The State of American In-Car Audio

The State of American In-Car

Audio

• In-car audio consumption

• In-car share of audio

time spent

• How Americans commute

to work

Agenda

The data: about Edison’s Share of Ear

“Share of Ear” is the authoritative and definitive view of how Americans consume audio content. Edison reports share of audio time spent and percentage of Americans who use each content source. In this study, the focus is on audio listening in the car or truck.

Edison Research conducts a quarterly study to track consumer use of audio. Each quarter, 2,000 respondents keep a 24-hour diary to record audio usage. Each released study reflects 8,000 respondents, representing a rolling four-quarter average.

Edison is a leading provider of AM/FM radio research, with more than 20 years experience. They also conduct exit polling for all national elections for America’s television networks.

The majority of all audio listening occurs in the car

Source: Nielsen; Diary markets, Spring 2016 NRD, P12+, M-Su 6a-12M.

3%

20%

36%

42%

Other place

Work

At home

Car/truck

Share of location for all audio consumption

76% 75%67%

P18-34

Millennials

P35-49

Gen X

P50-64

Boomers

Source: RADAR 131, December 2016, AQH, M-Sun 6AM-Mid

Three-quarters of Millennial and Gen X listening occursaway from home

% of time spent listening to AM/FM radio out of home

Each day,

Americans listen to

75 minutesof in-car audio

Source: Edison Research, “Share of Ear,” Q1-Q4 2016. Persons 18+

AM/FM radio dominates audio in the car

0.1%

0.3%

0.4%

1%

1%

1%

1%

1%

3%

9%

12%

71%

Ad-free Pandora

Ad-free Spotify

Music videos on YouTube

Podcasts

Other streaming audio

Other

Ad-supported Spotify

Ad-supported Pandora

Ad-supported SiriusXM

Owned music

Ad-free SiriusXM

AM/FM radio

Share of audio time spent in-car among persons 18+

Source: Edison Research, “Share of Ear,” Q1-Q4 2016. Persons 18+, in-carSiriusXM: Ad-supported: Spoken Word. Ad-free: MusicPercentages may not add up to 100 due to rounding

In the car, AM/FM is the king of the road

Share of audio time spent in-car versus total share of audio time spent in all locations

71%

9%15%

3%

52%

12%7%

13%

AM/FM Owned music SiriusXM All streaming

In-car Total


In car, “The Big Three” content platforms represent 95% of audio time spent

“The Big Three”

95%

Other

5%

AM/FM radio

SiriusXM

Personal music


In-car audio’s share is strong all day and peaks 3-7PM

Share of all audio time spent in the car

13%

31% 32%

38%

17%

12AM-6AM

Overnights

6AM-10AM 10AM-3PM 3PM-7PM 7PM-12AM


In an average day,

Americans spend

53 minuteslistening to AM/FM radio

in the car

3

7

11

53

Streaming &

podcasts

Owned music

SiriusXM

AM/FM radio

Minutes spent listening in an average day


AM/FM in-car reach remains steady

Source: Nielsen; Diary markets, Spring 2016 NRD, P12+, In Car Listening, Weekly Cume Rating, M-Su 6a-Mid

% of persons 12+ reached weekly by AM/FM radio in car

78% 78% 77% 76% 76% 75%

2011 2012 2013 2014 2015 2016

Source: AM/FM location of listening: Nielsen RADAR 131, December 2016; All Radio Stations Persons 12+, AQH

M-SU 6AM-MID; Streaming Location: Edison Research, “Share of Ear,” Q1-Q4 2016. Persons 18+

AM/FM radio reaches shoppers out of home and close to the point of purchase

67%of AM/FM listening is

away from home

36%of streaming audio

listening is away from home

Only

5%Public

transportation

9%Other

86%Drive in a car

or truck

Of the 146 million Americans commuting to work daily,the majority drive in a car or truck

Source: U.S. Census Bureau, 2014 American Community Study

% of commuting by method

89% of car commuters

drive alone

In New York, the capital of media planning and buying, only 25% of people commute by car

Source: U.S. Census Bureau, 2014 American Community Survey, 1 year estimates. Means of transportation to work. American fact finder

City% that commute by car

or truck

% that commute by public

transportation

New York City 25% 57%

Los Angeles 84% 6%

Chicago 79% 12%

San Francisco 69% 17%

Dallas 91% 2%

Houston 91% 2%

Washington DC 76% 14%

Atlanta 88% 3%

Philadelphia 81% 10%

Boston 74% 13%

Total U.S.A. 86% 5%

Commuting habits of media buyers and plannersinfluence how they buy radio

Source: NuVoodoo Study of 423 advertising decision makers, media planners, and buyers, Fall 2015

Media buyers and

planners who

commute by car are

75%more likely to advertise

on AM/FM radio

16%

28%Commute by car

Commute by mass transit

% of media buyers and planners who advertise on the radio

Summary of key findings

In-car audio is huge42% of all audio is consumed in the car. The average American listens to 1 hourand 15 minutes of in-car audio each day.

“Big Three” audio platforms persistDespite emerging audio sources, 95% of in-car tuning comes from three established platforms (AM/FM radio, SiriusXM, owned music).

AM/FM is the king of the roadWith a 71% share of in-car time spent, AM/FM is America’s number one mass reach medium. Americans spend 53 minutes a day listening to AM/FM radio in the car.

Commuting habits influence media buyingOf the millions who commute daily, 86% of Americans drive in a car. Media buyers and planners who commute by car are 75% more likely to advertise on AM/FM radio.

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The State of American In-Car Audio