Radio's Digital Revenue Hit $2.3 Billion in 2025, Becoming Primary Growth Engine

NEW YORK – February 9, 2026 – Digital advertising revenue reached $2.3 billion in 2025, accounting for one-quarter of all radio industry advertising revenue and stabilizing total industry sales, according to RAB’s 14th Annual Digital Benchmarking Report, produced by Borrell Associates Inc.

Borrell forecasts digital revenue will grow slightly faster this year – 9.5% versus 7.8% in 2025 – reaching $2.5 billion. The average station generated $511,873 in digital revenue in 2025, and the average market cluster made $2,263,431. Digital sales accounted for 24.4% of total revenue nationwide, the report found.

 “Advertisers are recognizing the digital services and products that exist as part of broadcast radio’s marketing toolbox and are taking advantage of it,” commented Mike Hulvey, president and chief executive officer, RAB.  “Today’s marketers are digitally savvy and understand the need to meet their customers wherever they are and across radio’s platforms,” added Hulvey.

The report finds that strong and sustained digital growth has largely offset declines in core radio advertising. Since 2022, digital revenue has grown at a compound annual rate of 8.3%, while core radio advertising has declined 2.2%.

“Digital has moved from being a nice add-on to a primary growth engine,” said Gordon Borrell, chief executive officer of Borrell Associates. “This is just the start. With three-fourths of radio buyers not yet taking advantage of a station’s digital products, substantial growth is ahead for stations that can demonstrate a radio-plus-digital package drives better results than radio alone.”

The benchmarking data show that the top 5% of radio clusters made three to four times more digital revenue than the average cluster in similar-sized markets. Importantly, however, digital success is becoming more evenly distributed, signaling that robust performance is increasingly achievable with the right strategy and execution.

“This report makes one thing clear: digital is now the primary driver of revenue stability and growth in radio. The leaders are not chasing products. They’re focused on delivering results for advertisers, supported by the operational discipline and technology required to execute integrated campaigns reliably at scale.” – Jimshade Chaudhari, chief executive officer, Marketron.

The report also highlights a major shift in the local advertising marketplace in the form of local businesses employing far more in-house marketing professionals than ever. A dozen years ago there were more ad-sales reps than marketing professionals in the U.S.; today, there are three times as many marketing decisionmakers at local businesses. And, the report found, those marketers are becoming more experienced at marketing.

Local advertisers continue to value radio’s branding power and return on investment, though many view it as difficult to measure. As a result, budgets are flowing toward media that combine radio’s branding with accountability—particularly streaming audio, streaming video, and digitally measurable campaigns.

Radio managers overwhelmingly cite sales training as the most important driver of digital revenue growth. Stations that significantly outperform peers tend to train more frequently, require digital products to be included in sales pitches and have more sales success in video and streaming products.

AI Gains Rapid Adoption—With Caution

The report finds rapid adoption of artificial intelligence tools within radio sales organizations, with most managers reporting improved efficiency in prospecting and client communications. At the same time, many express concern that AI-driven media recommendations may not favor radio unless stations strengthen their digital positioning and measurement capabilities.

About the Report

Borrell’s 14th Annual Benchmarking Report is based on proprietary ad revenue data from nearly 3,800 radio stations, surveys of 406 radio advertisers, 126 local ad agencies, and 242 radio managers, and detailed market-level digital revenue estimates across 513 U.S. markets.

The full report is available to RAB members and industry stakeholders.

The report provides comprehensive benchmarks, insights, and forecasts for radio’s digital future. For more information and access to the full report, visit RAB.com.

About RAB

RAB is the not-for-profit trade association dedicated to advancing America's radio broadcasters. In support of our members, RAB focuses on driving revenue by promoting radio in all its forms. We enhance professional skills with services, resources and continuous training opportunities while supporting programs to attract and retain talent across the industry.

About Borrell Associates

Borrell Associates is the hands-down expert on local advertising. Borrell is the premiere provider of advertising intelligence, forecasting, and strategic insights – right down to the market level. For 25 years, Borrell has tracked local advertising trends across digital and traditional media to help organizations, including local media, ad agencies, large Internet pureplay companies, and small businesses grow revenue and remain competitive. For more information, visit www.borrellassociates.com or contact info@borrellassociates.com.

About Marketron

With more than 50 years of experience serving the broadcast industry, Marketron provides the mission-critical platform and services broadcasters rely on to run their advertising operations, spanning traffic, billing, payments, and digital advertising in one connected system. Trusted by over 7,000 media organizations worldwide, Marketron manages approximately $7 billion in annual U.S. advertising revenue and helps customers run leaner operations and scale without added complexity. Marketron is owned by Diversis Capital. Learn more at Marketron.com.

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