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 2019 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 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 Q4 2018 “Share of Ear” which represents Q1 2018, Q2 2018, Q3 2018 and Q4 2018. 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 and May 2018. They also conducted a smart speaker survey during January 2018. Podcasts 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” 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” Podcast listeners are super fans of audio
Daily time spent with audio Podcast listeners spend 43% 5:39 more time with audio daily 3:57
U.S. total Podcast audience
Source: Edison Research, “Share of Ear,” Q1-Q4 2018. Persons 13+ Audio includes: AM/FM radio, owned music, music videos on YouTube, SiriusXM, TV music channels, 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 24% Streaming 15% Owned music 13% If you listen YouTube music videos 11% to podcasts, SiriusXM 5% they are your TV music channels 3% #1 audio source Other 2%
Source: Edison Research, “Share of Ear,” Q1-Q4 2018. Persons 13+ Music videos on YouTube and owned music: podcasts listeners are music fans
Daily reach among podcast listeners and total audio users
Category Podcast listeners Total audio consumers AM/FM radio 69% 74% Music videos on YouTube 40% 24% Podcast Owned music 33% 27% listeners use SiriusXM 21% 16% Spotify 19% 11% 74% Pandora 16% 12% more audio platforms than the Music channels on TV 14% 9% average audio Apple Music 12% 3% consumer Amazon Music 4% 4% Average # of platforms used 3.3 1.9
How to read: Among podcast listeners, 69% also listen to AM/FM radio, 40% listen to music videos on YouTube.
Source: Edison Research, “Share of Ear,” Q1-Q4 2018. Persons 13+ Podcasting is growing fastest with Millennial women
Female Daily reach among Millennial 18-34 demographics Millennial podcast listeners are Q4 2016 Q4 2018 catching up to male +42% Millennials +118% +55% 20.8 +2% +81% 17.0 17.2 13.9 14.5 14.8 14.6 11.1 7.7 7.8
Women Hispanics African Americans Persons 18-34 Men 18-34 18-34 18-34 18-34
Source: Edison Research, “Share of Ear,” Q4 2016 vs. Q4 2018 Podcast listeners are heavy consumers of spoken word content, especially news and personalities
% of who listen to any audio content
Total audio consumers Podcast listeners
92% 90% +280% 76% +65%
43% +150% 26% 20% 20% 8% Music News Personalities/talk shows Sports
How to read: 43% of podcast consumers listen to news content from any source on a typical day.
Source: Edison Research, “Share of Ear,” Q1-Q4 2018. Persons 13+ Among talk and personality listeners, share of time spent with podcasting skyrockets
Podcast share of audio time spent with talk/personality content
Q4 2016 Q4 2018
+11% 50.5% 45.0% +83% +82% 37.7% +196% 28.9% 26.9% 20.6% 15.9% 9.1%
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 15.9% in Q4 2016 to 28.9% in Q4 2018.
Source: Edison Research, “Share of Ear,” Q4 2016 vs. Q4 2018 The podcast audience is significantly younger than other media; but the audience is aging
Median age of podcast listeners Podcast median age: 35 33 34 35 35 29 29 29 AM/FM radio median age: 46
ABC/NBC/CBS median age: 56 Q4 Q2 Q4 Q1 Q2 Q3 Q4 2016 2017 2017 2018 2018 2018 2018
Source: Podcast & AM/FM radio: Edison Research, “Share of Ear,” Q1-Q4 2018; Edison Research, “Share of Ear,” Q4 2016 – Q4 2018. TV: GfK MRI Spring 2018, Base: Adults 18+ Podcast listeners are younger, employed, and affluent
Total U.S. audio listeners Podcast listeners
69% 63% 55% 55% 50% 52% 52% 35%
Younger than Work full-time/ Some college/ $50k+ HH income 35 years old part-time college graduate
Source: Edison Research, “Share of Ear,” Q1-Q4 2018 Categories with high purchase propensity among podcast audience
Category Index Category Index Category Index
Cell/mobile phone "apps" 207 Video games 154 Mp3 players 141
Quick service copy/printing 186 Flowers by phone/internet 149 Cameras/camcorders 140
Headphones 175 Dry cleaning 148 Domestic vacations 140
Camping equipment 174 Fine dining restaurants 146 Barber shop 136 Household furnishings: big ticket Audio equipment & accessories 170 Internet & catalog shopping 144 136 items Sports clothing 169 Luggage 144 Men's clothing: low ticket 134
Contact lenses 163 Baby furniture & equipment 143 Personal computers at home 134 Household furnishings: low Personal computers at home: Video game hardware 162 143 134 ticket items software Foreign vacations 156 Athletic shoes 141 Tablets & E-readers apps 128
Sport/recreation equipment 155 Men's clothing: big ticket 141 Watches 128
How to read: Podcast listeners are 107% more likely than the average population to purchase cell/mobile phone apps.
