"Disposable Ear Time" is Expanding! Audio Media Revitalized by Digital Services

The "Information Media White Paper 2024" (edited by Dentsu Media Innovation Lab/DENTSU SOKEN INC., published by Diamond Inc.) was released on March 1. This data book, which reveals the full picture of the information media industry, marks its 31st year of publication.

The opening feature, "The Rapidly Changing Media Environment and Consumers," explains trends in the information media market and people's behaviors across the following four articles:

1. Media Usage Behavior: Swing Back and Stabilization Before and After the Pandemic, Accelerating Polarization
2. Media Usage Among Infants, Toddlers, and Elementary School Children
3. The Impact of Generative AI on the Creative Industries
4. The Present and Future Potential of Audio Media Revitalized by Digital Services

This series introduces parts of the cover story content. Part 2, based on "The Present and Future Potential of Audio Media Revitalized by Digital Services," covers trends and utilization possibilities for audio media, primarily radio.

<Table of Contents>

▼Evolution of Audio Media Services and Improved Listening Environments Contribute to Increased Advertising Spending

▼ "I Don't Want My Ears to Be Idle." Actual Usage of Audio Media Across All Scenarios

▼"Entertainment You Listen To," "AI Horiemon." Expanding Content Initiatives

▼ "Sensor-Neutral" Planning to Capture "Disposable Ear Time"

Evolution of audio media services and improved listening environments contribute to increased advertising spending

According to Dentsu Inc.'s annual "Japanese Advertising Expenditures" report, while total advertising spending across the four major media channels reached 96.6% of the previous year (¥2.3161 trillion) in 2023, radio advertising spending increased to 100.9% of the previous year (¥113.9 billion), growing alongside magazine advertising within these channels. Radio advertising expenditure turned upward in 2021 for the first time in four years, increasing to 103.8% year-on-year (¥110.6 billion). In 2022, it grew to 102.1% year-on-year (¥112.9 billion), making it the only medium among the four major media to achieve three consecutive years of growth.

This growth in radio advertising spending is likely due to the expanding reach of "radio broadcasting/radiko" listeners. This expansion comes as the base of listeners grows, encompassing both traditional radio broadcast listeners and increasing users of radiko via the internet. Furthermore, in 2023, radio digital advertising spending within "digital advertising spending originating from the four major media outlets" also increased to 127.3% year-on-year (¥2.8 billion). While the pandemic, particularly during stay-at-home periods, is said to have expanded usage of many content services like video streaming, it is also presumed that usage of audio services grew, leading to an increase in related advertising spending.

Meanwhile, even before the pandemic, the environment for listening to audio media via digital services was already being established. Platforms like radiko, Spotify, Voicy, audio content from existing media like "Nikkei While You Work" and "Asahi Shimbun Arukiki," audiobooks such as Amazon's Audible, smart speakers from Amazon and Google, the proliferation of wireless earbuds and headphones, and the evolution of AI-powered voice recognition and synthesis technologies. This evolution and expansion of audio media services was progressing across various aspects: content, platforms, and devices.

This article examines the usage patterns of audio media—including radio/radiko, music streaming, and audio content (such as podcasts and audiobooks)—based on findings from a survey ("Audio Media Usage Survey") conducted by Dentsu Inc. in July 2023. It also introduces initiatives by various companies in the audio media sector.

For details on the survey methodology, generational classifications (including Generation Z), and service categories (radio/radiko, music streaming, etc.), please refer to this link.

"Don't want to leave my ears idle." The reality of audio media usage across all scenarios

According to the "Audio Media Usage Survey," the MAU (Monthly Active Users*) penetration rate was 43.6% for individuals overall and for audio media as a whole. By service type, radio broadcasts/radiko had 30.6%, music streaming had 24.8%, and audio content had 7.4%.

Looking at each service, radio broadcasts/radiko show higher usage rates among older age groups, while music streaming services see higher usage among younger age groups. This indicates a complementary relationship between the two (see Chart 1).

*MAU = Refers to the number of active users who used a specific service, such as social media or apps, during a given month.

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Figure 2 shows usage rates for each media type by usage scenario within the home.

For audio media, usage during scenes like waking up, getting ready, doing housework/childcare, and running errands is higher compared to video and SNS.

Additionally, usage scenarios like "during work (remote work)"—which grew significantly due to the pandemic—show the highest usage rate for audio media. This suggests audio media is seamlessly integrating into various home-based daily life scenarios via smartphones and other devices, positioning itself as a medium closely aligned with consumers' routines.

Figure 3 shows the usage rates of each media type by usage scenario outside the home.

While radio/radiko has the highest usage rate during car driving, music streaming services significantly outpace other media as the most used during walking or commuting on public transportation. This likely reflects usage during spare moments outside the home via smartphones.

Furthermore, these services see high usage during "walking or jogging" and "gym or sports" activities. This trend is likely driven by the proliferation of wireless earbuds and headphones. Notably, usage during active physical scenes suggests motivations beyond mere music enjoyment, potentially including mental factors like mood elevation and concentration enhancement.

As the environment for audio media consumption becomes increasingly flexible,不受限于时间、地点或场景, multitasking listening during chores, getting ready, or studying, along with listening during commutes or spare moments, reflects a so-called "time performance" (タイパ) mindset. This indicates a desire to use time effectively and avoid creating boring periods.

