The U.S. commercial radio industry surpassed $2 billion in digital revenue for the first time last year, according to a report from RAB and Borrell Associates, sponsored by Marketron.
They did not provide an estimate for total industry revenue but said digital now accounts for almost a quarter of the average station’s total income.
The announcement was made by RAB President/CEO Mike Hulvey, Marketron CEO Jimshade Chaudhari and Borrell Associates CEO Gordon Borrell.
They said digital growth continues to accelerate, with an additional $206 million in digital sales projected for 2025. “This represents a 9.7% increase, solidifying radio’s pivot toward strategies in which digital operations are becoming more of a focus,” according to an RAB press release.
“Streaming video has emerged as a dominant source of new growth, now surpassing streaming audio as radio’s top digital product. … Social media, search engine marketing (SEM) and streaming video continue to be top investments, with three out of five radio buyers planning to increase their digital ad spending in 2025.”
They said 82% of radio stations actively try to convert digital-only buyers into radio clients, but that lack of sales expertise is an ongoing challenge.
“As competition from TV, newspaper and streaming platforms intensifies, the report urges radio stations to rethink their digital roadmaps. With two-thirds of local advertisers not yet purchasing digital products from radio stations, opportunities for growth remain substantial.”