Source: 2018 Spring GfK MRI weighted to Population (000) - Base: A18+. Podcast listeners defined as: Music Or Audio-Related Activities Done On The Internet In The Last 30 Days: Downloaded or listened to podcasts/podcasting Categories with high purchase propensity among podcast audience (continued)
Category Index Category Index Category Index
Nonprescription sunglasses 127 Fast food & drive-in restaurants 116 Flower shop 109
Shoes 127 Personal appliances 116 Gasoline 109 Total health & beauty aids Home improvements 126 109 Children's shoes 115 expenditures: for women
Clothing expenditures 125 Automobiles & other vehicles 112 Women's clothing: big ticket 109
Fine jewelry 123 Women's clothing: low ticket 112 Food stores (personal) 108 Total health & beauty aids 123 Gift cards & prepaid cards 108 expenditures: for men Family restaurants & steak houses 111 Cellular/mobile phones/ 122 Any climate control appliance 110 Home remodeling 108 smartphones Children's clothing 122 Bedding & bath goods 110 Property & garden maintenance 108
Children's toys & games 120 Food stores (household) 110 Table Settings 106
Cologne for men 118 Paint/stain 110 Convenience stores 101
How to read: Podcast listeners are 27% more likely than the average population to purchase nonprescription glasses.
Source: 2018 Spring GfK MRI weighted to Population (000) - Base: A18+. Podcast listeners defined as: Music Or Audio-Related Activities Done On The Internet In The Last 30 Days: Downloaded or listened to podcasts/podcasting 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 36% 3pm-7pm 20% Work 20% 6am-10am 20% In the car 11% 7pm-midnight 19%
Other 8% Midnight-6am 6%
How to read: 60% of all time spent with podcasts occurs at home; 20% at work. 36% of all time spent with podcasts occurs during 10am – 3pm.
Source: Edison Research, “Share of Ear,” Q1-Q4 2018. Persons 13+ 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 America Online Panel, Representative of General US Ages 18+ Online Population, January 2018 High CPMs warranted: Podcasts generate very high levels of engagement value
% reporting high levels of engagement value (4 or 5 on a scale of 1 to 5 where 1 = little value and 5 = significant value) Check news 79% Check weather 79% Listen to podcasts 76% Listen to music 76% Watch short videos 60% Watch shows/episodes 56% Podcast engagement Post on social 50% is 2X social media Check social media 39%
Source: IAB Research Using Maru/Matchbox’s Springboard America Online Panel, Representative of General US Ages 18+ Online Population, January 2018 Podcasts: the only media content where learning and entertainment coexist
Top need states by content Listen to podcasts Learn, be entertained Check news Get information, learn Check weather Get information, learn Watch short videos Be entertained, pass the time Watch shows/episodes Be entertained, pass the time Listen to music Be entertained, pass the time Check social media Connect with others, be entertained Post on social media Connect with others, express myself
Source: IAB Research Using Maru/Matchbox’s Springboard America Online Panel, Representative of General US Ages 18+ Online Population, January 2018 Smart speakers So, what percentage of Americans have a smart speaker?
