Why You Should Ditch Radio Ads for Digital Audio, Instead

Traditional radio—terrestrial, AM/FM broadcasts—was one of the most influential and society-defining media formats of the previous century. From revolutionizing how news and information could be transmitted to shaping modern culture through sports, music, and talk shows, it’s impossible to deny radio’s importance in modern history.

But, in recent decades, the rapid pace of technological advancement has altered the media landscape. With that came the diversification of audio formats and how listeners choose to tune in. To show up where the conversations are happening, you’ve got to switch to digital audio. Here’s why brands still advertising on AM/FM radio need to rethink their marketing efforts.

Your Audience Is Leaving AM/FM Radio 

The golden era of the radio is far behind us. The marketing impact of radio ads faces a steady decline ahead. In the US, nearly two-thirds of audio listening now happens on digital platforms vs. traditional radio. Digital audio swooped in with more content options, easier accessibility on more devices, and the opportunity to listen to anything anywhere, at any time. These perks, along with the digitally native nature of younger generations, are leading audiences to shift towards digital audio. The median age of the collective AM/FM radio audience is 47 years, while podcast and streaming listeners’ median age is 34 years, a visible gap of 13 years.  

What does sticking with traditional radio mean for advertisers? A dwindling pool of listeners. Increased difficulty reaching and resonating with younger audiences. A lack of innovative advertising and measurement solutions. Add to this the long commercial breaks many listeners tend to skip and the inability to target audiences with precision, and you can see why more and more advertisers choose to ditch AM/FM radio in favor of digital audio formats like streaming, podcasts, and SiriusXM radio. 

Where Is Everyone? Listening to Digital Audio.

As AM/FM radio loses its appeal, digital audio continues to grow. These formats accompany millions of people daily as they get ready for work, commute, exercise, run errands, and head back to sleep. They can offer greater levels of personalization, with algorithmic recommendations, playlists created for specific moods or activities, and tons of on-demand content.

For brands, digital audio allows for a more targeted ad approach. Reach the audience you want to reach, wherever they are, with more relevant ads and in a more natural, contextual way. And in a more memorable way—research shows that digital audio ads have a 49% better impact on lasting memory than AM/FM radio ads. You get more value from your spend as a result. Streaming, SiriusXM radio, and podcasts are excellent additions to help diversify your channel marketing mix. 

Streaming Is the New Norm

Streaming audio is booming, and it’s here to stay. Benefits of streaming over traditional radio include the variety of content and playlists to listen to and its accessibility. There’s the ability to refine personal recommendations and shorter, less intrusive commercial breaks. And the high-fidelity sound quality any audiophile would approve of. These are just some of what helps convince listeners to ditch AM/FM radio for streaming—58% of Pandora listeners stated that streaming replaces time they used to spend with radio.  

Streaming audio also comes with many perks for advertisers that AM/FM radio simply can’t match. For example, you can incorporate visuals to make your message and brand more appealing and memorable. And there are plenty of visual formats to choose from—simple images, animation, video, and interactive media. Combined with the ability to tailor messaging to individual listeners and the amount of insights you can gather, streaming is definitely an option to consider for campaigns that will align with your brand and resonate with your audience.

SiriusXM Is Like AM/FM Radio, but Better

Sure, streaming cannot compensate for some of the advantages of radio. It’s hard for many to give up the real-time coverage of sports and news channels, for instance. Some might say that streaming’s requirement of decent internet coverage and its lack of old-school DJ chatter are some important reasons they’ll stick to radio over (or in addition to) streaming. While nostalgia has been a strong driving force behind many trends in recent years, some traditional radio attributes can definitely be left in the past. Think poor sound quality and static noises, long ad breaks, and the lack of personalization. 

Everything listeners love about AM/FM radio, but without the annoying disturbances? That’s where SiriusXM comes into play. We have 33M subscribers, 65% of whom never return to traditional radio. What does SiriusXM mean for advertisers? An audience less tired of ad breaks and an opportunity for your message to be heard even in the country's most remote places. With 50% less commercial time per hour than traditional radio, advertisers enjoy a bigger share of voice. And, thanks to a higher return on ad spend (ROAS) compared to AM/FM radio, it makes more financial sense.

Podcast Ads Can Help Build Trust 

In recent years, podcasts grew from an outsider to the superstar in digital audio. In the US, podcast audiences have increased by 47% in the last five years and reached 135M monthly listeners. People are drawn to podcasts as a source of entertainment or as a way to learn something new when they’re on the go. Podcast creators have become trendsetters, shaping interests and cultural moments around the globe. Unlike radio, listeners can tune in on-demand and choose from many niche subjects they are interested in. 

For advertisers, the biggest superpower of podcasts is their unparalleled authenticity in the eyes (and ears) of listeners. The audience believes podcasts to be over four times more authentic and trustworthy than AM/FM radio. This unique connection allows advertisers to reach a deeply engaged and enthusiastic crowd, where eight in 10 listeners are actually open to hearing a podcast ad.  

SiriusXM Media Has It All

With 150M monthly listeners, SiriusXM Media is the leading digital audio advertising ecosystem in the US. Our portfolio of brands, including Pandora, Soundcloud, and SiriusXM, allows advertisers to choose what works best for them and connect with just the right audience at just the right moment, from passionate sports fans to young parents. 

We also provide our partners with insights and best practices to ensure you can choose the right tone of voice, capture attention, and make it personal. Ready to turn your next digital audio campaign into a success? Let’s talk. 

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