iHM Believes 2025 Ad Revenue Is Starting Slow

As programmatic advertising gains traction among advertisers, iHeartMedia is intensifying efforts to expand its presence in these transactional spaces. "It's an expanding segment of the advertising landscape," iHM CEO Bob Pittman remarked during last week' earnings call with analysts.

Bob Pittman

He explained that he believes the algorithms driving purchasing decisions lack the anti-radio prejudice some human buyers exhibit, which could benefit radio.

To capitalize on this trend, iHM will start offering its broadcast radio inventory on the Yahoo DSP and Google Display & Video 360 platforms this month. Pittman emphasized that this move positions iHeartMedia’s radio offerings alongside other programmatic options like connected TV (CTV).

iHM's COO Rick Bressler added that iHeartMedia has secured potential real-time bidding opportunities, informing analysts that 2025 will focus on launching these programmatic capabilities, with a more substantial revenue boost expected in subsequent years.

Rich Bressler

However, Bressler added the new year has ushered in economic unease for some advertisers, fueled by concerns over proposed tariffs, rising inflation, and interest rate hikes. Bressler pointed out a dip in consumer confidence as well. This hesitation has led to uneven billings: a 5.5% rise in January flipped to a 7% drop in February.

"Advertisers are pulling back slightly," Pittman observed. "If there’s a quarter where they feel okay about pausing, it’s the first one."

Bressler noted that Q1 revenue will also take a hit from the Los Angeles wildfires. As iHM's highest-billing market and home to its direct client sales team, L.A.’s disruptions have hampered performance. Given that Q1 is already the lightest revenue period, iHeartMedia anticipates a low-single-digit decline in overall first-quarter revenue compared to last year.