SiriusXM vs. Spotify Advertising: Which is Better for Your Business?
When choosing an audio advertising platform, two major contenders stand out: SiriusXM and Spotify. Sirius XM owns Pandora, but here we are only comparing Sirius XM and Spotify, not Pandora since Pandora and Spotify are so similar. In this guide, we compare SiriusXM and Spotify advertising to help you make the right decision.
Audience Reach and Demographics
- SiriusXM: With over 30 million subscribers, SiriusXM reaches a highly engaged, premium audience. Most listeners pay for access, meaning they are more invested in the content. Most of Sirius XM’s listeners are in the U.S. with minimal in Canada and Mexico. Sirius XM’s satellite covers all of North America.
- Spotify: Spotify boasts over 500 million users globally, but only a portion of these (about 236 million) listen to the free, ad-supported version. And these are global numbers.
Ad Format Options
- SiriusXM: Offers just traditional radio ads in 30 and 60 second formats.
- Spotify: Provides audio ads, video ads, and display ads within its free-tier streaming service, with the ability to target users based on listening behavior.
Cost Comparison
- SiriusXM: Charges an ad spot rate unique to the channel you want to advertise times the number of spots you want to run. Sirius XM’s CPM, or cost per thousand reached, is in the $1-$3 range, but it does not charge impressions this way.
- Spotify: Operates on a CPM basis, with rates averaging $15 to $25 per 1,000 impressions. Self-service ads start as low as $250.
Targeting Capabilities
- SiriusXM: Advertisers get the entire U.S. (and Canada and Mexico) with few targeting options other than the psychographics attracted by the channels themselves. There are no “targeting parameters” with Sirius XM. Sirius XM does provide a Nielsen Report detailing the demographics of who listens to the ad channels.
- Spotify: Provides detailed behavioral targeting, allowing businesses to target users based on music preferences, location, mood, and activity. Targeting on Spotify can quickly become overwhelming.
Engagement and Listener Behavior
- SiriusXM: Listeners are highly engaged, as they pay for premium content and experience fewer ad interruptions.
- Spotify: Many users multitask while streaming, meaning ad effectiveness depends on how actively they are listening.
Pros and Cons of Each Platform
SiriusXM Advertising Pros:
- Premium audience with high engagement
- Less ad clutter compared to Spotify’s free-tier
- Stronger recall due to limited ad interruptions
- Access to exclusive talk, sports, and music content
SiriusXM Advertising Cons:
Limited behavioral targeting compared to Spotify
Spotify Advertising Pros:
- Lower barrier to entry with self-serve ad options
- Advanced targeting based on user behavior and interests
- Multiple ad formats (audio, video, display)
- Access to a massive global audience, theoretically
Spotify Advertising Cons:
- Free-tier users may not be as engaged as SiriusXM listeners
- More ad competition, leading to potential ad fatigue
- Way more expensive than Sirius XM on a CPM basis. For the same ad spend, Sirius XM will reach between 10-20 million listeners while on Spotify you may reach 1,000,000.
Which One is Right for Your Business?
- Choose SiriusXM if you want to reach a premium, engaged audience with fewer ad interruptions.
- Choose Spotify if you need advanced targeting options and a lower-cost entry point for advertising.
- If your budget allows, consider testing both platforms to compare performance and optimize your ad strategy.
Final Thoughts
Both SiriusXM and Spotify offer valuable advertising opportunities, but the best choice depends on your goals. If you’re targeting a high-income, engaged audience, SiriusXM is a strong choice. If you want scalable, targeted digital ads, Spotify provides excellent flexibility. This goes for Pandora as well.
