April 2022 Local Sales Insight

Edison Research’s “Share Of Ear” Q4 2021: AM/FM Radio Has A Dominant Ad-Supported Share And AM/FM Radio Streaming Has Surged

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.

The just-released Q4 2021 report provides an opportunity to examine ad-supported audio use by location and demographic.

Here are the key findings:

2019 vs. 2021: AM/FM radio shares are pandemic proof, podcasts surge, and Pandora collapses

Trending ad-supported audience shares from Q4 2019 to Q4 2021, AM/FM radio sees little change (79% to 76%). Podcast shares have nearly doubled (6% to 11%). Pandora’s shares are down -25% (8% to 6%). Spotify and SiriusXM’s ad-supported shares remain small and stable at a 4 share each.

AM/FM radio also leads total ad-supported shares among key buying demographics while podcast shares are greater than Spotify and Pandora combined.

In the car, AM/FM radio ad-supported shares have hovered in the high 80s for the last six years

When it comes to ad-supported audio in the car, AM/FM radio is the “queen of the road” with shares in the mid to upper 80s across every buying demographic.

Looking at ad-supported audience shares in the car, even among persons 18-34, AM/FM radio’s share is a whopping 84%, 84 times larger than Spotify’s one share.

There is very little ad-supported streaming occurring in the car. Podcasts’ in-car shares range from 4% to 8% and are growing, trouncing ad-supported streaming.

Yes, people listen to advertising-free music in their car. People have listened to “their music” in their car for 50 years. If advertisers want to actually reach people with advertising in their vehicle, these in-car ad-supported shares from “Share of Ear” are a great media planning tool.

Over six years, the proportion of AM/FM radio listening occurring via online streaming has surged from 8% to 14%

According to Nielsen, 10% of radio listening is to the AM dial. Currently, there is more radio listening occurring via the stream (14%) than the entire AM dial. Smart advertisers should allocate 14 cents out of every dollar spent on AM/FM radio to the station stream.

AM/FM radio leads ad-supported listening on the smart speaker with a 43% share

40% of U.S. homes now own a smart speaker, which has brought AM/FM radios back into the home. AM/FM radio stations have aggressively promoted how to listen to their audio stream via smart speaker. These strong promotion efforts have paid off as AM/FM radio has a 43% share of ad-supported audio on the smart speaker.

Key takeaways:

  • 2019 vs. 2021: AM/FM radio shares are pandemic proof, podcasts surge, and Pandora collapses
  • AM/FM radio leads total ad-supported shares among key buying demographics while podcast shares are greater than Spotify and Pandora combined
  • In the car, AM/FM radio ad-supported shares have hovered in the high 80s for the last six years
  • Over six years, the proportion of AM/FM radio listening occurring via online streaming has surged from 8% to 14%
  • AM/FM radio leads ad-supported listening on the smart speaker with a 43% share

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