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To View the Full Westwood One 2020 Audioscape Report Audio is a huge part of life for Americans. While AM/FM radio dominates the audio landscape with mass reach and significant time spent, new content and distribution platforms represent audio innovations that are experiencing significant consumer adoption growth. In the Westwood One 2020 Audioscape, we review two major innovations in the audio space: podcasting and smart speakers. In this report, we will examine: • The podcast consumer and listening trends • The smart speaker consumer and user trends • Podcast consumption among smart speaker users • Marketer and agency sentiment for advertising in podcasts and smart speaker environments 2 Research partners Edison Research is the leading authority on consumer use and adoption of new audio technology. For the last 20 years, Edison’s “Infinite Dial” study has tracked usage of streaming, podcasting, and new audio platforms. Each quarter, Edison’s “Share of Ear” study provides the definitive view of American time spent and usage of audio content. The data in this report is based on a Edison’s Q2 2019 “Share of Ear” which represents Q4 2018, Q1 2019, Q2 2019 and Q3 2019. We also use data from Edison’s “Infinite Dial” study. MARU/Matchbox is a professional services firm of consultants with a deep heritage in both strategic insights consulting and technology. MARU/Matchbox brings a unique level of expertise in delivering Insight Communities, community management, and advanced research consulting services to its global client base. GfK MRI provides marketers with the most reliable and comprehensive view of the consumer and media marketplaces available. They produce the country's largest and most current database of consumer behavior, media usage, and consumer motivations. The survey is an encyclopedic repository of consumer insights. Advertiser Perceptions is the gold standard of advertiser and media agency sentiment. Advertiser Perceptions conducted a series of studies on podcast advertising consideration and intended use among brands and media agencies during September 2015, July 2016, May 2017, May 2018 and May 2019. They also conducted a smart speaker survey during January 2018 and March 2019. 3 Podcasts 4 Podcast listening is on the rise % persons 12+ who have listened to a podcast in the last month 32% 1 in 3 26% 24% 21% Americans 14% 15% have listened to a 12% THE COGNITIVE MEDIA PLATFORM 9% An open ecosystem of cognitive tools to harness thepodcast in the last month power of media 2008 2010 2012 2014 2016 2017 2018 2019 Source: Edison Research, Triton Digital, “The Infinite Dial 2019” 5 Podcasting sees steady growth among Gen Z, Millennials, and Gen X % of persons 12-24 listening to podcasts in last month % of persons 25-54 listening to podcasts in last month 100% growth since 2014 129% growth since 2014 40% 39% 32% 30% 31% 27% 27% 23% 24% 20% 19% 17% 2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019 Source: Edison Research, Triton Digital, “The Infinite Dial 2019” 6 Podcast listeners are super fans of audio Daily time spent with audio Podcast listeners spend 36% more time with 5:12 audio daily 3:50 U.S. total Podcast audience Source: Edison Research, “Share of Ear,” Q4 2018, Q1-Q3 2019. Persons 13+ Audio includes: AM/FM radio, owned music, music videos on YouTube, SiriusXM, TV music channels, 7 Pandora, other streaming audio, podcasts, Amazon Music, Apple Music Podcast consumers listen to podcasts the most Share of audio time spent among podcast consumers Podcasts 28% AM/FM radio 19% Streaming 15% Owned music 14% If you listen YouTube music videos 11% to podcasts, SiriusXM 7% they are your Other 4% #1 audio source TV music channels 2% Source: Edison Research, “Share of Ear,” Q4 2018, Q1-Q3 2019. Persons 13+ 8 Podcast listeners are music fans (YouTube/owned music) and use more audio platforms Daily reach among podcast listeners and total audio users Category Podcast listeners Total audio consumers AM/FM radio 59% 71% Music videos on YouTube 38% 24% Podcast Owned music 36% 27% listeners use SiriusXM 25% 18% Spotify 16% 11% 63% Pandora 15% 11% more audio platforms than the Apple Music 12% 4% average audio Music channels on TV 10% 8% consumer Amazon Music 5% 4% Average # of platforms used 3.1 1.9 How to read: Among podcast listeners, 63% also listen to AM/FM radio, 39% listen to music videos on YouTube. Source: Edison Research, “Share of Ear,” Q4 2018, Q1-Q3 2019. Persons 13+ 9 Podcasting is growing the fastest among Millennial ethnic groups Daily reach among Millennial 18-34 demographics Q3 2018 Q3 2019 +135% +27% +30% +50% 24.7 +33% 22.4 19.2 19.5 17.6 16.1 14.8 12.1 13.0 10.5 Women Persons African Americans Men Hispanics 18-34 18-34 18-34 18-34 18-34 Source: Edison Research, “Share of Ear,” Q3 2018 vs. Q3 2019 10 Podcast listeners are heavy