A new global forecast from Dublin-based Research and Markets predicts long-term growth for the traditional radio ad market – just don’t expect too much. As a cost-effective, large-reach medium, radio stands to benefit advertisers warm to AM/FM’s strengths.
Terrestrial radio broadcast advertising dominated the market in 2022, accounting for 73.9% or $17.19 billion of the total, over satellite radio advertising. This puts the largest revenue opportunities for growth in the terrestrial radio broadcast advertising segment, which is expected to gain $1.13 billion globally by 2027.
After a negative compound annual growth rate since 2017, an average CAGR of 1.3% is expected by 2032. The total increase would come in two stages: growing at a rate of 1.5% by 2027 to bring radio’s global ad revenue to $25.04 billion, then further expanding at a CAGR of 1.1% until 2032 revenues hit $26.47 billion.
The United States is set to benefit the most from this market expansion, with an expected gain of $797.1 million.
Additionally, the market is segmented based on enterprise size into large enterprises and small and medium enterprises, or SMEs. SMEs held the largest market share in 2022, making up 76.5% or $17.79 billion. This segment is also expected to experience the fastest growth at a CAGR of 1.54% from 2022 to 2027.
Historically, market growth can be attributed to the rising adoption of digital radio, urbanization, and infrastructure development. Future market growth is expected to be driven by factors such as the rising demand for cost-effective advertising and a boost in advertising spending across various industries.
