“Only 5% of Americans listen to ad-supported Spotify in a typical day….64% listen to AM/FM radio.” So says Cumulus Media Chief Insights Officer Pierre Bouvard in the wake of seven new findings on ad-supported audio from Edison Research’s Share of Ear report.
The standout revelation from the study, as covered in the Audio Active Group blog, is the overestimation of Spotify and Pandora’s audience by advertisers. Contrary to advertiser assumptions, traditional radio commands a substantial 68% share of the ad-supported audio market, extending its dominance to an 86% share within the in-car listening environment.
With a significant 58% of all AM/FM radio listening now occurring in the car, there’s a clear indication of the medium’s rebound and its enduring appeal among commuters.
Edison also unveils minimal daily engagement with ad-supported Spotify and Pandora, with 95% and 94% of Americans respectively not tuning into these platforms. The actual market share of ad-supported Spotify is actually seven times smaller than most agencies and advertisers perceive it to be.
This difference between perception and reality calls for a strategic reevaluation among advertisers and agencies, urging them to align their media planning and investment strategies with the authentic listening behaviors of the American populace.
With the recent concentration on political campaigns and their effectiveness through AM/FM, radio’s reach to registered voters remains highest out of all ad-supported audio at 68%.
The ascendancy of podcasts marks another pivotal trend, now accounting for a 20% share of ad-supported audio, translating to one in every five minutes of US ad-supported audio. This rise underscores the evolving preferences of listeners and the growing significance of podcasts in the advertising mix, especially among registered voters where AM/FM and podcasts lead with shares of 68% and 21% respectively.
The final message? “Advertisers need to ‘take the me out of media’ as they wildly overestimate Spotify and Pandora audiences and dramatically understate AM/FM radio’s shares.”
Well done, Radio Ink. You’ve managed to get a troll who “never listens to radio” to read your publication. Wishing I had as much spare time as he/she does.
LoL. How about those of us who NEVER listen to radio, instead using a USB stick or or phones fill of our music? It’s a fallacy that radio is streaming up to ALL alternative listening.
You’ve done well tc8trax! You’ve taken the entire medium to task with one comment. USB and beyond!!!!