Ad Spend on Audio Media Surges as Marketers Gain Confidence in the Economy

Recent findings from Advertiser Perceptions, a leading market intelligence firm, highlight a significant boost in confidence among media agencies and brand marketers. A survey conducted from January 2 to 10, 2025, among 300 industry executives indicates a stronger inclination to invest in advertising, with a particular emphasis on radio and other audio platforms.

Higher Confidence Boosts Audio Ad Spend

The survey, which targeted executives responsible for media brand selection and expected to spend at least $1 million on advertising in the next 12 months, revealed some encouraging trends. The number of executives planning to increase ad spending on AM/FM radio over the next six months has surged by 77% compared to three years ago, far outpacing podcast (19%) and audio streaming (15%) growth projections.

“The growing cultural importance of podcasts has the potential to boost advertiser investment in all forms of audio advertising,” notes Eric Haggstrom, VP of Business Intelligence and Head of Forecasting at Advertiser Perceptions. “Budgetary constraints and a focus on lower-funnel formats have previously hindered audio investment, but these pressures should lessen in 2025.”

Spending Trends Across Different Ad Budgets

The survey also underscores a correlation between ad spend and increased investments in audio media. Brands spending $25,000 or more are significantly more likely to boost their ad budgets for AM/FM radio, podcasts, and audio streaming in 2025, compared to those spending under $25,000.

Economic Optimism and Ad Spending

Marketers’ optimism about the economy is at an all-time high. Nearly half (47%) of surveyed marketers believe the economy will grow in the next 12 months, more than double the 23% from two years ago. Similarly, 58% of larger spenders ($25,000 or more) anticipate growth, compared to 40% of smaller spenders.

Worries over inflation, supply chain disruptions, and interest rates have declined significantly. Economic headwinds like increased import tariffs and regulatory uncertainties remain, but they are unlikely to derail the current optimistic outlook.

“While increased tariffs on imported goods and regulatory uncertainty remain potential headwinds to the economy, advertisers are feeling bullish about the economy,” Haggstrom explains. “Barring those issues, expect advertisers to increase budgets this year.”

Impact of Economic Growth on Ad Budgets

Over half (51%) of the surveyed marketers expect the US GDP to influence their ad budgeting in the next 12 months, a sharp increase from prior years. In terms of budget growth, 37% of 2025 ad budgets are forecast to rise compared to last year, an uptick from the 29% expected growth for 2024 as of December 2023.

New Product Launches Surpass Previous Years

Marketers are also planning more aggressive product launches in 2025. Three out of every four marketers plan to launch new products this year, up from a low of 54% in 2022. This surge in product launches signals a robust recovery in overall market activity.

Conclusion: Optimism Drives Future Investments

The growth in confidence among media and brand marketers signifies a promising future for the advertising industry. With a positive outlook on the economy and renewed enthusiasm for audio advertising, it appears the ad spend landscape will continue to evolve positively in 2025.

As Pierre Bouvard, Chief Insights Officer at Cumulus Media/Westwood One Audio Active Group, puts it, “These fears [of recession] carried over into 2023 and 2024. These alarming forecasts caused national marketers to reduce and hold back ad budgets. In 2025, however, we are seeing optimism returning.”

For marketers and advertisers, this optimism and increased ad budgets could spell significant opportunities across all channels, particularly in the dynamic world of audio advertising.

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