Radio: The Dominant Ad-Supported Audio Platform

For the last ten years, Edison Research’s quarterly “Share of Ear” study has been the authoritative examination of time spent with audio in America. Edison surveys 4,000 Americans annually to measure daily reach and time spent with all forms of audio.

Each report is based on a four-quarter rolling average. The most recent Q3 2024 survey is comprised of Q4 2023, Q1 2024, Q2 2024, and Q3 2024.

This analysis of the just released Q3 2024 data focuses on what advertisers care most about – ad-supported audio.

Key findings from The Westwood One Audio Blog:

• Among major demographics, AM/FM radio is the dominant ad-supported audio platform. Podcasts have significant shares among younger age groups.
• Among African Americans, AM/FM radio is particularly strong. Podcast shares are not as strong as the general market.
• Among Hispanics, podcast shares are stunningly strong. Among 18-34 Hispanics, podcasts are now the number one ad-supported audio platform.
• In the car, AM/FM is the “queen of the road” with an 86% share. Even among 18-34s, AM/FM radio has an 82% share of ad-supported audio.
• 13% of all AM/FM radio listening occurs via streaming, steady over the last three years. On the smart speaker, AM/FM radio dominates with a 50% share of ad-supported listening.
• Sadly for advertisers, most of Spotify’s audience is unavailable to place advertising. While Spotify’s ad-free subscription audience soars, it’s ad-supported shares stagnate at a two share.
• Streaming music audience growth comes at the expense of owned music rather than AM/FM radio.

Among major demographics, AM/FM radio is the dominant ad-supported audio platform. Podcasts have significant shares among younger age groups.

Overall, 69% of all ad-supported audio time spent goes to AM/FM radio, followed by podcasts (19%). Across major demographics, AM/FM radio is the leader in ad-supported listening with shares ranging from 50% to 80%.

Podcasts generate strong shares. Among 18-34s, a third of all time spent goes to podcasts. Among 25-54 and 18-49s, podcasts earn a ~25% share. Shares of Spotify, Pandora, and SiriusXM are small in the mid-single digits.

In the car, AM/FM is the “queen of the road” with an 86% share. Even among 18-34s, AM/FM radio has an 82% share of ad-supported audio.

To reach Americans on the path to purchase, all roads lead to AM/FM radio.

Streaming music audience growth comes at the expense of owned music rather than AM/FM radio.

Over the last eight years, time spent with owned music (purchased iTunes downloads, CDs, albums) have shifted to “rented music,” a.k.a. streaming subscriptions. In 2017, Americans spilt their time equally between streaming music and owned music. Today, share of time spent is 76% streaming versus 24% owned music.