As Audio Expands, New Metrics Clarify Radio And Podcast ROI For Marketers.

New measurement tools and shifting media habits are giving marketers a clearer picture of the return on investment from audio advertising, which continues to expand across traditional radio, podcasts, and streaming platforms, according to a report by the Association of National Advertisers.

AM/FM radio remains the dominant source of ad-supported audio listening despite competition from digital media, according to Edison Research. In the first quarter of 2025, AM/FM radio, including streaming audiences, accounted for 66% of ad-supported audio time among adults 25 to 54. Podcasts captured 18%, streaming audio 12%, and satellite radio 3%. Radio’s share of daily ad-supported listening ranged from 47% among adults 18 to 34 to 73% among those 35 and older.

Podcast advertising is also accelerating. Ad spending tripled to $6 billion in the first half of 2025 vs. the year-earlier period, according to INCRMNTAL data reported by Emarketer.

Consumer trust remains a key advantage for both radio and podcasts. In an online study of 5,005 U.S. adults published by Sounds Profitable, respondents said they believed 48% of ad claims on both podcasts and AM/FM radio, trailing only Twitch at 49%. The study also found ad-supported podcasts outperformed social media channels in perceived trustworthiness by an average of 10 percentage points.

“What radio and podcasts both have in common is that they’re not algorithmically driven, and are very self-selected,” says Tom Webster, a partner at Sounds Profitable. Users “have an affinity with a certain personality,” he says, adding that listeners recognize the curated nature of feeds on platforms like TikTok and Instagram.

Creative agencies say audio’s storytelling roots give it an edge in a fragmented media landscape. “We look for opportunities in any medium to say, ‘Can we put something out there that stands out?’” says Chris Graves, Chief Creative Officer at Team One. “And I think radio needs a little jolt.”

Marketers continue to invest in audio, but radio faces perception challenges. Nielsen’s 2025 Annual Marketing Report shows CMOs ranked AM/FM radio last in perceived effectiveness at 46%. However, Nielsen found radio delivers the second-highest ROI at $2, trailing only social media at $2.22 and outperforming display, search, and connected TV.

“There’s a massive disconnect between advertiser perception and effectiveness reality,” says Pierre Bouvard, Chief Insights Officer at Cumulus Media | Westwood One. He says the industry is prepared to prove its value: “Anything you can measure in any other media … we [as an industry] are willing to put measurement where our mouth is.”

Cumulus uses Nielsen’s Media Impact data to show clients that shifting 10% of a media budget from TV, CTV, and digital to AM/FM radio — without spending more — can increase reach by 20%.

Measurement advances are also reshaping audio strategy. Media Monitors expanded its national campaign coverage last August from 106 to 250 markets and committed to permanently storing audio files of every radio ad it captures. Previously, files were discarded after two years. “Actual as-run GRPs — what truly aired — are essential for accurate ROI analysis,” the company said.

Industry analysts say the expanded coverage and long-term archiving will help brands fine-tune marketing mix models. Nielsen also recently shortened its Portable People Meter (PPM) measurement window to three minutes from five, a change expected to increase impression counts.

“We’re in a new era,” says John Fix, a radio consultant and former senior media analyst at Procter & Gamble. He says brands investing in radio should expect that new data “will have a better chance to show the true ROI value.”

Creative development remains central to leveraging audio’s reach. Rahul Sabnis, President and Chief Creative Officer at iHeartMedia, says radio’s rituals help advertisers connect with consumers’ daily routines. “It’s morning, I’m getting ready for the commute, making breakfast for my children, and I literally feel like I’m talking to my best friends,” he says.

Sabnis notes that a major grocer uses weekly “audio circulars” on iHeart’s TTWN network aligned with promotional calendars and regional targeting. “Audio taps into the inventory of ideas and images that are in a person’s brain and then formulates that in the context of their lives,” he says. “Advertisers are starting to appreciate that.”

Joe Fallon, Senior Vice President and Group Creative Director at Arnold Worldwide, says radio’s lack of visuals forces creativity. “With no visuals, the words, casting, music, and special effect must work overtime,” he says. “Radio isn’t just about words. It’s about finding the right rhythm that brings an idea to life so that it connects with listeners.”