Digital Ads Reach $2.3 Billion, Stabilizing Radio Revenue

RADIO ONLINE | Monday, February 9, 2026 | 12:30pm CT

Radio Advertising Bureau (RAB)

Digital advertising revenue totaled $2.3 billion in 2025, accounting for nearly one-quarter of all radio industry ad sales and helping stabilize overall revenue, according to the 14th Annual Digital Benchmarking Report from Radio Advertising Bureau (RAB), produced by Borrell Associates Inc.

The report found digital sales represented 24.4% of total radio revenue nationwide last year. On average, individual stations generated $511,873 in digital revenue in 2025, while the typical market cluster produced $2.26 million.

Borrell forecasts digital revenue will continue to outpace prior growth, rising 9.5% this year to approximately $2.5 billion, compared with 7.8% growth in 2025. Since 2022, digital revenue has increased at a compound annual rate of 8.3%, largely offsetting a 2.2% decline in core radio advertising over the same period.

RAB President and CEO Mike Hulvey said advertisers increasingly view digital offerings as a core part of radio's marketing mix, reflecting broader shifts in how marketers reach audiences across platforms.

Borrell Associates CEO Gordon Borrell said digital has evolved from a supplemental product into a primary growth engine for radio, noting that roughly three-quarters of radio advertisers have yet to adopt station digital products -- suggesting room for continued expansion.

The report also showed significant performance gaps among broadcasters. The top 5% of radio clusters generated three to four times more digital revenue than similarly sized peers, though results are becoming more evenly distributed as more stations refine their digital strategies.

According to Marketron CEO Jimshade Chaudhari, stations seeing the strongest results are prioritizing advertiser outcomes over individual products and investing in the operational discipline and technology needed to deliver integrated campaigns at scale.

The study highlights changes in the local advertising landscape as well. Local businesses now employ significantly more in-house marketing professionals than sales representatives, a reversal from a decade ago. While advertisers continue to value radio's branding impact, budgets are increasingly shifting toward channels that combine branding with measurable performance, including streaming audio, streaming video and other digital campaigns.

Radio managers cited sales training as the most critical driver of digital revenue growth. Stations that outperform peers typically train sales teams more frequently, require digital products in proposals, and see stronger performance in video and streaming offerings.

The report also notes rapid adoption of artificial intelligence tools within radio sales organizations, improving efficiency in prospecting and client communications. However, many managers expressed concern that AI-driven media recommendations could disadvantage radio unless stations continue to strengthen their digital positioning and measurement capabilities.