Dentsu, one of the world’s largest media agencies, published a research that's a significant step forward in understanding the dynamics of consumer attention in digital advertising. It challenges traditional views and opens up new possibilities for how advertisers should approach media planning and strategy in an increasingly digital world.
They aimed to unravel the complex relationship between how consumers pay attention to advertising and the resulting impact on outcomes like brand recall and choice. This exploration was not limited to understanding the quantity of attention that ads receive but extended to the quality and impact of that attention.
This extensive research, conducted in partnership with major media players including Facebook, Snapchat, Verizon Media, Teads (not Threads), Spotify, and others, is a significant undertaking that goes beyond the typical industry study.
It involved a massive cross-media attention study with several thousands of participants across different phases, each contributing vital data to the overall findings.
However, what sets this study apart isn't just its impressive scale but its depth and scope.
To achieve this, the study used two distinct methods.
The first involved 'attention panels' in the UK and the US, where the team passively tracked how people interact with advertising on their mobile phones.
This provided insights into factors like ad size, scroll speed, and video length, which affect the likelihood of an ad capturing and retaining attention.
The second method involved controlled experiments.
Separate groups of panelists engaged with standardized environments on their phones, allowing the researchers to isolate the impact of different advertising variables. This approach also included questionnaires and brand choice methodologies to understand how ad attention influences recall and the intention to purchase.
Understanding the 'Attention Cost per Thousand' Metric:
Dentsu's study introduces a critical metric for evaluating advertising effectiveness: Attention Cost Per Thousand (aCPM). This metric helps with understanding the true cost efficiency of advertising spends. It's not merely about how many people your ad reaches, but rather how effectively it engages them. The aCPM metric calculates the cost of capturing a thousand attentive impressions, providing a more accurate measure of an advertisement's impact and efficiency.
Every dollar counts in performance advertising. aCPM metric stands out for its ability to quantify engagement cost-effectively. According to Dentsu, the average aCPM across all media is around $4.30. However, a deeper dive into the data reveals a striking cost-efficiency in audio platforms, particularly podcasts and AM/FM radio.
AM/FM radio emerges as a standout performer with an aCPM of just $0.40. This rate isn't only cost-effective but also disrupts usual media spending norms. Radio is 8x more economical than television and outperforms Dentsu's general media benchmark by a factor of 11x.
Podcasts also demonstrate significant cost efficiency, with an aCPM of $2.80. This makes them 43% more cost-efficient than the industry average.
These numbers challenge longstanding patterns of ad spending and shine a spotlight on the often-overlooked potential of audio as a powerful and economical advertising medium.
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Summarizing the Key Findings
Debunking the Myth. The video didn’t kill the radio star.
The Dentsu/Lumen study proves that radio isn't dead.
Podcasts and AM/FM radio ads notch a 56% higher attentiveness score than Dentsu's norms, a clear testament to audio's exceptional ability to capture and maintain audience attention.
This isn't a slight edge; it's a significant lead, especially in terms of brand recall.
Audio advertising doesn’t just match the averages – it surpasses them with an 8% higher average. When pitted against online video and display, audio’s superiority in brand recall escalates to a commanding 14%, rewriting the rules of engagement in the advertising world.
This isn’t just a marginal improvement; it’s an overwhelming 128% boost in attentiveness over television ads.
Such statistics don't just hint at audio's efficacy; they loudly proclaim its dominance in the modern, cluttered digital landscape, where capturing and holding audience attention is more crucial.
The study paints a clear picture of its financial advantage, showing AM/FM Radio ads 8x more cost-effictive than TV. This is a colossal shift, especially when considering it also surpasses Dentsu’s "attention cost per thousand" (aCPM) media benchmark by a 11x
Podcasts follow suit, dismantling their perceived high-cost image. They boast a 43% greater cost efficiency over the norm.
Furthermore, the study brings to light the attention advantage of AM/FM radio.
People pay more attention to AM/FM radio than digital counterparts like Spotify and Pandora (on the free plans), by 27% and 29% respectively. This edge in attention is critical—it's directly linked to heightened attention and engagement levels.
