Between recent talk of FM geotargeting, OTT, and digital opportunity, BIA Advisory Services Vice President of Forecasting Nicole Ovadia and Marketron SVP Todd Kalman sat down to discuss the 2025 Radio Revenue Outlook one month into the new year.
BIA’s projection for total 2025 local advertising revenue remains at $171 billion – a 5.5% increase excluding political spending. Of that total, over-the-air radio is expected to generate $10 billion, with revenue projected to remain flat or slightly down in most markets. Digital advertising continues to grow, with connected TV and over-the-top platforms driving the largest increases.
Kalman underscored radio’s core advantages, particularly its unmatched audience trust and high ad recall, particularly when combined with digital tactics.
Ovadia and Kalman agreed that a standout opportunity for radio in 2025 is geotargeting. This technology, which allows advertisers to deliver highly localized ads by way of FM boosters, is expected to enhance radio’s appeal to political campaigns and local businesses. Ovadia explained, “Geotargeting opens the door for radio to compete with digital platforms on precision while maintaining its trusted voice.”
The rollout of this technology in several markets is anticipated to create new revenue streams for radio operators.
Another significant milestone for 2025 is the anticipated shift in local advertising spending. For the first time, digital ad spending is expected to surpass traditional media, excluding political advertising. While digital offers strong revenue potential, Kalman cautioned against relying solely on its growth. “Digital billing improves revenue, but renewals come from delivering superior results across both radio and digital,” he stated. He encouraged radio operators to integrate digital tactics into campaigns to achieve stronger results and retain advertisers.
Ovadia also added a non-R category to her “Three Rs” of verticals for radio to target in 2025. Restaurants, retail, and real estate were identified as key advertising categories, but she added automotive. While interest rates remain high, dealers are expected to focus on service and parts advertising, providing a reliable revenue source for radio.
The full webinar is available via Marketron.
