Addressability: What It Means, Why It Matters, and Where We Stand
SXM Media is the leading audio entertainment company with the largest addressable audience, so you can reach your most valuable listeners—wherever they are.
With 176 million1 weekly listeners, digital audio is becoming a staple of Americans’ media and entertainment routines. It’s no wonder advertisers are eager to market their products and services to these engaged consumers. We share that enthusiasm, and we want you to know who you can reach. It all starts with understanding addressability. Digital audio publishers often talk about their total audience figures, which are important, but the number of addressable users (aka consumers that can be reached via advertising) is what’s important for you.
The Difference Between Total Audience vs. Addressable Audience
In digital audio, a total audience figure gives you a sense of a publisher’s popularity, and that’s important for brand positioning and competitive edge. The wrinkle is that advertisers can’t necessarily reach all of those listeners.
Typically, audio consumers have two options for service: a free, ad-supported tier or a paid subscription plan that gets them zero commercials. When listeners opt for the free listening offering, they get access to free content in exchange for receiving ads.
These are the listeners who are available to advertisers (or “addressable”). Using the latest data science and digital technology, audio publishers, like us, serve up targeted, relevant ads to each individual listener, creating a positive and engaging experience. The ads aren’t intrusive; they add to the listening experience.
Our #1 Priority? Connecting Advertisers with Addressable Listeners Across the Audio Universe
At SXM Media, our numbers tell a powerful story. We reach a total audience of 150 million2 listeners across our platforms, including Pandora, SiriusXM, Stitcher, Soundcloud and our partnership with NBC. Combined, that’s a huge reach. But, dig in, and our position is even stronger. Among SXM Media’s users, 88% are addressable listeners—yep, that means they can be reached with your advertising messages.
Among these audiences, SXM Media stands apart. So while our digital audio audience is 88% addressable, Spotify’s audience is only about 47% addressable. That means that more than half of Spotify users are paid customers who will never hear brand messages, dramatically reducing the users a brand can reach if they go with Spotify. Not to mention, Spotify’s recent growth is mostly from paid subscribers.
To maximize your ROI, you want as large a pool of addressable consumers as possible. SXM Media can deliver. Say a brand wants music listeners, Pandora and SoundCloud combined make a mighty combination. The two services lead in the local streaming music space, attracting the largest addressable audiences in all local markets. That includes the top 103 designated market areas (DMAs). Pandora and SoundCloud beat Spotify in every top 10 DMA, including Dallas-Ft. Worth and Houston, where Pandora and SoundCloud have an addressable reach of 21%, compared to 12% for Spotify. View more markets and competitor positioning below:
Getting to the Source of it All
When buying digital audio (or any advertising for that matter), brands rely on audience data and third-party measurement. To help our brand partners shape their campaigns, we marry our industry-leading first-party user data with credible third-party data sources like Comscore, MRI-Simmons and Edison Research. That intelligence helps affirm our own research and give brands additional confidence. We believe the more data we can provide to our ad partners, the better off everyone will be.
Among the total digital audio audience, Pandora’s free listening tier has the largest addressable share of ear, accounting for 18% of all daily streaming audio, according to Edison Research’s Share of Ear Q3 2021 study. Pandora reigns king among all ad-supported streaming audio brands—commanding 1.28x more daily share of listening than Spotify and 4.5x more than iHeart ad-supported.
Adding the Power of Podcasts to the Mix
Among digital audio content, right now advertisers are particularly excited about podcasts—and we have the numbers to keep that excitement up. SXM Media reaches 22% of all weekly podcast listeners4 and 45 million monthly podcast listeners5 across Stitcher, NBC podcasts, and our podcast audience exchange—with the best content, including 5,000+ total podcasts and 300+ exclusive shows.6 For added reach, advertisers can connect with another 30 million to 50 million off-platform listeners7 via our expanded audience exchanges, which sells advertising for other publishers on streaming audio and podcasts.
From streaming music to podcasts, SXM Media offers both the most popular content alongside the largest addressable audiences. To capitalize on digital audio’s opportunities, you need to reach those ad-supported customers, and we can help connect you. today.
1. The Infinite Dial, 2021 Edison Research & Triton Digital
2. Q3 2021 Internal metrics from subscribers, active accounts, and Podcast user logs
3. Simmons Research Fall 2020
4. Edison Podcast Consumer Quarterly Tracker, as of Q3 2021, Stitcher & NBC Podcasts
5. Q3 2021 Stitcher & NBC Triton (Internal) metrics, Podwave audio unique users from Adswizz logs
6. Internal Metrics, Q3 2021
7. Q3 2021 Internal Metrics from Audio Network General