Editor’s Note:
I got a call yesterday from someone questioning the validity of a recent report claiming that 90% of Black Millennials still get their news and information from radio. I’m not sure where the news and information part came from. Read and draw your own conclusions.
How Radio Is Doing in 2025 as a Business
In 2025, radio is still alive—but it’s facing some of the biggest challenges in its history. Once a dominant force in media and advertising, the traditional radio business is being tested by shifting technology, evolving audience behavior, and intense competition from digital platforms. While some stations are adapting and finding new life, others are struggling to keep the lights on. Here’s a breakdown of how commercial radio is doing this year from a business perspective.
1. Ad Revenue Is Flat or Declining
Traditional AM/FM ad revenue continues to decline. While digital ad revenue is growing for companies that have embraced streaming, podcasting, and social content, it hasn’t fully replaced the losses from traditional spots. Major advertisers now prefer platforms that offer detailed analytics, targeting, and real-time tracking—areas where radio still lags.
Revenue received a temporary lift from political advertising during the 2024 election year, but in 2025 that boost has faded, leaving many stations scrambling to close the gap.
2. Station Valuations Are Dropping
The value of radio stations, especially in smaller markets, has dropped significantly. There are fewer buyers in the marketplace, and sales often happen at reduced prices. In many cases, stations are being sold not for their brand, but for their tower real estate or translator frequencies.
Many station owners are bundling multiple properties together in order to find a buyer, and some are exiting the business entirely.
3. Consolidation Is Still Happening, But It’s Defensive
Big radio groups are still consolidating, but not as a strategy to expand—instead, it’s about survival. Companies are cutting costs by syndicating more shows, replacing live talent with automation, and centralizing operations.
As a result, local programming is disappearing in many markets. Listeners are increasingly hearing the same voices and shows across multiple cities, which erodes radio’s historical strength: local connection.
4. Audience Reach Is Strong, But Engagement Is Weak
According to Nielsen, over 80% of U.S. adults still listen to AM/FM radio weekly. However, that number doesn’t tell the whole story. Time spent listening is down, especially among younger demographics. Many of today’s listeners only tune in passively—most commonly during commutes.
Younger listeners (ages 18–34) are turning to Spotify, Apple Music, YouTube, and TikTok for music and content. For them, radio simply isn’t a daily habit anymore.
5. The Winners Are Going Digital
Some radio groups are finding success by evolving beyond the airwaves. These forward-thinking operators are building digital-first brands—investing in podcasting, short-form video, newsletters, and social media to connect with their audiences in new ways.
Stations that treat themselves as content brands instead of just broadcast outlets are attracting new listeners and advertisers. Those that remain focused only on traditional programming are falling behind.
6. Layoffs, Closures, and Hiring Freezes
Staff cuts continue across the industry. Following Audacy’s bankruptcy filing in 2024, other major groups like iHeartMedia and Cumulus are in ongoing restructuring mode. Layoffs, hiring freezes, and the shuttering of local newsrooms have become the norm.
Meanwhile, talent and producers are increasingly leaving the industry to launch their own platforms via YouTube, Substack, Patreon, or podcasting—where they can retain creative control and ownership.
7. Niche Formats Are Still Performing
Despite the challenges, not all segments of radio are in decline. Niche and community-focused formats—such as Black radio, Spanish-language radio, gospel, and regional talk—continue to attract loyal audiences and generate steady revenue, especially from local advertisers.
Stations that are deeply rooted in their communities and offer unique cultural value are holding on and, in some cases, thriving.
Final Word
Radio in 2025 is no longer the growth powerhouse it once was. It’s a legacy medium in the middle of a transformation. The stations and ownership groups that recognize this—and invest in multiplatform storytelling, digital content, and local relevance—have a path forward.
For those clinging to the old model, the road ahead will only get harder.
