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BizReport : Advertising archives : October 10, 2019

Vibenomics launching audio OOH marketplace

Vibenomics, a cloud-based managed service provider of audio experience solutions to location-based businesses and connected cities, recently announced it has launched an audio out-of-home (OOH) advertising marketplace enabling brands to reach a national audience of nearly 150 million or target any combination of 4000 individual locations. You don't hear much about audio-based advertising these days, so I asked Paul Brenner, Vibenomics' Chief Strategy Officer (who will run the ad marketplace) what is going on in the space:

by Kristina Knight

Kristina: What is audio OOH, and where does it fit in an omnichannel media strategy? 

Paul Brenner, Chief Strategy Officer, Vibenomics:  Vibenomics enables location-based businesses and connected cities to create and control their background musical "vibe" to enhance sales revenue and enrich the visitor experience. Scientific studies show that background music influences how much time spent in a store, what to buy, how much to spend and can trigger impulse buyers to make additional purchases. While audio is an ad format proven to create emotional connections with audiences, media consumption patterns on personal devices has gotten incredibly fragmented, whether terrestrial or digital, and is further limited by subscription models that can block ads. OOH placements complement other audio formats by overcoming these obstacles, and doing so right at the point-of-sale when purchase intent is highest. Where radio has always touted last mile attribution, audio OOH covers those last few footsteps before a consumer transacts when they are fully focused on making a purchase, and unreachable via other mediums. 

Kristina: What exactly is programmatic audio, and where does it stand today? 

Paul:  The programmatic marketplace offers an audience-based approach to buying audio instead of a channel-first approach. With the emergence of digital, advertisers gained the advantage of understanding the profile and behavior of each target audience with incredible granularity.  Programmatic ad buying software works as the middleman, connecting advertisers to digital media publishers, revealing where their audience can be found, when they are reachable, and then finally, allowing them to bid for that audience. While this approach to ad buying started with digital display advertising, now advertisers want to apply this level of intelligence across all channels, including audio. Historically, audio has struggled with the transition to programmatic, as evidenced by flat or declining traditional radio sales, and though growing, emerging digital audio channels still proportionally command a very low share of the overall digital budget due to the inventory limitations and fragmentation I mentioned. 

Kristina: How are advertisers finding success with audio OOH?

Paul:  There's a huge opportunity for all audio channels to win as the transformation to an audience-driven programmatic approach picks up steam.  Emerging audio channels like place-based and podcasting have a big opportunity to help bridge this divide by enabling greater scale and targeting sophistication through location-based and topical context. During Beta testing over the past 8 months or so, our marketplace has been used by over 100 national and local advertisers that have achieved sales lifts of up to 45 percent by reaching in-market shoppers. This includes major national brands like Monster Energy, Live Nation, General Mills, Body Armor, Pepsi, and Red Bull. Brands - as well as Vibenomics ad marketplace partner locations - reported consistently positive results. Native and direct response creative both work well in audio OOH. Also, using recognizable voice talent (ie: local media personalities, celebrity spokespeople) helps build immediate trust and contextual relevance.

Tags: advertising, audio OOH advertising, online audio ads, online radio ads, OOH advertising trends, podcast advertising, Vibenomics

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