Results from market intelligence researcher Advertiser Perceptions’ most recent survey of 300 executives from media agencies and brand marketers — conducted Jan. 2-10, 2025 — suggest greater confidence in the economy and more willingness to spend on advertising, including more spending on radio and all other audio media.
The monthly survey, conducted among execs involved in media brand selection decisions who will spend a minimum of $1 million on advertising over the next 12 months, found that the percentage of these execs expecting to increase ad spend on AM/FM radio over the next six months is up 77% vs. three years ago, vs. 19% for podcasts and 15% for audio streaming. The main takeaway is that agencies and marketers plan on spending more on all of the above.
“The growing cultural importance of podcasts has the potential to lift advertiser investment in all forms of audio advertising. Audio investment has been held back by budgetary constraints and an over emphasis on lower funnel formats,” Advertiser Perceptions VP of Business Intelligence and head of forecasting Eric Haggstrom says in Westwood One’s weekly blog. “These pressures should ease in 2025.”
The survey also finds that the more brands spend, the more likely they are to spend more on audio, with those spending $25,000+ more likely to up spending on AM/FM radio, podcasts, and audio streaming in 2025, vs. those spending under $25,000.
As to the economy itself, nearly half of marketers (47%) say it will grow in the next 12 months, more than doubling the 23% who felt that way two years ago. Additionally, 58% of brands spending $25,000+ expect growth, vs. 40% for brands spending less. Likewise, worries about inflation, supply chain disruptions, and interest rates are all down significantly.
“While increased tariffs on imported goods and regulatory uncertainty remain potential headwinds to the economy, advertisers are feeling bullish about the economy,” Haggstrom says. “Barring those issues, expect advertisers to increase budgets this year.”
That also includes recession fears, with Google searches for the word down 90% vs. highs seen in June 2022. “In 2022, the vast majority of economists and businesses expected a recession,” Cumulus Media/Westwood One Audio Active Group Chief Insights Officer Pierre Bouvard says. “These fears carried over into 2023 and 2024. These alarming forecasts caused national marketers to reduce and hold back ad budgets.”
As a result, more than half (51%) of the Advertiser Perceptions sample says the US GDP will impact their ad budgeting over the next 12 months, also up sharply from prior years. According to the survey, 37% of buy-side 2025 ad budgets are expected to increase in 2025 vs. last year, vs. the 29% who expected increased budgets for 2024 as of December 2023.
Even intention to launch new products hit its highest levels over the past five years, with three of four marketers saying they plan to do so in 2025, up from a 54% low in 2022.