Retail Executive

SEP-OCT 2017

Retail Executive is the trusted advisor to top retail executives from the industry’s most profitable retailers. We help retail executives succeed in their job role and grow their business via exclusive, actionable, peer-driven content.

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With the addition of voice-enabled applications to the audio mix of Connected Home, the next wave of innovation is upon us, as consumer behavior has also shifted with devices like the Amazon Echo and Google Home. While only 11 percent of the U.S. popu- lation currently has one of these devices, adoption is expected to grow to 16 percent by 2019, which presents a major opportunity for retail advertisers. Pandora is already investigating what this could mean from a listener standpoint and for client ad messaging con- tent. For instance, we want to enable our listeners to find a station or create a playlist in a hands-free environment — when you are be- hind the wheel of a car or up to your elbows in cookie dough in the kitchen. For advertisers, voice-enablement will allow consumers to have conversations directly with the audio message. Imagine if we could combine artificial intelligence and voice activation to en- able a conversation with your favorite fashion influencer, celebrity chef, or garden expert, all through an advertisement. It's an incredibly exciting time to be in the digital music stream- ing arena. Pandora's Dynamic Audio, Sequential Audio, and voice-engaged advertising initiatives already in the pipeline are just a few innovations that will provide retailers an outside-the- box way to use audio media to improve, enhance, and personalize the customer experience. R ferent genders, ages, regions, etc., based on Pandora's propri- etary listener data. Imagine hearing an ad that knew it was the first sunny spring morning in suburban Chicago and called that out in a manner most relevant to a targeted audience. An audio script could be delivered as follows: "Good morning, Arlington Heights! The beautiful taste of spring is finally in the air, and it's time to start planning the garden. Head down to The Outdoor Store on West Campbell Street to browse our full line of small garden tools." In this example, the time of day (morning), loca- tion (Arlington Heights), topic (planning the garden), address (West Campbell Street), and product content (small garden tools) could be dynamically altered in thousands of variations without the need for individually created copy. This gives advertisers the ability to tailor audio advertising messages in a more personal- ized manner without the operational complications of a manual creative versioning process — a win-win scenario for all. The second key innovation in our product road map this year is Sequential Audio, which will allow advertisers to tell a story through sequentially targeted ads. Imagine hearing a story told over time. In the first spot you meet the protagonist, a busy pro- fessional person like you who decides it's finally time to buy the new suit you've needed for so long. In the second spot, they ex- plore different fabrics and styles and land on their favorite, highlighting why the choice was best for them. And in the third spot, they're at the office receiving compliments on their new look, talking about the great wardrobing advice pro- vided by the store. This storytelling ap- proach provides more personal interest, situational context, and helps the retail- er push the target customer down the purchase funnel to transact. These are just two examples which further illustrate digital streaming ca- pabilities far beyond what traditional terrestrial radio can provide. But this is only the beginning, as voice is replacing touch as "the new click-through," espe- cially in the connected home. This is an important consideration, as connect- ed-device usage is growing across the audio industry, up 31 percent from 2016. Pandora has seen even more growth in connected home devices, and, as a result, Connected Home usage on our platform has grown to over 9 million unique monthly users, a 43 percent year-over-year growth. For advertisers, the audience on Connected Home is extremely valuable, since they are the most avid users of Pandora, more likely to be in a higher income bracket, own a home, and be parents of young children. Keep your customers shopping while you keep the fraudsters at bay. OTP+ is the solution that dramatically reduces fraud with less handling time, saving you money and keeping your customers happy in the process. | 855.703.9292 | Only you know your fraud rate. Only we know how to fix it. RETAILEXECUTIVE.COM SEPTEMBER/OCTOBER 2017 37

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