Digital advertising revenue for the radio industry hit $2.3 billion in 2025, representing 25% (one-quarter) of all radio advertising revenue and helping stabilize overall industry sales, according to the Radio Advertising Bureau’s (RAB) 14th Annual Digital Benchmarking Report, produced by Borrell Associates Inc.
The report forecasts digital revenue growth accelerating slightly in 2026 to 9.5% (from 7.8% in 2025), pushing the total to $2.5 billion. In 2025, the average radio station generated $511,873 in digital revenue, while the average market cluster brought in $2,263,431. Digital accounted for 24.4% of total nationwide radio revenue.Digital growth has offset declines in traditional core radio advertising. Since 2022, digital revenue has compounded at 8.3% annually, while core radio ad sales have fallen 2.2%.
Industry leaders emphasize digital's evolution from a supplementary offering to radio's main engine for revenue stability and expansion.
- Mike Hulvey, RAB president and CEO: Advertisers increasingly value radio’s digital tools as part of its marketing toolbox, with digitally savvy marketers seeking to reach customers across platforms.
- Gordon Borrell, Borrell Associates CEO: With three-quarters of radio buyers not yet using stations’ digital products, major growth remains ahead for those proving a combined radio-plus-digital approach delivers superior results.
- Jimshade Chaudhari, Marketron CEO: Top performers focus on advertiser results through operational discipline and scalable integrated campaigns, not just products.Digital success is spreading more evenly across stations, though the top 5% of clusters still generate 3–4 times more digital revenue than averages in comparable markets. Strong performers train sales teams frequently, mandate digital inclusion in pitches, and excel in video and streaming.
The report notes a shift in local advertising: Local businesses now employ far more in-house marketing professionals than a dozen years ago—three times as many decision-makers— and these marketers are more experienced. Local advertisers still prize radio’s branding and ROI but often find it hard to measure, driving budgets toward accountable options like streaming audio/video and digitally trackable campaigns that blend radio’s strengths with measurability.
AI tools are seeing rapid adoption in radio sales for better prospecting and client communication efficiency, though concerns persist that AI media recommendations could bypass radio without stronger digital positioning and measurement.
Overall, the findings position digital as radio’s primary growth driver, with substantial untapped potential for stations that execute integrated strategies effectively.