The Future of Your Industry is Here, and it's Audio: Retail, CPG, QSR

At SXM Media, our 2023 kickoff is all about making (and keeping) promises to inspire and transform, and the theme of this year’s promise is innovation—everywhere.

We connected with our leading industry experts to get their take on what's coming down the pipeline in 2023, plus what they think market leaders should be aware of to make this year their most successful one yet. And, to no one’s surprise, all their predictions had one major theme in common: the fact that audio advertising can help marketers stay ahead of the market shifts to come.

For part one of our four-part series, see what our experts in retail, consumer packaged goods (CPG), and quick-service restaurants (QSR) had to say about their industries in 2023.

Retail

Coming off the heels of the pandemic and facing a recession, it’s obvious that the retail landscape is up for some major changes as far as consumer spending is concerned. For Lauren Chesley, SXM Media’s Head of Industry, Retail, relying on data-driven decision making and solutions is more important than ever to navigate the transitions ahead.

Prediction

“Data will drive all marketing decisions, now more than ever. As budgets are being scrutinized, it is increasingly important to invest in media that has a measurable impact on a retailer’s bottom line. Additionally, as advertisers continue to struggle with targeting due to decreasing cookies/MAIDs, insight into who and how consumers are engaging on a given medium becomes more elusive. Having innovative solutions, like SXM Media’s Audio ID and our ever-evolving slate of measurement capabilities help ensure retailers have access to the data they need to drive the smartest decisions for their business.

Additionally, given the shifting economy, retailers need to be nimble to stay relevant. The landscape, consumer needs, and brand strategies are constantly changing. Enter audio as a flexible solution. Given the nature of the medium and not needing onsite or large-scale production, messaging can be created or adjusted quickly and easily and as fast as the economy is changing.”

Takeaway

"One thing we know to be true is that 2023 will be another wildcard year. With a constantly shifting economy, retailer strategies and marketing messages will need to continue to change along with it.

However, one thing remains steady: audio’s integration into a consumer's day. While consumers may be making choices to cut back on their spending, they are still investing in audio—and retailers need to, too. With 31% of media time spent listening to the wide range of audio offerings, retailers can tap into these key timeframes and mindsets to capture consumer attention and deliver contextual messaging that leads to conversion in this highly competitive landscape."

CPG

CPG has always been a highly unique industry. And according to Kaleigh McMurray, Head of Industry, CPG, we can expect to see some major pivots by way of brand spending and advertising priorities in 2023. 

Prediction

“As we move into 2023, brands will begin to truly adopt a ‘digital-only’ advertising strategy. TV and AM/FM consumption has been rapidly declining year over year—specifically with younger audiences that were born into a digital-first world. This audience, which plays a critical role in brands’ target consumer demographic, are looking for a different type of connection. In order for CPG brands to connect with these younger consumers, they’ll need to pivot to a digital approach. 

On top of this, there’s budgeting concerns to be aware of. The former appeal of cheaper pricing with traditional, mass-reaching vehicles will change due to higher demand and less inventory. Digital, on the other hand, is extremely favorable due to the ability to target hard-to-reach audiences with greater accuracy.

In 2023, personalization will be demanded by consumers to drive relevance and loyalty. This will make digital an easy solution to execute custom creative by audience and goals.”

Takeaway

“Audio is the single biggest growth opportunity for CPG brands today. There is a major spend gap between audio consumption vs. media spent specifically in the CPG space.  A brand’s ability to lean in here, specifically with SXM Media, will allow them to outpace competitors by reaching new audiences where they are spending their time, money, and attention.”

QSR

Quick-service restaurants have always been ahead of the curve regarding technological innovations, and in 2023, they’ll need to keep the innovative spirit up to continue reigning supreme. For Taylor Hubbarth, Director of QSR at SXM Media, the year ahead will require prioritizing technological investments that leverage targeted data for customized experiences.

Prediction

“2023 is going to be all about focused investments in technologies that allow brands to dynamically leverage customer data to enable custom dining experiences—i.e. dynamic menu boards with historical orders, personalized suggestions, and targeted ad solutions. 

We’ll also see a continued upward trend of digital ordering. In ’23, I expect we’ll see opportunities that give customers even more control, convenience, and rewards within digital ordering—i.e., voice commands and bigger loyalty programs."

Takeaway

"With a customer that is incredibly comfortable and reliant on technology, it’s not ‘Quick Service Restaurant,’ but ‘quicker’ service restaurant. Succeeding in this space today is not just personalization but about truly made-to-order, bespoke dining experiences. The ubiquity and convenience of audio, coupled with the unique way in which each individual person listens, make this medium the perfect solution for advertisers to deliver their messages with the immediacy and hyper personalization to suit their customer demands."

There’s plenty more where this came from. 

Interested in seeing what’s next for Tech and Automotive? Click here. 

Or Entertainment, Travel, and Multicultural? Click here. 

What about Fin Serv, Healthcare, and Political? Click here.

Or, you can just reach out to us directly and we can help you build a custom plan, whatever your industry may be. Let’s chat about your audio strategy today.