Despite other conflicting forecasts for radio in 2026, the industry is positioned for a much steadier year, per Borrell Associates. The firm projects radio having the smallest year-over-year decline among traditional media. However, this doesn’t come without a familiar divide.
The outlook was detailed during Borrell’s December US Local Advertising Forecasts webinar. While the overall US local advertising market is forecast to grow 3%, radio’s projected decline of just 0.9% underscores the relative resilience of audio when paired with digital offerings.
Among 14 publicly held media companies tracked through Q3 2025, only iHeartMedia reported total advertising revenue growth, driven by a 12% increase in digital advertising that offset a 5% drop in core radio sales. According to Borrell, radio is now demonstrating a model that other legacy media have struggled to execute: integrating digital advertising in ways that lift total revenue.
Several radio companies besides iHeart reported year-to-date digital advertising growth through Q3. Beasley Media Group saw radio ad revenue fall 15.8%, while its digital advertising grew 4.6%. Townsquare posted an 11% core ad decline but reported a 2.6% digital gain. Unlike cable, print, or TV, radio’s digital sales have been consistently strong enough to offset deeper losses in core advertising. When bundled effectively, digital and radio offer local advertisers enhanced recall, brand awareness, and multichannel reach.
“Radio seems to just have a really good message, and they might have found the formula,” said Borrell CEO Gordon Borrell.
Streaming audio is expected to grow 9.2% in 2026, faster than OTT video and any other individual ad format tracked by Borrell. Though total dollars remain comparatively small, the category’s momentum is fueled by platform partnerships, cross-media buying, and the increasing inclusion of radio inventory in digital audio marketplaces.
Borrell’s 2026 forecast indicates radio’s growth prospects will depend less on a rebound in spot advertising and more on execution in digital sales, packaging, and positioning. With advertiser scrutiny rising and budgets tightening, radio’s ability to compete will increasingly hinge on how effectively stations integrate digital offerings alongside their traditional strengths.
This comes as AI reshapes advertiser expectations. Already, 10% of SMBs report using AI for marketing recommendations, with another 23% planning to adopt it. As more platforms integrate AI-based recommendation engines, radio sellers must understand how those engines direct budget and develop strategies that address automation-driven shifts in campaign planning.
While media companies remain vital clients, the firm sees growing opportunity to educate advertisers directly about the changing media mix, AI tools, and return-on-investment strategies. That shift will likely yield new insights and opportunities for radio sellers who can effectively translate those findings into actionable sales conversations.
