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Have You Heard About the Power of Retail Audio Advertising?
Rolling Stone recently published an article drawing attention to the importance and often underappreciated power of retail audio advertising. The author, Amanda Dorenberg, claims that “the quarantine highlighted consumers’ demand for multisensory buying experiences, and no other medium fortifies the digital retail communications connection more than overhead audio advertising.”
Dorenberg shared a story about how she was walking home from the dog park when a sudden realization hit her: she needed to grab ingredients for dinner. While shopping, a retail audio message caught her attention, promoting an ice cream brand she had been wanting to try. After a quick diversion to the freezer aisle, she purchased the ice cream, all thanks to the ad she heard.
Amidst the hustle and bustle of shopping venues, retail audio advertisements stand out as the one medium that consumers neither can nor wish to ignore. Such audio campaigns consistently connect with all patrons, regardless of their location within the establishment. This strategy blends music, environmental sounds, and spoken messages to craft an immersive shopping ambiance and update customers on the latest products and offerings.
Last year, the Path to Purchase Institute performed a survey, which concluded that “nearly three out of four shoppers notice in-store audio ads and 48% say they often seek out and consider purchasing the brands they hear promoted over retail audio — about the same engagement rate as ads on video monitors and digital screens.” The survey’s data also showed that nearly 85% of surveyed shoppers “said they consider purchasing the products they hear about on in-store audio messages.”
Additionally, in-store audio promotions offer a powerful platform for non-endemic brands that aren’t directly related to the store’s primary products. Be it a film premiere, a travel agency promotion, the introduction of a new vehicle, or a telecommunications brand, these unrelated advertisers can reap the same advantages as those brands that are sold within the store.
When weighing the pros and cons of in-store audio ads, Insider Intelligence noted that “audio ads are a relatively low lift for both brands and retailers. Brands can easily record ads in-house while retailers can use their existing sound systems to play the spots in-store. There’s little to no disruption of the customer experience, as customers are already primed to hear music and other announcements.” As potential downsides, it’s possible customers will tune the ads out, and it can be challenging to measure the effectiveness of the ads.
Walmart started introducing ad spots to its in-store radio, Walmart Radio, in June to give “suppliers the ability to purchase ads by region or by store so they can target key markets.” Walmart noted in its announcement that “in-store audio gives brands a new tool for surround-sound engagement in the context of an omnichannel, full-funnel campaign, while being non-intrusive to the shopper.”
Canadian Grocer explained that more food brands are starting to embrace in-store audio ads as well. While navigating the aisles of a grocery store, shoppers are inundated with countless product advertisements. The sheer volume of options can lead to decision fatigue, with a sea of brands vying for their attention at every turn. In this setting, audio advertising has become an innovative way for food brands to stand out. Positioned uniquely within the grocery soundscape, customers will hear these audio promotions no matter where they are in the store, providing a refreshing departure from the typical visual clutter of POP displays and shelf talkers.
Canadian Grocer’s data found that “60% of purchase decisions are made at the shelf,” so audio ads can reach a brand’s target audience where buying decisions are actually made. Additionally, “in-store audio ads can be created to amplify a message, promotion, or offer. They can also align brands with a seasonal event like Halloween or National French Fry Day.”
Many retailers already play music inside their establishments for ambiance. With all of these benefits, they might want to try adding some audio advertisements as well.
Discussion Questions
Do you believe that audio retail advertising can be the most compelling and effective sales conversion strategy inside a retail establishment? Are there any other benefits for stores to play in-store audio ads?
Poll
Loading …BrainTrust
Lisa Goller
B2B Content Strategist
Brandon Rael
Strategy & Operations Transformation Leader
Advertising on in-store radio is obviously powerful as it reaches shoppers at the place of purchase, so activation is extremely quick. That said, care needs to be taken not to bombard the customer with messages as this can become annoying – more so than things like shelf talkers which are far less intrusive. In this regard, I also think it interesting that Walmart has announced it is re-introducing some sensory-friendly shopping hours for customers who are sensitive to distractions. Creating a good shopping experience is about balance.
