Radio AdEx to go close to Rs 2,700 crore: PMAR

The Indian radio industry has been a resilient player in the advertising landscape, maintaining its 2% market share despite the rapid rise of digital platforms. Over the last five years, the industry has shown steady progress, recovering from the steep decline it faced during the pandemic.

The Pitch Madison Advertising Report 2025 revealed that the medium dropped from Rs 2,260 crore to Rs 1,270 crore during Covid and then steadily increased from Rs 1,270 crore in 2020 to Rs 1,733 crore in 2021, Rs 2032 crore in 2022, to Rs 2,272 crore in 2023 and finally last year to Rs 2,462 crore.

The rate of growth turned out to be good for the year at 8%, but not good enough to beat the overall market growth of 9%. In a way one could argue that digital radio is bound to replace radio. Nevertheless, a growth rate of 8% in a digital dominated world is quite creditable, as per the report.

Volume growth quarter by quarter

In terms of ad volume, the year 2024 shows a modest overall growth of 4% compared to 2023, indicating a slowdown in growth momentum after the significant 18% jump between 2022 and 2023. Interestingly except for Q1, the remaining 3 quarters in 2024 saw advertising volumes that were largely consistent with 2023 levels, the report observed.

Q1 growth can be attributed to heightened advertising activity at the start of the year, driven by sectors such as education, retail and automotive.

In terms of ad revenue by each quarter, Q1 2024 generated Rs 630 crore, compared to Rs 562 crore in Q1 2023, marking a 12% growth. The growth aligns with the significant increase in ad volumes for Q1, as seen in the earlier table, where volume grew by 13%.

Q2 2024 recorded Rs 501 crore in revenue, compared to Rs 430 crore in Q2 2023, a 16% growth. This revenue growth coincides with Parliamentary elections, and increase in demand, as also a marginal increase in price.

Historically Q4 has always been a high revenue quarter and so it has been in 2024. It is likely that more advertisers chose Radio in Q4 compared to the more expensive TV, to maintain some presence.

Evolution

Indian radio stations are rapidly evolving beyond traditional FM inventory, integrating digital content to attract advertisers and expand their reach. Recognising the shift in audience preferences and the dominance of digital platforms, radio networks are leveraging streaming, social media and digital-first strategies to offer advertisers a more dynamic and engaging ecosystem.

“Radio continues to be a cost-effective and impactful advertising medium, especially in Tier 2 and Tier 3 cities,” stated the report.

Which categories are tuning into radio?

Despite the challenges posed by digital media, radio remains a cost-effective and impactful advertising medium, particularly in Tier 2 and Tier 3 cities. Key sectors such as automobile, FMCG, retail are expected to keep believing in its power. The medium’s ability to offer hyperlocal reach and strong audience engagement makes it a preferred choice for brands looking to connect with regional consumers.

Real Estate & Home Improvement maintained its position as the largest contributor, accounting for 15% of total revenue in 2024, reported PMAR. The category grew by 6%, adding Rs. 22 crores to the overall growth.

It further stated, “FMCG remained stable at 12% of the total contribution, growing by 5% and adding Rs 14 crore. The sector’s consistent performance reflects its reliance on radio to reach selective audiences for additional weightage.”

Auto saw a strong growth of 11%, contributing Rs 27 crore in absolute growth and maintaining its 11% share of total revenue.

Retail, BFSI, and Travel & Tourism saw modest growth of 6-9%, with Retail and BFSI maintaining their 7% and 9 contributions, respectively. Travel and Tourism, though a smaller category, grew by 7%, reflecting a revival in domestic and international travel demand.

Speaking of growth percentage, categories like Clothing/fashion/jewellery increased their spends on radio in 2024 by 18% followed by Auto (11%), Education (10%), BFSI (9%), E-commerce (8%), Travel & Tourism (7%).

What’s in store for 2025?

The Pitch-Madison report expects Radio to grow by another 9% in 2025, taking total Radio Adex close to Rs. 2,700 crore. Unfortunately, despite this growth Radio Adex will maintain just a 2% share. Key sectors like Auto, FMCG, Retail and Government bodies during assembly elections are expected to increase their spending on Radio, leveraging its hyperlocal influence.

By combining traditional reach with digital innovation, Radio is creating new opportunities for advertisers to connect with audiences in a more engaging, data-driven and interactive manner, giving a boost to Radio advertising in India.

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