Advertisers, Want Massive Reach? Add AM/FM Radio to Pandora & Spotify Buys

Written By

Liz Iversen

Published On

Friday, Jun 11
Three girls dancing against a yellow background. They are all wearing baseball hats and one is holding a large stereo.

Are you advertising on Pandora or Spotify but not on AM/FM radio? If so, you’re likely missing out on substantial reach. According to Edison Research’s Q1 2021 “Share of Ear” study, adding AM/FM radio to an advertising buy on Pandora or Spotify generates a “massive increase” in reach.

The analysis of ad-supported Spotify, Pandora and SiriusXM revealed these key findings:

  • Of the combined AM/FM radio and Pandora audience, in a typical day, 85% listens to AM/FM radio and never listens to Pandora. Over half of Pandora’s audience also listens to AM/FM radio. This means an ad buy on AM/FM radio will reach half of Pandora’s audience for no extra cost.
  • Of the combined AM/FM radio and Spotify audience, 83% listens to AM/FM and does not listen to Spotify. Over half of Spotify’s audience also listens to AM/FM radio. An ad buy on AM/FM radio has the added bonus of reaching half of Spotify’s audience for free.
  • Of the combined AM/FM radio and SiriusXM audience, 76% listens to AM/FM radio and does not listen to SiriusXM. Half of SiriusXM’s audience also listens to AM/FM radio. Buying AM/FM radio will reach half of SiriusXM’s audience at no extra cost.

The study found that increased investment on Pandora and Spotify yields very little reach growth, but the same investment levels on AM/FM radio generate triple the reach. For example, a $300,000 buy on Pandora and Spotify reaches 9% of U.S. persons 18-49. The same buy on AM/FM radio reaches three times as many people (25%).

There is danger in thinking that a strictly Pandora- or Spotify-based audio campaign will be as effective as one that includes AM/FM radio. According to Westwood One Insights Manager Brittany Faison, “Some advertisers make a buy on Spotify and Pandora and declare, ‘The audio box is checked.’ Not so fast.”

At SMI, we have long known the value of a diversified approach to audio advertising. According to SMI Media Director Heather Hansen, “We understand that in order to fully maximize our client’s campaigns that we need to consider and incorporate all audio channels in our strategy including AM/FM radio, streaming, satellite, and podcasting.”

Want to achieve the greatest reach for your audio campaign? Contact SMI today to find out how your brand can benefit from exploring the multiple avenues of audio.

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