Traditional over-the-air (OTA) radio continues to demonstrate remarkable staying power in an increasingly fragmented media landscape, even as its core spot advertising revenue faces ongoing pressure.
Forecasts for 2026 indicate a mixed picture for traditional radio ad revenues: some analyses project modest declines in national spot advertising (around 3.5% for certain segments), while others anticipate slight growth in OTA revenue overall (approximately 1.8-2.2%) or relative stability compared to other legacy media.
These variations stem from factors like economic conditions, advertiser migration to digital platforms, and the absence or presence of political spending cycles. Despite these challenges, OTA radio's gradual declines are far from catastrophic, underscoring its enduring role as a habitual, accessible medium.
At the heart of radio's resilience are its unique strengths in fostering local community connections and dominating in-car listening. Radio reaches over 90% of U.S. adults monthly, often outperforming other platforms in daily habit formation—particularly among drivers, where nearly 90% of ad-supported in-car audio time belongs to AM/FM stations.
This "companionship" factor makes radio ideal for multitasking scenarios, such as commuting or working, where listeners seek background entertainment, real-time updates, or emotional connection without demanding full visual attention. Local stations excel here, providing hyper-relevant content like traffic reports, weather alerts, community events, and personality-driven shows that build loyalty and trust.
Radio's evolution into a hybrid digital-extended medium is perhaps its most transformative strength.
Broadcasters are increasingly integrating traditional broadcasts with digital tools, including station apps, on-demand podcasts, live streaming, and interactive features. Digital audio extensions—encompassing podcasts, streaming services, and online radio—are projected to drive significant growth, with radio's digital revenue expected to rise around 5% in 2026, and broader digital audio advertising showing double-digit momentum in many segments. This shift allows companies to capture younger, mobile-first audiences while retaining core listeners.
A prime example is iHeartMedia, the largest U.S. radio operator, which has successfully offset terrestrial losses through aggressive digital expansion. In recent quarters (through 2025), iHeartMedia's Digital Audio Group has consistently posted double-digit revenue growth (13-16% year-over-year), fueled by its leading podcast network (No. 1 in downloads, listeners, and earnings) and the iHeartRadio app.
Podcasting alone has seen explosive gains, with iHeart reporting 20-28% quarterly increases in podcast revenue. This strategy has helped stabilize overall company performance, even as its Multiplatform Group (primarily broadcast) experiences softer demand.
Other broadcasters are following suit, bundling OTA spots with digital inventory like geotargeted streaming ads, programmatic audio, and social extensions to attract cross-platform budgets.
Radio remains far from obsolete, particularly in categories where it shines: live events, breaking news, and music discovery.
Formats like News/Talk and Sports command high listener attention and engagement, with radio personalities often serving as trusted influencers. Live broadcasts offer immediacy that on-demand content can't replicate—think real-time play-by-play for games, election coverage, or emergency alerts. Music discovery thrives on radio's curated playlists and DJ recommendations, introducing listeners to new artists in a serendipitous way that algorithms sometimes lack.
As digital audio consumption grows (with U.S. listeners projected to approach 240 million for digital formats), radio's blend of live and on-demand elements positions it uniquely to bridge generations.
Looking ahead, radio's outlook is one of adaptation rather than obsolescence.