New data reveals how American advertising clients are spending their media budget and the potential of digital to increase revenue for radio.

At the NABShow 2025, Gordon Borrell of Borrell Associates and Mike Hulvey from RAB shared, RAB’s annual digital benchmarking report on radio digital sales based on local business, radio advertisers and radio sales managers.

 “The data highlights show that digital revenue grew 10.2% to $2.1 billion. This accounts for 23.7% of total ad revenue, “ said Gordon. “28% of radio advertisers are buying digital and sales managers are signalling a need for more digital training.”

Here is Gordon’s summary of the report:

1 . Largest sources of digital revenue are targeted banners, 27% followed by audience extension adds, 18%. Note that 58% are buying something new, so the more digital promos you have the better. Add banner adds to digital video campaign.

2. Advertisers believe that radio is more digitally market savvy. They believe that radio stations have significant digital expertise.

3. Digital has bolstered radio net revenue. Revenue growth is flat in radio but growing in digital.

4. Radio’s digital revenue growth was double digits during the pandemic but has slipped down to single digits. This shows the potential for growth.

5. The potential for digital growth is achievable, it’s about implementing best practice solutions in sales.

Panel member Linnae Young from Salem Media said, ” We’re still in the same business of finding solutions but our tool box has changed. We’ve added digital experts to our business. Clients want to be shown what’s moving more trucks so we need to demonstrate more than click through rates.”

“Going forward, sales staff need to be experts in the digital and marketing space,” said Gordon. “They need to cut through the confusion that clients may feel and provide solutions simply. Training staff is key.”

Finally Gordon suggested that broadcast companies need to follow Netflix and invest 10% of their income in Research & Development.

“You have to invest in the future and your people,” he said. “An established local sales relationship leads to greater success in sales. If your people can suggest the best digital tools to work on a client focused solution this will enhance their radio advertising experience.”