Radio remains the most profitable product for media companies, according to SalesFuel’s 2025 State of Media Sales with BIA Advisory Services, but the report warns of headwinds as sales teams grapple with hiring struggles, advertiser churn, and shrinking budgets.
SalesFuel conducted the 13th annual survey in August. More than 540 media sellers and managers participated across radio, television, print, digital, and out-of-home sectors.
Among radio sales managers, 94% said radio advertising continues to be their most profitable product, far ahead of digital display, social media, and event sponsorships. That profitability mirrors individual earnings, with 95% of sales reps naming radio as their top source of commissions.
Yet with more of radio’s revenue pie coming from digital sources, revenue diversification is becoming an issue that SalesFuel CEO C. Lee Smith told Radio Ink is tied to inadequate revenue forecasting.
“Revenue forecasting should be a management tool, not a mood ring,” Smith said. “Radio sales managers gave their corporate forecast for 2025 a score of 6.2 out of 10, but it’s also a problem at the deal level. Overly optimistic forecasts crush morale. Expectations that are too low lead to complacency. Inaccurate forecasting is not just a revenue issue for leadership; it’s a credibility issue. AI is one way to remove some of the guesswork.”
Sales managers forecast modest revenue growth for 2025, with 29% expecting increases of 6 to 10% over 2024. Entertainment and home improvement categories are projected to perform best, while government and hospital ad spending are expected to decline. Budget constraints remain the leading reason advertisers are cutting back, followed by shifts toward social media and influencer marketing.
Managers also report that reaching clients has become harder. More than six in ten said it’s more difficult to get calls or emails returned, and nearly 70% said advertisers aren’t spending enough to outpace inflation.
Looking ahead to 2026, optimism centers on political advertising (23%) and home improvement (63%), while consumer packaged goods (14%) drew the most pessimistic outlook.
Asked whether the current slowdown is cyclical or structural, Smith said, “It’s both – but mostly a wake-up call. Sales for many Main Street businesses have softened, and concerns about the economy have grown, leading to cuts in multiple areas, including their investment in lead generation – advertising. 58.3% of radio salespeople say advertisers aren’t pausing, they’re pivoting, moving dollars to the three S’s: social, search, and streaming, where they feel more control and accountability. Even if budgets rebound, any incremental increases from digital and events will continue to fall short of losses from spot sales.”
Finally, 80% of radio sales managers said hiring has become more difficult than it was a year ago. “There are sexier – and more lucrative – jobs available for top talent,” Smith told Radio Ink. “This is not a radio problem; it’s a problem for all industries across the board. Almost every aspect of sales has gotten harder in the past 12 months, and young people already have a negative impression of the sales profession. We can start by rebranding radio sales as a mission to help small business owners and communities thrive, instead of a commission-based hustle.”
The full results of the 2025 State of Media Sales study will be released during a webinar with Smith, SalesFuel SVP of Communications Audrey Strong, and BIA Advisory Services VP of Sales Christina Hurley today, October 22, at 2p ET. Registration is open.