Well it depends on who you ask… % of Americans who own a smart speaker
RBC Capital Markets 41%
Adobe Analytics 32%
Voicebot 23%
Edison Research 23%
JacobsMedia 21%
Source: RBC Capital Markets – December 2018; Adobe Analytics – ADI States of Voice Assistants; Voicebot – Voice Assistant Consumer Adoption Report 2018; Edison Research – The Infinite Dial 2019; JacobsMedia – TechSurvey 2018 Smart speaker ownership has tripled in 2 years
% of Americans who own a smart speaker
23% 21% 18% 16% 17% 12% 10% 7%
Q1 2017 Q2 2017 Q4 pre-holiday Post-holiday 2017 January-February June 2018 Post-holiday 2018 January-February 2017 2018 2019
Source: Q1 2017: The Infinite Dial 2017; Q2 2017 & Q4 pre-holiday: Edison Research “Share of Ear”; Post-holiday 2017: NPR & Edison Research: “Following Holiday Surge, One In Six Americans Owns A Voice-Activated Smart Speaker”; Jan-Feb 2018: The Infinite Dial, 2018, Triton Digital and Edison Research; June 2018: Edison Research “Share of Ear”; Post-holiday 2018: Edison Research “The Smart Audio Report” December 2018; Jan-Feb 2019: The Infinite Dial, 2019, Triton Digital and Edison Research Among smart speaker owners, Amazon Alexa ownership is 3x greater than the Google Home
Among smart speaker owners 3x 78%
26%
Google Home Amazon Alexa
How to read: Among smart speaker owners, 78% own an Amazon Alexa.
Source: Edison Research, Share of Ear Q1-Q4 2018 Adoption rate of smart speakers has surpassed smartphones
Smartphones: Smart speakers:
Apple released the Amazon introduced the iPhone in June 2007 and Alexa in June 2014 and in in 2010, three years later, 2019, five years later, 14% 23% of Americans owned of Americans owned a a smartphone smart speaker
Source: Edison Research, Triton Digital, “The Infinite Dial 2019”. Smart speaker owners have a broad age profile; 35-54 is the top demo
Owns a smart speaker Total U.S. population
Gen Z 11% 8% 13-17 Millennials 29% 26% 18-34 Gen X 38% 33% 35-54 Boomers 22% 34% 55+
How to read: 29% of smart speaker owners are 18-34 Millennials. 26% of the total U.S. population falls in that age demographic. Compared to the total U.S. population, smart speaker owners are 38% more likely to be in the Gen Z (13-17) demo.
Source: Edison Research, Share of Ear Q1-Q4 2018 Owns a Total U.S. smart population speaker
Male 56% 48%
Female 44% 52% Smart speaker owners College graduate/ skew male, educated, 55% 44% advance and affluent degrees Household income of 52% 34% $75K+
How to read: 55% of smart speaker owners have graduated college or obtained an advance degree compared to 44% of the total U.S. population.
Source: Edison Research, Share of Ear Q1-Q4 2018 AM/FM radio use is strong among smart speaker owners
Identical daily time spent Higher daily reach (hours:minutes)
Daily time spent with AM/FM radio daily AM/FM radio among reach among smart speaker owners: 1:50 smart speaker owners: 74%
Daily time spent with AM/FM radio daily AM/FM radio among reach among total 18+ U.S. total 18+ U.S. consumers: 1:50 consumers: 71%
Source: Edison Research, Share of Ear Q1-Q4 2018 Music stations: smart speaker usage peaks in mornings
Cumulus Radio Station Group streaming average active sessions occurring via smart speakers, top 5 PPM music smart speaker stations
Smart speaker - average active sessions, top 5 PPM music smart speaker stations, Monday-Friday 12000
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Source: Triton Digital Webcast Metrics, average active sessions by hour, 2/11/19 through 2/15/19 Top 5 PPM Cumulus Radio Station Group music smart speaker stations: KRBE-FM/Houston, KPLX-FM/Dallas, KSCS- FM/Dallas, WWWQ-FM/Atlanta, KQRS-FM/Minneapolis Music stations: peak smart speaker usage matches Nielsen on air in home listening
