Edison Research’s quarterly “Share of Ear” study is the authoritative examination of American audio time use. Edison Research surveys 4,000 Americans to measure daily reach and time spent for all forms of audio.
This week’s Cumulus Media | Westwood One Audio Active Group® blog
Perception vs. reality: Agencies and advertisers underestimate AM/FM radio shares and overestimate Pandora and Spotify audiences
The just released Q2 2022 report reveals a yawning gap in agency/marketer perceptions of audio audiences. A study of 300 media agencies and marketers conducted in August 2021 by Advertiser Perceptions, the gold standard measurement firm of advertiser sentiment, found the perceived share of Pandora/Spotify is a combined 45% share, much greater than the perceived share of AM/FM radio (28%).
AM/FM radio’s actual share is three times larger than advertisers perceive. According to the Q2 2022 “Share of Ear,” AM/FM radio’s persons 18+ share of ad-supported audio (75%) is 13 times larger than Pandora (6%) and 19 times greater than Spotify (4%).
Mark Ritson, the renowned Marketing Professor, describes this phenomenon: “There is increasing global evidence that marketers are basing their media choices on their own behavior or that stoked by the digitally obsessed marketing media, rather than actual audience data.”
Perception is shaded by personal experience. For marketers and agencies, this creates a major disconnect with reality. Media decision makers need to take the “me” out of media.
2017 versus 2022: Podcasts triple and AM/FM radio streaming doubles in share, beating Pandora two to one
A comparison of persons 25-54 ad-supported audio shares from Q2 2017 to Q2 2022 reveals surprising trends:
The just released Q2 2022 report reveals a yawning gap in agency/marketer perceptions of audio audiences. A study of 300 media agencies and marketers conducted in August 2021 by Advertiser Perceptions, the gold standard measurement firm of advertiser sentiment, found the perceived share of Pandora/Spotify is a combined 45% share, much greater than the perceived share of AM/FM radio (28%).
AM/FM radio’s actual share is three times larger than advertisers perceive. According to the Q2 2022 “Share of Ear,” AM/FM radio’s persons 18+ share of ad-supported audio (75%) is 13 times larger than Pandora (6%) and 19 times greater than Spotify (4%).
Mark Ritson, the renowned Marketing Professor, describes this phenomenon: “There is increasing global evidence that marketers are basing their media choices on their own behavior or that stoked by the digitally obsessed marketing media, rather than actual audience data.”
Perception is shaded by personal experience. For marketers and agencies, this creates a major disconnect with reality. Media decision makers need to take the “me” out of media.
2017 versus 2022: Podcasts triple and AM/FM radio streaming doubles in share, beating Pandora two to one
A comparison of persons 25-54 ad-supported audio shares from Q2 2017 to Q2 2022 reveals surprising trends:
- Podcast shares have nearly tripled from 5% in 2017 to 14% today. Podcasts are the fastest growing audio platform. Number two is AM/FM radio streaming.
- AM/FM radio streaming shares have doubled from a 6% share in 2017 to a 12% share today.
- AM/FM streaming now beats Pandora two to one (12% to 6%). The roles have reversed. Back in 2017, it was Pandora that beat AM/FM radio streaming by nearly two to one in share (11% to 6%).
- Spotify shares are small and stagnant.
- AM/FM radio’s total share (over-the-air plus streaming) is dominant at a 72%, slightly down from 2017 (79%).
- In a typical day, most Americans only listen to AM/FM radio while few listen to Pandora, Spotify, or SiriusXM90% only listen to AM/FM radio and do not listen to ad-supported Pandora.
- 94% only listen to AM/FM radio and do not listen to ad-supported Spotify.
- 91% only listen to AM/FM radio and do not listen to ad-supported SiriusXM.
There are few exclusive listeners of Spotify, Pandora, or SiriusXM. Only 3%-4% of daily listeners only listen to Pandora, Spotify, or SiriusXM and do not listen to AM/FM radio. On the other hand, a strong AM/FM radio schedule will reach half to two-thirds of Pandora, Spotify, and SiriusXM audiences at no extra cost.
AM/FM radio streaming hits a record high representing 16% of all AM/FM radio listening
Among 25-54s, AM/FM radio streaming now accounts for 16% of total AM/FM radio listening. The share of total AM/FM radio listening occurring via the stream has doubled in the last five years (8% to 16%).
Key takeaways:
- Perception vs. reality: Agencies and advertisers underestimate AM/FM radio shares and overestimate Pandora and Spotify audiences
- “Share of Ear” data proves that advertisers are not taking the “me” out of media
- Pandora’s stunning audience erosion is another reason for the disconnect between advertiser perceptions and actual audio shares
- 2017 versus 2022: Podcasts triple and AM/FM radio streaming doubles in share, beating Pandora two to one
- In a typical day, most Americans only listen to AM/FM radio while few listen to Pandora, Spotify, or SiriusXM
- Audio shares are pandemic proof revealing little change before, during, and after the pandemic
- For political campaigns, AM/FM radio is the best audio platform to reach voters
- AM/FM radio streaming hits a record high representing 16% of all AM/FM radio listening
- AM/FM radio is the “queen of the road” with a stunning 89% share of ad-supported audio in the car
- AM/FM radio’s dominant in-car ad-supported shares have been rock steady over the past six years
No comments:
Post a Comment