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AM/FM radio:
the centerpiece of
American audio
Featuring data from Edison’s Share of Ear Q2 2017
The gap between the perception and reality of audio
listening among advertisers has never been greater. The
truth is, AM/F...
The data: about Edison’s Share of Ear
“Share of Ear” is the authoritative and definitive view of
how Americans consume aud...
Advertisers think AM/FM radio and
streaming are almost the same
Source: Advertiser Perceptions, May 2017, 316 advertisers ...
AM/FM radio is the centerpiece of audio
Source: Edison Research, “Share of Ear,” Q3-Q4 2016, Q2 2017. Persons 18+
SiriusXM...
51%
5% 2%
AM/FM radio Ad-supported Pandora Ad-supported Spotify
AM/FM radio’s audience shares dominate
Share of audio time...
Daily time spent with AM/FM radio beats digital audio
Source: Edison Research, “Share of Ear,” Q3-Q4 2016, Q2 2017. Person...
AM/FM radio significantly outreaches digital audio
Source: Edison Research, “Share of Ear,” Q3-Q4 2016, Q2 2017. Persons 1...
AM/FM radio reaches consumers on the path to purchase
Source: AM/FM location of listening: Nielsen RADAR 133, June 2017; A...
Digital audio and satellite audiences also listen to AM/FM radio
Source: Edison Research, “Share of Ear,” Q3-Q4 2016, Q2 2...
Most Pandora listening comes from a
small percentage of Americans
% of daily total Pandora usage contributed by the 40% he...
3%of Americans
represent
73%
of Spotify listening
Source: Edison Research, “Share of Ear,” Q3-Q4 2016, Q2 2017. Persons 18...
Listening in the car
“The biggest risk for radio is the
26-year-old planner who lives in New York
or Chicago and does not commute by car
and do...
AM/FM radio dominates audio in the car
0.1%
0.4%
1%
1%
1%
1%
1%
1%
3%
8%
12%
70%
Ad-free Pandora
Music videos on YouTube
P...
5%
Public
transportation
9%
Other
86%Drive in a car
or truck
Americans are commuting and traveling alone
Source: U.S. Cens...
In New York, the capital of media planning and buying,
few commute by car
Source: U.S. Census Bureau, 2014, American Commu...
Commuting habits influence media buyers and planners
Source: NuVoodoo Study of 423 advertising decision makers, media plan...
“Of all of the listening that’s
done in the car, radio really
owns that space,” said Diana
Anderson, SVP of network
audio ...
• Centerpiece of audio: 51% of all audio time spent goes to AM/FM radio
• AM/FM radio dominates digital audio: AM/FM radio...
Emerging audio trends
Source: “Pandora’s Plan to Stay Independent Means Push Beyond Radio,” Bloomberg Business, March 7, 2016
“Pandora pioneered...
Time spent with streaming grows at the expense
of owned music – not AM/FM radio
Streaming 51%
Streaming 49%
Streaming 46%
...
AM/FM radio’s share remains steady and strong
Source: Edison Research, “Share of Ear,” Q4 2015 – Q2 2017; Persons 18+
52% ...
Pandora sees steady decline
Source: Edison Research, “Share of Ear,” Q4 2015 – Q2 2017; Persons 18+
6.6% 6.4% 6.6% 6.3% 6....
Pandora erodes while Spotify grows
Source: Edison Research, “Share of Ear,” Q4 2015 – Q2 2017; Persons 13+
15.5% 15.2% 14....
Audience share trends by audio source
Source: Edison Research, “Share of Ear,” Q4 2015 – Q2 2017; Persons 13+
Q4
2015
Q1
2...
Spotlight on Millennials
Among 18-24s, owned music loses share and
YouTube grows
Source: Edison Research, “Share of Ear,” Fall 2015 – Spring 2017; ...
Among 18-24s, Spotify beats Pandora
Source: Edison Research, “Share of Ear,” Fall 2015 – Spring 2017; Persons 18-24
Emergi...
Millennials 18-24 now spend more time with YouTube
than Pandora and Spotify combined
Share of audio time spent
Source: Edi...
4.1
4.8
4.3 4.4
3.9
3.0
6.4
5.8
5.4
5.0 4.8
3.7
Hispanics
18-34
Men 18-34 Persons 18-24 Men 25-34 Persons 18-34 Women
18-3...
• Time spent with streaming grows at the expense of
owned music – not AM/FM radio
• Pandora stalls while Spotify grows
• Y...
The intellectual property included in the this presentation is property of Cumulus Media, including Westwood One, and may ...
