The National Retail Federation predicts record per-person holiday season spending of $902 this year, which is $27 more per person than in 2023. Advertisers are also spending more. Now, as the post-political ad marketplace fills up with holiday commercials, the advertising agency Ad Results Media (ARM) is advising brands to place buys across all of the audio channels as well as set aside some dollars for last-minute buying.
While many shoppers are tuned to AM/FM radio as they drive to the mall, some are embracing podcasts as their audio companion. In fact, a survey by Spotify in the U.K. found two in three listeners stream podcasts while doing Christmas shopping. Overall, the survey says two in three ad-supported listeners stream holiday music during the festive period. Based on those trends, ARM suggests brands go beyond broadcast to streaming audio.
“Particularly during the holiday season, audio is a big part of the experience,” says Gretchen Smith, VP of Media at ARM. “Streaming music is big at this time, and many people have video podcasts on in the background while decorating and baking, radio news playing during morning coffee. There are so many different touchpoints with audio. It's a huge part of most people’s consumption.”
Yet streaming is only part of the holiday story. Katz Radio Group's 2023 Holiday Music Study found that AM/FM is the top source for holiday lovers. Two-thirds listen to broadcast radio compared to 48% for audio streaming options. It theorizes the ubiquity of radio helped the medium, as listeners want to hear holiday tunes in the car, at home, at work, when they're socializing, and while shopping.
However, ARM Chief Revenue Officer Kurt Kaufer says in a blog post that brands should tap into audio holistically to do the most with their holiday budget.
“Audio advertising is a tool that delivers full-funnel results while augmenting the other channels in your media mix,” he advises marketers. “Audio is capable at every stage, driving awareness, consideration, and, ultimately, conversion. With targeting capabilities that are increasingly nuanced, the ability to re-target and re-message as necessary, and go with busy holiday shoppers to places other media simply cannot, audio is equipped to deliver.”
Audio has long been seen as a way to drive awareness and help build a brand name. Additionally, as direct response companies have demonstrated during the past decade of podcast advertising, audio can also drive sales.
“Audio sees really high conversion,” Smith says. “And given the number of places that people connect with it, it often performs much better than the channels marketers tend to think of as performance channels.” He points to research showing combining audio with video and online display ads delivers 2.2 times the lift in purchase intent than audio alone and a 34% jump in conversion rates.
Many marketers are shifting more dollars toward retail media to capitalize on the amount of time Americans are spending on retailer websites or in their stores. Kaufer also sees tie-in opportunities. “Audio can effectively multiply the impact of retail media strategies,” he says.
To unite the campaign into a single message, ARM suggests brands use sonic branding to link various elements, using sound effects and scripts to can create a clear and consistent message across media channels.
This year’s political ad frenzy has many retailers waiting until after Election Day to jump into the mix, and ARM suggests that clients unsure about audio run a test campaign using different messages.
“During the holiday season, with smart creative, you can craft a call-to-action that evokes a sense of warmth or last-minute urgency as shoppers get closer to crunch time,” Smith says. “The speaker could deliver the message faster, for example. That’s where the power of audio can really shine during this time of year.”
Last Minute Shoppers Find Deals
Fourth quarter is traditionally the period when many retailers make a larger share of their annual sales. It is also the most important quarter for most media outlets. Smith says inventory demand drives up CPMs, but she says more media sellers are willing to cut deals than many brands realize.
It is also not only last-minute shoppers in the mall that could score some holiday deals.
“I suggest setting aside 5% or 10% of the budget for last-minute opportunities,” Smith says. “Brands are often able to get a lot more value if they can take advantage of new things launching during Q4—and a cultural moment at this time can do a lot for a brand.”
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