The “funnel theory” of advertising was first posited in the early 20th century by advertising pioneer Elias St. Elmo Lewis. He studied print and radio as modes of advertising in which consumers moved from awareness to interest to desire—and then to action. Even though St. Elmo Lewis observed that radio performs at each stage of the funnel, the industry has largely positioned audio only at the top.
With an abundance of data backing up audio’s performance at every stage, we can now throw that top-of-funnel-only theory out the window. In an environment where 61% of advertisers want to improve their “full-funnel media investment”—a critical priority throughout 2024—it’s time for brands to rethink audio’s potential if they want to meet their goals.
Audio can do it all: build awareness, drive consideration, and deliver the conversions that performance marketers are looking for. But it also has the added benefit of building trust and connection—factors that turn casual buyers into brand advocates. Let’s dive into the how’s and why’s of audio performance and lay the groundwork for your brand to get more bang for your ad bucks.
Audio’s evolution
What’s driving audio channels to new performance heights?
While the early days of digital marketing and social media might have laid the groundwork for full-funnel marketing functionality, those channels no longer produce the same results they once did. One reason is the rising concern for consumer data privacy. Major programmatic marketplaces have felt the impact from consumers being able to access tools to protect their data and avoid unwanted targeting. Audio is thriving in a more privacy-conscious marketplace, with new infrastructure that supports increased scale in digital audio being developed with a privacy-first future in mind, giving it a particular edge. Simultaneously, there are contextual advantages in audio that don’t rely on behavioral and intent data.
Simultaneously, audio ad tech has advanced significantly. Listenership across audio channels continues to proliferate, with Americans spending almost 20% of their day with audio in Q2 2024, according to Edison. Tools for measurement have evolved in lockstep with this booming industry.
Audio ad efficacy can be comprehensively measured at any stage, and new digital-based innovations in ad tracking across podcasts, streaming audio, and broadcast radio have put audio measurement on par with digital channels.
One of the most sophisticated tools is pixel-based attribution. There are two components to measuring podcast ad performance with pixel-based tools. First, the tool generates a URL prefix specific to each show that’s appended to the podcast episode’s RSS feed URL. When a user downloads a podcast episode, the prefix will capture two unique identifiers: IP address and user agent. Next, the tool generates a HTML-based tracking pixel that is placed on the brand’s website. This pixel will capture a multitude of information, including IP address, user agent, and, if a conversion took place, the amount of dollars associated with the conversion, the order ID, and other conversion-related identifiers. The matching of IP and user agent from the download to the website confirms that a specific listener was exposed to an ad and converted on the brand’s website within a specific attribution window, typically 30 days. It’s important to note that no third-party cookies are leveraged in tracking, and no personally identifiable information is captured either, making it a privacy-safe attribution method.
Measurement becomes even more robust when combining pixel measurement with more traditional tools, including promo codes, vanity URLs, and post-conversion and brand lift surveys. Quantifiable performance from consideration to purchase—let’s break it down.
Top of the funnel
At the top of the marketing funnel, the primary objectives are to enhance brand awareness, amplify reach, and foster affinity among consumers. Incorporating audio into the media mix has been shown to enhance the effectiveness of other advertising channels by more than 17%, driving big results at this point in the customer journey.
Audio options for the consideration and awareness phase are vast, but host-read sponsorships can have a massive impact, since they allow brands to leverage hosts’ personal relationships with their audiences, fostering trust.
For sister companies Stamps.com and ShipStation, for example, ARM strategists created top-of-the-funnel impact by pairing the brands with audio influencers in relevant podcast categories that aligned with the brands’ values and target demographics. With this strategy, the brands significantly expanded reach while keeping CPAs low.
Middle of the funnel
As consumers move from general awareness closer to conversion, mid-funnel messaging and strategies emphasize education, reiterate key messages, and refine targeting to reach the most qualified audiences.
Audio’s advanced contextual targeting increases its mid-funnel impact and allows for dynamic creative optimization based on perceptual, behavioral, purchase, and financial data. Dynamic optimization allows brands to enhance engagement by tweaking the creative content of their ads based on the audience. Other tools include technology that caps ad frequency, ensuring that audiences never become oversaturated and annoyed with your brand’s message.
With strategies that included both programmatic audio and host-read placements, ARM has met mid-funnel KPIs for many clients, including Allbirds, whose highly targeted programmatic audio campaigns produced 47% more site visits than test periods without audio.
Bottom of the funnel
The bottom of the funnel is all about conversion. Audio really shines here thanks to its precise trackability. With attribution now fine-tuned, brands can get a complete picture of audio’s impact, which stands head and shoulders over many other channels. In fact, audio conversion rates typically top 30%, which is more than all social channels and display.
Across ARM’s many partners, we’ve seen major lower-funnel results. Campaigns with communication tool Grammarly facilitated top and mid-funnel results, while also driving a website conversion rate of 6%, which is 3 points above average, and 1,200-plus purchases of its premium products, producing a 152% return on ad spend (ROAS). For partners such as insurance shopping tool Policygenius,, audio didn’t just deliver more conversions, but it did so 50% faster than other channels like social.
Talk about delivering on a promise. Audio is capable of producing returns at any stage, making it a first-class option for marketers looking to up their full-funnel marketing game.
Dive in to audio
Brands have much to consider as they start to more comprehensively integrate audio into their marketing strategy. From creating a consistent audio identity and testing creative to targeting precisely and measuring the results, there’s a lot to know to get all the benefits of audio with minimal trial and error.
At ARM, we’ve made audio—from terrestrial radio to video podcasting and everything in between—our bread and butter. With specialized knowledge, advanced tools, and long-standing industry partnerships, we accelerate audio’s time to value for brands, no matter where they are in developing their strategy.
Let’s talk about your goals at every stage—and then craft campaigns that get you there.
