Commentary

Tariffs And Turbulence: The Upside For Audio

As the news of a 10% minimum tariff on all foreign trade partners has swept over the nation and sent markets reeling, business leaders have been left with looming uncertainty about the impact these changes will have. While much is still unclear - and changing day by day - there is little doubt that industries spanning retail, CPG, tech and automotive are all bracing for impact.

Brands and consumers alike will have to navigate the evolving impact of tariffs, leading businesses across all industries to look to reorient their advertising strategies and budgets. If the past two decades have taught us anything, it’s that in times of economic uncertainty, brands that resist the urge to pull back marketing fare better in the long term. In fact, from 2019-2020 while the impact of COVID was being widely felt by brands, among the 64% of ARM clients that increased audio ad spend, more than half saw performance increases year over year. It’s further evidence that during downturns, audio investment delivers unique advantages for brands looking to de-risk their marketing mix. 

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Audio can be used as a canvas to address customer concerns, demonstrate a company’s social awareness and values, and continue to build reach against their target customer base. While each brand will have different reactions to changes in consumer spending and marketplace impact on the cost of goods, using the full funnel mix of audio, endorsements and addressability can be the powerhouse a brand needs to ride the rough waters until consumer spending stabilizes.

A Sound Investment in Turbulent Times

According to a recent report from Audacy Inc., audio drives impact at every stage of the customer journey, from awareness to impact, through its propensity to connect brands and audiences. In fact, channel attribution is improving, with 21% of advertisers leveraging audio for upper funnel brand-building and 64% of advertisers now using audio to drive lower funnel performance. This offers advertisers a flexible and measurable option through both sunny and rainy economic weather.

Audio, and podcasts in particular, allow advertisers to keep in tune with the cultural conversation. According to Edison Research, not only are more people listening than ever, podcast audiences are highly engaged, multigenerational and growing in diversity. Bolstered by the fact that video, digital and social cross-over - and even live events - are on the rise, podcasts are helping brands reach mass and niche audiences alike, while taking advantage of the engagement and intimacy forged between hosts and listeners.

Adjusting the Volume on Key Messages

Producing and distributing audio ads offers a flexible way to keep brand messages and promotions in harmony with changing market dynamics. As consumers begin to cut back on spending, businesses will look to resonate with budget-conscious customers. Audio enables tailored messages that emphasize value, savings and practical benefits that resonate with listeners who are mindful of their spending and looking for value-driven options.

This can be a welcome alternative to big budget traditional campaigns and media platforms that need to be planned months in advance. With a broad spectrum of advanced targeting capabilities, creator partnerships and ad formats, and the ability to adapt campaign messages in real time, audio advertising offers marketers minimal waste and maximum performance. 

Dialing Up Authenticity

Audio allows brands to keep with the beat of consumer sentiment as the economic and political landscape evolves. For example, to counter potential price increases, brands can humanize their messaging through contextual placements, host reads and product anecdotes. Messaging that focuses on affordability and addresses essential needs helps brands build much-needed loyalty and trust with consumers.

Importantly, choosing the right channels for these time sensitive messages is key. As marketers search for more effective ways to resonate with consumers during unforeseen dynamics, there will be an opportunity for brands to build authentic connections with unrivaled credibility. Radio also remains an effective channel due to three distinct advantages: affordability, reach and high return on investment.

In times of uncertainty, audio provides targeted reach at scale that surpasses other traditional and digital media in engagement, all with an intimate value-exchange between brand, creator and consumer. Today’s audio environment provides brands with diverse formats, engaged audiences and sound performance, helping them navigate whatever lies ahead. 

With the outlook for 2025 still taking shape, one thing is clear: Audio marketing remains a good investment.

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