Digital advertising revenue reached $2.3 billion in 2025, accounting for one-quarter of all radio industry advertising revenue and stabilizing total industry sales, according to RAB’s 14th Annual Digital Benchmarking Report, produced by Borrell Associates Inc.
Borrell forecasts digital revenue will grow slightly faster this year – 9.5% versus 7.8% in 2025 – reaching $2.5 billion. The average station generated $511,873 in digital revenue in 2025, and the average market cluster made $2,263,431. Digital sales accounted for 24.4% of total revenue nationwide, the report found.
“Advertisers are recognizing the digital services and products that exist as part of broadcast radio’s marketing toolbox and are taking advantage of it,” commented Mike Hulvey, president and chief executive officer, RAB.
The report finds that strong and sustained digital growth has largely offset declines in core radio advertising. Since 2022, digital revenue has grown at a compound annual rate of 8.3%, while core radio advertising has declined 2.2%.
“Digital has moved from being a nice add-on to a primary growth engine,” said Gordon Borrell, chief executive officer of Borrell Associates.
The benchmarking data show that the top 5% of radio clusters made three to four times more digital revenue than the average cluster in similar-sized markets. Importantly, however, digital success is becoming more evenly distributed.
The report also highlights a major shift in the local advertising marketplace in the form of local businesses employing far more in-house marketing professionals than ever.
Local advertisers continue to value radio’s branding power and return on investment, though many view it as difficult to measure. As a result, budgets are flowing toward media that combine radio’s branding with accountability—particularly streaming audio, streaming video, and digitally measurable campaigns.
Radio managers overwhelmingly cite sales training as the most important driver of digital revenue growth. Stations that significantly outperform peers tend to train more frequently, require digital products to be included in sales pitches and have more sales success in video and streaming products.
The report finds rapid adoption of artificial intelligence tools within radio sales organizations, with most managers reporting improved efficiency in prospecting and client communications.
Borrell’s 14th Annual Benchmarking Report is based on proprietary ad revenue data from nearly 3,800 radio stations, surveys, and detailed market-level digital revenue estimates across 513 U.S. markets. The full report is available at RAB.com.