While streaming video continues its explosive growth, radio broadcasters are finding renewed opportunity by adopting OTT as a revenue-generating extension of their traditional sales models, according to a new round of projections from Borrell Associates.
Revealed in a Tuesday webinar, Borrell forecasts OTT to generate more than $33 billion in local advertising by 2029, a sizeable increase over previous expectations. OTT has also solidified its place as the most effective video format in the eyes of advertisers, with 44% ranking it as “very” or “extremely” effective – outpacing both broadcast and cable TV.
Radio, while still projected to decline by 3.4% in 2025, is faring better than earlier forecasts predicted. Meanwhile, streaming audio and podcasting are forecast to grow faster than expected at 8.2%, making it on par with video. Audio projections now top $2 billion by 2029.
One key reason for radio’s tempered outlook: younger businesses continue to be far more likely to increase spending on traditional formats. Borrell’s Spring 2025 Local Advertiser Survey shows 11% of businesses founded after 2020 plan to raise radio budgets, compared to 7% of older firms. The same group also indicated a stronger preference for event sponsorships and direct mail—suggesting a broader interest in community-based and personal-touch media.
Still, streaming video is capturing a growing share of perceived value. OTT is now the third-most effective format overall, behind only SEM and social media, and ranks among the top areas where advertisers plan to increase spend in 2025. Twenty-four percent of ad buyers say they will raise social media budgets, followed by 20% for SEM, and 9% each for OTT and direct mail. Radio and streaming audio came in just behind, at 8% each.
That places pressure on radio sellers to diversify. The future may not be about format loyalty, but about how well sellers can meet buyers where they are – and where they believe their ads will work best.