Audio ads in retail stores are far from new, or innovative, and I’d question whether they are the most effective way to reach shoppers. Consumers respond to different stimulation, differently. Some shoppers may find audio ads compelling and cause them to immediately purchase, while other shoppers will tune them out completely. While it rings true that having the advertising stimulation close to the point sale may improve the probability of sales conversion, too many promotional messages can also detract from the shopping experience. Like any promotional activity or marketing effort, retailers considering audio ads should test them in a sample of their stores and examine the sell through rates of the products being promoted in the audio ads in these stores vs. a control sample of stores.
Annoying. Yet another sad sign that bricks and mortar retailing is in a desperate time….”buy this” “please”…no thank you.
And while we are at it, what decibel level are the stupid gas station ads set to?
Tuning out is becoming a new super power.
Between the airlines and the brick-and-mortar- it feels like there is a race to see how miserable they can make their customer’s experience.
Those gas-pump audio ads are super-annoying. Not doing their advertisers any good, IMO.
You had me at National French Fry Day. Retailers are right to explore every opportunity for bolstering their bottom lines. Everyone knows how small margins are from core retail activities. That being said, audio ads aren’t 100% unobtrusive. If they were that, this would mean that 0% of shoppers heard or paid attention to them.
The takeaway for me is this: watch carefully what Walmart does with this and learn from them. Yes, retailers need to promote specials in their stores as effectively as possible, but we need a whole new level of sophistication on this. After all, this is yet another dimension of the brand and the customer experience.
Absolutely! Exploring every retail opportunity is smart, but audio ads need careful handling. Learn from Walmart for sophistication in promotions.
Wait a minute. “60% of purchase decisions are made at the shelf.” In a grocery store? Nope…no way. I’m not the only person shopping for groceries with a pretty specific list. Am I open to impulse purchases? Sure. They are a tiny % of my buy.
There’s an acknowledgement about visual clutter and decision fatigue. So let’s add to all that with audio clutter. No thanks. Not for this shopper. My guard is officially up against this ever building assault on my senses.
Agree, Jeff. Most grocery shopping is routine and habitual. Many shoppers plan in advance via lists.
Actually Jeff that stat is highly dependent upon your definition of “purchase decision.” Even shoppers who arrive with lists make choices with respect to package size, items on sale, expiration date, quantity. These are not impulse decisions, but they are made at the shelf.
But how are any of these factors addressed by ads ?? (Sale items, are an obvious exception). Expiration, price and the availabity of choices become apparent once someone looks at the selection(s).
I hear ya. I’m just surprised it’s a double.digit number, much less a big double digit number.
I believe they would be more effective if they were interspersed with a live announcement from the store manager alerting shoppers to a particular brand that is being promoted where the brand wins, the store wins and the shopper wins. They seem to be more fitting (yes, maybe retro) yet, can come off more personal that a slick ad.
I can’t help thinking of “Attention, Kmart shoppers!” (Talk about retro.) While many shoppers will tune out the aural clutter, others might just respond with an unplanned purchase at a low cost to the retailer.
Menard’s did this fairly well, but everything was tied to Ray Szmanda’s voice so that TV, radio, and in-store messages were consistent. It was like hearing your friendly next-door neighbor and not overdone. After Ray left, I just tune everything out when I’m shopping there.
Most compelling? No. Effective, depends. If you are evaluating considered impressions, then yes. You have the consumer at the point of purchase so the vehicle has built in advantages. Production is low cost as well, which makes this a media worth considering. The overall theory of audio influence has been proven. From music driving age-related relevance (think loud rock music in A&F) to seasonal mood sounds like Holiday to get consumers in the gift giving mindset, sound is a valid sensory motivator.
I would argue that consumers are pretty good at ignoring audio they’re not interested in hearing. And, given the background noise at a retail store, the chances of them listening to an ad and then changing their buying habits because of it are probably low. Then again, the changes they make might not be the ones that the retailer wants. I’ve stopped buying gas at a local station that runs ads at the pump at rediculous volume. Now I shop at a competitor who has a “Mute” button on their pumps.