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Share of Ear

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AM/FM radio: the centerpiece of American audio

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  • Being from the UK, I find this a truly interested read, thank you. The UK situation is very different. AM will probably be switched off at some stage, and FM might be switched off. DAB has stalled at 50% owning a DAB receiver and online radio is growing. But similar decline in owned music, small resurgence of vinyl
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  • Very well said and very informative. I host a radio program on Rare books Sat 12-2pm on WDBFradio.com and WDBF.FM when I was a guest on AM radio the phones would ring off the hook from callers wanting information on their books. While my program has a nice audience it is a totally different response . We get calls but not as many as I did on AM radio. Thanks again for an informative post.
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Share of Ear

  1. 1. AM/FM radio: the centerpiece of American audio Featuring data from Edison’s Share of Ear Q2 2017
  2. 2. The gap between the perception and reality of audio listening among advertisers has never been greater. The truth is, AM/FM radio is bigger than ever. This report examines Edison Research’s Share of Ear data to explore: • The size and strength of AM/FM radio • Emerging audio trends The key takeaway: AM/FM radio dominates the audio landscape with mass reach and significant time spent.
  3. 3. The data: about Edison’s Share of Ear “Share of Ear” is the authoritative and definitive view of how Americans consume audio content. Edison reports share of audio time spent and percentage of Americans who use each content source. Twice a year, Edison Research conducts a study to track consumer use of audio. 2,000 respondents keep a 24-hour diary to record audio usage. Each released study reflects 4,000 respondents, representing a rolling two-quarter average. This wave is based on 6,000 persons from Q3-Q4 2016 and Q2 2017. Edison is a leading provider of AM/FM radio research, with more than 20 years experience. They also conduct exit polling for all national elections for America’s television networks.
  4. 4. Advertisers think AM/FM radio and streaming are almost the same Source: Advertiser Perceptions, May 2017, 316 advertisers and agencies According to Advertiser Perceptions, advertisers and agencies think the share of audio time spent with AM/FM radio is nearly the same as streaming 41% 38% AM/FM radio Spotify Pandora
  5. 5. AM/FM radio is the centerpiece of audio Source: Edison Research, “Share of Ear,” Q3-Q4 2016, Q2 2017. Persons 18+ SiriusXM: Ad-Supported: Spoken Word. Ad-Free: Music Percentages may not add up to 100 due to rounding Share of audio time spent among persons 18+ 1% 1% 2% 2% 3% 3% 4% 5% 5% 5% 8% 12% 51% Ad-supported SiriusXM Ad-free Pandora Ad-supported Spotify Ad-free Spotify Podcasts Other Other streaming audio TV music channels Ad-supported Pandora Ad-free SiriusXM Music videos on YouTube Owned music AM/FM radio The size and strength of AM/FM radio
  6. 6. 51% 5% 2% AM/FM radio Ad-supported Pandora Ad-supported Spotify AM/FM radio’s audience shares dominate Share of audio time spent persons 18+ 25 AM/FM radio is times bigger than Spotify 10 AM/FM radio is times bigger than Pandora Source: Edison Research, “Share of Ear,” Q3-Q4 2016, Q2 2017. Persons 18+ The size and strength of AM/FM radio
  7. 7. Daily time spent with AM/FM radio beats digital audio Source: Edison Research, “Share of Ear,” Q3-Q4 2016, Q2 2017. Persons 18+ Average daily minutes listened among persons 18+ 15 minutes 8 minutes AM/FM radio Pandora Spotify 2 hours 8 minutes The size and strength of AM/FM radio
  8. 8. AM/FM radio significantly outreaches digital audio Source: Edison Research, “Share of Ear,” Q3-Q4 2016, Q2 2017. Persons 18+ % of persons 18+ who listen daily 71% 13% 3% AM/FM radio Ad-supported Pandora Ad-supported Spotify 23 AM/FM radio has times the daily reach of Spotify 5 AM/FM radio has times the daily reach of Pandora The size and strength of AM/FM radio
  9. 9. AM/FM radio reaches consumers on the path to purchase Source: AM/FM location of listening: Nielsen RADAR 133, June 2017; All Radio Stations Persons 12+, AQH M-SU 6AM-MID; Streaming Location: Edison Research, “Share of Ear,” Q3-Q4 2016, Q2 2017. Persons 18+ 67% of AM/FM listening is away from home 34% of streaming audio listening is away from home The size and strength of AM/FM radio Most Pandora listening occurs at home, as background music Only
