With the world moving into an increasingly digital-dependent era, voice assistants are playing a vital role in our daily lives. From setting reminders to playing music, voice assistants are believed to be slowly taking over the role of our personal assistants. 93% of customers are satisfied with their voice assistants, according to a report by PwC. As voice-activated technology continues to weave its way into our daily routines, the advertising landscape is also slowly evolving to take advantage of this shift. From smart speakers to voice assistants, voice commands are proving to change not only the way we interact with technology, but also the way brands engage with consumers. Voice-activated advertising, once a novel concept, is now seemingly emerging as the powerhouse of digital marketing by creating personalized, hands-free experiences for users. However, with digital platforms continually evolving, voice-activated ads are not the only source of reach for brands, so what makes them different?
In basic terms, voice-activated ads work by leveraging speech recognition technology to allow users to interact with ads using voice commands. These ads are integrated into voice-activated devices and digital assistants, such as smart speakers and voice-enabled apps. In such a scenario, when a user issues a voice command related to a product or service, the system recognizes the intent and provides a targeted ad in response. For example, if a user asks their speaker for recommendations on buying a skin serum, the speaker will play an ad at the end of which may include a voice command that the speaker recognizes and responds to in the way the brand wants. This technology improves user engagement by providing a seamless, interactive experience. advertising voice-based experience.
Several industries are capitalizing on the convenience of voice-activated ads, setting the standard for widespread adoption. “Using voice to make choices more convenient and personalized is a leading practice in online and retail,” said Siva Balakrishnan, CEO and founder of Vserve. BrandWagon Online. He also noted that online retail and e-commerce are leading the way. Other industries following suit include media and entertainment, he added. The auto industry is incorporating these ads into smart car systems, enabling hands-free interactions for drivers, while healthcare is exploring voice technology for medication reminders and patient engagement. From what we understand, these industries are leading the way in the use of voice ads, paving the way for broader adoption across industries.
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“Financial industries like banking and insurance are also using voice ads to offer promotions and facilitate hands-free searches for banking services like checking account balances, credit card applications, payments, etc. The hospitality industry is also heavily relying on voice ads to offer services like room upgrades, spa bookings, restaurant reservations, etc,” said Delphin Varghese, co-founder and chief revenue officer, AdCounty Media.
Why are voice ads gaining popularity?
According to Statista, ad spending in the global audio advertising market is expected to reach $40.38 billion by 2024. It is safe to say that the rise of voice-activated assistants such as Amazon Alexa, Google Assistant, and Apple’s Siri has driven the rise in voice-activated ads. “The growing popularity of voice-activated assistants and smart speakers is the primary reason for the rise of voice-activated ads,” Balakrishnan said. The ability to interact with technology in a personalized, hands-free manner is appealing to today’s fast-paced, convenience-oriented consumers, he added.
However, like everything else, voice-activated ads also have their challenges. Privacy and security are major barriers, as consumers remain wary of how their voice data is collected and used. “There could be a potential reluctance to engage with voice ads because consumers are becoming skeptical of how their voice data is collected, stored and used for marketing efforts,” Varghese added. Additionally, there are no concrete metrics and monetization strategies to measure the success and ROI of voice-based campaigns as they are in their early stages, he added. This lack of a solid monetization model is discouraging many advertisers from investing in this space.
“Voice ads often achieve higher levels of engagement and recall because of their conversational nature,” Balakrishnan added. The interactive component of voice ads allows users to actively engage, making the experience more memorable. Studies indicate that voice ads can lead to higher recall rates than video, display or audio ads. “Voice ads create a more intimate interaction with consumers, which improves recall,” Varghese said. Unlike passive formats like display or video ads, voice ads require active participation, which leads to a more memorable and engaging user experience, he added.
Future prospects
From what we understand, the ROI (return on investment) for voice-activated ads looks promising, especially in industries where convenience and immediacy drive consumer behavior. “Voice ads often drive higher conversion rates due to their interactive and personalized nature,” Balakrishan cites. As the technology advances, voice ads are expected to become a more integral tool for marketers seeking better returns.
However, the lack of standardized measurement tools poses a challenge. “While voice ads excel in engagement and conversion, this makes it difficult to evaluate their effectiveness compared to traditional ad formats like video and display that have clearly defined metrics like clicks, views, impressions, etc.,” Varghese cited. This highlights the need for industry-wide standards to effectively evaluate the performance of voice-activated advertising.
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