As marketers tighten ad budgets heading into 2025, Nielsen’s new Annual Marketing Report shows traditional media channels like broadcast radio and emerging digital audio platforms play a vital role, especially in industries that value reach, trust, and storytelling.
Radio Delivers High ROI - Despite Perception Gaps
AM/FM radio ranks 4th globally for return on investment, outperforming many digital formats often favoured by marketers.Despite these strong results, radio is often under utilised due to persistent misperceptions about its effectiveness and relevance—especially among marketers focused narrowly on digital metrics.Radio continues to deliver especially strong results in mid- to lower-funnel strategies, including driving consideration, brand recall, and response.Nielsen's ROI data suggests marketers who sideline radio may be leaving efficiency and performance on the table.
Traditional Media, Including Radio Remain Essential to Balanced Plans
Marketers are rebalancing media strategies—returning to traditional media like radio and TV to offset rising costs and fragmentation in digital.In the U.S., radio and TV still account for 56% of total ad spend, underscoring the continued relevance of high-reach, trusted media.Radio’s broad accessibility, local relevance, and consistency of audience delivery make it an especially resilient channel across verticals like retail, automotive, government, and FMCG.
Streaming Audio, and Podcasts Show Steady Growth
6% of global marketers plan to increase their budgets for podcasts and streaming audio by over 50% in 2025.These formats offer high engagement and niche targeting—making them appealing to brands looking to personalise messaging while maintaining a trusted editorial environment.However, audio still trails behind search and video in terms of total share of ad spend—reflecting a lag between audience behaviour and advertiser allocation.
Radio Enhances Cross-Media Synergy
Radio is a proven multiplier in cross-channel campaigns—particularly when used to reinforce digital, social, or TV messaging.Nielsen data and third-party studies confirm that adding radio to a media mix:- Increases brand affinity
- Boosts purchase intent
- Improves cost-efficiency per reach point. As marketers tighten ad budgets heading into 2025, Nielsen’s new Annual Marketing Report shows traditional media channels like broadcast radio and emerging digital audio platforms continue to play a vital role, especially in industries that value reach, trust, and storytelling.
Audio Brand Lift studies consistently show that radio campaigns lead to higher intent to recommend, especially when brands tailor creative to the audio environment.
Measurement Challenges Continue to Limit Audio's visibility
- Only 32% of marketers globally measure their digital and traditional media spend in an integrated way.
- This lack of holistic measurement leads to undervaluation of radio’s role, particularly in upper-funnel brand-building and long-term ROI.
- Siloed teams, fragmented tech stacks, and absence of common cross-media currency hinder audio’s ability to claim its rightful place in attribution models.
- There is a clear industry call for independent, consistent audio measurement tools that can bridge gaps across linear, streaming, and podcast environments.
AI and Retail Media are Rising - But Audio Retains Unique Human Strengths
While AI tools are enhancing targeting, creative testing, and campaign optimisation, they can’t replicate radio’s emotional and social resonance.Retail Media Networks (RMNs) are gaining momentum, but introduce further complexity to planning and measurement—creating a renewed need for reliable, independent media like radio.Radio offers a low-waste, high-impact solution amid increasing scrutiny of media effectiveness and rising digital ad fraud concerns
The 2025 Nielsen report makes it clear: audio is uniquely positioned to thrive as advertisers demand both performance and connection. Traditional strengths—like trust, reach, and emotional storytelling—are more relevant than ever.
