In a world where products and brands live and die by immediacy, marketers are finding themselves holding more power and budget one month into 2024. With AI and data as the defining characteristics, radio and streaming audio have the opportunity to capitalize.
With Goldman Sachs predicting consumption growth and a rise in disposable income in 2024, analytics firm WARC anticipates a 7.6% increase in ad budgets, reaching a cumulative $326.7 billion. With higher ad budgets come higher expectations: immediate financial results are paramount.
An AdWeek overview referenced the recent Solo Stove debacle where the smokeless firepit maker hired Snoop Dogg to say he was “giving up smoke.” Despite the viral campaign generating $44 million in earned media coverage and a 500% surge in organic searches, sales did not go up and CEO John Merris lost his job.
Increasing pressure on CMOs to deliver quick results often leads to a tactical rather than strategic approach. This focus on short-term gains can be detrimental to long-term brand building. As performance demands heighten, increased collaboration between CMOs and other executives is expected.
Many marketing firms are turning to AI tools to assist in fast turnaround. AI and data are global agency WPP’s two main focuses – as emphasized in its Capital Markets Day presentation. However, AI also brings challenges, such as the risk of disinformation and eroding consumer trust, with the rise of AI-generated voices and avatars that challenge an audience’s ability to distinguish between real and artificial.
Amidst these technological and economic shifts, marketers must also navigate the contentious, divided social climate, especially during this election year. The latest Bentley-Gallup Business in Society Report shows a decrease in consumer expectations for brands to take positions on social issues, yet authenticity remains crucial. Enter radio.
LLYC anticipates a rise in the popularity of audio formats, such as podcasts, in 2024 due to their versatility, convenience, and trust factor. This backs up the latest report from marketing effectiveness expert Peter Field.
Field’s study reveals that brands leveraging AM/FM radio gain a significant edge in the market, boasting a 28% larger market share and a 17% increase in pricing power, crucial for boosting profitability. Additionally, the report highlights that over-the-air (OTA) radio amplifies short-term sales effects by 13% – a new key in the marketing culture of immediacy.
