Are voice-activated ads the future of digital marketing? – Brand Wagon News

With the world turning into an increasingly digital-dependent era, voice assistants are reportedly serving an integral role in our day-to-day lives. From setting reminders to playing music, voice assistants are believed to be slowly taking the roles of our very own personal assistants. 93% of customers are satisfied with their voice assistants, according to a report by PwC. As voice-activated technology continues to weave itself into our daily routines, the advertising landscape is slowly evolving to take advantage of this shift as well. From smart speakers to voice assistants, voice commands are proving to be not only changing 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 personalised and hands-free experiences for users. However, with the ever-evolving digital platforms, voice-activated ads aren’t the only source of dissemination for brands, so what makes it different?

In basic terms, voice-activated ads function by leveraging voice recognition technology to enable users to interact with advertisements through spoken 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 recognises the intent and delivers a targeted advertisement in response. For instance, if a user asks their speaker for recommendations to buy a skin serum, the speaker will play an ad at the end of which, there might be a voice command that the speaker recognises and responds to in the way the brand wants to. This technology enhances user engagement by providing a seamless, interactive advertising experience based on voice inputs.

Several industries are capitalising on the convenience of voice-activated ads, setting the standard for widespread adoption. “Using voice commands for rendering choices more convenient and tailored is a leading practice in the online and retail sectors,” Siva Balakrishnan, CEO and founder, Vserve, told BrandWagon Online. He also highlighted that online retail and e-commerce are at the forefront. Other sectors that follow the suit are media and entertainment, he added. The automobile 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 is understood, these industries are pioneering the use of voice ads, setting the stage for broader adoption across multiple sectors.

“The financial sectors like banking and insurance are also utilising voice ads to offer promotions and facilitate hands-free searches of banking services like checking account balances, credit card applications, making payments, etc. Even the hospitality sector is heavily relying on voice ads to offer services like room upgrades, spa bookings, dining reservations, etc,” Delphin Varghese, co-founder and chief revenue officer, AdCounty Media, said.

Why are voice ads gaining traction?

Ad spending in the audio advertising market worldwide is forecasted to reach $40.38 billion in 2024, according to Statista. 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 surge in the use of voice-activated ads.  “The growing popularity of voice-activated assistants and smart speakers is the primary reason for the increase in speech-activated ads,” Balakrishnan said. The ability to engage with technology in a personalised, hands-free manner appeals to today’s fast-paced, convenience-driven consumers, he added.

However, like everything else, voice-activated ads too have its own set of challenges. Privacy and security are major barriers, as consumers remain wary of how their voice data is collected and used. “There might be a potential reluctance to engage with voice ads because consumers are becoming sceptical of how their voice data is being collected, stored and utilised for marketing efforts,” Varghese added. Furthermore, there are no concrete metrics and monetisation strategies to measure the success and ROI of voice-based campaigns since they are in the early stages, he added. This lack of a solid monetisation model is discouraging many advertisers from investing in this sector.

“Voice ads often achieve higher engagement and recall ratings due to their conversational nature,” Balakrishnan added. The interactive component of voice ads allows users to engage actively, making the experience more memorable. Studies indicate that voice ads can lead to higher recall rates compared to video, display, or audio ads.  “Voice ads create a more intimate interaction with consumers, which enhances recall,” Varghese said. Unlike passive formats like display or video ads, voice ads require active participation, leading to a more memorable and engaging user experience, he added.

The future outlook

From what is understood, the ROI (return on investment) for voice-activated ads appears promising, particularly in sectors where convenience and immediacy drive consumer behaviour. “Voice ads often result in higher conversion rates due to their interactive and personalised natures,” Balakrishan quotes.  As technology advances, voice ads are expected to become a more integral tool for marketers seeking improved returns.

However, the lack of standardised measurement tools poses a challenge. “While voice ads excel in engagement and conversion, This makes it difficult to assess their effectiveness in contrast to traditional ad formats like video and display which have clearly defined metrics like clicks, view, impressions, etc.,” Varghese cited. This highlights the need for industry-wide standards to evaluate the performance of voice-activated advertising effectively. 

Follow us on Twitter, Instagram, LinkedIn, Facebook