Smart speaker average active sessions vs. on air in home audience by time of day
Smart speaker - average active sessions, top 5 PPM music smart speaker stations, Monday-Friday Nielsen - over the air in home audience per Nielsen, top 5 PPM music smart speaker stations 12000 45000 40000 10000 35000 8000 30000 25000 6000 20000 4000 15000 10000 2000 5000 0 0
Source: Over the air audience: Nielsen Audio, January 2019, station home Metro Survey Area, hour by hour Average Quarter Hour Persons, Persons 18+, M-F 12m- 12m, In Home Listening. Smart speaker data: Triton Digital Webcast Metrics, average active sessions by hour, 2/11/19 through 2/15/19. Top 5 PPM Cumulus Radio Station Group music smart speaker stations: KRBE-FM/Houston, KPLX-FM/Dallas, KSCS-FM/Dallas, WWWQ-FM/Atlanta, KQRS-FM/Minneapolis Spoken word stations: smart speaker usage peaks in early afternoon
Smart speaker average active sessions by time of day
Smart speaker - average active sessions, top 5 spoken word smart speaker stations, Monday-Friday 30000
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20000
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Source: Triton Digital Webcast Metrics, average active sessions by hour, 2/11/19 through 2/15/19. Top 5 PPM Cumulus Radio Station Group spoken word smart speaker stations: WMAL-FM/Washington, KTCK-AM/Dallas, WBAP-AM/Dallas, WJR-AM/Detroit, and WABC-AM/New York Spoken word stations: midday smart speaker surge complements Nielsen on air in home listening
Smart speaker average active sessions vs. on air in home audience by time of day
Smart speaker - average active sessions, top 5 spoken word smart speaker stations, Monday-Friday
30000 Nielsen - over the air in home audience per Nielsen, top 5 PPM spoken word smart speaker stations 60000
25000 50000
20000 40000
15000 30000
10000 20000
5000 10000
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Source: Over the air audience: Nielsen Audio, January 2019, station home Metro Survey Area, hour by hour Average Quarter Hour Persons, Persons 18+, M-F 12m-12m, In Home Listening. Smart speaker data: Triton Digital Webcast Metrics, average active sessions by hour, 2/11/19 through 2/15/19. Top 5 PPM Cumulus Radio Station Group spoken word smart speaker stations: WMAL-FM/Washington, KTCK-AM/Dallas, WBAP-AM/Dallas, WJR-AM/Detroit, and WABC-AM/New York CUMULUS MEDIA|Westwood One’s smart speaker capabilities by the numbers
Local radio March Madness March Madness stations coverage listenership 300 67 100,000+ Cumulus Radio Station men's basketball Amazon Alexa Group stations Amazon games available via session starts for Alexa skills launched in Westwood One Westwood One’s 2018 2017, the largest play-by-play action on March Madness collection of custom Amazon Alexa in 2018 coverage skills in the U.S.
Source: Session starts: Xapp Media, Amazon Alexa Developer Console March 11-April 4, 2018 Smart speaker use among podcast listeners Podcast listeners are more likely to be smart speaker owners
% of persons who own a smart speaker
Podcast listeners 27% Podcast listeners are 29% more likely to own a Total U.S. 21% smart speaker than the average consumer
How to read: 27% of podcast listeners own a smart speaker.
Source: Edison Research, “Share of Ear,” Q1-Q4 2018. Persons 13+ Smart speaker owners spend more time with digital audio, especially Amazon Music
Share of audio time spent among total U.S. and smart speaker owners
Smart speaker Category Total U.S Smart speaker owners advantage
Spotify 5.6% 6.2% 10%
Pandora 4.7% 4.9% 4%
Podcasts 3.9% 4.1% 5%
Amazon Music 1.2% 3.0% 150%
Apple Music 1.0% 1.6% 60%
How to read: Among smart speaker owners, 3.0% of their audio time spent is with Amazon Music, 150% more than the average American.
