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Study Finds Streaming is Now Bigger Than AM Radio


Edison Research
Edison Research

The recently released Q2 2021 edition of Edison Research's "Share of Ear," the audio-time-use study, contains several key audio insights and were highlighted by this week's Westwood One blog. The study found that 15 cents out of every AM/FM radio advertising dollar can go to the stream as streaming now represents 15% of persons' 25-54 AM/FM radio listening. Since 2016, the share of AM/FM radio time spent occurring via the stream has grown from 8% to 15%. Streaming is now bigger than AM radio, which represents 10% of listening.

Other highlights pointed out by Westwood One included:

  • Over the last five years, Pandora and Spotify have experienced erosion in ad-supported audiences. Compared to Q2 2016, Spotify's Q2 2021 ad-supported audience shares have dropped from 1.6% to 1.4%. Pandora's ad-supported audience share has been cut in half (7.1% to 3.8%).

  • Spotify's audience trends are a tale of two cities: Ad-free subscription audiences soar while ad-supported shares drop. Since 2016, Spotify's ad-free subscription service audience shares have jumped from 0.9% to 3.7%. Meanwhile, Spotify's ad-supported free service audiences are small and stagnant (1.6% to 1.4%).

  • Perception vs. reality: Brands and agencies significantly overestimate Pandora and Spotify's audiences. Brands and agencies perceive that Spotify's share (24%) is twelve times larger than its actual 2% share. Pandora's perceived 18% audience share is over six times larger than reality (3%).

  • Podcast audiences have tripled since 2016. The persons 25-54 share for podcasts in Q2 2021 (7.9%) is over three times the share from Q2 2016 (2.3%).

  • Audio is pandemic proof as AM/FM radio represents three-fourths of all ad-supported audio. At a 76% share, AM/FM radio continues to dominate ad-supported audio.

  • AM/FM radio owns the car with a 90% share of ad-supported audio six years in a row.

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Benztown: Benztown was at Radiodays Europe 2024, which was held in Munich on March 17-19th. Benztown hosted a well-attended party for customers and partners during Radiodays Europe 2024 on Monday, March 18. Pictured is a traditional Volksmusik band performed for Benztown party attendees at Munich's Augustiner-Keller restaurant. In front in black shirt raising a glass is Oliver Klenk, Head of Production & Composition, and to his right, also in black shirt, is Stephan Halfpap, General Manager, Maxmedia, Austria.

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