Radio industry advertising revenue picks up pace in FY25

Mumbai: Radio advertising revenue in India is nearing pre-pandemic levels, signalling stabilisation in a medium that was among the hardest hit during Covid-19.

Private FM radio stations reported advertising revenue of Rs 1,819 crore in FY25, marginally below the Rs 1,903 crore recorded in FY20, the last full year before an ad drain during the pandemic disrupted this industry with a mass reach.

The downturn in FY21 was sharp, with FM radio ad revenue plunging to Rs 941 crore. Since then, the recovery has been steady. Revenue rose to Rs 1,227 crore in FY22, climbed to Rs 1,547 crore in FY23 and reached Rs 1,776 crore in FY24, according to data submitted by private FM radio operators to the Telecom Regulatory Authority of India (TRAI).


"In the last couple of years, radio as a medium has withstood the onslaught of digital platforms and has revived itself in a new form to connect with advertisers," said TAM Media chief executive LV Krishnan.

He cited higher contributions from tier-2 markets, with increased advertising on local stations in cities such as Kochi, Bhopal and Jaipur for the growth. He said local brands and hyper-local categories, including education, training institutes and real estate, are using radio more for brand communication and festive campaigns.

Radio stations are offering a wide range of advertising formats, including on-air RJ integrations, events, outdoor advertising and non-music digital content, giving advertisers more options, he said.

"Hence, not just in India but globally across markets, radio has held steady, revived itself and is growing in the post-pandemic years," he noted.

While radio advertising is yet to fully regain pre-Covid levels, its recovery contrasts with sharper stress across other legacy broadcast segments.

The Ministry of Information and Broadcasting’s latest annual accounts show revenue from private direct-to-home television operators fell to Rs 649 crore in FY25 from Rs 692 crore in FY24 and Rs 860 crore in FY23, a decline of nearly 25% over two years.

In comparison, government revenue from private FM radio rose to Rs 196 crore in FY25 from Rs 187 crore in FY24 and Rs 179 crore in FY23.

Advertising volumes are also improving. Between January and September 2025, radio ad volumes grew 4% year-on-year, according to TAM Media Research. The top 10 advertising sectors accounted for 89% of total volumes. Gujarat and Maharashtra remained the largest markets with 18% and 15% shares, respectively, while the top five states together accounted for 62%.

As of March 31, 2025, India had 388 operational private FM radio stations, alongside 591 stations operated by public broadcaster All India Radio, as reported to TRAI. Longer-term prospects hinge on policy and technology shifts.

A Ficci-EY report projects radio revenues to reach Rs 3,000 crore by 2027, driven by non-free commercial time revenue and modest growth in free commercial time, supported by urbanisation and rising car ownership in non-metro markets. A big chunk of FM radio listening happens in cars and other vehicles.

The report also flags digital radio as a potential growth lever. Last year, TRAI recommended the introduction of digital radio services in simulcast mode, allowing existing FM broadcasters to transmit one analogue channel, three digital channels and one data channel on the same frequency under a single technology standard in the VHF Band II.