According to a recent Westwood One blog post titled “The Shocking Truth About Pandora’s Weekly Reach,” the internet radio giant is losing listenership. The post came after Nielsen Scarborough’s recent decision to add a new question to its survey: listenership to Pandora in the past week. The article reveals the following specific findings:
- AM/FM radio’s reach is five times bigger than Pandora: “AM/FM radio reaches 91% of Americans 18+ each week versus Pandora’s 19%”
- Sixty-nine percent of Millennials don’t listen to Pandora: The survey shows that two out of three Millennials “are NOT reached by Pandora on a weekly basis.”
- Pandora has low reach in top markets: More than 70% of adults in all top 10 markets aren’t reached by Pandora.
- Pandora’s audience is declining: According to the survey, “Pandora’s year over year monthly audience has dropped in numerous markets. For example, in Fort Myers, Pandora’s monthly audience has eroded -26% from last year.”
Such results come despite the increasing popularity for online music streaming, and Pandora’s recent appointment of its new CEO, Roger Lynch, who will find many challenges to increase Pandora’s online presence.
In fact, the author of the blog post, Westwood One/Cumulus’ research analyst Brittany Faison raises another important point. “If fewer people are using Pandora, how effective are the ads?” she questions. Faison recommends advertisers “analyze their media plans and be careful not to over allocate to Pandora.”
AM/FM radio is still the best way to reach consumers since it allows messages to be delivered to a large, diverse audience. As Faison’s puts it, “Pandora can’t compare to AM/FM radio, America’s #1 mass reach media.”