Strategic Implications for Founders and Advertisers
Audio advertising is Low-Cost High-Reward
Consider this: If you're scrambling for a 1% increase in your conversion rates, an 8% higher brand recall for audio ads isn't a marginal gain; it's a strategic triumph in the fiercely competitive advertising arena. Even more striking is audio's 128% stronger performance in attentiveness scores over TV.
What does this shift mean for your media allocation strategies?
It's time for a fundamental realignment. This is more than a subtle shift of a few budgetary percentage points from TV and online video to radio and podcasts; it's a decisive strategic pivot.
If you want to stand out, you should consider reallocating portions of your advertising budgets into audio platforms.
The rationale is in the data: audio outperforms TV, the long-standing titan of advertising, by 128% in securing and holding attention.
An IAB consumer study offers intriguing insights into where consumer concentration is most potent. It turns out that activities like checking the news, weather updates, and listening to podcasts command the highest levels of audience attention. Social media, on the other hand, sits at the bottom of this concentration spectrum.
Here's a breakdown of the percentage of consumers reporting high concentration levels (rating their focus as 4 or 5 on a scale where 1 is minimal concentration and 5 is maximum):
- Checking News: A significant 76% of consumers report high levels of concentration.
- Checking Weather: Close behind, with 74% of users highly focused.
- Listening to Podcasts: Captures the attention of 71% of listeners.
- Watching Shows/Episodes: Holds a strong concentration level at 62%.
- Watching Short Videos: Engages 58% of viewers closely.
- Posting on Social Media: Attracts a focused attention of 53%.
- Listening to Music: Maintains a concentration level of 51%.
- Checking Social Media: Falls at the lower end, with 44% reporting high concentration.
Adapting to these insights isn't optional; it's essential for staying ahead of the curve.
Audio Ads are the Silent Champions of Brand Recall
You’re not crazy. No one cares about your ads.
Why? Because people don’t know who you are and can’t remember you. Can you recall an ad you have seen today on Linkedin and Instagram? I sure can’t.
Meanwhile, audio is rewriting the playbook with its impact on brand recall and choice.
Social and audio both boast a recall rate of 41%, outperforming online video and display, which linger at 36%.
The potency of audio is further underscored by its +67% higher brand choice uplift compared to Dentsu's benchmark—a striking 10% for audio against 6% for the norms, leaving social and display trailing at 5%.
That's why attention paid to your ads and recall are very important in the conversion process. When consumers are actually paying attention to your, sales increase as time spent with the ad grows. As “eyes on” time with visual ads exceeds two seconds, sales soar.
Corroborating Audio Advertising's Strengths: Insights from IAB, MARU/Matchbox, and Signal Hill Studies
The studies conducted by IAB, MARU/Matchbox, and Signal Hill offer an expansive view, reinforcing the findings of the Dentsu/Lumen research, and emphasizing the distinct advantages of audio platforms in capturing and maintaining consumer attention.
IAB Study on Consumer Concentration Levels
The IAB study dives into the heart of consumer engagement, particularly focusing on how various media fare in retaining attention. It uncovers that activities like checking the news (76% concentration) and listening to podcasts (71% concentration) significantly outperform other media types in terms of engagement. This disparity is most evident when compared to forms like social media, where concentration drops to 44%. This data is more than just numbers; it's a testament to the unique ability of audio formats, especially news and podcasts, to keep listeners consistently engaged.
MARU/Matchbox: Quantifying Audio Engagement
MARU/Matchbox builds on this narrative by offering quantifiable insights into attentiveness levels across audio platforms. Their findings highlight podcasts as the frontrunners in audience engagement among all audio formats. The study also notes that AM/FM radio holds a substantial edge over digital alternatives like Pandora and Spotify, clearly indicating that audio content, particularly in traditional formats, commands a higher level of listener focus and engagement.
Signal Hill Insights: Affirming Audio's Engagement Power
Signal Hill Insights' study echoes these findings, further validating the power of audio, especially podcasts, as robust tools for engaging consumers. The study illuminates the immersive nature of audio content, suggesting that when paired with strategic and creative approaches, audio can captivate an audience more effectively than other mediums.
The Contrast in Ad Avoidance
A striking revelation from these studies is the difference in ad avoidance across platforms. Podcasts and AM/FM radio ads exhibit significantly lower skip rates, with only 29% of podcast ads being actively avoided, starkly contrasting with higher avoidance rates in digital formats like online pop-ups and social media ads. This not only underscores the compelling nature of audio ads but also their effectiveness in maintaining consumer attention, making them a preferred choice for advertisers seeking to make a meaningful impact.
