Radio listenership remains resilient even as the media landscape evolves — and the future is bright for radio and the advertisers who invest there.
That’s according to Ad Results Media (ARM), which says in its “2025 Radio Advertising Guide: Effectiveness, Statistics & More” that this year will see increasing integration with emerging technologies, cross-border potential, and AI-powered personalization.
The report says AM/FM advertising is a critical channel for marketers because of three key advantages: affordability, reach, and high return on investment (ROI) / return on ad spend (ROAS).
Not only is AM/FM’s cost of entry for marketers less than that of other broadcast mediums, radio beats the competition when it comes to reach. Last year, among listeners 18+, radio’s 84% reach puts it ahead of social networking on smartphones (78%), CTV (74%), and traditional TV (58%).
Among ad-supported audio, according to a recent study by Cumulus Media’s Westwood One, radio leads the way in terms of share of time spent, capturing 69% of listening time for adults 18+. That’s more than podcasts (19%) and ad-supported streaming (3% to 5%). Radio ads deliver incremental reach, typically around 14 points, Westwood One says.
But despite the fact that radio keeps racking up the score when it comes to key metrics, its power remains egregiously underrepresented in contemporary media plans.
“Today, radio is often such a small part of many national media investments that media mix modeling studies may not capture an accurate picture of radio due to ‘performance bounce,’” ARM says. “The media mix model favors larger media investments, creating a curve of variability that doesn’t reflect how consistently radio delivers on key KPIs.”
The numbers also point to radio’s synergy with digital, which can create a strong multiplier effect. Brands integrating radio in an omnichannel marketing mix have demonstrated increased efficiency overall.
“Radio is adapting to the increasingly digital landscape with offerings like hybrid radio, which combines traditional shortwave broadcasts with digital streaming; BBC, for example, now has a popular hybrid station. Additionally, advertisers may integrate interactive elements into their ads for use on smart speaker devices,” ARM says.
Brands are looking to enhance their global profiles and footprints, and radio adapts to different cultures and languages, ARM says, noting that the creation of localized campaigns for new markets can enhance profits and help brands become global players.
“Radio networks enable seamless entry into these markets in an impactful way with penetration even into hard-to-reach segments,” ARM says. “These global opportunities have never been more within reach thanks to generative AI. AI services like DeepL Voice, Transifex, and Bard are all powering linguistically nuanced and context-driven AI translation for audio ads and beyond.”
AI is now ubiquitous in all fashions of contemporary American life, and radio is no exception. ARM says AI-powered algorithms are creating a new era of tailored radio-listening experiences, with many stations leveraging AI to deliver personalized content across channels.
“Whether your brand’s goals are to increase web traffic or boost brand awareness, radio has the power to deliver… Radio is a quintessential listening option for people around the globe,” ARM says. “With its broad reach, affordability, and consistent performance, radio advertising will deliver in 2025 just as it has in previous decades.”