US adults spend significantly more time listening to terrestrial radio than to any other ad-supported audio format.

The ad industry refers to digital radio as streamed radio stations from terrestrial and satellite radio providers, but our estimate also includes on-demand audio from online platforms untethered to radio stations. Our new definition, with a focus on audio and not just radio, aims to make it clear that our forecast captures digital audio ad spending more broadly.

Radio vs. Digital Audio: A Fairly Even Split. Just as digital video is displacing traditional pay TV, a similar dynamic is happening with audio, as listeners migrate from terrestrial radio to digital services. And as with the video space, the pandemic has accelerated the trend toward digital. Digital audio will surpass radio in daily time spent for the first time this year.

Terrestrial radio is an upper-funnel standby. But with consumers spending less time with it than ever—and more time instead with streaming audio options—radio advertisers are turning to digital to extend audience reach and increase message frequency.

Second, terrestrial radio remains extremely popular in continental Europe, with many consumers there still preferring this medium for their audio engagement. In France and Germany, for instance, only 62.0% of internet users will be digital audio listeners at all this year. In Italy, the figure will be even lower.

Digital audio will take greater share in time spent with audio, after eclipsing time spent with radio in 2020. Podcasts will drive growth in time spent with digital audio overall. We define radio as including audio content delivered over terrestrial AM and FM radio as well as digital terrestrial and satellite radio services like SiriusXM that are delivered over the air.

Excludes other downloaded audio files (e.g., music MP3s), as well as digital terrestrial and satellite radio services that are delivered over the air. Digital video time spent: Includes all video content viewed on desktop/laptop computers, mobile devices, and connected TVs, such as video streamed through over-the-top services. Excludes video streamed through social networks.

Excludes other downloaded audio files (e.g., music MP3s), as well as digital terrestrial and satellite radio services that are delivered over the air. Digital video time spent: Includes all video content viewed on desktop/laptop computers, mobile devices, and connected TVs, such as video streamed through over-the-top services. Excludes video streamed through social networks.

As part of our upcoming report on “The Future of the CMO,” we spoke with Gayle Troberman, executive vice president and CMO of iHeartMedia. The company, formerly known as Clear Channel Communications, is a terrestrial broadcaster that owns and operates 858 stations on US airwaves.

Like NPR in the US, public broadcaster CBC demonstrated well how to convert terrestrial radio content into podcasts. But it has also invested heavily in original podcasts. It reported roughly an even split of monthly downloads (of which there were 13.4 million in May) between original podcast productions and on-demand radio listening.

How will print and radio fare during and after the pandemic? Not great. Time spent with newspapers, magazines and terrestrial radio will continue declining, though the strong gains in TV will translate to slightly positive growth for traditional media overall in 2020. WHAT’S IN THIS REPORT?

Radio Listener: Individuals ages 18+ who listen to the radio at least once per month. Radio includes terrestrial AM/FM radio and satellite radio. Excludes digital. Digital Audio Listener: Internet users of any age who listen to digital audio at least once a month.

Radio Will Dip Due to a Pause in Commuting. Our estimate for daily radio time in 2020 is 1:20, down from the 1:27 minutes we previously expected. Our revised estimate means that radio time will decline by 10.5% this year among the total adult population. Radio’s dip is mainly due to suspension of a staple activity that is tied very closely to terrestrial radio—commuting.

For March and April, the IAB respondents expected the largest decreases to their ad spending to occur in traditional out-of-home (OOH), digital OOH, and terrestrial radio, likely reflecting the fact that mass quarantines mean people are much less likely to be experiencing any of those media. But significant drops in spending were expected across all channels mentioned.

Our forecast includes terrestrial AM/FM radio and satellite radio, local and national broadcast of traditional on-air radio stations, and satellite radio services that are delivered over the air. It excludes digital audio. Despite its current advertising struggles, traditional radio still has reach. Terrestrial radio reached 91% of US adults on a weekly basis in Q1 2020, according to Nielsen.

For one, they’re not repurposing creative from other formats, such as TV or terrestrial radio. Instead, many look to leverage data and dynamic creative capabilities within digital audio to incorporate audience insights, location data, weather events or even time of day to deliver relevant messages to consumers.