Traditional Radio Advertising Global Market Opportunities and Strategies to 2032

This report describes and explains the traditional radio advertising market and covers 2017-2022, termed the historic period, and 2022-2027, 2032F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global traditional radio advertising market reached a value of nearly $23.25 billion in 2022, having grown at a compound annual growth rate (CAGR) of -0.5% since 2017. The market is expected to grow from $23.25 billion in 2022 to $25.04 billion in 2027 at a rate of 1.5%. The market is then expected to grow at a CAGR of 1.1% from 2027 and reach $26.47 billion in 2032.

Growth in the historic period resulted from the rising adoption of digital radio, growing urbanization and increasing infrastructure development. Factors that negatively affected growth in the historic period were the decline in radio Ad spending.

Going forward, rising demand for cost-effective advertising routes, growing number of radio listeners and increase in advertising spending across industries will drive the growth. Factors that could hinder the growth of the traditional radio advertising market in the future include stringent laws and regulations.

The traditional radio advertising market is segmented type into terrestrial radio broadcast advertising and satellite radio advertising. The terrestrial radio broadcast advertising market was the largest segment of the traditional radio advertising market segmented by type, accounting for 73.9% or $17.19 billion of the total in 2022. Going forward, the satellite radio advertising segment is expected to be the fastest growing segment in the traditional radio advertising market segmented by type, at a CAGR of 2.1% during 2022-2027.

The traditional radio advertising market is segmented by enterprise size into large enterprise and small and medium enterprise. The small and medium enterprise market was the largest segment of the traditional radio advertising market segmented by enterprise size, accounting for 76.5% or $17.79 billion of the total in 2022. Going forward, the small and medium enterprise segment is expected to be the fastest growing segment in the traditional radio advertising market segmented by enterprise size, at a CAGR of 1.54% during 2022-2027.

The traditional radio advertising market is segmented by industry vertical into automotive, financial services, media and entertainment, fast-moving consumer goods (FCMG), retail, real estate, education and other industry verticals. The other industry verticals market was the largest segment of the seed market segmented by industry vertical, accounting for 18.4% or $4.28 billion of the total in 2022. Going forward, the media and entertainment segment is expected to be the fastest growing segment in the traditional radio advertising market segmented by industry vertical, at a CAGR of 1.9% during 2022-2027.

North America was the largest region in the traditional radio advertising market, accounting for 44.4% or $10.33 billion of the total in 2022. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the traditional radio advertising market will be Asia Pacific and South America where growth will be at CAGRs of 1.9% and 1.8% respectively. These will be followed by Middle East and Africa where the markets are expected to grow at CAGRs of 1.6% and 1.5% respectively.

The global traditional radio advertising market is fairly fragmented, with a few large players operating in the market. The top ten competitors in the market made up to 13.97% of the total market in 2022. The market concentration can be attributed to the presence of large number of players in different geographies. Cumulus Media Inc was the largest competitor with a 4.1% share of the market, followed by Hubbard Broadcasting Inc with 1.8%, iHeartMedia Inc with 1.3%, Cox Media Group with 1.2%, Entercom Communications Corp with 1.1%, National Public Radio Inc with 1.0%, Univision with 1.0%, Townsquare Media Inc with 1.0%, Alpha Media with 0.8% and Urban One, Inc with 0.8%.

The top opportunities in the traditional radio advertising market segmented by type will arise in the terrestrial radio broadcast advertising segment, which will gain $1.13 billion of global annual sales by 2027. The top opportunities in the traditional radio advertising market segmented by enterprise size will arise in the small and medium enterprise segment, which will gain $1.41 billion of global annual sales by 2027. The top opportunities in the traditional radio advertising market segmented by industry vertical will arise in the Other industry verticals segment, which will gain $387.1 million of global annual sales by 2027. The traditional radio advertising market size will gain the most in USA at $797.1 million.

Market-trend-based strategies for the traditional radio advertising market include focus on digital radio for improved communications, use of AI powered analytics in radio advertising, technology developments in antenna-integrated radio (AIR) and strategic partnerships and collaborations among market players.

Player-adopted strategies in the traditional radio advertising market include focus on enhancing business operations through new approaches in advertisements, expanding business capabilities through establishing new advertising organizations, strengthening operational capabilities and geographic expansion through strategic partnerships and collaborations and enhancing business operations through new mergers and acquisitions.

To take advantage of the opportunities, the analyst recommends the traditional radio advertising companies to focus on digital radio for improved communications, use AI powered analytics in radio advertising, focus on technology developments in antenna-integrated radio (AIR), focus on fast-growing advertising types, expand in emerging markets, continue to focus on developed markets, focus on competitive pricing, focus on strategic partnerships and collaborations, participate in trade shows and events, continue to focus on B2B promotions and focus on fast-growing industry verticals.