Despite the continued command of digital advertising, Nielsen’s 2025 Annual Marketing Report reveals a market recalibration, with radio emerging as a key beneficiary as the global survey of 1,400 senior marketers highlights widespread budget tightening.
54% of marketers surveyed say they plan to reduce advertising spend in 2025. The reasons vary by region and industry. Tech companies cite supply chain volatility, financial brands point to waning consumer confidence, and European advertisers continue to face economic stagnation. But the consequence is the same: leaner budgets with rising expectations.
These financial constraints are forcing advertisers to be more deliberate about where and how they allocate media dollars. According to the report, marketers are increasingly adopting performance-focused strategies and moving budget toward digital channels like social, display, and search. Yet, the growth rate for digital spending is beginning to taper.
Although digital receives the lion’s share of new ad investment, Nielsen’s data suggests that perception doesn’t always match performance. When measured by average ROI across all media types, radio ranks among the top-performing channels globally, surpassing many forms of digital media.
In the US, traditional media remains foundational to ad strategy. Radio and linear TV together accounted for 56% of total US advertising spend in 2024, according to Nielsen Ad Intel data. Marketers in sectors like healthcare, travel, and finance continue to rely on radio for its wide reach, regulatory reliability, and ability to drive brand awareness across broad audiences.
The report comments on radio’s delivery of strong mid- and lower-funnel results, particularly when integrated with digital. Nielsen’s cross-channel analyses suggest that marketers who combine radio with digital tactics see higher brand lift and conversion rates than those who focus on digital alone.
Still, marketers continue to undervalue radio. It is often perceived as less effective or harder to measure, despite its documented performance. 32% of global marketers say they currently measure media spending holistically across digital and traditional channels. This fragmentation, fueled by siloed teams and incompatible measurement tools, is likely obscuring the full value radio delivers.
Nielsen highlights the enduring strengths of traditional media, with radio standing out as a particularly resilient platform.
It continues to deliver mass reach in key demographics, especially among older audiences and within regulated industries such as pharmaceuticals. Radio’s low production costs make it an efficient option for quick-turn campaigns and brand awareness efforts. When paired with digital, radio enhances the overall performance of multi-channel campaigns, offering complementary value that improves engagement and results. Additionally, radio maintains a high level of trust and credibility, particularly in local and news/talk formats, which still attract dedicated and loyal audiences.
Even as marketers ramp up experimentation with AI-driven personalization and retail media networks, radio provides a stable, measurable base. In a fragmented media environment, its role as a bridge between reach and performance remains critical.
The full 2025 Annual Marketing Report is available via Nielsen.
