The fall lineup isn’t that compelling for advertisers this year. With reality TV and reruns headlining most network schedules, it’s time to look at media budgets and consider making a change. The good news is that there’s a big opportunity waiting with audio to fill the gap left by Hollywood’s strikes.
There is another gap for advertisers to navigate. Consumers spend 31% of their media time with audio, but it only accounts for 9% of media budgets. Time spent with audio has been on the rise for years, with 42% of adults ages 18-34 listening more than they did a year ago, based on a 2023 Pandora user study.
The time is right to evaluate the state of TV and the benefits of audio.
Traditional TV is in decline
The linear TV lineup isn’t as compelling for audiences as it once was, either. And the issue is far deeper than a lackluster lineup. Consumers are steadily moving away from scheduled entertainment in favor of on-demand content. In July, broadcast and cable TV usage fell below 50% for the first time, according to Nielsen’s monthly survey, The Gauge. And when you measure streaming TV against broadcast and cable individually, the appeal of on-demand content wins.
With reality TV and reruns headlining most network schedules this fall, it’s time to look at media budgets and consider making a change.
As audiences leave scheduled television behind in favor of modern conveniences, the opportunity for advertisers to reach audiences through the medium is dwindling. And when advertising messages do reach them, they are competing for attention with more on-demand content (e.g., websites and social media apps). According to Facebook data, over 78% of people turn their attention to their smartphones when commercial breaks start.
Consumer casualties of the streaming wars
In the last 15 years, what started with a narrow field of innovators is now a crowded landscape. Nearly half (48%) of adults 18 and older have a hard time keeping up with the new streaming video services launching, according to a 2023 Soundboard Study from SXM Media. Many viewers are hopping from one service to another in search of fresher content, more options and lower prices.
A recent Parks Associates study found that there is a 47% churn rate for streaming video services, with cost savings cited as the leading reason for cancellations. Though cheaper, and ad-free options are on the rise, fragmentation in the streaming TV space continues to pose a challenge for advertisers who are looking to reach audiences consistently. Based on Kantar’s Entertainment on Demand study, the average household uses 5.5 video streaming services, which is up from 2022.
Audiences are increasingly turning to digital audio
Americans spend four hours and 11 minutes with audio each day, according to the 2023 Q2 Share or Ear Report from Edison Research. And digital audio listeners spend an additional one hour and 43 minutes with audio compared to non-digital listeners—that’s 55% more time.
Because it doesn’t rely on visual engagement, audio is a convenient entertainment option for busy consumers. Listeners can tune in while they do almost anything else (e.g., cooking, driving, working, exercising). And unlike linear TV, audiences can take digital audio anywhere. A 2023 Pandora user study showed that 69% of its audience listens to more audio content today because they can access it/take it everywhere.
The fact that audio allows people to be active and do more while they listen makes consumers feel better about indulging in music, podcasts and live shows. Listeners are 2.2 times more likely to say streaming audio is a good place to spend their time than traditional TV. Streaming audio also drives more positive associations, with listeners saying it’s 1.4 times more entertaining and that they find it 2.2 times more authentic and trustworthy than traditional TV.
The advantages for advertisers are clear. Digital audio allows them to reach audiences wherever they are in a positive context. Even so, audio companies face a common objection: advertisers are often convinced that visual ads have greater impact.
Audio ads outperform visuals
New data shows audio ads are more compelling than visual ads. A study from dentsu and Lumen Research applied standard attention metrics to audio, proving its power to drive attention and favorable advertising outcomes. Audio ads exceeded attention economy benchmarks across video, TV, social and display—by over 50%.
The study also showed that audio ads work harder for advertisers, providing higher brand recall (41% vs. 38% benchmark) and brand choice lifts (10% vs. 6% benchmark). Additionally, audio ads are more cost-efficient. For example, podcast ads had a CPM of $2.80, significantly lower than the $4.30 benchmark.
For advertisers, this means that audio ads are a stronger, more cost-effective format for capturing audience attention. And digital audio takes the advantages a step further. A Neuro-Insight Study and Pandora conversion experiment showed that digital audio ads have a bigger impact on long-term memory—36% better than TV ads.
Consider the dismal state of the fall television lineup a sign that it’s time for a change. Audio is more convenient for audiences and better at making a lasting impression for advertisers. It’s time to close the gap in your media budget with audio.