Source: Edison Research, “Share of Ear,” Q1-Q4 2018. Persons 13+ Marketer sentiment More marketers and agencies are considering podcast advertising % yes September 2015 41% Have you and your colleagues July 2016 discussed podcast advertising for 58% potential media investment? May 2017 68% May 2018 70%
% “definitely would consider” How likely are you to consider Sept. 2015 18% advertising in podcasts in the next July 2016 28% 6 months? May 2017 37% May 2018 43%
Source: Advertiser Perceptions, September 2015, July 2016 & May 2017 | September 2015 study of 310 marketers and agencies | July 2016 study of 284 marketers and agencies | May 2017 study of 316 marketers and agencies | May 2018 study of 300 marketers and agencies More marketers and agencies are already advertising in podcasts or intend to % yes September 2015 15% Do you currently advertise July 2016 21% in podcasts? May 2017 29% May 2018 32%
% “definitely will advertise” Sept. 2015 How likely are you to actually 10% advertise in podcasts in the July 2016 21% coming 6 months? May 2017 27% May 2018 36%
Source: Advertiser Perceptions, September 2015, July 2016 & May 2017 | September 2015 study of 310 marketers and agencies | July 2016 study of 284 marketers and agencies | May 2017 study of 316 marketers and agencies | May 2018 study of 300 marketers and agencies Podcast funding is primarily sourced from general digital budgets
Q. You noted that you will be spending on podcasts in the next 6 months, where will the budget be coming from?
General digital budgets 40% (search/display/video/etc.)
Incremental budget 32%
Terrestrial radio budgets 29%
Pure play digital radio budgets 29%
Mobile app budgets 21%
Outdoor/out of home budgets 19%
Source: Advertiser Perceptions, June 2018 study of 317 marketers and agencies Marketers and agencies are discussing and using smart speaker applications
Q: Which of the following describes your utilization of voice-activated marketing opportunities/smart- speaker skills (e.g. Amazon Alexa, Google Home) for your [brands/clients]?
Have discussed with colleagues 52% the possibility of using
Have not discussed using 31%
Have already begun using 18%
Source: Advertiser Perceptions, January 2018 study of 302 marketers and agencies 41 Among those not using voice-activated opportunities, just over one in ten plan to use in next 6 months
Q. How likely are you to consider voice-activated marketing opportunities and initiatives in the next 6 months? Q. How likely are you to actually use voice-activation marketing opportunities and initiatives in the next 6 months? Base: Not utilizing voice-activated opportunities
Consideration 23%
Intention 13%
Source: Advertiser Perceptions, January 2018 study of 302 marketers and agencies 42 Key takeaways
• Podcast listening and smart speaker usage is on the rise and shows no signs of slowing down. • Podcast listening is driven by Millennials and Generation Z, while smart speaker ownership reflects a broader demographic. • Podcast listeners are a desirable group for advertisers. • Smart speaker owners are likely to be podcast listeners, spending more time with the medium than the average consumer. • Smart speaker users spend more time with audio than the average American. • Podcast and smart speaker advertising is growing, with more marketers and agencies planning to advertise in both. Thank You
The intellectual property included in this presentation is property of CUMULUS MEDIA, including Westwood One, and may not be used without permission. Any details are subject to change. 2018-2019 CUMULUS MEDIA, Inc. Appendix Podcasting resonates across political party lines
Daily share of time spent: Democrats Daily reach: Podcast listener reach is and Independents spend more time similar by party affiliation with podcasts
Independent 11% Independent 5%
Republican 10% Democrat 4%
Democrat 10% Republican 3%
How to read: 11% of Independents listen to podcasts in a typical day. Among Independents, podcasting generates a 5% share of total audio time spent.
Source: Edison Research, “Share of Ear,” Q1-Q4 2018. Persons 18+ WESTWOOD ONE PODCASTS
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Source: Nielsen Comparable Metrics Report Q2 2017, A18+; comScore August 2015, Desktop and Mobile, A18+; Nielsen Audio Fall 2016 Nationwide Weekly CUME of Westwood One-Affiliated Stations, Mon-Su 6a-12m, Persons 12+ / 1.3 Billion Source: Dollinger Communications Our Omny Platform is IAB v2 Certified
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