Audio out-of-home advertising is reinventing personalization

Paul BrennerContributorShare on TwitterPaul Brenner is the chief strategy officer and president of audio out-of-home at Vibenomics, a location-based advertising and audio experience company creating memorable in-store experiences for shoppers.

Do you remember the first time you received a personalized ad? Perhaps you discussed a product with a friend, and the next day, an advertisement for that product popped up on social media. It almost makes you think someone's listening to your conversations, doesn't it?

Over time, consumers have become increasingly skeptical about ads like these - and for good reason. A 2019 Accenture study found many customers felt brands communicated in a way they felt was too personal - and 71% of those customers worried how the brands had acquired personal information they hadn't voluntarily shared.

First-, second- and third-party data make it possible to generate hyperpersonalized ads. But these data collection efforts fall short. Consumers find these methods invasive and a breach of trust - and the data collected is often inaccurate. Google's third-party cookie is going away, and Apple has made recent changes to its Identifier for Advertisers (IDFA), but no one has clarified the effect of these changes on advertisers' or marketers' abilities to reach and remarket consumers.

Many advertisers have begun leveraging AOOH as a more significant part of their brand and marketing strategy to improve reach, frequency and overall business outcomes.

It's not so much that customers don't appreciate ads targeting their interests - the concern lies in the methods marketers use to collect data and how consumers can maintain control over what personal data they choose to share. Interestingly, as consumer demands for personalization have increased, according to the 2021 State of Ad Personalization report, half of marketers have yet to invest in ad personalization.

Personalization and data play a vital role in the success of marketing and advertising campaigns today. Brands and their marketing departments must think outside the box and use a more targeted medium not predicated on invading privacy but designed, nevertheless, to provide a unique, personalized experience for in-store shoppers: audio out-of-home (AOOH) technology.

AOOH technology does not request the use of personal data to work effectively. Instead, it focuses on the in-store customer experience. AOOH broadcasts premium music and programmatic advertisements to enrich customer experiences and reach shoppers directly at the point of sale, influencing buying decisions and positively impacting sales.

The current generation of personalization and data collection

In the marketing world, personalization has many nuances. Ultimately, marketers see its goal as providing a unique experience to every individual based on personal preferences and data. The current generation of personalization in marketing is not about collecting cookies or third-party data, merchandising or guesswork.

Today's personalization focuses instead on delivering the right content, the right offer, the right channel and, most importantly, the right sequence of events generating value exchange between the brand and the consumer.

Although consumers don't trust superpersonalized ads, they still expect brands to offer a personalized experience. Ninety-one percent of consumers polled in another Accenture study indicated a willingness to shop brands with some form of personalization.

On the other hand, personalization in audio advertising has seen significant growth over the past 15 years, as reflected by a willingness by brands to invest in this medium. A recent report predicts an astonishing 84% growth in digital audio ad revenue for 2025 compared to 2019.