Radio to be on a roll this year?

Once a dominant force in media advertising, radio now finds itself at a crossroads. While the medium remains deeply entrenched in India's cultural and entertainment landscape, its share of advertising expenditure (ADEX) has steadily declined in recent years. What began during the pandemic-driven digital shift and changing consumer preferences has shown little sign of recovery. This is especially evident in traditional radio, which continues to struggle to maintain its foothold in an increasingly digital landscape.

According to industry reports, Radio AdEx is expected to witness an average growth rate of +1% in 2025. Meanwhile, the average market share for radio advertising is estimated at 1.4%, down from approximately 2% in 2024.

This average is derived from the Dentsu-e4m Digital Report 2025, Pitch Madison Advertising Report 2025, and GroupM TYNY 2025 Report. According to the Dentsu-e4m report, radio advertising in India held a 2% market share in 2024, with ad revenue at ?1,679 crore. However, in 2025, its market share is projected to decline to 1%.

The GroupM TYNY 2025 report forecasts a 1% decline in radio advertising, with ad revenue decreasing from ?2,029 crore in 2024 to ?2,009 crore in 2025, while market share drops from 1.3% to 1.2%.

In contrast, the Pitch Madison Advertising Report 2025 projects 9% growth in radio advertising, estimating ?2,700 crore in ad revenue while maintaining a 2% market share.

However, industry experts believe that radio continues to offer a premium advertising space to marketers. According to them, ad revenue from radio will see an uptick this year as brands increasingly recognize the value of the multi-platform approach.

Archana Kapoor, Founder of Radio Mewat and The Radio Festival said that radio is a good advertising space for brands targeting working professionals, business travellers, and affluent consumers. Kapoor pointed out that due to rapid urbanization and the growing trend of personal vehicle ownership, in-car radio listenership is on the rise.

She said, “Factors like reduced taxes on luxury cars, high-end electronics, and premium lifestyle products, coupled with increased discretionary spending in these categories, are likely to drive higher ad spending from brands in these segments. Urban markets, in particular, will see a surge in radio ad revenue as private stations capitalize on these economic shifts and the sustained appeal of in-car listening.”

While Kapoor emphasizes radio's appeal to premium audiences, Nisha Narayanan, Director and COO, of Red FM and Magic FM, highlights its role as an adaptable, multi-platform advertising solution.

“Radio is a resilient medium that seamlessly integrates with other advertising platforms, ensuring wider reach and deeper audience engagement. Its adaptability drives innovation and brings multimedia selling to the forefront. In today’s digital era, radio remains a powerful platform with both influencers and engaged audiences. This allows us to offer brands and advertisers an integrated solutions approach—blending radio, on-ground activations, events, branded content, and digital (social) for maximum impact,” she said.

Narayanan further added that radio is more than just FCT, it’s an experience-driven medium that thrives on creativity, storytelling, and immersive engagement. She believes that ad revenue will see a positive shift as brands increasingly recognize the value of the multi-platform approach, investing in holistic campaigns that maximize engagement and ROI.

Brands’ Perspective

Brands also continue to invest in radio AdEx leveraging their ability to connect with audiences.

Ashish Mishra, Chief Marketing Officer at Acko, said approx 9 to 10% of their overall marketing budget is allocated to radio. “We have partnered with Radio Mirchi and Red FM across all their major markets for the last 2 years and have seen some positive traction towards our business,” he said.

Mishra further said, “If you are using radio only to run your radio spots then you are not doing justice to the medium. A radio station can provide you with a lot more - strong brand integration opportunities, their RJs - who are almost mini influencers in each city, can help in educating about your brand, on-ground activations can help connect with local communities etc. At ACKO we have leveraged all of these and more.”

However, Girish Hingorani, Vice President - Marketing at Blue Star explained that for advertisers, especially in the consumer durables sector, radio is no longer an attractive opportunity. “It used to be at one point, but for durable companies, radio is now out of our radar,” he added.

Community radio struggles

While private radio stations explore new revenue models, community radio stations face greater challenges in sustaining their operations amid shifting market dynamics. Kapoor said that scenario is more challenging for community radio stations.

