While 2024 marked a banner year for US advertising with a 12.4% increase in overall spending, MAGNA is downgrading its 2025 revenue outlook, revealing a more cautious road ahead – especially for radio and audio media.
MAGNA’s Spring 2025 US Advertising Forecast now expects overall US advertising revenue to grow by 4.3% in 2025, down from its previous projection of 4.9%. The dip in confidence follows economic signals such as a steep drop in the Consumer Confidence Index – from 74 in December to 58 in March – and persistent inflation in key consumer goods.
That decline in confidence has prompted advertisers to focus on lower-funnel, digital-first platforms that promise quicker ROI and measurable engagement. That trend continues to place downward pressure on legacy platforms. Broadcast radio is forecast to decline by another 3.2% in 2025, mirroring its 3.2% drop in 2024. MAGNA had previously projected a slightly smaller 2.7% decline.
Radio’s total revenue in 2024 came in at $12.6 billion.
AM/FM’s legacy verticals – automotive, QSR, and CPG – are under pressure, and that’s contributing to the projected decline, but opportunities remain in verticals like pharma, retail, finance, and podcasting-aligned tech or media, especially for stations that can position themselves within integrated or data-enhanced campaigns.
As mentioned, digital experiences continued success with a 9.6% increase forecasted for Digital Pure Players, reaching $293 billion in advertising revenue. That projection includes double-digit growth in social media (10.7%), retail search (14.3%), and short-form video (7.5%).
Digital audio, which includes platforms like Spotify, is forecast to grow by 3.7% to $3.2 billion, following 3.2% growth in 2024. Podcasting, while still growing, will see a slowdown. MAGNA forecasts podcast ad sales to rise by 9% in 2025 to $2.7 billion – still in the high single digits but a marked deceleration from the double-digit growth of prior years.
Local TV is expected to see the sharpest drop across traditional media, falling 27% year-over-year due to the absence of political ad spending. Even without political dollars factored in, local television is forecast to decline by 3.7%.
