In an era of new technology, consumers are finding new and creative ways to stream their favorite music and receive their daily news, but does that necessarily mean out with old? Not even a little bit.

Radio Tower recently reported on the continued dominance of radio, fighting the perception that it has declined. They cite that nearly 90 percent of Americans are still faithfully listening to the radio each week, despite the continued introduction of options for streaming.

New forms of media and information technology are constantly emerging, especially new forms of radio and music streaming. In 1993, computer-talk radio was launched with Carl Malamud’s introduction of his show, “Internet Talk Radio.” In 1994, a Chapel Hill, NC – based traditional radio station became the first to announce broadcasting from the internet. In 2001, satellite radio was first launched, and some projected it would outdo traditional AM/FM radio.

Today, many new technologies and ways of streaming have appeared. Spotify and Pandora allow listeners to stream their favorite music through the internet with limited advertising. iHeartRadio and TuneIn even allows listeners to stream their favorite radio stations online. However, traditional radio still prevails.

According to Nielsen, the leading measurement company specializing in providing data about what people watch and listen to, each week 243 million Americans (ages 12 and older) listen to radio. Traditional radio holds an 8 to 1 ratio of time spent advantage over growing technologies such as internet radio and other streaming outlets. In terms of advertising, radio is profitable. According to Nielsen the profit margin on radio is 6 to 1. That means for every dollar spent on radio advertising, companies receive six dollars in incremental sales.

The data shows that Americans have remained loyal to traditional AM/FM radio, and it still dominates the majority of audio consumers’ time. One reason radio has remained dominate is the simple fact that most Americans have cars. Radio is readily available and accessible to the average consumer on a day-to-day basis.

Despite the perception that this form of media is outdated and on the decline, traditional radio continues to dominate its market as our source of music and information.

Stay tuned…


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