Audio platforms, with their heightened levels of engagement and lower rates of ad avoidance, stand out as powerful channels in the advertising landscape.
ABX Creative Effectiveness Study: Redefining the Impact of AM/FM Radio Ads
The ABX study offers a groundbreaking perspective on the creative effectiveness of advertising, especially when comparing AM/FM radio ads with TV ads. This study provides eye-opening insights, notably revealing that high-scoring AM/FM radio ads outshine nearly half of all TV ads in the ABX database in terms of creative impact. This isn't just a marginal lead; it's a substantial upheaval of established beliefs about the potency of TV advertising.
Challenging Traditional Views on TV Advertising
For decades, TV has been regarded as the pinnacle of advertising mediums, revered for its blend of visual and auditory storytelling. However, the ABX study pivots this narrative, illustrating that when executed with finesse, AM/FM radio ads can rival or even exceed the effectiveness of TV ads. This shakes the foundations of long-held assumptions in the advertising world, spotlighting the often-underestimated power of audio in crafting compelling and memorable ad experiences.
This study's findings underscore a pivotal shift in advertising strategies, pushing advertisers to look beyond the visual dominance of TV and consider the impactful, emotive, and engaging nature of radio advertising. It's a call to action for leveraging the unique strengths of audio as a medium, urging a deeper exploration into creative audio content that can leave a lasting imprint on the audience's mind and heart.
Methodology of the Dentsu/Lumen Study
Dentsu's Attention Economy 2.0 program launched an exhaustive eye-tracking study, diving deep into the world of consumer attention. This wasn't just a skim-the-surface kind of research; it was an all-in, deep-dive with a massive scale of 14,400 participants. The study spanned multiple phases, each designed to peel back another layer of the complex attention dynamic in digital advertising.
In quantifying attentiveness, the study utilized metrics like 'Attention Seconds per 1000 Impressions,' offering a nuanced view of how long ads held viewer attention across different media. For instance, radio and podcast ads generated higher attention seconds than most digital, social, and TV platforms, emphasizing the depth of engagement they achieve. Furthermore, the study's focus on 'Attention Cost per Thousand' (aCPM) offers a groundbreaking perspective on ad efficiency, comparing the cost of achieving these attention seconds across various media.
The study didn’t just rely on one method of data collection. It employed 'attention panels' in the UK and US, primarily focusing on mobile advertising. This approach was twofold:
Real-World Interaction: Using passive tracking, the study observed how people naturally engaged with ads on their mobile phones. This wasn’t about creating artificial scenarios; it was about seeing how real people interact with ads in their everyday digital stroll.
Controlled Experiments: This was the lab environment of the study. Participants were placed in specific settings on their phones, combined with questionnaires and brand choice methodologies. The goal? To unravel how focused attention on ads impacts recall and purchase intentions.
First Wave: Conducted by Amplified Intelligence in 2018, this initial round roped in 3,400 people, setting the stage for the expansive research to follow.
Second Round: Here, Lumen took the reins with mobile eye tracking, drawing in a hefty group of 6,000 respondents.
TV Attention Data: An additional 5,000 consumers were roped in for this segment, overseen by TVision, focusing on television’s role in the advertising mix.
This multi-stage approach wasn't just about quantity; it was about capturing the full spectrum of consumer attention in all its varied forms.
Expanding the Conversation on the Dentsu/Lumen Study's Implications
Us advertisers, who have long leaned towards the visual mediums, we’re now at a critical juncture.
The compelling evidence of audio's engagement and recall capabilities requires a thorough revisiting of our advertising plans. The traditional dominance of visual media in ad spending is challenged by the undeniable cost efficiency and engagement advantages of audio.
Transitioning more resources towards podcasts and AM/FM radio advertising represents not merely a pursuit of cost-effectiveness but a strategic investment in mediums that promise genuine, impactful audience connections while boasting higher recall rates.
As the industry progresses, integrating audio ads into marketing strategies isn't merely a tactical choice but a strategic imperative for staying relevant or stay with a sinking ship and the same strategy as your competitors.
