Nielsen: Podcasting Grows, Radio Holds Ground Amid Tighter Ad Budgets.

Podcasting is still attracting new advertisers and bigger investments from marketers, and more than half of marketers plan to increase podcast spending this year, according to a new report from Nielsen. One reason is that a majority say podcasting is an effective medium for their message. Yet Nielsen’s 2025 Annual Marketing Report also shows a sign the industry is maturing. It shows 16% of advertisers around the world plan to increase their podcast budgets by over 50% this year. That is a two-point decrease from 2024.

One factor may be that unlike in the U.S., in many parts of the world, podcasting is still an emerging media. Another could be an unexpected shift in terms of where dollars are heading overall. Nielsen says as marketers plan to reduce ad spending this year, many will continue to increase investments in digital channels, but at lower rates.

“New budgets still go predominantly to digital channels, but not at the same rate as last year,” the report says. “Comparatively, more marketers are planning substantial increases (over 50%) to their traditional media budgets than they did last year.”

Even so, Nielsen says the media channels where the biggest numbers of marketers say they plan to increase their spending by 50% or more in 2025 include social media, display, video ads and search. It’s just that compared to last year, fewer marketers are planning major budget increases on digital channels.

It is not just podcasting where advertisers give high scores for effectiveness. Nielsen says that a majority of advertisers it surveyed labeled every digital option as effective.

“Digital channels as a group are perceived as more effective than traditional channels,” Nielsen says. “Digital channels are generally perceived to be easier to measure, less expensive, and closer to the bottom of the funnel.” But it says traditional channels can be powerful drivers of ROI. While marketers view radio as less effective, the channel has the fourth-highest average ROI globally compared to other media types, based on Nielsen Compass norms.

Six in ten marketers worldwide consider not just reach and frequency but also ROI when they analyze the performance of their campaigns. But that’s easier said than done, according to Nielsen’s report. It shows only a third (32%) of marketers globally say they measure their media spending holistically across both digital and traditional channels. That’s considerably less than last year.

Nielsen believes the situation is getting worse due to more incompatible metrics from new channels; the on-again, off-again deprecation of third-party cookies; and privacy regulations making it more difficult to secure consent from consumers and deduplicate their media exposures across channels.

Accuracy is the top priority for marketers in North America, and across the globe, issues like cost efficiency, ease of use, and connectivity across tools are the most important attributes global marketers are looking for in marketing measurement technologies. The only place where marketers say they’re prioritizing cost efficiency over accuracy is Europe.

Now in its seventh edition, Nielsen’s Annual Marketing is based on data collected from 1,400 leading marketers around the world. After a strong year in 2024, many marketers were already preparing for a “leaner” 2025. The additional uncertainty caused by tariffs has made that an even better bet. It says a majority (54%) of global advertisers say they are planning to cut ad spending this year, with no region immune.

Smaller budgets mean marketers will need to be more efficient with the dollars they do have, and Nielsen says its survey shows many are shifting their focus to less expense media channels — with many switching more of their spending to digital, including newer channels like CTV and influencer marketing.

The survey finds retailers are more likely to turn to digital channels, while tech and finance brands are more likely to focus on performance. But auto and pharmaceutical companies are still focused on brand building on more expensive channels, but also seem willing to switch at least a portion of their budgets to newer media platforms like podcasting.

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