As more radio operators go “digital-first” or favor hybrid sales models, digital advertising now accounts for one-quarter of radio industry revenue, reaching $2.3 billion in 2025 and offsetting declines in traditional sales, according to RAB’s Digital Benchmarking Report.
The average station generated $511,873 in digital revenue last year, while the average market cluster made $2.3 million. Digital sales represented 24.4% of total revenue nationwide. Borrell Associates, which produced the report for RAB, forecasts digital revenue will grow 9.5% in 2026 to reach $2.5 billion.
Digital revenue has grown at a compound annual rate of 8.3% since 2022, while core radio advertising declined 2.2% over the same period. The report analyzed proprietary ad revenue data from nearly 3,800 stations, surveys of 406 radio advertisers, 126 local ad agencies, and 242 radio managers across 513 US markets.
The top 5% of radio clusters made three to four times more digital revenue than the average cluster in similar-sized markets. Digital success is becoming more evenly distributed across operators, the report found.
Local businesses now employ three times as many in-house marketing professionals as existed a dozen years ago, when ad-sales reps outnumbered marketing decision-makers. Those marketers increasingly favor media that combine radio’s branding power with digital accountability, particularly streaming audio, streaming video, and digitally measurable campaigns.
Radio managers cite sales training as the most important driver of digital revenue growth. Stations that significantly outperform peers train more frequently, require digital products in sales pitches, and have more success selling video and streaming products.
The report also found rapid adoption of artificial intelligence tools within radio sales organizations. Most managers reported improved efficiency in prospecting and client communications, though many expressed concern that AI-driven media recommendations may not favor radio unless stations strengthen digital positioning and measurement capabilities.
RAB President and CEO Mike Hulvey CEO stated, “Advertisers are recognizing the digital services and products that exist as part of broadcast radio’s marketing toolbox and are taking advantage of it. Today’s marketers are digitally savvy and understand the need to meet their customers wherever they are and across radio’s platforms.”
Borrell Associates CEO Gordon Borrell remarked, “Digital has moved from being a nice add-on to a primary growth engine. This is just the start. With three-fourths of radio buyers not yet taking advantage of a station’s digital products, substantial growth is ahead for stations that can demonstrate a radio-plus-digital package drives better results than radio alone.”
The full report is available to RAB members, with a webinar unpacking all the details coming on Wednesday.
