AM/FM radio continues to deliver a strong return on investment for advertisers, according to the latest Audio Today 2026 report from Nielsen. The data reveals that radio provides a weighted return of $2.00 for every dollar spent, outperforming video, television, and connected TV. Only social media, at $2.22, ranks higher in return.
Despite these figures, a significant disconnect persists between actual performance and marketer perception. Nielsen noted that 54% of marketers surveyed do not view radio as an effective channel, leading to consistent underinvestment. Many brands prioritize digital media for its perceived ease of measurement rather than its actual returns.
The study further emphasizes the dominance of radio in the automotive environment. According to Edison Research, AM/FM radio captures more than 80% of all ad-supported audio time in vehicles. This is a critical metric for local advertisers, as Nielsen data shows 74% of out-of-home listening during commute times occurs in the car, placing ads near the point of purchase.
Nielsen also found that radio reaches 89% of Americans aged 18 to 34 monthly, a figure that exceeds the reach of smartphones and live television in that demographic. When combined with podcasts, that reach climbs to over 94%. Nielsen suggests that the “perception gap” is costing advertisers by causing them to overlook one of the highest-performing channels available.