  10. 10. Digital audio and satellite audiences also listen to AM/FM radio Source: Edison Research, “Share of Ear,” Q3-Q4 2016, Q2 2017. Persons 18+ 71%of Pandora listeners also listen to AM/FM radio 57%of Spotify listeners also listen to AM/FM radio 57%of SiriusXM listeners also listen to AM/FM radio The size and strength of AM/FM radio Advertising on AM/FM radio also reaches a digital and satellite audience
  11. 11. Most Pandora listening comes from a small percentage of Americans % of daily total Pandora usage contributed by the 40% heaviest users Source: Edison Research, “Share of Ear,” Q3-Q4 2016, Q2 2017. Persons 18+ The heaviest users represent listeners who have consumed 90+ minutes of Pandora per day 5%of Americans represent 72% of Pandora listening The size and strength of AM/FM radio
  12. 12. 3%of Americans represent 73% of Spotify listening Source: Edison Research, “Share of Ear,” Q3-Q4 2016, Q2 2017. Persons 18+ The heaviest users represent listeners who have consumed 105+ minutes of Spotify per day % of daily total Spotify usage contributed by the 40% heaviest users Most Spotify listening comes from a tiny portion of Americans The size and strength of AM/FM radio
  13. 13. Listening in the car
  14. 14. “The biggest risk for radio is the 26-year-old planner who lives in New York or Chicago and does not commute by car and does not listen to radio and thus does not think anyone else listens to radio.” Colin Kinsella, CEO Havas Media, North America November 16, 2016, Radio Ink Forecast Conference
  15. 15. AM/FM radio dominates audio in the car 0.1% 0.4% 1% 1% 1% 1% 1% 1% 3% 8% 12% 70% Ad-free Pandora Music videos on YouTube Podcasts Other streaming audio Other Ad-supported Spotify Ad-supported Pandora Ad-free Spotify Ad-supported SiriusXM Owned music Ad-free SiriusXM AM/FM radio Share of audio time spent in-car among persons 18+ Source: Edison Research, “Share of Ear,” Q3-Q4 2016, Q2 2017. Persons 18+, in-car SiriusXM: Ad-supported: Spoken Word. Ad-free: Music Percentages may not add up to 100 due to rounding The size and strength of AM/FM radio in car 89% In car, AM/FM radio has an share of ad-supported services
  16. 16. 5% Public transportation 9% Other 86%Drive in a car or truck Americans are commuting and traveling alone Source: U.S. Census Bureau, 2014 American Community Study % of commuting by method 89% of car commuters drive alone The size and strength of AM/FM radio in car
  17. 17. In New York, the capital of media planning and buying, few commute by car Source: U.S. Census Bureau, 2014, American Community Survey, 1 year estimates. Means of transportation to work. American fact finder City % that commute by car or truck % that commute by public transportation New York City 25% 57% Los Angeles 84% 6% Chicago 79% 12% San Francisco 69% 17% Dallas 91% 2% Houston 91% 2% Washington DC 76% 14% Atlanta 88% 3% Philadelphia 81% 10% Boston 74% 13% Total U.S.A. 86% 5% The size and strength of AM/FM radio in car
  18. 18. Commuting habits influence media buyers and planners Source: NuVoodoo Study of 423 advertising decision makers, media planners, and buyers, Fall 2015 Media buyers and planners who commute by car are 75% more likely to advertise on AM/FM radio 16% 28% Commute by car Commute by mass transit % of media buyers and planners who advertise on the radio The size and strength of AM/FM radio in car
  19. 19. “Of all of the listening that’s done in the car, radio really owns that space,” said Diana Anderson, SVP of network audio activation at Carat. “We spend about 85% on terrestrial AM/FM radio and 15% at the high end on digital audio.” AdExchanger 2017
  20. 20. • Centerpiece of audio: 51% of all audio time spent goes to AM/FM radio • AM/FM radio dominates digital audio: AM/FM radio share is 10x greater than ad-supported Pandora and 25x larger than ad-supported Spotify • Massive reach: AM/FM radio reaches 71% of Americans daily, significantly more than digital audio; Pandora and Spotify are reach challenged • On-the-go audience: two-thirds of all AM/FM radio listening takes place out of home, close to the point of purchase; most streaming listening occurs at home • Highest share for in-car audio: 70% of audio time spent in the car goes to AM/FM radio, an 89% share of ad-supported audio • Duplicated audience: most of the Pandora, Spotify, and SiriusXM audiences also listen to AM/FM radio Key findings: AM/FM radio
  21. 21. Emerging audio trends
