As recent earnings calls have made clear, digital advertising is no longer a side business for radio. It’s a financial cornerstone. But while growth is widespread, some broadcasters are pulling far ahead of the pack. So who’s leading – and why?
With traditional revenue under pressure, digital sales are helping steady the industry, climbing from $2.1 billion in 2023 to an expected $2.4 billion in 2025. According to Borrell Assocates‘ just-released 2025 Annual Digital Benchmarking Report, this growth has helped steady total industry revenue, even as print and traditional buys decline. In fact, digital’s share of all local radio advertising has risen from 19% in 2022 to a projected 25.1% in 2025.
That shift marks a structural change: radio’s future profitability will depend heavily on how well it executes digital sales.
For the first time in the report’s 23-year history, Borrell Associates is making its annual briefing on digital revenue trends, growth benchmarks, and media performance across local markets available to the industry at no cost. All attendees of Borrell’s May 29 webinar with CEO Gordon Borrell and EVP of Local Market Intelligence Corey Elliott will receive a copy.
The report illustrates just how much digital has matured across the industry. While many radio clusters still generate only single-digit shares of their local digital ad markets, standout performers are setting the pace on both scale and momentum. iHeartMedia leads all terrestrial radio companies in US digital ad revenue, pulling in $1.165 billion in 2024.
Put in perspective, iHeart captured just 0.6% of Google’s digital revenue total.
Audacy followed with $287 million, while Townsquare Media took the third spot at $234 million. However, revenue size alone doesn’t tell the full story. iHeart posted 9% year-over-year growth in 2024, slightly below the 9.7% radio digital growth average. Audacy hit slightly above at 10%, and digital-heavy Townsquare squeezed out a 1% gain.
The year’s highest growth among companies with radio holdings belonged to Hispanic-focused Entravision at 41%. Saga Communications posted a 15% year-over-year increase on a modest $14 million base. Cumulus Media and Beasley Media Group grew 5% and 3% respectively, while Salem Media dipped 1% and Urban One dropped 6%.
Meanwhile, AM/FM’s satellite competitor SiriusXM brought in $1.015 billion in digital revenue but saw a 16% year-over-year drop, raising internal concerns about its long-term digital positioning despite its scale.
Borrell notes that within local markets, radio has room to punch above its weight, especially in communities where it remains a trusted, daily presence. With spot sales tightening and new business formation accelerating post-pandemic, digital presents the most scalable opportunity for radio to expand its advertiser base and offset traditional declines.
Registration for Borrell’s 2025 Annual Digital Benchmarking Analysis webinar is now open.
Digital is just the conduit.
If your programming content is bad, it won’t matter.
If your sales staff relationship with the business community is bad, it won’t matter.
If you cram 20 advertising messages into a 8 minutes stop set, it won’t matter.
If “being local” only means reading PSA’s and your air staff is visibly MIA everywhere but social media, it won’t matter.
If your sales staff turnover is high, it won’t matter.
Work on the things that matter.
No doubt digital is a growth spotlight for radio, but what the article fails to address is the small margins and lagging net revenue growth for most of these companies. Their focus on digital and not on their audio core has eroded their P&L’s beyond repair (in some instances). Thus, the drastic cuts in their personnel, which is the very thing that has made them a trusted local media source for years. It’s a spiral that gets uncontrollable. Digital is not a savior, but a new growth area that has it’s place on the menu to assist our local business clients. Don’t expect it to save a sinking ship.
And 100% in 5 years.
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