My personal take is that playing ads in a store lessens that store’s brand for me. It makes me think of K-Mart and the incessant “blue light specials” they would promote over their PA. Note to self- remember my noise canceling airpods when I go to the store.
Successful retailers have always been good at finding ways to monetize their customer traffic, from getting marketing dollars for putting an item on an end cap to collecting revenue for having an in-store audio advertisement. We know Audio adds on the radio, podcasts, and other media drive brand specific sales. The questions for the retailer are; “are the in-store audio advertisements driving incremental sales?” and “are the discounts given on the items advertised offset by the fees charged to suppliers?” Maybe the retailer breaks even if the advertising fees offset the cost of the normal entertainment audio.
In-store audio ads can enhance product discovery and sales, especially if shoppers are in a state of relaxed receptivity.
Retailers need to ensure sufficient inventory so crowds don’t rush over and create out-of-stocks. Also, more shoppers now wear earphones to listen to their own music in stores.
Audio ads could use the power of voice to reflect local needs, like Spanish messaging for stores in Hispanic communities. Catering to local patrons’ needs with in-store audio can enhance trust and loyalty by showing the retailer cares.
I wouldn’t say that audio advertising is the most compelling or effective sales conversion strategy but it does work. With caution. After a half an hour in a toy store that played its theme after every other song I thought my head was going to explode. That ear worm lasted for days, but I digress.
Audio advertising has been around forever and the companies that provide the service have it down to a science. Mixing it with a few live announcements is fun, too. Who doesn’t miss an occasional “Attention, Kmart Shoppers…”?
This idea is walking a fine line between awareness and annoying. While I’m sure retailers see it as a useful tool as a prompt to buy, as well as a way to augment other forms of advertising, it may actually have minimal value as a purchase driver as it runs the risk of becoming almost like white noise, or a vehicle that causes the customer to rush through the store or leave completely because they are irritated by the ads.
First this is not new. I remember product sale announcements over the PA 50 years ago while grocery shopping with my mom. I’ve continued to hear some version of that occasionally ever since, some originating in the store and others obviously pre-recorded. Second, perhaps it’s effective in the short term, however, there will have to be careful monitoring and analysis to determine if the positive results are sustained or if such announcements lose effect and potentially have a negative effect over time.
As we have seen over the past 10-plus years, the industrial advertising complex has evolved significantly in the age of digital commerce. Retailers, grocers, and brands are establishing retail media networks to get into the business of recurring revenue with digital advertising.
While retail media networks are forecasted to bring in $128B in revenue in 2023, the brick-and-mortar store remains as influential as ever, with 85% of sales generated in-store. Audio retail advertising is yet another, and perhaps more traditional, way of engaging with customers while shopping in stores. These radio networks have been around for decades, and if executed properly, they can influence emotions and behaviors and even change consumer shopping decisions while in-store.
However, there is a delicate balance with any advertising campaign. Too much of a good thing quickly becomes irrelevant and spam-like.
I have never come across a controlled study that shows a positive impact for in-store audio, video, floor-talkers, etc. this tends to be noise for shoppers, not helpful hints. Whatever positive impact we have seen rarely pays out. Notice that the article never mentions sales impact.
I’m surprised by this data. I’m always with airpods in when I’m at the store, and I see many others doing the same. Further, it’s a pretty distracting/overstimulating environment to also be tuned into what’s playing over the speakers. I also feel that many are fast forwarding past ads when listening podcasts- so I’m not so convinced that audio ads are the best way to get to a shopper.
I’m not an expert in audio advertising, but let’s consider the obvious. The goal is to grab a customer’s attention. Anything that does that, and at the same time is not obtrusive and annoying, has an opportunity to be successful. Looking at my fellow Braintrust colleagues, there is a mix of pros and cons. In the end, keep in mind what I first mentioned. Grab the customer’s attention, but don’t annoy them!
