NEW DATA: Proving the Power of Personalization with Pandora

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NEW DATA: Proving the Power of Personalization with Pandora

Dynamic audio creative drives better ad performance

It’s hard to deny that a customized brand message — to someone’s gender, age, location, weather, behavior, preferences and more — is going to resonate better. It’s customized for them. Dynamic creative optimization was created to do this on the fly and at massive scale, piecing together the most relevant components of a given ad for each person in real time.

Dynamic creative is, of course, not new to digital advertising — the practice has been a component of programmatic display, video and other advertising for years. But audio is catching up, and there’s no time like the present; with, for example, 160 million people streaming audio weekly, the prospect of brands engaging each of those listeners with the most targeted message is simply too great an opportunity to squander.

With that, we’re proud to provide the testing platform for Pandora’s new ad products around personalization to help them determine just how powerful customized audio ads can be for brands and consumers alike.

The test:

Pandora evaluated 12 customized ads against each other and one, non-customized control ad. Personalization included different messages and voices for men and women, and time of day. The ads were assessed for a range of emotional qualities — if they felt exciting, happy, inspirational, interesting, unique, and made people feel good — as well as for how much they drove intent to purchase the product, and how memorable they were.

Creative Testing Results

Key findings include:

  1. Dynamic ads perform better
    Overall, 11 out of 12 personalized ads ranked above the non-personalized control. Perhaps most importantly, the dynamic ads drove 125% higher lift in purchase intent, and 13% higher recall, than the control.
  2. Younger people are even more receptive to personalization
    18-34 year olds in particular responded even better to the dynamic creative, with personalized ads driving 133% higher lift in purchase intent, and 43% higher recall, versus the control.
  3. Don’t poke the sleeping man-bear
    Messages delivered to men in the morning (and related to morning) performed substantially worse than the other time periods — driven by very poor recall — especially among 18-34 year olds.
  4. Room to get even more personal
    Two-thirds of respondents were unaware that they were being dynamically targeted by the audio ads, which suggests that there may be room to personalize more — grounded, of course, in solid data safe-handling practices — without triggering “the creepy factor.”

The study not only validates Pandora’s investment in dynamic creative optimization, it helps them guide their clients on exactly how to personalize to different segments to generate the best results. In other words, on how to capitalize on the sonic truth.

As always, the data makes a difference.

See TechCrunch’s coverage of Pandora’s personalization release and the study here, and Pandora’s post here.

To dig into these results further, and to see where your own creative stands, talk to us.

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