She added, “They face hurdles like economic downturns, reduced funding, and competition from digital platforms. To survive and thrive, community radios must innovate their revenue streams—exploring public-sector partnerships, social commerce initiatives, and hybrid content strategies that blend traditional broadcasting with digital outreach.”

Thus, in 2025, while private radio stations are poised to benefit from favourable economic trends, the resilience of community radio will depend on its ability to adapt and diversify.

Digital transformation

Just like its traditional counterparts - radio too has been hit by what is known as the ‘digital wave’. With the rise of digital streaming platforms and on-demand content, many people have moved away from traditional radio, opting instead for music apps, podcasts, and online radio services.

As per the Pitch Madison Advertising Report 2025, Indian radio stations are rapidly evolving beyond traditional FM inventory, integrating digital content to attract advertisers and expand their reach. Recognizing 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.

This was reiterated by Narayanan who said, “With entertainment, sports, and local infotainment at our core, we are a digitally active force, second to none in the media industry. Our shows, features, and content are widely available on digital audio platforms and are highly appreciated by audiences.”

She also highlighted that Red FM has embraced digital-first content, producing both fiction and non-fiction series, along with podcasts—many of which have trended on audio OTT platforms. Narayanan further added, “Radio has played a crucial role in popularizing non-Bollywood content through innovative shows like the ‘Podcast Hour’, which contributed significantly to the growth of audio OTTs in the post-COVID era.”

Kapoor further mentioned that as of now, the market is evolving, with both radio and podcasts coexisting, catering to diverse listener preferences. She mentioned that while digital radio, like DAB+, hasn't taken off due to infrastructure and cost barriers, FM radio stations are adapting by streaming online and exploring podcast-style content.

Regional Growth

Even as digital advertising platforms are set to dominate, radio remains a crucial player, especially in regional markets where it continues to thrive.

The dentsu-e4m Advertising Report 2025 stated that while radio continues to attract investments from regional advertisers, political campaigns, and local businesses, national brands are reallocating budgets to more targeted and measurable digital formats.

According to Ashit Kukian, CEO, Radio City, by adopting streaming, podcasts, mobile apps, and smart speakers, radio is expanding its digital presence and staying competitive. These innovations enable targeted, hyper-localized advertising, especially in Tier 2 and Tier 3 cities. Collaborations with digital platforms and brand partnerships further enhance engagement and localized messaging.

“When it comes to regional radio, the interest from advertisers has been growing steadily. With increasing disposable incomes and shifting consumer preferences, advertisers are drawn to regional radio for its ability to deliver customized messages to local markets. Regional radio offers advertisers flexibility with formats such as live reads, sponsored segments, and locally produced ads, providing an authentic connection with communities,” said Kukian.

He further mentioned that regional radio's cost-effectiveness and highly localized reach make it a powerful medium for businesses looking to engage specific audiences.

The PMAR report 2025 also mentioned that key sectors such as Auto, FMCG, Retail and Government bodies during assembly elections are expected to increase their spending on Radio, leveraging its hyperlocal influence.

Narayanan highlighted that sectors like Automobile, BFSI, and Real Estate have actively leveraged regional radio to engage hyperlocal consumers. She noted that while Retail has seen mixed results, with some segments experiencing strong regional traction, others remain cautious. Meanwhile, government spending surged in the second half of the year, post-general elections, providing a further boost to regional advertising.

Kukian further emphasized that regional radio's cost-effectiveness and highly localized reach make it a powerful medium for businesses aiming to engage specific audiences. Discussing brand collaborations for product sponsorships and branded content, he shared examples, “Example scenarios include a local restaurant chain promoting neighbourhood-specific deals, a regional retailer targeting specific demographics by choosing relevant stations, and a political candidate connecting with voters through radio interviews and ads.”

He concluded by stating that radio's adaptability to digital transformation and its strong position in regional markets continue to fuel its relevance in India’s advertising ecosystem. As the industry evolves, its ability to combine innovative digital strategies with its deep community connections positions it as a key player in reaching local, engaged audiences.