Borrell Associates has revised its revenue forecasts for a variety of media, including AM/FM Radio, and the picture looks especially bright in several areas.
During a Tuesday webinar, the company shared that it was adjusting projections for Out of Home, streaming video/over-the-top streaming, and streaming audio/podcasting by several hundred million dollars in some cases, while upping the forecast by billions in others.
In the Out of Home advertising category, Borrell Associates adjusted its forecast from being between $5.5 to $6 billion between 2025 and 2028 to rising to $6.5 billion by 2029.
Meanwhile, the streaming video and OTT will now see nearly $35 billion in 2029, up from the just under $30 billion projected by 2028. The 2025 project was scheduled for just under $25 billion, which has now been raised to more roughly $27 billion.
Streaming audio/podcasting saw a sharp increase in its forecasting. The previous projections from Borrell Associates showed that the industry would see a rising revenue increase from $1.3 billion in 2025 to over $1.5 billion in 2028.
The new projection shows that figure rising from $1.3 billion in 2025 to just under $2 billion in 2029.
AM/FM radio was the only medium that was projected to see a revenue decrease. That decrease, however, has been revised to be less steep than originally believed.
While the medium was originally expected to see $6.5 billion in total advertising in 2025, which rivals the lows it saw in 2020 during the COVID-19 pandemic, the drop-off in later years has decreased. Originally forecast to drop to $6 billion by 2028, the new projections show that the revenue is leveling out and remaining at roughly $6.5 billion through 2029.
In 2025, the new projections show $7 billion in revenue for the AM/FM Radio industry.
Corey Elliott, the Executive Vice President of Local Market Intelligence at Borrell Associates, shared that the forecast for radio has changed because of the work being done by the medium’s sellers and sales leaders.
“It’s still declining, but at a slower rate,” Elliott said. “We believe that’s because radio is doing a good job bundling digital and radio sales with community-focused advertisers. That’s the reason radio isn’t falling off a cliff. They’re working hard out there — God bless them.”
Another interesting data point shared by Borrell Associates was that many marketers question how they have applied their advertising budget.
41% shared that they believe they are “spending an appropriate amount” with their marketing budge, while 59% responded they are unsure. 30% estimated that they were “probably understanding”, with an addition 14% stating they were “probably overspending”, with 15% responding by saying they didn’t know whether they were overspending, underspending, or spending the correct amount.
Local Advertisers also believed that search engine marketing provided the most effective advertising platform. 51% called it either very or extremely effective, while 48% said social media met the same threshold. Streaming video/OTT was at 44%, while Cable TV and Broadcast TV each rested at 35%, respectively. AM/FM Radio was last in the rankings, with only 34% saying they felt the medium was a very or extremely effective use of their advertising budgets.
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