Because the same amount of gain is applied across the entire recording, the signal-to-noise ratio and relative dynamics are unchanged.
As such, peak normalization is generally used to change the volume in such a way to ensure optimal use of available dynamic range during the mastering stage of a digital recording.
This feature of digital recording systems, compression and limiting followed by peak normalization, enables contemporary trends in program loudness.
[4] Depending on the dynamic range of the content and the target level, loudness normalization can result in peaks that exceed the recording medium's limits, causing clipping.
Software offering loudness normalization typically provides the option of dynamic range compression to prevent clipping when this happens.