Impact of Online Audio Campaigns
When evaluating the success of online audio ads, relying solely on Click-Through Rate (CTR) as a metric can be misleading. Unlike traditional display or social media ads, online audio ads operate in a unique engagement environment. Listeners are often engaged in other activities—commuting, working out, or cooking—making immediate clicks less likely. However, the impact of audio ads extends far beyond instant engagement.
How Online Audio Ads Drive Conversions
1. Delayed Action & Brand Recall
Unlike display ads that prompt an immediate click, audio ads often lead to delayed conversions. A listener may hear an ad on Spotify or another streaming platform, remember the message, and later visit the website or even make a purchase in-store. This effect is particularly strong for products and brands with a longer decision-making process.
2. Search Traffic Influence
Another key effect of audio advertising is its impact on search traffic. Many users who hear an ad don’t immediately visit the website through a direct link but instead search for the product later via Google or another search engine. This means that while CTR may remain low, the actual conversion rate from these ads could be much higher when considering the uplift in organic search visits.
3. Companion Banner Limitations
Unlike display and video ads, many online audio ads do not include companion banners that users can click. Only some streaming services, such as Spotify, offer companion banners alongside audio ads. This limitation naturally results in lower CTRs, but it does not mean that the campaign is ineffective. Instead, success should be measured by brand lift, direct traffic, and search volume increases.
Understanding CTR in the Context of Spotify Ads
Spotify, one of the leading platforms for audio advertising, provides benchmarks that help contextualize CTR. The industry standard CTR for Spotify ads ranges between 0.60% and 0.80%, which is lower than typical social media ads. However, given that listeners are engaged in other tasks while hearing these ads, this performance is still promising. Well-optimized campaigns can even exceed 0.80% CTR.
Interestingly, Spotify ad performance differs by device. Desktop-targeted ads show an average CTR of only 0.15% to 0.25%, while mobile-targeted ads perform significantly better. Additionally, broader targeting often yields a better balance of CTR and Cost Per Mille (CPM), which typically ranges from €7.00 to €15.00.
Best Practices for Maximizing Audio Ad Performance
1. Test Different Targeting Strategies
Interest-based targeting generally performs better than real-time targeting, though both should be tested. A/B testing different audience segments can help identify the best-performing groups for future campaigns.
2. Use High-Quality Audio Creatives
Crafting engaging audio ads is crucial. A compelling narrative that feels natural and not overly promotional resonates better with listeners. Storytelling can help maintain engagement and drive higher recall.
3. Encourage Action Beyond Clicks
Since many users won’t immediately click, include memorable CTAs that prompt them to visit your website or search for your product later. Mentioning a simple URL or offering a promo code can increase the likelihood of post-ad engagement.