In a group interview conducted by Dentsu Inc. in August 2022 regarding media usage ( ), a working adult in their early 20s commented, "I don't want my eyes or ears to be idle." Audio media, which keeps the ears occupied, aligns well with the desire, particularly among younger audiences, to enhance life satisfaction through media engagement.

"Listening Entertainment," "AI Horiemon": Expanding Content Initiatives

Not only are opportunities to listen to audio content increasing, but the number and variety of content are also growing, with podcasts becoming particularly popular domestically.

Podcasts offer a wide range of programs covering news, music, entertainment, business/technology, education/culture, health/fitness, art/science, and hobbies. According to Masahiro Murakami, Client Partner at Spotify Japan, the number of unique podcast listeners on Spotify in 2022 was 42 times higher than in 2019, when the service was fully launched. Furthermore, as of October 2023, the number of podcast titles available to listen to on Spotify exceeded 5 million.

Meanwhile, radiko Inc. launched "radiko podcasts" in February 2024, enabling users to enjoy various audio content, suggesting momentum is building for further content expansion.

While the publishing industry faces challenges today, audiobooks like audiobook.jp and Audible are gaining significant attention. Audiobooks are valued for reasons such as being accessible even to those who struggle with text, allowing for multitasking while listening, and enhanced appeal through professional voice actors and narrators. Consequently, various new initiatives are anticipated from different companies. Content beyond traditional book categories, such as meditation and stress-reduction materials, as well as "entertainment designed to be listened to," is also expected to increase.

These align with the so-called "time-saving" trend and are likely to grow in prominence within digital audio content services.

Radio stations are also advancing new initiatives. In July 2023, five major Tokyo metropolitan radio stations launched a proof-of-concept experiment for "TRA (Targeting Radio AD)". This aims to transform radio advertising into data-driven, programmatic mass advertising by utilizing data from Video Research Ltd. and radiko.

This pilot tests sales based on estimated listener numbers, moving away from traditional sales by spot count. While similar initiatives for programmatic advertising sales have been announced in TV and outdoor/transportation advertising, this collaboration among five stations is noteworthy for its focus on enhancing radio's value.

In September 2023, Takafumi Horie assumed the role of Chairman at CROSS FM, an FM radio station in Kitakyushu City, Fukuoka Prefecture, announcing plans to expand business integrated with the internet. As part of these initiatives, plans were revealed to provide news and traffic information using "AI Horiemon" (an AI voice synthesized from Horie's voice), produce programs by selling some broadcast slots to influencers, and involve listeners in program production through a membership-based online salon.

The station's initiatives, including integration with the internet and adoption of cutting-edge technology, are drawing significant attention.

"Sensor-Neutral" Planning to Capture "Disposable Ear Time"

As mentioned at the outset, the evolution of various technologies—content, platforms, devices—has driven the expansion of audio media usage. However, the pandemic undoubtedly accelerated this trend.

Remote work and learning increased opportunities to wear earphones. Scenes like carefully approaching someone wearing earphones during work hours became commonplace. This shift in consumer awareness likely also increased the time people could freely control their auditory environment.

Listening "while doing other things" and during "spare moments" has expanded "disposable ear time," and now various players are joining the battle for this disposable time.

Traditional radio broadcasting was primarily used for motivations like enjoying music or entertainment, or listening to news. Today's audio media, however, is incorporating motivations and purposes that were less common with traditional radio listening, such as wanting to improve oneself or enjoy "self-BGM" (to concentrate, boost mood, etc.).

Furthermore, even when consuming video content, it's not uncommon for users to actually enjoy only the music or audio. Considering this situation, when delivering content or advertising, especially to younger audiences, it's crucial to move beyond simple media characteristics. Instead, planning must be "sensory-neutral" – thoroughly understanding the purpose, the specific usage scenario where the touchpoint occurs, and the level of attention (both visual and auditory) captured at that moment.

Audio media, which can align with consumers' daily routines, holds potential for further growth by incorporating diverse purposes and usage scenarios.

■ Details on the "Information Media White Paper 2024" can be found here.

【Survey Overview】
Survey Name: "Voice Media Usage Survey"
Survey Period: Conducted in July 2023
Survey Method: Internet survey
Sample Size: 6,664 nationwide
Conducted by: Dentsu Inc. Media Services / Radio,TV Division / Video Research Ltd.

*Regarding Generation Definitions
15-25 years old (male/female) = Generation Z
Men and women aged 26-39 = Millennials
Aged 40-54 (both genders) = Prime Working Age Generation
Aged 55-69 (both genders) = Pre-Retirement Generation

※Service Definitions
Radio/radiko
　Radio broadcasts, radiko, and other radio streaming services (including "Radiru★Radiru") are covered
Music Streaming
　Spotify, Amazon Music, Apple Music, YouTube Music, LINE MUSIC
　Other music streaming services are included
Audio Content
　Audio distribution platforms (Voicy, Spoon, etc.)
　Audio content distribution (Radio talk, Himalaya, etc.)
　Podcasts (Apple, Spotify, Google, etc.)
　Audiobooks and other audio content services are included
Television
　Terrestrial broadcasts, BS broadcasts, CS broadcasts
Video Content Services
　YouTube, Netflix, TVer, etc.
SNS
&nbsp;&nbsp; &nbsp;X (formerly Twitter), Facebook, Instagram, etc.

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