  22. 22. Source: “Pandora’s Plan to Stay Independent Means Push Beyond Radio,” Bloomberg Business, March 7, 2016 “Pandora pioneered something really interesting, really special with their free ad-based streaming music service … [but now] the early adopters are moving to on-demand, & mainstream America is still in love with AM/FM radio.” Barton Crockett, FBR Capital Markets Analyst
  23. 23. Time spent with streaming grows at the expense of owned music – not AM/FM radio Streaming 51% Streaming 49% Streaming 46% Owned music 49% Owned music 51% Owned music 54% Q2 2017 Q2 2016 Q2 2015 Source: Edison Research, “Share of Ear,” Persons 13+. Q2 2015 – Q2 2017 Share of audio time spent between streaming (Pandora/Spotify) and owned music (iTunes/CDs) Emerging audio trends
  24. 24. AM/FM radio’s share remains steady and strong Source: Edison Research, “Share of Ear,” Q4 2015 – Q2 2017; Persons 18+ 52% 52% 52% 52% 52% 51% Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q2 2017 Emerging audio trends Share of audio time spent among persons 18+
  25. 25. Pandora sees steady decline Source: Edison Research, “Share of Ear,” Q4 2015 – Q2 2017; Persons 18+ 6.6% 6.4% 6.6% 6.3% 6.1% 5.9% Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q2 2017 Emerging audio trends Share of audio time spent among persons 18+-11%Q2 year over year drop for Pandora
  26. 26. Pandora erodes while Spotify grows Source: Edison Research, “Share of Ear,” Q4 2015 – Q2 2017; Persons 13+ 15.5% 15.2% 14.9% 14.6% 14.4% 14.3% 5.8% 7.0% 7.4% 7.8% 8.4% 8.3% Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q2 2017 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q2 2017 Emerging audio trends % of persons 13+ who listen daily
  27. 27. Audience share trends by audio source Source: Edison Research, “Share of Ear,” Q4 2015 – Q2 2017; Persons 13+ Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q2 2017 Q2 2016 vs. Q2 2017: year over year % change Takeaway Owned music 14.8 15.3 14.8 13.8 13.2 12.8 -13.5 Americans now rent their content YouTube music videos 6.2 6.2 6.7 7.6 8.1 9.0 +34.3 YouTube unseats Pandora Pandora 6.6 6.4 6.6 6.3 6.1 6.0 -9.1 Growth stalls as consumers shift to on-demand Spotify 2.8 3.5 3.6 3.7 3.9 3.7 +2.8 Stunning growth moderates Apple Music 1.0 0.8 0.7 0.6 0.6 0.5 -28.6 Apple is not a media company How to read: As of Q2 2017, Americans spend 12.8% of their audio time with owned music.
  28. 28. Spotlight on Millennials
  29. 29. Among 18-24s, owned music loses share and YouTube grows Source: Edison Research, “Share of Ear,” Fall 2015 – Spring 2017; Persons 18-24 Emerging audio trends Share of audio time spent 20.5% 21.2% 20.4% 18.9% 18.8% 18.8% 15.5% 14.2% 16.9% 19.5% 17.9% 18.3% Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q2 2017 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q2 2017
  30. 30. Among 18-24s, Spotify beats Pandora Source: Edison Research, “Share of Ear,” Fall 2015 – Spring 2017; Persons 18-24 Emerging audio trends Share of audio time spent 9.9% 10.2% 9.8% 9.0% 8.4% 7.3% 8.2% 10.6% 9.4% 8.3% 8.7% 9.3% Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q2 2017 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q2 2017 Spotify’s Q2 year over year -1%
  31. 31. Millennials 18-24 now spend more time with YouTube than Pandora and Spotify combined Share of audio time spent Source: Edison Research “Share of Ear” Spring 2016 vs. Spring 2017; Persons 18-24; % of time spent 19.2% 16.6% Pandora YouTube Pandora YouTube Q2 2016 Q2 2017 Emerging audio trends Spotify Spotify YouTube rises at the expense of Pandora and Spotify 18.3% 16.9%
  32. 32. 4.1 4.8 4.3 4.4 3.9 3.0 6.4 5.8 5.4 5.0 4.8 3.7 Hispanics 18-34 Men 18-34 Persons 18-24 Men 25-34 Persons 18-34 Women 18-34 Q4 2016 Q2 2017 Podcasting Millennial shares soar Emerging audio trends Share of audio time spent among Millennial 18-34 demographics Source: Edison Research, “Share of Ear,” Q4 2016 vs. Q2 2017. +56% +21% +26% +14% +23% +23%
  33. 33. • Time spent with streaming grows at the expense of owned music – not AM/FM radio • Pandora stalls while Spotify grows • YouTube wins the streaming crown: among 18-24 Millennials, YouTube is bigger than Pandora and Spotify combined • Podcasting Millennial shares surge Trends
  34. 34. The intellectual property included in the this presentation is property of Cumulus Media, including Westwood One, and may not be used without permission. Any details are subject to change. 2017-2018 Cumulus Media, Inc. Thank You

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