I find routine radio advertisements to be annoying. I suspect that I am not the only one who feels this way. I have never bought product after hearing a radio ad. However, I would be motivated if I heard a radio ad announcing something like, “25% off sirloin steaks in the Butcher Department for the next hour only.”
In-store audio has decades of history. Its persistence is a proof point, I think, that is has some beneficial impact for advertisers. In the context of today’s broader retail media spectrum, it can have an “amplifying” effect on conversions.
In most deployments, only one audio program can be played at a time storewide, which limits the ad slot inventory. Rarely will a message be delivered while a shopper is passing near the promoted item. It can be great for announcing manager’s specials.
Like any in-store messaging system, audio announcements can also be intrusive. They will not be appreciated by some highly-sensitive folks. Getting the volume right (loud enough to be understood but not blaring) is not easy. Production values are critical.
Can I believe it?? No…I’ll put my faith in our Poll results over Rolling Stone, thank you.
I think we can all agree hearing an ad for something you are – or even might be – interested in, right when you have an opportunity to purchase it, would be quite effective. But I think it’s equally obvious the chances of that happening – that is to say every SKU in a store having the opportunity to reach consumers in the small amount of time they’re shopping – are quite small. So the question is really “is winning the lottery a good way to get rich?” Answer: well yes…if you happen to win.
At least that’s my perspective from the POV of a consumer; from the store’s side it might make more sense (as long as someone buys it was a success…right?) At least as long as they ignore the (very real IMHO) possibility that customers don’t want to be serenaded by non-stop ads.
In-store audio ads, pose minimal effort for brands & retailers, seamlessly blending into the customer experience, engage customers seamlessly and influence purchasing decisions. It’s like a non-intrusive, catchy soundtrack to your shopping experience that nudges customers to discover and buy new products, while challenges include potential ad tuning and measurement difficulties.
Walmart’s targeted in-store radio ads, and food brands using audio ads in grocery stores. Mark’s (Canadian Tire owned casual & workwear apparel brand) uses in-store radio ads to drive conversion for in-house as well as for global brands.
The decision of whether this is a customer experience benefit or an interruption is dependent on the store format and target customer. I would doubt this study covers all types of grocery formats, rather, focused more on large chains and their networks.
POP shippers on the floor, bold promo signs, and radio ads is a strategy price and promo stores believe works for them. But many independent and quality-driven stores prefer a cleaner, and more calming experience so their customers can taste, learn and make decisions on benefits.
Audio may not be the most compelling and effective sales conversion strategy actoss the board but it certainly has in own place in an effective, well-rounded marketing mix.
Consumers are generally receptive to in-store audio, so brands do not have to fight to get their attention. Still, from message to conversion requires consumers to take action and that’s where audio can help nudge a consumer from consideration to take action.
Instore audio has long been a good way for brands to speak to consumers at point of purchase. Given all the media touchpoints most retailers offer across their ecosystems, instore audio may work best when layered with other media along the path to purchase to create a consistent and progressive message throughout the journey.
In my opinion, audio retail advertising carries both strengths and challenges. On the positive side, these ads create an immersive shopping ambiance, catching the attention of customers throughout the store. The Path to Purchase Institute’s survey indicates a substantial engagement rate, with many shoppers considering purchases based on in-store audio messages. Additionally, it offers a platform for non-endemic brands to benefit from store ambiance. Walmart’s regional targeting and non-intrusive approach highlight the strategic advantages. However, it’s crucial to acknowledge potential downsides, including the risk of customers tuning out and the challenge of measuring effectiveness. Despite these concerns, the ease of implementation and the opportunity to cut through visual clutter make in-store audio ads an enticing strategy for brands looking to connect with consumers at the point of purchase.
A refreshing departure? Feels similar to the refrigeration ads that were recently replaced by a few grocery oriented retailers. If done correctly & subtly I can see radio being effective, but I wonder how it can measured to prove impact. Assuming the radio ads are meant to produce immediate conversion, then the timing of the add could be tied to time of purchase at POS. Seems spotty at best.