Radio’s Digital Revenue Surges Past $2B, Setting a Record

The radio industry has reached a significant milestone in its digital transformation, hitting $2.1 billion in digital revenue in 2024, according to the latest annual digital benchmarking report from RAB and Borrell Associates Inc, which was sponsored by Marketron.

The 13th annual report highlights the increasing role of digital advertising in stabilizing the industry’s financial outlook, with digital revenue now accounting for nearly 25% of the average radio station’s total income.

“We are proud of our continued commitment to provide these important insights for the radio industry,” commented Mike Hulvey, RAB president and chief executive officer. “There are many revenue opportunities for broadcast radio companies and their sellers. As radio continues to diversify and strengthen its services portfolio, revenue gains are possible above broadcast radio advertising.”

“This report delivers essential insights for radio broadcasters, highlighting the growing role of digital in driving revenue and advertisers’ results, strengthening local advertising. The local perspective makes these findings especially relevant, showing where stations can capitalize on new opportunities,” stated Jimshade Chaudhari, Marketron chief executive officer. “We’re optimistic that local businesses are investing more of their dollars with radio companies and are committed to helping stations evolve, compete, and turn growth into lasting profitability.”

Digital growth continues to accelerate, with an additional $206 million in digital sales projected for 2025. This represents a 9.7% increase, solidifying radio’s pivot toward strategies in which digital operations are becoming more of a focus. Streaming video has emerged as a dominant source of new growth, now surpassing streaming audio as radio’s top digital product.

"We’re still seeing positive effects from the 2020 pandemic, when radio stations doubled down on digital initiatives,” said Gordon Borrell, chief executive officer of Borrell Associates. "Stations are embracing digital solutions, training sales teams and adopting multiplatform strategies to compete in an evolving advertising landscape."

The report underscores the growing appetite among advertisers for cross-platform solutions. Social media, search engine marketing (SEM) and streaming video continue to be top investments, with three out of five radio buyers planning to increase their digital ad spending in 2025. Additionally, 82% of radio stations are actively working to convert digital-only buyers into radio clients, highlighting a shift toward integrated sales approaches.

However, challenges remain. While 71% of station managers rate their digital strategies positively, many acknowledge gaps in sales expertise. To address this, more stations are training sales staff weekly and revisiting compensation models to incentivize digital-first sales approaches.

As competition from TV, newspaper and streaming platforms intensifies, the report urges radio stations to rethink their digital roadmaps. With two-thirds of local advertisers not yet purchasing digital products from radio stations, opportunities for growth remain substantial.

The report provides comprehensive benchmarks, insights and forecasts for radio’s digital future. To view the full report, click here. 

A live webinar featuring the survey results presented by RAB and Gordon Borrell is available for free to RAB members and survey participants. The live presentation takes place at noon CT on Wednesday, February 19. To register for the live presentation, click here.