Audio is the fastest-growing form of digital advertising, expanding three times faster than digital advertising as a whole. As audio continues its ascent, it is evolving alongside AI, which has been a force in the market since generative AI began to be widely adopted in 2022.

With AI’s unique ability to analyze large amounts of data to fine-tune targeting, optimize ad delivery, and identify patterns, trends, and preferences, it is quickly gaining a reputation for delivering value in analytical functions. Yet, as we look ahead to the rest of 2024 and beyond, we’re seeing an emerging trend of AI being applied to creative functions in audio advertising, opening up new and exciting potential for brands.

Here we will explore new technologies and their applications in 2024 and beyond. 

Accelerate Production

Optimization for advertisers and creators alike involves streamlining ad production. Traditionally, creative variation was very manual, with voice actors, creators, and production teams creating dozens of different takes for the same ad. This process was often time-consuming and costly. 

This is where synthetic voice technologies hold tremendous promise. They can help companies efficiently create thousands of ad variations, allowing for scale without additional burden on talent or budgets. For example, a synthetic voice solution developed by Claritas launched with 96 ads for Progressive Insurance. A Claritas executive noted that old-school production of just three audio ads took as long as 22 weeks, but the 96 AI-generated ads were created within minutes. The AI ads also performed well, driving a 137% incremental lift in listeners seeking insurance quotes. 

Creative production is a barrier for many brands looking to utilize audio’s reach. AI production lowers the bar for entry and allows advertisers of all sizes to capitalize on the power of the medium.

Personalization

A recently released study comparing the performance of generic and personalized AI-generated audio ads quantified what many already knew: Personalization delivers performance. In this study, personalized ads increased brand favorability by as much as 22 percentage points—a very significant margin. But the benefits of personalization didn’t stop there; purchase intent and brand awareness also showed marked positive gains. 

How is AI driving this personalization? Not only is synthetic voice speeding up production, it’s also allowing for the creation of personalized creative ad variations. This capability, combined with AI’s ability to identify parameters unique to each listener’s environment, makes for hyper-contextual ads. These ads can be optimized to direct listeners to a local store to find a specific brand, for example, or can use date and device triggers to encourage listeners to upgrade their phone model. All sorts of data, from purchase history and listening preferences to geolocation and loyalty status, can inform the types of ads delivered so that listeners hear ads customized for them. 

Interactivity 

Dovetailing with advanced contextual and creative personalization at scale, AI can also foster more advanced voice interaction, further upping the ante for engaging listeners. 

Interactive audio ads, already available in the U.S. and U.K. through in-home smart speakers like Amazon’s Alexa, have experienced stops and starts in the last several years. As they make their way into more podcasts and streaming audio channels, new possibilities emerge. What sets these ads apart is that they allow users to interact with the ads through voice or on-screen clicks. “The interactive possibilities [in audio] are vast,” Mary Ann Halford of Halford Media Advisory told Media Leader earlier this year. “AI-powered voice recognition can enable interactive ads via voice prompts, creating new opportunities for listener engagement and for commercial monetization.” 

AI can supercharge CTAs not just by using information like location to direct listeners to the nearest store, but also by leveraging interactivity, allowing users to simply speak a command—such as adding a product to their cart at their preferred shopping site. By using natural language processing, AI is unlocking the potential to interpret more commands from human users in audio ads, creating a responsive, personalized ad experience. 

Leverage AI—but Keep the Human Touch

With all this excitement about AI, it is easy to get carried away. Yet, there are some nuances that all brands must consider as they hop aboard the AI train and start moving full steam ahead. 

A balance between adopting technology and maintaining the human connection valued in mediums like podcasting is important. Naturally, professional voice actors and podcast hosts aren’t likely to share the rights to their voices for free, since they would command high prices for licensing and usage. Thoughtful partnership with the human voices that so often underpin AI will help brands maintain vital industry relationships and a sense of intimacy. Instead of the beating heart of creative efforts, AI can be thought of as a collaborator that creates variation. 

Additionally, human teams with industry knowledge and know-how will still be required to steer brands toward strategies and campaigns that meet their goals. They can also line up the right tech partnerships and facilitate delivery across channels and creative variations. At ARM, we’re focused on continuing to advance and evolve the possibilities of audio, which includes incorporating AI in thoughtful ways to help our partners meet their big goals. After more than a decade in the business, we’ve got the human expertise required to guide smart use of new technologies. 

Let’s talk about how we can build a bright future together. Reach out to an ARM audio expert today.