Streaming Is 12% Of Total Radio Listening Among Persons 25-54

The Cumulus Media | Westwood One Audio Active Group® has released a comprehensive analysis of AM/FM radio streaming. The report includes the latest Q4 2021 data from Edison Research’s quarterly “Share of Ear” study, a first-ever view of all U.S. AM/FM radio streaming as well as purchase intention data from MRI-Simmons.

The analysis revealed key insights around the state of AM/FM radio streaming including who AM/FM radio streamers are, how their profile differs from over-the-air AM/FM radio listeners, how and where AM/FM radio streaming is consumed, and a format and market analysis of AM/FM radio streaming patterns.

“While it is well acknowledged that podcasts are a fast-growing audio platform, it would surprise many to learn that AM/FM radio streaming audiences have also experienced significant growth over the last several years,” said Suzanne Grimes, EVP, Marketing for Cumulus Media and President, Westwood One. “AM/FM radio streaming now has the scale and quality marketers require. With audiences larger than Pandora and Spotify, AM/FM radio streaming listeners are upscale, employed, and in-market for major purchases.”

 

The state of AM/FM radio streaming analysis reveals valuable insights for marketers, agency media planners, and buyers. Some highlights include:

• With Nielsen’s introduction of the headphone enhancement to their Portable People Meter service in October 2020, streaming now represents 12% of total AM/FM radio listening persons 25-54.
• Since 2017, the ad-supported share of AM/FM radio streaming has increased 6% to 11% according to Edison’s “Share of Ear” study. Pandora’s ad-supported share has dropped from 10% in 2017 to 8% in 2022. Over the last five years, Spotify’s ad-supported share has remained at a 3% share.
• The streaming shares of spoken word AM/FM radio stations are nearly double their over-the-air shares. Spoken word AM/FM radio stations streams (News/Talk, Sports, Talk/Personality, Spanish News/Talk) represent 36% of all American streaming listening, +89% greater than the over-the-air share (19%) of spoken word stations.
• 89% of the AM/FM radio streaming audience resides in the DMA market where they stream. Marketers can purchase time on AM/FM radio station streams with the confidence that their ads will reach consumers in that local market.
• There is wide variation in the amount of AM/FM radio stream listening that occurs in local markets. According to Nielsen’s analysis of the February 2022 Portable People Meter data, 18.4% of all AM/FM radio listening in Philadelphia occurs via the stream compared to only 3.9% of listening in Las Vegas.
• AM/FM radio streaming audiences are employed, upscale, and most are 35-64. The streams of AM/FM radio stations are highly desirable to advertisers. Compared to the over-the-air AM/FM radio audience in Nielsen’s 48 Portable Meter Markets, streaming audiences are +14% more likely to be employed full time, +30% more likely to have a $75K+ household income, and +11% more likely to be aged 35-64.
• According to MRI-Simmons, the AM/FM radio streaming audience is far more likely to start a new business, make major purchases (new vehicle, new house, major appliance), make financial investments, or be in the market for insurance.
• Due to the strong levels of time listeners spend streaming, advertising accumulates reach and frequency faster in AM/FM radio streaming campaigns than in over-the-air schedules. As a result, about half the ads are required in the AM/FM radio stream to accomplish the same advertising frequency as over-the-air campaigns. As an example, 30 ads running weekly in an AM/FM radio streaming buy will generate a two frequency. Fifty ads would be required to run over-the-air in a week to accomplish the same two frequency.

The complete analysis of streaming data is available at WestwoodOne.com/blog. This information is available on the blog as part of Cumulus Media’s commitment to share insights and research findings with the marketing community.