In 2025, the radio broadcasting industry demonstrated resilience amid ongoing digital disruption, with traditional AM/FM maintaining dominance in key areas like in-car and local listening while accelerating hybrid strategies, digital integration, and efficiency measures. Global market growth was modest (around 3–5% CAGR projections through the decade), driven by digital radio adoption, podcast crossovers, and regulatory easing, though traditional spot ad revenue faced declines (e.g., U.S. national spot down ~5%).
📻Key Trends
Dominance in In-Car and Mass Reach
AM/FM radio remained the top in-car audio source (56–85% share across vehicles), with Edison Research showing 85% of 18+ in-car listening on broadcast radio. It overtook TV in key demographics (e.g., 13% lead in 25–54, 47% in 18–49), boosted by Nielsen's PPM changes crediting shorter listening sessions, increasing reported audiences by ~10–24%.
AM/FM radio remained the top in-car audio source (56–85% share across vehicles), with Edison Research showing 85% of 18+ in-car listening on broadcast radio. It overtook TV in key demographics (e.g., 13% lead in 25–54, 47% in 18–49), boosted by Nielsen's PPM changes crediting shorter listening sessions, increasing reported audiences by ~10–24%.
Digital and Hybrid Expansion
Broadcasters shifted toward hybrid models combining AM/FM with streaming, podcasts, and apps. Digital radio (e.g., DAB+, HD Radio) grew, with 60%+ of broadcasters adopting hybrid platforms and smart devices up 55%. Internet radio revenue reached ~$3.6B in the U.S., though growth slowed due to competition from Spotify/Apple Music.
Podcast Integration and Crossover
Major groups (iHeartMedia, Audacy, Cumulus) deepened podcast ties, with collaborations, video podcasts, and AI personalization. Podcasts claimed ~20% of ad-supported spoken-word audio, blurring lines with radio—many stations simulcast or produced podcasts for on-demand access.
Ad Revenue Challenges and Diversification
Traditional spot ads declined (U.S. national ~$1.76B, down 5%), but digital revenue grew (e.g., local digital up 4.2%). Overall U.S. radio ad spending stabilized or grew modestly, with emphasis on targeted audio and events.
Regulatory and Operational Shifts
FCC deregulation eased ownership rules and burdens, enabling consolidation and efficiency. AI tools aided production (e.g., playlisting, voiceovers), while stations focused on localism, emergencies (e.g., wildfires), and community engagement.
Audience Stability and Shifts
Weekly reach held steady (~85–92% of U.S. adults), with strong Gen Z engagement in cars and growth in smart speakers. However, younger audiences favored on-demand formats, pushing broadcasters toward multi-platform content.
Overall, 2025 positioned radio as a foundational medium adapting to digital realities—leveraging its unmatched local reach, in-car loyalty, and emergency role while embracing podcasts, streaming, and AI to stay relevant. Traditional strengths endured, but success increasingly depended on hybrid innovation and audience trust.