In a landmark year for the radio industry, digital advertising revenues reached $2.1 billion in 2024, making up nearly a quarter of the average radio station’s total income. This figure comes from the 13th annual digital benchmarking report by RAB and Borrell Associates Inc, sponsored by Marketron.

RAB president and CEO Mike Hulvey expressed pride in the report’s contribution to the industry, stating, “We are proud of our continued commitment to provide these important insights for the radio industry. There are many revenue opportunities for broadcast radio companies and their sellers. As radio continues to diversify and strengthen its services portfolio, revenue gains are possible above broadcast radio advertising.”

The report indicates significant growth potential within the digital domain, projecting an increase of $206 million in digital sales for 2025, a 9.7% rise from the previous year. Notably, streaming video has now surpassed audio as the leading digital product for radio.

Jimshade Chaudhari, CEO of Marketron, highlighted the importance of local advertising: “This report delivers essential insights for radio broadcasters, highlighting the growing role of digital in driving revenue and advertisers’ results, strengthening local advertising. We’re optimistic that local businesses are investing more of their dollars with radio companies and are committed to helping stations evolve, compete, and turn growth into lasting profitability.”

Gordon Borrell, CEO of Borrell Associates, remarked on the enduring impact of digital strategies adopted during the 2020 pandemic: “We’re still seeing positive effects from when radio stations doubled down on digital initiatives. Stations are embracing digital solutions, training sales teams, and adopting multiplatform strategies to compete in an evolving advertising landscape.”

The report also sheds light on the increasing integration of digital strategies in radio sales, with a focus on social media, search engine marketing (SEM), and streaming video as primary areas of investment. Despite the optimism, challenges such as a lack of digital sales expertise persist, prompting many stations to enhance training and adjust compensation models to foster digital-first sales approaches.

With stiff competition from other media platforms, the report encourages radio stations to reassess their digital strategies. It highlights the substantial growth opportunities, noting that two-thirds of local advertisers have not yet engaged with digital products from radio stations.

For more detailed insights and to access the full report, a live webinar will be presented by RAB and Gordon Borrell, free for RAB members and survey participants, on February 19 at noon CT. To register for the live presentation, click here.