Edison Research was wrong, radio is not dead.
Edison Research is to audio and radio studies, as Stephen Hawking was to physics and science; so, four times a year, the research firm becomes a focal point for every single podcast, radio station, and audio platform around the world. Why? Their quarterly Share of Ear reports.
In their own words, it’s “an audio listening diary survey that measures all audio respondents listen to during a 24-hour period. We learn what they’re listening to, how much they listen and when, where they listen, and what device they listen on.”
Well, Share of Ear just released their findings for the last quarter of 2022, after surveying over 4,000 Americans. Revealed within these results are flawed perceptions, continued dominance, and informed projections; all pertaining to radio, podcasts, streaming services, and everything audio-based in between.
If you like data, this blog is for you. Share of Ear does require a subscription, so to save you that expense, we’ll relay important stats and details from other publishing bodies.
Radio’s Perception? Crawling to a Slow Death. The Reality? Full Sprint.
AM/FM radio is going nowhere. In fact, podcasts—something many people regard as having replaced radio—remain a distant 2nd behind the century-old, trusted medium. As part of the survey, 300 media agencies and marketers were asked what they expected AM/FM radio’s share of ad-supported audio would be. The consensus answer settled at 28%. The real results? Nearly double that, at a whopping 54%. Here’s the full chart, courtesy of Inside Radio.
Why wouldn’t radio advertising continue to thrive with figures like this? The fact that AM/FM streaming is just 5% less than podcasts, is likely surprising to even the most passionate radio supporters. It’s worth noting in the name of fairness that podcasts have seen notable growth in an area where they’ve long been stagnant—older Americans, particularly those over 50. Still, 38% of all podcast listeners are between the ages of 25 and 34.
The bottom line, this streaming gap, shocking though it may be, isn’t new. Stigma plays a role, as can be read here in a fantastic article with an industry parallel 99% of us will understand.
Digital AM/FM Streaming: Up and to the Right
A decade ago, digitally streaming AM/FM radio was practically on par with Bitcoin in terms of adoption and perception. Oh, how the times have changed. In seven years, the share of AM/FM digital streaming has nearly tripled. And another insightful nugget for advertisers; men aged 25 to 54 dominate the streaming choice, almost tripling women in the same age bracket.
This streaming boom is a key development, especially for advertisers, due to its implication that radio is keeping pace with the need for all technology to be portable and convenient. To be able to go where we go, and carry on regardless of what we are doing. Put another way, radio is doing a stellar job of thriving outside of the automobile.
Nonetheless, how is audio life in the car? Westwood One provided some helpful answers, and airwave enthusiasts will love them. With 88% of car listening reserved for AM/FM radio, compared to 6% for podcasts. Rounding out the mediums are ad-supported Sirius XM at 4%, ad-supported Pandora at 2%, and ad-supported Spotify at .6% —talk about a firm grip for radio!
Out of the Car, Spotify Rules Everyone, Right? Not So Fast…
Spotify is a great product, and it’s served our ears well. But its status as the new media titan is patently false. Even when combined with the streaming platform Pandora, it’s a jaw-dropping 44% smaller than AM/FM radio streaming. Could it be that the two platforms are in a sense eating each other’s lunch, drawing down numbers like we have seen in political elections? Possibly, but AM/FM standing so tall above them in 2023 is a welcome sign of its durability.
In fact, Spotify’s current focus may signal the continued strength of radio. The platform has strongly committed to podcasts and spoken word content, and it has been their strongest growth sector hands down. This emphasis may ensure radio remains king due to its local feel and musical reliability, for decades to come.
The Four Must-Knows from Edison Research’s 2022 Q4 Report
Perception is not reality, and can often be far from it. Radio’s grip on our attention nearly doubled what seasoned industry pros expected.
2. Digital AM/FM streaming is on a meteoric rise, due mostly to men aged 25 to 54.
3. Podcasts are doing better at reaching older Americans.
4. Radio’s grip on automobile listening is not even close to being let go.
Insights Mean Nothing Without Expert Application
Iliad loves these Edison says, because we love the affirmation of our beloved medium—good local radio. The very thing we use daily to help local businesses increase sales. So, if your business wants to be top-of-mind on the top stations across the Treasure Valley, let’s chat. We know audiences, and we know how to make ads that work. Let’s collaborate and start summer with true success.
