Global Audio: Consumer Habits and Advertising Trends

Radio Joint Audience Research Limited (RAJAR), the official body for measuring UK radio audiences, has released their latest figures which show significant growth in UK radio listenership and that weekly listeners has reached an all-time high of 49.9 million. Abbie Hildebrand , Planning Director at Wake the Bear, shares her thoughts around the nuances of audio consumption around the world.

Resilience of Radio

Radio demonstrates remarkable resilience in today's rapidly evolving media landscape. It continues to outperform many other formats due to its accessibility and low cost. Radio's unique ability to foster local audience loyalty also significantly bolsters its listenership.

In Europe, Germany tops the charts in traditional radio with 58.94 million listeners, closely followed by the UK. In the UK, live radio remains king, captivating 88 per cent of adults for an average of 20 hours a week and commercial radio holds a commanding 51.4 per cent market share, outpacing the BBC by five points. In Africa, the population continues to rely on traditional radio due to literacy and tech access issues.

Audio Consumption and Podcast Trends Worldwide

To no surprise, worldwide, the under-35 crowd is streaming more music. In the UK, Italy and France, streaming has actually surpassed broadcast radio listening. In terms of a supplier, Spotify reigns supreme globally in music and podcasts, but there are some regional differences to consider. For example, local choices such as LINE Music in Japan, Melon in South Korea or Tencent in China are more popular.

In the UK, the shift to online radio is evident, with smart speakers now responsible for 20 per cent of in-home listening, even as their popularity levels off. Podcasts are a global phenomenon with 464 million listeners, expected to surge to 504.9 million this year. The average listener spends 7 hours a week on podcasts, with comedy being the favourite genre worldwide. The “Joe Rogan Experience” consistently appears in the top 5 listened podcasts in the UK, US and Australian markets.

The Future of Radio and Digital Audio Advertising

In terms of advertising, radio remains popular due to its accessibility and local charm, maintaining a $36.1 billion global ad market. Traditional radio revenue is forecasted to hit $35.35 billion worldwide this year, whilst digital audio ad spend is booming and projected to reach $2.23 billion this year.

By the end of 2035, the Asia Pacific digital audio market is projected to claim the leading market share of 29 per cent, with growth primarily fuelled by the increasing community of musicians within the region. The US leads the field in digital audio ad spend, projected at $7.08 billion in 2024.

France is also pioneering programmatic digital audio advertising, with the market set to grow to $1.73 billion by 2029. However, Spotify has recently increased its prices for new customers in France in response to the Government's 'streaming tax' to support the local music industry. It will be interesting to see how this affects their bottom line.

The Bottom Line

Audio is an incredibly versatile and cost-effective medium that can be used to achieve immediate results in the short term or help build a brand in the long term. Digital radio, podcasts and traditional radio can all significantly contribute to business growth and should never be overlooked in media planning. Yet, planners must consider geographic localities to inform digital vs traditional radio uptake.

Additional Resources

• Read more about online radio here
• Read more about the opportunity of audio partnerships here

What Else Happened Last Week?

Media Bill Passed in Parliament

The commercial radio sector has welcomed the successful passage of the Media Bill on May 23rd, as part of the “wash-up” process before parliament's dissolution. The bill is set to receive Royal Assent on May 24th, becoming the Media Act 2024.?

The new legislation will recognize the unique value of radio, ensuring its free availability on platforms like smart speakers, removing outdated commercial radio regulations, and securing the provision of local news. The process involved years of detailed scrutiny and significant support from politicians, government, Ofcom officials, and collaboration within the radio industry.?

Read more.

Digital Markets, Competition and Consumers Bill to Impose Harsher Penalties?

The new UK Digital Markets, Competition and Consumers Bill (DMCC) has also been passed last week, that will allow for stricter penalties to be imposed on businesses that mislead consumers.??

Once the Bill is fully ratified in Autumn, companies will be obliged to disclose total costs of services or products upfront, including any hidden fees and taxes. The bill will also extend cooling-off periods for subscription cancellations, simplifying the process and tackle the issue of publication of fake reviews.??

Non-compliance may result in fines of up to 10 per cent of annual turnovers. Businesses with consumer contracts are urged to reassess their pricing and marketing strategies to ensure compliance with DMCC Bill.?

Read more.

London Evening Standard to? Move From Daily to Weekly in Latest News?

This week, the London Evening Standard announced plans to shut its daily newspaper, with a weekly outlet being its replacement.

?The newspaper has been significantly impacted by the introduction of Wi-Fi on the underground, with losses amounting to ￡84.5m in the last six years. There are also plans to bolster their website audience and shift readers to their online publications. The announcement means that for the first time in centuries, London will not have a general-interest daily print paper.

We expect this news to encourage brands to consider other ways of reaching their London audiences, without the assistance of daily print.

Read more.

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