Digital advertising revenue reached $2.3 billion in 2025, accounting for one-quarter of all radio industry advertising revenue and stabilizing total industry sales. That’s according to RAB’s 14th Annual Digital Benchmarking Report, produced by Borrell Associates.
Borrell forecasts digital revenue will grow slightly faster this year – 9.5% versus 7.8% in 2025 – reaching $2.5 billion.
The average station generated $511,873 in digital revenue in 2025, and the average market cluster made $2,263,431.
Digital sales accounted for 24.4% of total revenue nationwide, the report found.
“Advertisers are recognizing the digital services and products that exist as part of broadcast radio’s marketing toolbox and are taking advantage of it,” said RAB President/CEO Mike Hulvey. “Today’s marketers are digitally savvy and understand the need to meet their customers wherever they are and across radio’s platforms.”
The report finds that strong and sustained digital growth has largely offset declines in core radio advertising. Since 2022, digital revenue has grown at a compound annual rate of 8.3%, while core radio advertising has declined 2.2%.
“Digital has moved from being a nice add-on to a primary growth engine,” said Borrell Associates CEO Gordon Borrell. “This is just the start. With three-fourths of radio buyers not yet taking advantage of a station’s digital products, substantial growth is ahead for stations that can demonstrate a radio-plus-digital package drives better results than radio alone.”
The benchmarking data show that the top 5% of radio clusters made three to four times more digital revenue than the average cluster in similar-sized markets. Importantly, however, digital success is becoming more evenly distributed, signaling that robust performance is increasingly achievable with the right strategy and execution.
“This report makes one thing clear: digital is now the primary driver of revenue stability and growth in radio,” said Marketron CEO Jimshade Chaudhari. “The leaders are not chasing products. They’re focused on delivering results for advertisers, supported by the operational discipline and technology required to execute integrated campaigns reliably at scale.”
The report also highlights a major shift in the local advertising marketplace in the form of local businesses employing far more in-house marketing professionals than ever. A dozen years ago there were more ad-sales reps than marketing professionals in the U.S.; today, there are three times as many marketing decisionmakers at local businesses. And, the report found, those marketers are becoming more experienced at marketing.
Local advertisers continue to value radio’s branding power and return on investment, though many view it as difficult to measure. As a result, budgets are flowing toward media that combine radio’s branding with accountability—particularly streaming audio, streaming video, and digitally measurable campaigns.
Radio managers overwhelmingly cite sales training as the most important driver of digital revenue growth. Stations that significantly outperform peers tend to train more frequently, require digital products to be included in sales pitches and have more sales success in video and streaming products.
The also report finds rapid adoption of artificial intelligence tools within radio sales organizations, with most managers reporting improved efficiency in prospecting and client communications. At the same time, many express concern that AI-driven media recommendations may not favor radio unless stations strengthen their digital positioning and measurement capabilities.
