The 2025 Radio Revenue Outlook

Spending in this category will contract for radio but grow for digital. Advertising will attempt to support consumers worrying about their financial future. An aging population is also seeing the first Gen Xers heading toward retirement. Younger generations often have high debt and fear for their financial security, which means they are also looking for guidance.

This industry is all about trust, so radio spots can be effective here since listeners see radio as a “trust halo.” Digital will be critical, too, in targeting very specific demographics like homeowners.

Keys to winning ad dollars from finance and insurance companies:

• Emphasize the “trust halo” associated with radio.
• Describe how you can build an audience with digital targeting to reach specific groups.
• Offer creative concepts that include social proof to cultivate more trust.

Restaurants have three categories: QSRs, full-service and special restaurants. Diners will also be fickle in 2025 as they concentrate on value. If this doesn’t align with their discretionary spending, they’ll stay home. Expect local restaurants to wage customer wars, and that’s good news for advertising.

They’ll up their investment in local advertising to lure consumers with lower prices. It’s what they have to compete on in 2025, considering consumers’ complaints about food costs. They’ll also need support in hiring since these are high-churn positions.

Keys to winning ad dollars from restaurants:

• Demonstrate how you help with both of their needs – new customers and workers.
• Guide them on how to use different geofencing strategies to entice diners.
• Come to the table with creativity, like using National Day campaigns on social media.

Grocery stores have also been the object of customer ire as prices hit new highs. These businesses have trust to rebuild. Their digital strategy must be omnichannel, with messaging that speaks to lowered prices, special deals through their loyalty programs and pickup and delivery offerings, which remain popular. Radio spots that remind them of these benefits will be critical to a holistic communication campaign.

Keys to winning ad dollars from grocery stores:

• Highlight ways that digital can help them reach specific households (e.g., targeting by language).
• Make OTT/CTV ads a pivotal part of your pitch, as they deliver better ROI than traditional TV spots.
• Bring ideas that help them gain market share from other grocers or dollar stores.

Hospitals and health care face obstacles that advertising can address. They need more employees and patients. Many hospitals have begun to see patients as consumers and have been adapting marketing as such. While spending is decreasing, these challenges still persist and need advertising solutions.

Keys to winning ad dollars from hospitals:

• Propose advertising that helps health care with both its needs – staffing and patient acquisition.
• Focus on campaigns that address common fears or issues for patients, such as accessibility.
• Showcase the people behind the care to develop trust for potential employees and patients.

Retail has always been a radio advertiser, looking to reach broad audiences through proven programming. That investment will slightly dip, as the industry looks to capture the attention of price-sensitive consumers who are all out of loyalty sentiment. Targeted digital helps them do this.

Their ad messaging will be all about deals and promotions, and they won’t wait until the fourth quarter to roll out the best ones.

Keys to winning ad dollars from retail:

• Recommend competitive digital ad tactics like geofencing and SEM (search engine marketing).
• Suggest a 12-month campaign that refreshes with new promotions monthly.
• Explain how retailers need diverse channels for advertising that highlight differentiators.

The car buying experience has been unique in the past few years. First, inventory was low due to chip shortages. Once manufacturers made this up, interest rates kept drivers in their cars longer. As interest rates decrease, so do promotions and incentives.

In 2025, new car dealers could see a lot more activity for those holding out for a great deal. They can achieve this with targeted and specific digital tactics to personalize offers as much as possible.

Keys to winning ad dollars from automotive:

• Tackle the dealership’s unique circumstances around selling, such as aging inventory or electric vehicles.
• Build campaigns around more than sales; service, rentals and parts are all big money-makers for dealers.
• Call out OTT/CTV as a better channel for engagement and action over traditional TV spots.

Real estate has always been volatile, but 2025 could see some turnaround if interest rates dip lower. However, don’t expect this to impact mortgage rates immediately. Affordable housing seems out of reach to many. Others want to downsize or expand but haven’t been motivated. This could all reach a head in 2025. Even if buying and selling doesn’t heat up, the rental market will continue to experience high demand.

Keys to winning ad dollars from real estate:

• Propose new ad formats they haven’t previously used to capture digital house hunters, like CTV/OTT and streaming audio.
• Highlight their niche as a buyer’s or seller’s agent or someone who specializes in rentals or relocation.
• Address the challenges of home buying head-on with honest, genuine ad campaigns.

Law firms are repeat local media ad buyers. They always need new clients, so they never stop advertising. They’ve historically been traditional media buyers of radio, TV, print, billboards and direct mail. The landscape, however, is experiencing a greater digital transformation. Consumers seeking legal help are more likely to head online. As for their TV presence, many are moving those dollars to CTV/OTT since they can target and measure it.

Keys to winning ad dollars from legal services:

• Advise of changing consumer preferences that require a mix of OTA and digital tactics to achieve their new customer goals.
• Advocate for unique SEM campaigns that answer people’s top questions about legal representation.
• Promote re-engagement through retargeting, as many first-time website visitors aren’t ready to commit.