How Audio is Shaping the Future of Retail Media

The retail media landscape has undergone a massive transformation in recent years, with US ad spending projected to reach $77 billion by 2028. A key driver of this growth is off-site media, which is expected to account for $14 billion, roughly 20% of total retail media budgets. 

This shift toward off-site media stems from the increasing demand for advertising solutions beyond traditional on-site ads and sponsored products ads. The decline of third-party cookies and growing emphasis on first-party data are accelerating this trend, prompting advertisers to explore new and impactful ways to connect with consumers. As brands and retailers innovate with new advertising formats, audio advertising has emerged as a key opportunity, offering a direct and engaging way to reach shoppers throughout their buying journey. 

Streaming audio platforms like Pandora and Soundcloud are at the forefront of integrating streaming audio. And technology from DSP partners such as TTD and Yahoo are enabling retail data to be leveraged across podcasts through managed-service and self-serve opportunities. 

The Growth of Audio in Retail Media 

With 228 million people in the US (79% of the population) expected to listen to digital audio this year, digital audio presents a significant off-site advertising opportunity. Through streaming audio, advertisers can leverage first-party data from retailers to precisely target audiences who are more likely to purchase their products.

Retail media networks (RMNs) such as Walmart Connect, Kroger Precision Marketing, and Dollar General Media Network recognize the potential of audio advertising and are expanding their inventory to include audio formats. Unlike traditional display, or on-site retail media, streaming audio and podcasts enable unique storytelling opportunities. Audio spots allow brands to captivate audiences in a more immersive, distraction-free environment, strengthening consumer relationships and ultimately influencing purchasing decisions. 

Digital Audio Reaches Consumers at Key Moments

While connected TV (CTV) and other emerging platforms have gained traction, audio advertising is proving to be one of the most impactful channels in retail media. Research from SiriusXM Media, Publicis Media, and Edison Research reveals that a critical time to reach consumers is during the day between 8 a.m. and 5 p.m., when they are actively shopping, dining, and running errands—and listening to digital audio. This aligns with the rise of audio as a crucial media strategy component. Unlike visual media, audio seamlessly integrates into consumers’ daily routines, making it a powerful tool for brands to reach them at key decision-making moments all along the path to purchase. 

The Impact of Audio on Consumer Behavior

Digital audio ads play a significant role in shaping consumer behavior, increasing brand awareness, and driving purchasing decisions. A custom study conducted by SiriusXM Media found that digital audio ads effectively introduce consumers to new brands, products, and promotions, with 89% of listeners discovering something new through these ads. Beyond awareness, audio advertising prompts action, as 77% of digital audio listeners consider making a purchase after hearing an ad and may even recommend brands to others. 

These ads are especially impactful during key shopping periods, such as holidays and back-to-school seasons, influencing gift lists and everyday purchases like groceries. Additionally, the study found that digital audio ads reach consumers at prime decision-making moments, such as while driving or running errands, providing timely influence.

Audio Complements Other Channels

Audio is solidifying its role as a critical component of an omnichannel marketing strategy. With consumers spending nearly five hours per day listening to digital audio, advertisers have a unique opportunity to integrate messaging into everyday moments. SiriusXM Media’s latest report, Just Add Audio, highlights how audio effectively complements other media channels, driving incremental reach across AM/FM (+30%), linear TV (+21-43%), CTV (14-50%), and social media (13-38%).

A retail media network strategy that incorporates audio advertising taps into the best of both worlds: the first-party retailer data, joint business plan allocations, and closed-loop measurement that advertiser’s love within retail media networks, combined with the power of audio, as 79% of Americans listen to audio for over four and a hours per day, often when they are away from visual media.

 

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