"MediaTalk" host Mike Reynolds is joined by S&P Global Market Intelligence Kagan Principal Analyst Justin Nielson to discuss the resilience and challenges faced by AM/FM radio in the digital age.

Radio advertising remains predominantly local, with 80% of ad buys coming from local businesses, such as car dealerships and restaurants. Despite softness in the national ad market, local markets with vibrant economies continue to perform well. However, larger metro areas face stiff competition from streaming services and podcasts. To counteract this, companies like iHeart Media and Cumulus are expanding their digital offerings and leaning into live events to boost revenue.

On the regulatory front, the radio industry is advocating for the relaxation of local ownership caps, which limit the number of stations a company can own in a market. This could pave the way for strategic acquisitions and regional consolidation, similar to trends seen in the TV industry. Such changes could attract new investors and foster synergies across growing markets, particularly in the Southeast.

Overall, while radio faces challenges from digital competitors and technological shifts, its local focus and adaptability continue to make it a viable platform for advertisers and investors alike. As the industry navigates these changes, it remains a crucial part of the media landscape, offering unique opportunities for growth and innovation.

More S&P Global content:

Technology, Media, & Telecoms

Featured experts:

• Justin Nielson, principal analyst at S&P Global Market Intelligence Kagan.

Credits:

• Host/Author: Mike Reynolds
• Producer/Editor: Sarah James

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