September 2023 Local Sales Insight

Lumen: Audio Ads Outperform Video For Attention And Brand Recall, Dentsu Carat Study Reveals

Dentsu Carat, one of the world’s largest media agencies whose clients include P&G, General Motors, and Microsoft, recently released a historic, first-ever study of media attentiveness that compared podcasts and AM/FM radio ads with all manner of visual ads. The Advertising Research Foundation defines advertising attentiveness as “the degree to which those exposed to the advertising are focused on it.”

How the Lumen study was conducted

Expanding Dentsu’s Attention Economy research into audio advertising for the first time, the media agency worked with research partner Lumen to devise a methodology to quantify audio attention similar to their measurement of visual media (TV, online display ads, social and online video).

To conduct the study, 1,700 respondents were exposed to AM/FMradio shows and podcasts on apps on their phone or computer. Post-listening, they were administered Dentsu Carat’s Attention Economy Survey to gauge advertiser ad recall and brand choice. Lumen compared responses among those that were exposed to the ads to those who were not exposed.  

Attention is important: The greater the time duration that an ad is heard and seen, the greater the sales conversion

When consumers are “eyes on” to visual ads and “ears on” to audio ads, sales increase as time spent with the ad grows. As “eyes on” time with visual ads exceeds two seconds, sales soar.

Attention seconds per 1000 impressions: AM/FM radio ads generate the highest attentive seconds, greater than digital, social, and TV, due to a greater proportion of attention and audibility

Lumen quantifies attentive seconds per one thousand impressions. This answers the question, “How many attentive seconds are generated for every 1000 impressions advertisers pay for?”

It is not enough to know how many impressions were generated. What moves the needle for advertisers is the amount of attentive seconds generated by their ads.

Stunningly, audio ads generate a massive amount of attentiveness seconds for every 1000 ad impressions. AM/FM radio attentive seconds tower over online video, online display ads, social formats, and TV.

Audio ads have +56% greater attentiveness scores versus Dentsu Carat norms and are +128% stronger than TV.

Audio generates +8% greater average brand recall versus Dentsu Carat norms (38%)

Brand recall is expressed as the percentage of people who correctly identified the brand after exposure. Lumen presents respondents with a choice of ten brands and asks them to select which brands they remember.

Lumen found that audio’s average brand recall (41%) was +8% greater than Dentsu Carat norms (38%). Audio also beat display (36%) and the online video for brand recall.

Attention cost per thousand: AM/FM radio is by far the most cost effective medium

Lumen calculates an “attention cost per thousand” (aCPM) by dividing media costs into attentiveness seconds/impressions.

The most expensive attention CPM is online display ads at a $9.70 aCPM. The average Dentsu attention CPM across all media is $4.30.

At an attention CPM of 40 cents, AM/FM radio is eight times more cost effective than TV and eleven times more cost efficient than the Dentsu Carat “attention cost per thousand” media benchmark.

These key findings have to major implications for advertisers:

The Dentsu Carat/Lumen study puts a stake through the heart of the myth that “sight, sound and motion” ads are somehow superior to audio ads

The study proves that audio outperforms visual ads on the top jobs of advertising: creating memories, growing brand recall and increasing brand choice.

Why AM/FM radio should be in every media plan

AM/FM radio outperforms visual media on the business outcomes of brand recall and brand choice while having a stunningly low attention CPM of 40 cents. The study proves that “you can look away, but you cannot shut your ears!”

LocalSalesInsight_#42