Vibenomics has launched a new advertising venture with a former president of NextRadio at the helm.
The cloud-based managed service provider Vibenomics launched what it’s calling the Audio Out-Of-Home Advertising Marketplace. The solution enables businesses and connected cities to build a specific “audio vibe” in an environment — a sports complex or a shopping center for example — to increase sales and enrich a visitor’s experience, the company says.
The solution has been in beta test over the last eight months and has been used by more than 100 national and local advertisers to reach in-market shoppers in locations like water parks and sports complexes. Those locations reported consistently positive results after using the marketplace, the company said. Similar results were achieved by a roster of national advertisers like Pepsi, Red Bull and General Mills with one chain advertiser seeing a 42% sales lift and $1.9 million incremental revenue.
The new marketplace will be headed by Paul Brenner, a former president of NextRadio/TagStation and senior vice president of Emmis Communications. Brenner will join Vibenomics as chief strategy officer.
The Vibenomics Audio Out-of-Home Ad Marketplace will roll out to 2,000 locations in 45 states. The marketplace is designed to reach more than 150 million consumers while they are shopping, working, traveling and playing.
“In the process, we have created a national footprint that we know will be much sought after by both audio and OOH [out of home] advertisers,” said Brent Oakley, founder and CEO of Vibenomics.
According to Vibenomics, scientific studies show that background music influences how much time is spent in a store, what to buy, how much to spend and can trigger impulse buyers to make additional purchases. According to the company, the Vibenomics ad marketplace gives advertisers an opportunity to reach these audiences with professionally recorded announcements when they have a predisposition to purchase.
The Out of Home Advertising Association of America reported that revenue for the second quarter of 2019 grew 7.7% to nearly $2.7 billion compared to the same period in 2018. That marks the sector’s highest quarterly growth since 2007, the organization said, with growth occurring across all four major OOH channels: billboards, street furniture, transit and place-based. In addition, nearly 70% of the top 100 advertisers in the space increased their spend in the second quarter compared to the same timeframe last year, while 25% more than doubled their OOH investment.
The OOH market is expected to grow from $8 billion to $11.5 billion through 2022, said Scott McCorkle, executive chairman of Vibenomics.
“We are already taking market share from others in this space by offering more efficiency and better results,” McCorkle said. “[Advertisers] want to reach the unique footprint we have created and amplify the voice of their brands in an entirely new way right at the point of sale when it matters most.”
Features within the Vibenomics Audio Out-of-Home Advertising Marketplace include dynamic, in-stream, programmatic digital audio ad insertion; brand-safe placements, immunity to ad fraud; and access to consumers at the point of sale. The solution includes curated playlists, professional voice announcements and management via experience managers at Vibenomics who control music, messaging and advertising for customization of the message in each location.
Founded in 2016 in Indianapolis as Fuzic, the company rebranded to Vibenomics in 2017.