Despite competition from visual media content, FM radio channels in India have managed to retain an ad share of 2.3 per cent in 2024, said Madison world in a report.
While analyst reports forecast radio to continue holding its ground in future as well, innovation in content may help radio’s survival, experts told businessline.
For the last four years the radio segment’s ad revenue share has remained constant at around 2 per cent, after a 43 per cent drop during Covid-19 to ₹1,270 crores. In 2024, it increased to ₹2,462 crores, said Madison World.
“The rate of growth is good at 8 per cent, but not good enough to beat the overall market growth of 9 per cent. In a way you could argue that digital radio is bound to replace traditional radio. Nevertheless, a growth rate of 8 per cent in a digital dominated world is quite creditable,” said Madison in a report.
In terms of ad volume, radio grew by 4 per cent year-on-year in 2024, indicating a slowdown in growth after an 18 per cent jump between 2022 and 2023.
Real Estate and home improvement remain the largest contributors to ad revenue, accounting for 15 per cent of total revenue in 2024.
FMCG remained stable at 12 per cent of the total contribution, while the auto sector saw a strong growth of 11 per cent and maintained its 11 per cent share of total revenue.
Despite the positives, Group M still expects radio’s ad revenue to fall in 2025 to ₹2,009 crore. It also pointed out that India remains one of the few countries where traditional mediums like radio and print continue to show positive growth.
According to Lloyd Mathias, business strategist and Independent Director of Hindustan Times’ Fever FM, traditional mediums are under pressure to keep up with digital. However, radio has the potential to cash in on passive consumption.
“Radio can be consumed passively, which means you can ‘listen’ to the radio, even when driving, commuting, jogging etc.,” said Mathias, adding that growing interest in podcasts may benefit radio.
“So, while growth in ad revenue may continue to be difficult for radio, innovative content and formats, could help, arrest the slide,” he said.
Private FM radio channels have been allowed to broadcast news bulletins from state-owned All India Radio in an unaltered form.
The government is looking to expand radio coverage to more cities through the Phase III FM Radio Policy launched last year.
