One Year Later: The State of Audio
The audio revolution is here. Can you hear it? Mark Tegethoff on Unsplash
This past year has changed how we work, how we interact with each other, and how we pass our free time - in more ways and at a faster pace than ever before.
In this unchartered landscape, audio found a way to adapt, and in many ways, emerged as more resilient and more relevant in the process.
Smart speakers were welcomed in more homes, radio listeners turned to their favorite stations to keep in touch with their communities, and podcasting shined despite all circumstances. And there’s more to feel hopeful about in 2021. With commutes bouncing back and consumer spending forecasted to explode, audio is here to stay.
“55% of people said they are very optimistic or optimistic that they could get back to their normal routine in 2021”
- Nielsen March 2021 Total Audience Report
One year later, let’s take a look at audio (and audio advertising’s) place in our world now.
Radio: a staple in America’s media diet.
A year after lockdowns forced many to ditch their commutes, radio maintains its status as the #1 reach medium. Radio reaches 88% of Americans who spend 12 hours and 11 minutes a week with the medium according to the latest Nielsen Total Audience Report. Compared to one year ago, radio’s weekly reach recovery is now at 93% of last March. A strong recovery has also been reported among Black and Hispanic listeners (reach is at 93% and 95% of last year’s, respectively).
Between back to school and back to work, listeners are returning to their in-car routine. Their radios, a constant in-car companion, are right there with them. 66% of AQH listening is now out of home, versus 71% in March 2020. Though working from home life will continue for those who can and the new habits they’ve adopted will likely stick with them - relying on smart speakers and station streams to keep up with their home station.
With that, the continued shift to digital cannot be ignored. Listeners spent 1 hour and 57 minutes a week spent with streaming audio. Younger listeners will continue to flock to digital platforms that deliver the content they want to hear when they want to hear it. Adults 18-34 spent almost an hour more with the medium - 2 hours and 49 minutes total.
Podcasting: a new way to engage.
In the midst of a chaotic year, it was business unusual for podcasting. After experiencing a slight disruption in downloads, audience growth continued. The medium experienced growth in other ways too. Supported by a wave of new advertisers, the IAB reported double-digit revenue growth (14.7%) in 2020, and $1 billion in revenue is expected this year. On the content side, the number of podcasts reported in Apple Podcasts surpassed 2 million earlier this year.
Where radio excels at reach (especially out of home reach), podcasting’s strength is engagement. The power and intimacy of host-read podcast ads get brands closer to the listener than ever before - and that results in a notable ROI. Recording the actions taken after hearing a podcast ad, Nielsen’s Podcasting Today found that 62% of heavy podcast listeners visit the website to get more info, and 40% make a purchase.
The audio halo effect.
Whether it’s through a car radio, a smart speaker, or a set of earbuds, audio advertising offers more ways to amplify your messaging and connect with your audience. With many consumers holding more pent-up savings than usual, they are ready to take action. When consumers are ready to spend again - whether it’s travel or a new car - audio is a trusted source of info, a halo effect passed on to advertisers
Second only to TV, radio is the most trustworthy among all age demos - 54% A18-34 say they trust advertising claims made on AM/FM radio. Younger demos, in particular, find advertising claims on digital platforms to be just as trustworthy - 50% of A18-34 and 54% of A35-49 put their confidence in podcast ads. Similarly, 50% of A18-34 and 55% of A35-49 trust messaging on streaming audio platforms.
From nationwide network radio reach to targeted podcast campaigns, season-long sponsorships to personal host endorsements - we’ve got all things audio covered. For total audio solutions that check all the boxes, get in touch.
Sources: Nielsen March20-January21 PPM / 45 Market Total / M-Su 6a-12M / Persons 12+ / Weekly Cume Persons; Nielsen Mar 2021, Total Audience Report; Nielsen Feb 2021, Podcasting Today