Radio tunes into 2025 with AI, experiential and Govt charting sector’s comeback

2024 was a good year for radio, backed by tech advancements, experiential innovations and government initiatives to attract advertiser interest towards AM and FM players.

From Mirchi’s acquisition of Gaana to MIB’s rollout of new private FM spots in more than 200 cities, radio players have slowly and gradually made a comeback in the ad revenue game, a fact supported by numbers.

In H1 of 2024, ad volumes were up by 3% compared to the corresponding period in 2023. Leading players like Radio City and Radio Mirchi (ENIL) witnessed a YoY revenue jump of 4.5% and 9% respectively in Q2-FY25.

Experiential initiatives also took off with players like Big FM partnering with Hockey India League 2024-25 to raise awareness for the sport and attract listeners to their medium. Red FM organised ‘South Side Story’ and is set to host the Riders Music Festival soon.

Furthermore, TRAI released a consultation paper to formulate the digital radio broadcasting policy and provide new opportunities to radio broadcasters as well as facilitate value-added services to listeners.

Fast forward to 2025

2025 is all about new beginnings, say industry players. Nisha Narayanan, COO & Director, Red FM & Magic FM shared, “The year starts with the auctions, new cities in play, and a renewed sense of determination, we’re gearing up for an exciting year.”

Ashit Kukian, Chief Executive Officer of· Music Broadcast Limited (RadioCity) believes that radio is expected to enhance its digital offerings, blending live broadcasts with streaming, podcasts, and interactive features to engage a wider, more diverse audience as listeners increasingly demand personalised, on-demand content

Technology advancements like AI and data analytics will enable deeper audience insights, helping radio stations deliver more targeted, relevant content to listeners while offering advertisers better ROI.

“Additionally, with sustainability and social responsibility becoming central to consumer preferences, radio networks will likely amplify community-driven campaigns and green initiatives,” he explained.

“As an audio medium, we are in the business of creating and generating content, and in the upcoming year, we aim to continue connecting with audiences, through audio, events, and digital innovations. It’s going to be a fiery start, and I can’t wait to see where this journey takes us,” Narayanan highlighted.

Abe Thomas, CEO - Reliance Broadcast Network (Big FM) explained that technology and AI have become powerful enablers in both programming and marketing. Many repetitive and recurring tasks are now being handled by AI, allowing them to be completed faster and more efficiently.

This transformation has already begun, with AI playing a role in nearly every aspect of the radio business. From copywriting and ad creation to improving the quality of content, AI is deeply integrated into the industry's processes and will continue to be so, believes Thomas.

“AI will play an even more pivotal role in everything from content creation to analytics in 2025, from targeting to delivering more impactful consumer experience. A lot of interactive formats like gaming, e-commerce and social commerce will start to be part of a solution and then create deeper engagement,” he added.

Challenges of 2024 = Opportunities of 2025

In 2024, the radio industry encountered key challenges but also saw opportunities for growth and innovation.

“While monetising digital content presented a learning curve, it pushed the industry to explore new revenue streams and refine its strategies for a more diversified approach. The shift in consumer habits toward on-demand content provided radio with the chance to innovate, offering personalised experiences while maintaining its unique live programming appeal,” Kukian explained.

Narayanan added, “We’ve felt the hesitance from advertisers, especially mid-year and after the festive season. The delayed start to education created a ripple effect across the board. On top of that, dealing with existing licensing issues continues to feel like a weight that the private radio industry is carrying.”

But while there were downs, a ray of positivity came in from the government announcing the auctions for new cities, as per her, even if it’s just a small one for now. The balancing act between growth and operational costs is real.

Lastly, the evolving regulatory landscape prompted radio networks to adapt, ensuring compliance while continuing to drive creativity and community-focused initiatives. These challenges have reinforced the industry’s resilience and its ability to evolve with changing times.

Rear view of 2024

2024 has been quite the ride for the radio industry according to broadcasters. On the bright side, stand-out campaigns, digital expansion, indie talent, hyper-local brand campaigns, UGC and interactivity, and phygital transformation helped players stay on top of the game.

In 2024, audiences increasingly sought content that speaks to their tastes, and radio networks focused on personalised programming to stay connected with listeners.

With the growing demand for seamless brand experiences, radio also moved beyond traditional advertising, integrating brands directly into content. This reflects a shift towards more organic and less intrusive advertising, where brands are seen as part of the conversation, enhancing consumer perception and encouraging long-term brand loyalty.

Moreover, events and experiences have played a significant role in keeping in touch with the audience. These physical touchpoints with listeners build deeper brand loyalty.

“Activations and events are getting huge traction from the advertisers. We're also seeing what is happening in live entertainment, the kind of interest that people have in the large ones. Similar things are getting reflected at a local and hyperlocal level,” said Thomas who noted that the top markets have changed.

“So the top markets where radio advertising is played out, are different from where radio advertising is generated. Generating continues to be in Delhi, Mumbai and Bangalore as they are the key markets, but Nagpur, Indore, Baroda, Surat, Pune, Lucknow, and Bhopal are where the ads are being played out. Hence, the top metros are not in the top 10 markets most of the time.”

Narayanan revealed that post-COVID, “We’ve all been in hustle mode, trying to recreate that pre-pandemic magic. 2024 began on a positive note with the election season boosting advertising revenue. But mid-year brought its share of challenges like post-election slowdowns, economic bumps, and a delayed education season, which made the advertisers cautious. And just when we thought Diwali might lift the mood, the post-festive dip slowed things down.”

On the other hand, Kukian mentioned the sector experienced a significant resurgence in 2024, driven by innovation, content diversification, and deeper audience engagement. Advertisers gradually returned to the medium, recognising radio’s unique ability to provide hyper-local reach combined with mass appeal.

He added, “The industry faced its share of headwinds, including shifts in advertiser budgets and competition from other digital mediums. Despite this, radio’s trustworthiness and intimacy remained its key strengths, ensuring it stayed relevant in a fast-evolving media ecosystem.”

All in all, the radio industry faced significant obstacles in 2024, but each one also offered chances for development and creativity. Additionally, 2025 is positioned for further innovation and expansion, with a particular emphasis on audience-centric tactics and digital transformation.