Hiring Challenges Upstage Profit Margins For Radio In 2025

0

Radio remains the most profitable product for media companies, but a newly released report from SalesFuel warns of headwinds as sales teams grapple with hiring struggles, advertiser churn, and shrinking budgets.


The data points come from SalesFuel’s 2025 State of Media Sales study, which was to be presented in a Wednesday afternoon webinar with BIA Advisory Services. The findings are derived from research conducted in August by SalesFuel, in which upward of 540 media sellers and managers participated across radio, television, print, digital, and out-of-home sectors.

For radio sales managers, 94% said radio advertising continues to be their most profitable product — far ahead of digital display, social media, and event sponsorships. That profitability mirrors individual earnings, with 95% of sales reps naming radio as their top source of commissions. However, with more of radio’s revenue pie coming from digital sources, revenue diversification is becoming an issue that SalesFuel CEO C. Lee Smith told Streamline Publishing’s Radio Ink is tied to inadequate revenue forecasting.
“Revenue forecasting should be a management tool, not a mood ring,” Smith said on Tuesday, ahead of the Wednesday online presentation. “Radio sales managers gave their corporate forecast for 2025 a score of 6.2 out of 10, but it’s also a problem at the deal level. Overly optimistic forecasts crush morale. Expectations that are too low lead to complacency. Inaccurate forecasting is not just a revenue issue for leadership; it’s a credibility issue. AI is one way to remove some of the guesswork.”

Sales managers forecast modest revenue growth for 2025, with 29% expecting increases of 6%-10% over 2024. Entertainment and home improvement categories are projected to perform best, while government and hospital ad spending are expected to decline. Budget constraints remain the leading reason advertisers are cutting back, followed by shifts toward social media and influencer marketing.

Managers also report that reaching clients has become harder. More than six in ten said it’s more difficult to get calls or emails returned, and nearly 70% said advertisers aren’t spending enough to outpace inflation.

Looking ahead to 2026, optimism centers on political advertising (23%) and home improvement (63%), while consumer packaged goods (14%) drew the most pessimistic outlook.

Asked whether the current slowdown is cyclical or structural, Smith said, “It’s both … but mostly a wake-up call. Sales for many Main Street businesses have softened, and concerns about the economy have grown, leading to cuts in multiple areas, including their investment in lead generation – advertising. Some 58.3% of radio salespeople say advertisers aren’t pausing, they’re pivoting, moving dollars to the three S’s: social, search, and streaming, where they feel more control and accountability. Even if budgets rebound, any incremental increases from digital and events will continue to fall short of losses from spot sales.”

Finally, 80% of radio sales managers said hiring has become more difficult than it was a year ago. “There are sexier – and more lucrative – jobs available for top talent,” Smith said. “This is not a radio problem; it’s a problem for all industries across the board. Almost every aspect of sales has gotten harder in the past 12 months, and young people already have a negative impression of the sales profession. We can start by rebranding radio sales as a mission to help small business owners and communities thrive, instead of a commission-based hustle.”


The full results of the 2025 State of Media Sales study were scheduled for release during a webinar featuring Smith, SalesFuel Sr. VP of Communications Audrey Strong, and BIA Advisory Services VP of Sales Christina Hurley on October 22 at 2pm Eastern. For more information and access, please click here.

LEAVE A REPLY

Please enter your comment!
Please enter your name here