Half of Americans stream digital audio weekly, listening four hours a day, according to the Edison Research Share of Ear Q2 2022 report. And most audio listening happens when no visual media is available. Digital audio is also an incremental experience over video and TV consumption—and that’s a big opportunity for advertisers to reach bigger, more diverse audiences.
More TV streaming means less advertising reach
Viewers are spending less time with linear TV; 81% of networks saw a quarter-over-quarter decline in households tuning in. Additionally, the number of households watching cable TV is down 10%. Even live televised events aren’t the draw they once were, with viewership down for sporting events and awards shows.
These stats aren’t surprising when you consider respondents to a Pandora Soundboard survey have access to an average of 3.6 subscription-based video services. The shift from linear TV to streaming is impacting when, where and how advertisers can reach their target audiences.
Most viewers surveyed (93%) have access to ad-free streaming video subscriptions, and nearly half (48%) are interested in services offering video content with no commercials for a higher fee.
Multicultural audiences are harder to reach through TV alone
Black and Hispanic audiences are spending less time with TV. According to a Simmons Study, 51% of Hispanic viewers and 42% of Black viewers identify themselves as light TV viewers. And 72% of Hispanic audiences 18+ and 64% of Black audiences 18+ do not subscribe to cable.
Conversely, digital audio is attracting Black and Hispanic audiences. In a Pandora Soundboard survey, 68% of Black Americans said they consider themselves music fans, and 70% of Hispanics said they listen to more audio content today because they can access it anywhere.
Digital audio reach continues to grow
Digital audio consumption is expanding across audiences and devices, with one in two Americans streaming digital audio weekly. While listening is certainly mobile, 59% of daily audio time happens in the home. With an average of four hours spent listening each day, advertisers have the opportunity to reach audiences wherever they are, through a variety of devices (e.g., smartphones, smart speakers, laptops, car speakers, etc.).
Putting digital audio into TV viewing terms, listeners are spending enough time with audio each week to watch the final season of Game of Thrones three times or watch over 46 episodes of Paw Patrol.
From established millennials to up-and-coming Gen Z, streaming digital audio reaches 87% of people ages 12-34 each month according to a recent The Infinite Dial survey from Edison Research.
Digital audio offers better return on ad spend
When comparing return on ad spend (ROAS) relative to cost for digital media and traditional media, one study showed digital media performing significantly better with $0.86 verses $0.53 for traditional media. And when asked to look specifically at Pandora, the blind study showed the audio streaming network boasted $1.90 ROAS.
Combining TV with digital audio extends reach
Media consumption today is fluid—and it isn’t one thing. Audiences are catching up on the news while commuting, listening to a podcast as they work on spreadsheets at the office, blasting their favorite music on a jog, scrolling through social media while waiting in line and watching TV in the evening to unwind.
As budgets, demographics and goals shift, advertisers should consider the continuing evolution of listening and viewing habits. The more diversified the media mix, the more diverse the opportunities to reach audiences wherever they are, no matter what they’re doing.
