Despite economic challenges and uncertainties, the global radio advertising market is expected to experience steady growth over the next decade. A new report from Research and Markets projects encouraging expansion driven by increased digital radio adoption, a rise in listener numbers, and infrastructure development.
Radio Advertising Market Snapshot
Radio advertising has shown modest growth, with a compound annual growth rate (CAGR) of 0.87% since 2018, reaching a global market value of $26.03 billion in 2023. However, projections for the future indicate accelerated growth. From 2023 to 2028, the market is expected to grow at a CAGR of 2.66%, reaching $29.69 billion by 2028 and rising at 2.19% annually through 2033 to reach $33.09 billion.
Key Drivers and Challenges
The anticipated growth is supported by several factors:
- Digital Radio Expansion: As more listeners shift to digital platforms, advertising opportunities are expanding, especially through online terrestrial radio, which is expected to grow at an impressive annual rate of 13.52% between 2023 and 2028.
- Rising Listener Numbers: The consistent listener base provides a steady platform for advertisers to reach engaged audiences.
- Infrastructure Growth: Continued investment in radio infrastructure, including digital upgrades, is boosting accessibility and reach.
However, challenges such as declining ad budgets in certain regions and stringent government regulations have restricted growth in some markets. Nonetheless, digital formats continue to offer a promising avenue for growth as listeners increasingly turn to online radio.
Market Segments and Regional Leaders
In 2023, terrestrial radio remained the most dominant segment, accounting for 67.29% of the market ($17.51 billion). However, online terrestrial radio advertising is forecast to see the fastest growth as advertisers increasingly leverage digital channels. By industry, the media and entertainment sectors are expected to lead in radio ad spending, with a projected growth rate of 3.04% per year.
Regional Highlights: North America leads the market, accounting for $11.4 billion in 2023 (43.82% of global revenue). Key players include major U.S.-based companies like Cumulus Media (2.28% market share), iHeartMedia (2.24%), and Hubbard Broadcasting (2.23%), alongside Canada’s Bell Media, Pattison Media, Rogers Sports & Media, and Harvard Media.
Short-Term Outlook and the Rise of Digital
In the short term, U.S. local radio advertising is expected to shift slightly. BIA Advisory Services’ 2025 forecast anticipates total local media revenues to reach $171 billion, a 5.5% increase in non-political ad revenue from 2024. However, the projection includes a 1.3% overall dip due to anticipated decreases in political advertising.
Within the local ad market, traditional over-the-air (OTA) radio is expected to see a slight decline, dropping 1.6% to $10 billion. Digital, on the other hand, is forecasted to grow by 4.2%, reaching $2.9 billion and pushing radio’s share of local ad spend to a combined 6.6%. The rapid growth in digital radio highlights a broader trend where digital media is expected to make up 52% of all local ad spending by 2025, overtaking traditional formats.
Top Industries Driving Radio Ad Spend
Certain industries are expected to lead the way in OTA radio spending through 2025:
- Restaurants: Projected growth of +9.5%
- Real Estate: Expected increase of +6.7%
- Retail: Forecasted rise of +5.5%
These sectors rely on radio’s reach and localized appeal to connect with targeted audiences, making them key contributors to radio ad revenue.
As digital channels gain traction, the radio advertising market is set to evolve alongside them. The projected growth for digital advertising, coupled with increased targeting and engagement options, means radio will continue to play a unique and valuable role in the evolving ad landscape.
