Thinking of Advertising on the Radio? Read This First

Radio has weathered wave after wave of multimedia evolution, but advertising on the radio is no longer what it once was. While radio is on the ropes, audio is more popular than ever. Since 2015, AM/FM radio’s share of US listeners is down more than 25%. The long and short of it is, advertising on digital audio platforms has a growing number of advantages over advertising on the radio.

Audiences Are Spending Less Time with AM/FM Radio

For years, digital and streaming audio has been taking over consumers’ share of ear. But in 2024, the previous sentence is more accurate in the past tense: Digital and streaming audio took over consumers’ share of ear. 

Radio listeners haven't stopped listening, they just moved. Modern audiences are turning to personalized audio platforms for their news, talk, media personalities, music, and entertainment. The latest trend in digital audio is culture recap shows, meaning that even when your audience is participating in other forms of media, they will return to digital audio for analysis, whether that be sports, TV, news, or pop culture. Last year, listeners reported spending 61% more time with digital audio (4:49 hours per day) compared with non-digital audio (3:00 per day).  

And it's not just that they're spending more time with on digital audio platforms. The time that they do spend listening to ads often leads to greater results for the brand. For example, our digital audio platforms have 50% less commercial ad time per hour than AM/FM radio, which leads to a 49% higher impact on lasting memory with digital audio ads. 

Digital Audio Is Easier to Access than Traditional Radio

Advertising on the radio only happens when your audience is near an AM/FM radio. And let's be honest—these days, the only place that's happening is in the car.

Meanwhile, most Americans have a cell phone in their pocket loaded with podcast catchers, streaming music apps, and access to digital audio feeds. They can listen to anything they want, wherever and whenever they want. With all that access, why would they bother with the radio dial?

Nearly 75% of listeners report spending more time with audio content because they can listen anywhere. More than half of the time that listening is at home. For the rest of the time, about one-quarter of listening happens in the car, 12% at work, and almost 5% everywhere in between. The SiriusXM Media digital audio ecosystem alone gives advertisers access to SiriusXM, Pandora, the SiriusXM Podcast Network, SoundCloud, and more.

Streaming Audio and Podcasts Foster Personal Connections

The move to streaming audio is personality-driven for both listeners and creators. On the consumer side, digital audio platforms give users the ability to curate their listening experience based on interests, profession, genre, task, and even mood. Listeners are choosing (or letting the algorithm choose) music that suits their personality. 

On the production side, on-air personalities convey some of their loyalty to the brands that sponsor their shows. More than 85% of podcast listeners report that they enjoy hearing ads read by their podcast hosts and even showed higher unaided recall by 10 points compared to pre-produced or host-read ads. Considering all ad-types, listeners pay active attention to podcast ads 3.5 times more often than with advertising on the radio.

Digital Audio Is Even More Authentic Than Social Media

That’s right. Not only do podcast listeners pay closer attention to advertisements, they actually trust advertiser content. SiriusXM Podcast Network listeners say podcasts are 23 times more trustworthy than social media. In fact, two-thirds of 18- to 34-year-old podcast listeners say podcasts are the most authentic media figures out of any platform.  

That trust translates to advertisers. More than half of podcast listeners say they pay active attention to ads, more than twice as many as social media.

And that authenticity may explain why younger audiences are turning more and more to podcasts over social media. Gen Z social media users report the platforms make them feel anxious, sad, or depressed. Contrast that to the more than 80% who say they use podcasts to relax. More than half of listeners reported that streaming audio is actually replacing social media time.

Advertising on the Radio Gives Brands Fewer Options

Digital audio advertisers can do so much more, from interactive ads to sponsored listening. But advertising on the radio limits advertisers' options for format, audience, and deliverability. 

The information listeners share with their audio streaming device and the preferences they show while interacting with that device or app give advertisers visibility into their sales funnel while connecting with the best audience. 

Advertisers can choose between audio, video, display, and reward ads when they advertise on the SiriusXM Streaming Network. And those ads are served only to the listeners who you best connect with, so you don’t have wasted ad spend, and they aren’t bombarded with useless advertisements. It’s a win-win for you and your audience. 

If you’re ready to find a digital audio media partner, SiriusXM Media is best-in-class. Our advertisers have access to 150 million Americans across all music, podcast, talk, sports, and live content. When you’re ready to grow your share of ear, let’s talk.