PhonePe, Paytm Could Soon Try Out Audio Ads On Their Sound Box Devices

PhonePe and Paytm, giants in the payment industry, are tinkering with the idea of airing audio ads through the millions of sound boxes peppered across retail outlets nationwide.

What to know: According to an ET report, this venture, still in the experimental phase, sees collaboration with heavyweight FMCG players like Mondelez and Tata Consumer Products, aiming to embed brief audio spots post-transaction to captivate both shop owners and customers alike.

With an estimated 10-12 million sound boxes dotting the Indian retail landscape, these fintech giants are eyeing an opportunity to turn these transactional devices into miniature broadcast stations.

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The proposal on the table suggests a symbiotic relationship where merchants might enjoy lower rental fees for these devices in exchange for hosting these advertisements, a proposition which may be especially appealing to everyday small-scale retailers. However, to maintain the efficacy of these audio adverts, they’re considering a cap — triggering an ad after every five to seven transactions to avoid consumer tune-out.

Why it matters: While PhonePe remains tight-lipped about plans for their SmartSpeaker devices, the advertising world is abuzz with the possibilities this could unleash. From promoting impulse buys to targeted advertising based on location, the potential for brand engagement is immense.

Yet, the absence of solid metrics to gauge the impact of these sound box ads presents a puzzle for marketers accustomed to the granular analytics of digital advertising. Despite the hurdles, the concept opens up a new frontier in reaching consumers right where decisions are made — the point of sale.

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