Audio Ad Measurement Tools Sharpen ROI Picture

RADIO ONLINE | Tuesday, December 16, 2025 | 2:25pm CT

RAB Radio Matters

Matthew Schwartz, director of editorial and content development at ANA, outlines how new measurement tools are refining the value proposition of audio advertising in a Radio Matters blog post.

Audio advertising continues to gain momentum as improved analytics give marketers a clearer view of return on investment across AM/FM radio, streaming audio, and podcasts. Despite years of predictions about radio's decline, the medium has expanded alongside digital platforms, delivering broad reach at a lower cost per thousand than many linear and streaming options, even as audiences fragment.

Data from Edison Research shows AM/FM radio, including streaming, accounted for 66% of time spent with ad-supported audio among adults 25-54 in the first quarter of 2025. Podcasts captured 18%, streaming audio 12%, and satellite radio 3%. Radio's share ranged from 47% among adults 18-34 to 73% among listeners 35 and older.

Podcast advertising spending has also surged, tripling to $6 billion in the first half of 2025 compared with the same period in 2024, according to INCRMNTAL data cited by Emarketer.

Trust remains a core strength for audio. A Sounds Profitable study found consumers ranked podcasts and AM/FM radio tied for second in believability of ad claims at 48%, trailing only Twitch at 49%. The same research showed ad-supported podcasts outperforming social media platforms by an average of 10 percentage points in perceived credibility.

Industry leaders say audio's self-selected nature fosters deeper audience connections, benefiting advertisers through stronger affinity and engagement compared with algorithm-driven platforms.

Schwartz also highlights the importance of creative storytelling, citing a 2025 radio and podcast campaign for Carlitos Gardel Argentine Steakhouse in Los Angeles that used humor and narrative to build brand identity across SiriusXM, iHeart radio, and top podcasts. Success was measured not just in reach, but in listener recall and real-world response.

On the measurement front, radio faces a perception gap. Nielsen's 2025 Annual Marketing Report ranked AM/FM radio last in perceived effectiveness among CMOs, yet Nielsen data shows radio delivers the second-highest ROI at $2, behind only social media. Industry executives argue improved attribution tools are helping close that gap.

Executives at RAB, Cumulus Media | Westwood One, and iHeartMedia say these changes strengthen marketing mix modeling and better reflect radio's true impact. Improved data, paired with strong creative, positions audio as a more measurable and competitive part of modern media plans.

Read the full blog post here.