65% of European telecom brands investing in digital audio believe streaming music delivers more effective campaign performance than other mediums.
WARC the Spotify advertisingthe advertising branch of the company, they create their new studio “Make your brand heard: European telecom companies harness the full potential of digital audio? “
In this new report, companies look at how European telecom brands are embracing digital audio channels. The results indicate the opportunities of this untapped channel, as these brands strive for greater marketing effectiveness.
This study was conducted through a survey of over 360 telecommunications marketing companies from France, Germany, Italy, Spain and the United Kingdom to better understand your goals, media spending, performance and perception of audio channels. They even did interviews with industry professionals.
Aditya Kishore, WARC Chief Information OfficerShe said: “Telecommunications are in danger of being overshadowed by digital media and consumer technology brands, which are faster, more agile and smarter. More and more companies and consumers see these digital brands as leaders and innovators. ”
The director also commented digital audio is an important component that telecom companies are increasingly considering part of the channel mix, as it offers some distinctive opportunities for engagement, insight and personalization.
The 4 conclusions of Spotify and WARC
1. Telecom brands are underperforming technology companies
Telecom companies are looking to reposition themselves as technology companies. To achieve this goal, they need to develop solutions “beyond connectivity” addressing specific customer weaknesses in B2C and B2B.
Maria Koutsoudakis, Vodafone Brand and Marketing Director, says the market has changed. He believes the pandemic has changed the pace of life and routine, so there is less predictability and you have to get agility.
2. European telecommunications companies are evolving their approach to marketing communications
90% of telecommunications have evolved their communication strategy. Today, performance marketing appears to be a top priority. “Telecom companies are focusing on new channels, first-hand data and more personalized experiences, but they continue to struggle with targeting and impact,” the report said.
3. Across Europe, telecom companies’ share of advertising spending has decreased since 2013
Digital audio consumption is growing rapidly, but there is a significant investment gap. As can be seen from the table, in the United Kingdom, Germany, Italy, Spain and France digital audio accounts for over 17% of total media consumption, but spending is less than 0.75%, with Spain being the highest with 0.72%.
4. Audio drives efficiency throughout the funnel
This report shows that the 65% of companies in the sector that invest in digital audio believe that the broadcast of song is more effective than other means, while the 63% consider the podcast better.
Audio platforms are increasingly useful for amplifying campaign performance. Norman Wagner, media director of the Deutsche Telekom group, says, “Audio is capable of creating a range quite quickly. That’s why we use podcasts, linear audio, web radio and Spotify. We see this works well in tracking our brands. Audio is also very fast in creating sales demand. I think the medium can work very well for brands; you just have to combine different strategies.
Samuel Fairmont, Tech and Telco Category Development Officer, EMEA, Spotify commented, “This report shows the opportunity for telecom companies in the digital audio space. As the consumption of digital audio continues to increase around the world, now is the time for telecom companies to invest in digital audio advertising«.
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