Stop worrying about that core revenue malaise: The radio industry has reached “a significant milestone in its digital transformation,” hitting a record high in 2024, the RAB shares.
The organization’s annual digital benchmarking report offers details first shared last week by Borrell Associates.
The report, sponsored by Marketron, finds that the digital revenue total last year for U.S. radio was $2.1 billion. As such, the increasing role of digital advertising in stabilizing the industry’s financial outlook is a big topic for the RAB.
Digital revenue presently comprises nearly 25% of the average radio station’s total income.
“We are proud of our continued commitment to provide these important insights for the radio industry,” said RAB President/CEO Mike Hulvey. “There are many revenue opportunities for broadcast radio companies and their sellers. As radio continues to diversify and strengthen its services portfolio, revenue gains are possible above broadcast radio advertising.”
Marketron CEO Jimshade Chaudhari added, “We’re optimistic that local businesses are investing more of their dollars with radio companies and are committed to helping stations evolve, compete, and turn growth into lasting profitability.”
An additional $206 million in digital sales is projected for 2025. This represents a 9.7% increase.
Streaming video has emerged as a dominant source of new growth, now surpassing streaming audio as radio’s top digital product.
Meanwhile, 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. Additionally, 82% of radio stations are actively working to convert digital-only buyers into radio clients, highlighting a shift toward integrated sales approaches.
That said, the RAB is keenly aware that challenges remain. While 71% of station managers rate their digital strategies positively, many acknowledge gaps in sales expertise. To address this, more stations are training sales staff weekly and revisiting compensation models to incentivize digital-first sales approaches.
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.
— With reporting by Adam R Jacobson