consumers of spoken word content, especially personalities % of who listen to any audio content Total audio consumers Podcast listeners 92% 89% +259% 79% +50% 36% +123% 24% 22% 18% 8% Music News Personalities/talk shows Sports How to read: 36% of podcast consumers listen to news audio content from any source on a typical day. Source: Edison Research, “Share of Ear,” Q4 2018, Q1-Q3 2019. Persons 13+ 11 Podcast share of time spent among those who consume talk/personality content grows Podcast share of audio time spent among talk/personality content Q3-Q4 2017 Q3 2018 Q3 2019 Older demographics +12% see largest growth 56% 50% +43% 46% +39% 40% +73% 32% 33% 28% 26% 23% 24% 22% 15% Persons 18+ Persons 18-34 Persons 25-54 Persons 35-64 How to read: Of all the time Americans 18+ spend listening to talk/personality content, podcasting share has grown from 23% in Q3-Q4 2017 to 32% in Q3 2019. Source: Edison Research, “Share of Ear,” Q3 2018 vs. Q3 2019 12 The podcast audience is significantly younger than other media Median age of podcast listeners Podcast median age: 33 36 33 34 35 35 34 33 29 29 AM/FM radio median age: 47 ABC/NBC/CBS median age: 56 Q4 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2017 2018 2018 2018 2018 2019 2019 2019 Source: Podcast & AM/FM radio: Edison Research, “Share of Ear,” Q4 2018, Q1-Q3 2019; Edison Research, “Share of Ear,” Q4 2016 – Q1 2019. TV: GfK MRI Spring 2019, Base: Adults 18+ 13 Categories with high purchase propensity among podcast audience Category Index Category Index Category Index Tablets & E-readers apps 164 Contact lenses 139 Men's clothing: low ticket 133 Personal computers at home: Cell/mobile phone "apps" 163 Fine dining restaurants 139 132 software Audio equipment & accessories 150 Men's clothing: big ticket 138 Foreign vacations 131 Headphones 148 Video game hardware 137 Barbershop 131 Cameras/camcorders 146 Personal computers at home 137 Athletic shoes 131 Dry cleaning 146 Luggage 137 Nonprescription sunglasses 131 Household furnishings: low ticket Flowers by phone/Internet 145 Internet & catalog shopping 137 130 items Sport/recreation equipment 144 Domestic vacations 136 Home improvements 128 Sports clothing 143 Video games 135 Quick service copy/printing 128 Camping equipment 140 Watches 134 Shoes 124 How to read: Podcast listeners are 64% more likely than the average population to purchase tablets & E-readers apps. Source: 2019 Spring GfK MRI weighted to Population (000) - Base: A18+. Podcast listeners defined as: Podcasts: 14 Listened to in the last 30 days Categories with high purchase propensity among podcast audience (continued) Category Index Category Index Category Index Baby furniture & equipment 124 Women's clothing: low ticket 116 Tires 111 Total health & beauty aids Children's toys & games 124 Women's clothing: big ticket 115 111 expenditures: for women Total health & beauty aids Clothing expenditures 123 115 Gasoline 110 expenditures: for men Any climate control appliance 122 Children's shoes 115 Beauty parlor 110 Flower shop 120 Children's clothing 114 Food stores (personal) 110 Property & garden 119 maintenance Bedding & bath goods 114 Gift cards & prepaid cards 109 Household furnishings: big ticket 119 Cologne for men 114 Costume jewelry 109 items Table settings 118 Personal appliances 114 Family restaurants & steak houses 107 Cellular/mobile 117 Fast food & drive-in restaurants 111 Fine jewelry 107 phones/smartphones Home remodeling 116 Food stores (household) 111 Paint/stain 107 How to read: Podcast listeners are 24% more likely than the average population to purchase baby furniture and equipment. Source: 2019 Spring GfK MRI weighted to Population (000) - Base: A18+. Podcast listeners defined as: Podcasts: 15 Listened to in the last 30 days Most podcast listening occurs at home and throughout the day Where: When: % of time spent listening to % of time spent listening to podcasts by location podcasts by time of day Home 60% 10am-3pm 32% 6am-10am 23% In the car 17% 7pm-midnight 21% Work 16% 3pm-7pm 18% Other 7% Midnight-6am 6% How to read: 60% of all time spent with podcasts occurs at home; 17% in the car. 32% of all time spent with podcasts occurs during 10am – 3pm. Source: Edison Research, “Share of Ear,” Q4 2018, Q1-Q3 2019. Persons 13+ 16 Percentages may not add up to 100 due to rounding Podcast advertising generates strong results due to extraordinary levels of consumer concentration % reporting high levels of concentration (4 or 5 on a scale of 1 to 5 where 1 = not concentrating a lot and 5 = concentrating a lot) Check news 76% Check weather 74% Listen to podcasts 71% Watch shows/episodes 62% Watch short videos 58% Concentration Post on social 53% with podcasts Listen to music 51% is over 1.5X social media Check social media 44% Source: IAB Research Using Maru/Matchbox’s Springboard
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