Magna Global, the research and investment unit of IPG Mediabrands, forecasts U.S. advertising spending will grow 11% in 2026, pushing total global media owner advertising revenue past the $1 trillion milestone for the first time.
While digital platforms continue to dominate growth, radio is positioned to claim a meaningful share through rapid adoption of AI-driven targeting and interactive “shoppable” audio experiences.
The most important details first
Magna’s December 10 report highlights that traditional linear radio’s national market share will dip to approximately 7% in 2026 as streaming audio (Spotify, YouTube, podcasts) siphons listeners and dollars. However, radio broadcasters who integrate AI-optimized ad targeting and interactive formats — such as voice-activated responses, QR-code-triggered purchases during broadcasts, and shoppable podcast ads — are projected to outperform the category average and offset share erosion.
Supporting context and data
- 91% of Americans now access audio primarily through smartphones (Pew Research, 2025).
- Edison Research’s latest Infinite Dial study shows monthly podcast reach has plateaued at ~42%, but time spent with mobile audio apps continues rising.
- Advertisers increasingly demand measurable ROI; interactive audio formats have shown 3–8× higher conversion rates than traditional 30-second spots in early tests.
Bottom line for broadcasters
The 11% overall ad market expansion offers a clear window of opportunity for radio groups to diversify revenue, but the clock is ticking. Stations that fail to deploy AI targeting and interactive capabilities risk accelerating share loss to pure-play digital audio competitors. Those that move quickly can turn legacy reach into modern, measurable performance — and capture a disproportionate share of the coming trillion-dollar ad pie.