Sound is the Next Frontier of E-Commerce. So Why Are Marketers Not Tuning in?

The psychological connection between sound and human recall has long been scientifically established, with certain sounds having the power to transport us back to a moment in time, jog a memory, or even a feeling. The tune of an ice cream truck in the distance, for instance, conjures up the warm memories of childhood summers.

However, despite the known power of audio, many marketers are primarily directing their budgets towards visual ad formats, such as display and video. Such approaches are an oversight when consumers are listening to podcasts for up to six hours a week, with 68 percent of them open to buying products or services featured by the hosts.

For the 60 percent of marketers who failed to capitalize on audio advertising in 2023, it’s time to direct more imagination, focus and resources towards it.

Hands-Free Shopping Over Clicks

Voice-enabled commerce is already disrupting the retail and marketing industries as voice assistants transform consumer behavior. These devices tend to prompt consumers to engage in conversation, leading to higher satisfaction and confidence. Thanks to the widespread adoption of smart speakers and smartphones, 45 percent of digitally adept millennials are already using voice assistants to make purchases.

In addition to providing a more natural way to source information, voice search also allows for a sense of serendipity when discovering products. Imagine finding a pasta brand that matches your new diet via a voice-activated recipe — a moment of connection that's hard to replicate with traditional marketing and which could result in increased impulse purchases and repeat business for retailers. According to Kantar Research, Amazon.com audio ads with an Alexa call to action were 1.5 times more likely to generate a statistically significant lift.

Consumers crave fresh experiences, and smart speakers offer an innovative way to overcome ad fatigue. By tapping into the convenience-driven nature of these devices, brands can guide purchase decisions and increase market share.

How Brands Can Get in on the Power of Voice

Major retailers like Walmart are steadily catching up with the potential of voice shopping, with a voice-enabled grocery shopping system, updated with artificial intelligence, allowing Google smart home devices to understand a customer's request, identify their preferred brand based on previous purchases, and seamlessly “Add to Cart.”

As more businesses embrace voice shopping, there's a growing volume of inventory available to marketers. At a time when they're grappling with the double blow of signal loss driven by stringent privacy regulations and cookie deprecation, smart speakers offer one of the richest alternative sources of first-party insights with just 30 seconds' worth of voice data. However, simply treating smart speakers as an extension of traditional channels and pushing audio versions of existing ads isn't enough.

To succeed in the voice game, it's essential to optimize content according to consumer preferences, while prioritizing data privacy to build user trust. Retailers can also offer audio slots that use first-party data shared by customers to inform audio ad targeting. For example, the British supermarket chain ASDA increased its monthly spending since implementing addressable audio campaigns.

The Unmissable Retail Opportunity in Audio

Smart speakers are the next frontier for reaching consumers in their homes, offering a unique and untapped channel for e-commerce experiences. Advertisers and retailers need to be proactive in crafting their voice strategy to be heard above the noise of the competition. By unlocking the potential of frictionless shopping experiences tailored for smart devices, businesses can enhance customer journeys and position their brand for sustainable growth in the ever-evolving retail landscape.

Daniel Pike is chief product officer at Covatic, a business that helps media companies deliver private-by-design, addressable advertising without exposing personal data.