New research from Radiocentre suggests advertisers could increase campaign profits by moving part of their search and social budgets into audio.
Sound Profits, which includes new analysis from WPP Media, models the impact of reallocating existing Generic PPC and Paid Social spending into audio, without increasing the overall campaign budget.
The analysis found that moving 10% of Generic PPC budget into audio increased full term profit ROI by 8%, while a 20% shift increased it by 16%.
For Paid Social, moving 10% into audio increased full term profit ROI by 11%, with a 20% reallocation increasing it by 21%.
Brands included in the research had an average annual media budget of £12.7 million. Radiocentre says reallocating 15% of Generic PPC spending into audio could generate an additional £1 million in full term profit, with a 20% shift from Paid Social producing the same additional amount.
Radiocentre also worked with Differentology to survey 6,000 UK adults, looking at how people respond to online advertising.
The research found consumers can be cautious about clicking online adverts when they do not completely trust or recognise the brand, with audio potentially helping by building familiarity, trust and credibility.
Radiocentre Head of Insight Donna Burns said: “The findings from Sound Profits show that better results don’t necessarily require bigger budgets.
“By reallocating a small share of search and social spend to audio, brands can unlock significant profit growth at no extra cost.”
Full findings from the research are due to be presented in a webinar in November.
