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Internet Radio About to Surpass AM/FM

24% of 13-35 year old online Americans say AM/FM radio is the primary way they listen to music. 23% say Internet radio is their top choice.

Yet marketers allocate 95% of radio advertising dollars to AM/FM and only 5% to Internet radio. (Really.)

So far this year, roughly 140 million people---almost half of Americans of all ages---have tuned into online radio monthly. Listeners average 12 hours per week, and much of that time is in the car during traditional radio’s peak listening hours.

Smartphone owners are even more engaged with online radio. 56% use their device for listening to music. Online radio is the #1 way they listen, ahead of their own music catalogs. Users say they are spending increasingly more time with those apps.

Pandora is by far the most popular online radio service on computers and smartphones. iHeartRadio and Spotify come in a distant second and third.

Online radio listening will increase significantly in the future as more Americans convert to smartphones and more cars have built-in infotainment systems that make it easy to access online radio when driving.

What are the implications for your business?
  • Have you tested online radio advertising?
  • Are you allocating an appropriate amount of your radio budget to online radio and other digital music services?
  • Are you dedicating enough of your total marketing budget to experimenting with new digital opportunities early in their lifecycles so you do not have to play catch-up later?
If you would like to keep up-to-speed with how consumers use social media, technology and the Internet, check out The Digital American 2013. Click here for a free sample.

For help developing powerful marketing strategies that drive results, strategic plans that deliver  growth,  or  new  products  that  consumers  love,  contact Brandology at 925-417-2253 or
Sources: eMarketer 2013, NPD Group 2013, Online Media Daily 2013

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