As radio faces competition from an ever-increasing number of platforms, radio marketing firm DMR/Interactive is projecting a 14% increase in station marketing budgets across the radio industry in 2025, following years of single-digit declines.
According to DMR/Interactive President and CEO Andrew Curran, optimism is fueled by factors such as the easing of interest rates, post-decline rebounds, and the introduction of Nielsen’s new “3-Minute Rule.”
Nielsen is set to reduce the listening threshold required for PPM market quarter-hour credits from five minutes to three minutes within a 15-minute period. This adjustment, effective with the January 2025 survey, aims to better align with current listening behaviors and is expected to enhance measurable ad impressions, potentially increasing market-level radio audience metrics by approximately 24% across all PPM markets.
Curran says another significant driver of marketing growth is the return-to-office trend.
For every 100 workers returning to office spaces, an additional 30-40 support workers are needed in local shops and restaurants. This increased commuting activity, a key contributor to radio listenership, costs workers an average of $561 per month on gas, parking, and other expenses. Curran emphasized that contest prize money can serve as an effective incentive to boost daily listening habits among employed heavy listeners.
DMR/Interactive case studies found that a top-performing large market station that ran a local cash contest without marketing support experienced a 38% year-over-year ratings drop among A25-54 listeners (.8 to .5). Conversely, a major market station using national contests combined with targeted marketing saw a 67% ratings boost in its core W25-54 demographic.
