Edison’s quarterly “Share of Ear” study is the authoritative examination of American audio time use. The just-released Q3 2021 report provided the Westwood One blog an opportunity to look back over five years to understand the shifts in U.S. listening.
Speed Read:
In the middle part of the last decade, Pandora was a new and interesting audio streaming service. They enjoyed strong shares among persons 13-44. Then came Spotify’s ad-free subscription service.
Over the last four years, Pandora has suffered share losses in the 48% to 70% range among persons 13-44. Pandora’s remaining and small audiences seem to be centered among persons 45-54.
- Ad-supported audiences: Pandora collapses and Spotify stagnates
- Pandora sees significant losses in most demographics
- Spotify surpasses Pandora in reach
- All of Spotify’s growth comes from its advertising-free subscription service which accounts for 72% of all Spotify listening
- Podcast audiences soar
- Perception vs. reality: Marketers and agencies overestimate Pandora and Spotify shares and underestimate AM/FM radio listening
- Marketers and agencies need to take the “me out of media”
- AM/FM radio dominates ad-supported audio with a 75% share of listening
- Among younger demographics, podcast shares are significant
- Most Pandora/Spotify listening occurs at home while most AM/FM radio listening occurs away from home
- AM/FM radio dominates in-car listening with an 88% share
- AM/FM radio streaming is now 15% of total AM/FM radio listening among persons 25-54
- AM/FM radio streaming is #1 on smart speakers
- Ad-supported audio: AM/FM radio dominates, podcasts and AM/FM streaming represent all the growth, Pandora is down, and Spotify stagnates
- Pandora sees significant losses in most demographics
In the middle part of the last decade, Pandora was a new and interesting audio streaming service. They enjoyed strong shares among persons 13-44. Then came Spotify’s ad-free subscription service.
Over the last four years, Pandora has suffered share losses in the 48% to 70% range among persons 13-44. Pandora’s remaining and small audiences seem to be centered among persons 45-54.
Spotify surpasses Pandora in reach
In the last several years, Pandora has suffered constant reach erosion at the hands of Spotify. Since 2016, Pandora’s daily reach is down -35% while Spotify is up +86%.
All of Spotify’s growth comes from its advertising-free subscription service
Since 2016, Spotify’s advertising-free subscription service is up +309% while the ad-supported free service grew only by three-tenths of a share point (1.8 to a 2.1).
Podcast audiences soar
The two audio platforms that are consistently growing are AM/FM radio streaming and podcasts. Over the last several years, podcast reach and audience shares have exploded.
In the last two years, podcast daily reach among persons 18-34 is up +43% and daily reach among persons 25-54 is up an eye popping +51%.
Massive disconnect: The perception and reality of audio shares
The chart below summarizes the perceived audio listening shares among brands and media agencies. Grey is from the August 2021 Advertiser Perceptions study. In blue are the actual ad-supported shares from Edison’s Q3 2021 “Share of Ear.” What a disconnect.
The two audio platforms that are consistently growing are AM/FM radio streaming and podcasts. Over the last several years, podcast reach and audience shares have exploded.
In the last two years, podcast daily reach among persons 18-34 is up +43% and daily reach among persons 25-54 is up an eye popping +51%.
Massive disconnect: The perception and reality of audio shares
The chart below summarizes the perceived audio listening shares among brands and media agencies. Grey is from the August 2021 Advertiser Perceptions study. In blue are the actual ad-supported shares from Edison’s Q3 2021 “Share of Ear.” What a disconnect.
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