Radio Rules Ad-Supported Audio In Q2 As Podcasts Rise

Edison Research’s most recent Share of Ear study for Q2 2023 has so far provided some worrying news for AM/FM as podcasting further cuts into audience and time spent listening. There is good news for radio, as unpacked in a large data drop released this week.

The survey, which annually collects data from 4,000 Americans, was covered in this week’s Cumulus Media/Westwood One Audio Active Group blog. Research found that in an average hour of ad-supported audio consumption, AM/FM radio accounts for 41.4 minutes, while podcasts take up 11.4 minutes. Combined, they represent 88% of the total ad-supported audio time. When it comes to in-car listening, AM/FM radio’s share jumps to 51 minutes per hour or 85% of the total time spent. Podcasts come in second with 4.2 minutes.

In terms of overall market shares for Q2 2023, AM/FM radio holds a commanding 69% of ad-supported audio, followed by podcasts at 19%. Ad-supported versions of Pandora, SiriusXM, and Spotify each hold a 4% share. Specifically in cars, AM/FM radio maintains an 85% share, with podcasts at 7%.

So what about non-linear music streamers? Despite Spotify’s growth in monthly users, its ad-supported audio shares have remained stagnant for seven years. Currently, AM/FM radio’s share is 17 times larger than Spotify’s ad-supported share.

Podcasts rule on-demand audio, with a significant surge in daily reach among different age groups. Edison’s study reports that podcasts reach 39% of individuals aged 18-34 daily and 34% among those aged 18-49. This growth has also contributed to the rise of on-demand ad-supported audio.

Compared to 2017, podcasts have grown fivefold in their share of ad-supported audio for individuals aged 25-54, while AM/FM radio streaming has doubled. Pandora’s ad-supported share has halved from 11% to 5%.

One final note from Edison’s research: as the 2024 elections arrive, AM/FM radio holds a dominant share across the entire political spectrum, making it an essential platform for reaching registered voters.