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SPOTIFY WANTS A SLICE OF COMMERCIAL RADIO’S ADVERTISING CASH

Spotify is gunning for a share of commercial radio’s advertising after releasing a study revealing its free ad-supported service is said to reach 16.8% of the U.K.’s music listening audience.

That’s a greater reach than that of many commercial radio stations, according to research by TNS Global.

Surveying over 2k music listeners in Blighty aged 16-64, the report points out that if Spotify was a major commercial radio network, it would be the third largest in terms of weekly reach.

The TNS stats said 14% more 15-24-year-olds use Spotify’s free tier than those who listen to the radio, and 4% more 25-34-year-olds. Among the 45-54 age group, 5% less are using Spotify free than those who tune in to the radio. Whereas radio listening peaks in the morning, Spotify listening builds steadily throughout the day, peaking in the evening.

In terms of incremental reach—the amount that the reach for an entire ad campaign would decline if that one ad was removed from the campaign—Spotify is said to provide 10-14% incremental reach over the most major commercial radio stations in the U.K. It also reportedly adds a minimum of 15% incremental reach to U.K. commercial radio stations, up to a maximum of 23%, an increase of 2% on last year.

“This TNS study aims to help media buyers understand the quantity and quality of the Spotify audience, and the extent to which it can complement and extend a broadcast media buy,” said Spotify U.K. Director of Audio David Cooper.

“These findings demonstrate that Spotify is in a unique position to reach an audience not otherwise engaged with radio, due to a shifting audio landscape where streaming continues to grow in terms of audience penetration across the generations and also engagement with the content.”

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