In promoting the collaboration, Amazon cites a few metrics: More than a third of Americans have smart speakers; American are spending more time streaming audio, and digital audio is projected to surpass radio in time spent listening. Smart speaker listening is certainly one focus, but not the only one. The overarching program is to boost the ad-supported free listening tier of Amazon Music.
Amazon Audio Ads started in 2019, and the Amazon Music streaming service was launched in 2016. It currently serves music streams to 55-million users, according to internal statistics.
In the announcement, Amazon flaunts its audio ad effectiveness: “Amazon audio campaigns outperformed Kantar Norms, with 126% higher aided awareness, 189% higher brand favorability, and 277% higher purchase intent, compared to the digital audio industry average.”
GroupM benefits from this alliance in four ways listed by Amazon:
- First-look access to new product features, beta opportunities and sponsorships
- Opportunities to be involved in the development of innovative branded experiences and creative solutions, like voice actionable ads
- Support from Amazon Advertising’s creative production services
- Pricing efficiencies
“As more households embrace smart-home devices, like speakers, incorporating audio solutions into a brand’s media strategy will be important to help reach consumers in screenless moments throughout the day,” says Susan Schiekofer, Chief Digital Investment Officer, GroupM US. “We are excited to collaborate with Amazon Advertising in this capacity, to help brands reach connected-home audiences at scale through an emerging media opportunity like audio ads.”
In an introductory page about Amazon Ads, regions in which the program is available include U.S., Germany, and the UK.
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