The news: Streaming music is gaining momentum as radio starts to lose share in the ad-supported audio listening market.
- 15% of audio listening time goes to ad-supported streaming audio, per Nielsen’s The Record report, up 36.4% YoY.
- Radio’s share dropped 5 percentage points YoY to 62%.
We expect the number of US ad-supported digital audio listeners will reach 190 million in 2029, up from 180.4 million in 2025.
Zooming in: The change in ad-supported audio engagement is especially pronounced among 18- to 34-year-olds, a prime demographic for many brands. They spend nearly a quarter (24%) of their daily listening time with ad-supported streaming music—a 41.2% YoY increase. Meanwhile, nearly half (43%) of their listening time is with the radio, marking a 15.7% YoY drop for that format.
“The reality is that every new generation brings us closer to digital audio becoming the default. When Gen Z and Gen Alpha look for music, they’re not scouring the airwaves, they’re going to YouTube and Spotify—and Gen Beta will be no different,” EMARKETER demographics analyst Paola Flores-Marquez said.
Tighter targeting: Digital streaming platforms can provide more granular data on listener demographics, behaviors, and preferences than radio offers. That lets marketers:
- Run personalized ads with mood-based or contextual targeting.
- Measure engagement more accurately by monitoring skip rates and listening duration.
- Retarget users across devices and campaigns.
Streaming audio can also integrate seamlessly with digital campaigns, pairing with social or video ads for more unified storytelling and better attribution measurements. A brand can reach a user with an audio ad on Spotify then follow up with a YouTube or TikTok video ad to reinforce the message.
What marketers should do: Considering radio still holds a fair share of the ad-supported audio market, brands should treat streaming as an additive channel, not a radio replacement—for now.
Marketers should diversify audio spend by incrementally shifting dollars from radio to streaming to follow the ears as listening time shifts platforms. Test creative formats like interactive audio—including shoppable ads or tap-to-engage spots—to boost engagement and brand recall.