundings as they collect their items. Without the distraction of personal entertainment media, their senses are open to absorbing the retail experience. Music grabs shoppers’ attention and keeps them engaged, even when audio ads start playing.
For an increasingly skeptical, savvy audience that has grown more aware of how advertisers manipulate their data, AOOH provides a non-invasive advertising tactic that operates without needing personal data to garner results. When a customer walks into a brick-and-mortar store, they have a disposition predisposed to purchasing. When an audio ad plays, these customers are more open to absorbing brand messaging.
Unlike other retail media tactics, AOOH can engage listeners subconsciously. According to Edison Research, 70% of listeners focus completely on the audio when listening to podcasts. Because audio impressions are more difficult to block out, it may explain why AOOH fosters an atmosphere encouraging shoppers to act upon paid messaging.
AOOH provides fine-tuned targeting opportunities for advertisers
AOOH allows brands to hone their messaging to target specific demographics and niche groups. Shopper behaviors in brick-and-mortar stores are predictable, from how they navigate the store to when they shop. With access to retailers’ shopper data supplied by AOOH providers, advertisers can customize their AOOH presence to speak to the exact group of individuals they specify.
Beyond targeting, brands using a retail media network are agile. Unlike traditional marketing tactics, a self-service platform can update campaigns and messages in real-time. Brands can quickly pivot, pull, or increase messaging based on performance, seasons, local events, weather, or budget. This technology is optimized for advertisers to transform data insights into meaningful impressions with their audiences.
AOOH optimizes for integration to ensure supply matches demand
Product shortages and delays have become the norm given supply chain disruption. For brands struggling with inventory issues, marketing becomes a calculated risk if they cannot maintain stock to meet advertising-generated demand. By incorporating AOOH into their retail media strategy, brands can highlight in-store inventory at specific brick-and-mortar locations. Integration between AOOH providers and retailers’ inventory data ensures that customers only hear ads for products that are located at that specific location.
AOOH also offers integrations with multiple DSPs, so ad buyers can access their audio inventory immediately. These demand-side platforms allow brands to regularly update their campaigns and budgets to align their advertising strategy across the brand. Thanks to AOOH’s optimization — with pathways for automation via integration to complement brand retail strategies — advertisers gain maximum control and flexibility.
Retail media spend will continue to increase this fiscal year. Advertisers must consider how they will most effectively engage customers at the point of sale. Thinking outside of the traditional retail media stack — and including AOOH as a marketing strategy — offers a powerful way to engage customers through their eyes and ears.
Paul Brenner is President of Audio OOH and CSO at Vibenomics.