For decades, radio in India ran on habit. The familiar RJ during morning commutes, Bollywood playlists in taxis and salons, traffic updates during rush hour—FM radio became part of everyday urban life. But with HT Media shutting down Fever FM, Radio One and Radio Nasha across key metros, the industry is once again facing uncomfortable questions about its future.
Can private FM still deliver meaningful value to advertisers? Or is it gradually turning into a legacy medium that survives mostly on local relevance, discounted inventory and nostalgia?
The pressure on radio comes at a time when advertising has become sharply digital-first. Brands today want measurable outcomes, targeted audiences and real-time performance-tracking. Audio consumption has also changed rapidly. Listeners now move between Spotify playlists, podcasts, YouTube creators and short-form video content through the day, weakening radio’s traditional strengths of reach and repetition.
Still, the picture is not entirely bleak.
According to TRAI data, private FM radio operators reported advertising revenue of Rs 1,818.71 crore in FY25, slightly higher than Rs 1,775.79 crore in FY24. Between January and September 2025, radio ad volumes also grew 4 per cent year-on-year, suggesting that while FM may no longer dominate media plans, it has not disappeared from them either.
Radio is no longer a default media buy
Industry executives say the role of FM has changed significantly over the last few years. “Over the last few years, the role of FM in media planning has become far more intentional,” says Akhil Nair, Co-Founder & CEO at Bigtrunk Communications. “There was a time when radio was almost automatically included in large campaigns because it offered dependable city-level reach and frequency. Today, brands are planning with a much sharper focus on attribution, audience behaviour, and measurable outcomes, which has shifted larger spends toward digital ecosystems.”
Earlier, radio functioned as a default awareness medium, especially for metro-focused campaigns. Today, agencies increasingly see it as a support channel rather than a lead platform.
Viren Vesuwala, Lead PR, Communications and Strategic Partnerships at White Rivers Media, believes the pandemic accelerated that shift. “Radio has shifted from a lead medium to a secondary one in most Indian media plans over the past five years. The initial shock came during the COVID-19 lockdowns, when the loss of commuting stripped radio of its most dependable listening moments in metro cities,” he says.
The decline of commute listening, combined with the rise of streaming apps and podcasts, altered urban listening habits dramatically. Radio also lost one of its biggest advantages as a music discovery platform.
“The pressure on radio spends is coming from both changing listening habits and changing media expectations,” says Nair. “Audiences have fragmented across streaming, podcasts, and other on-demand audio experiences, so the old assumption of mass habitual listening no longer holds in the same way, especially in urban markets.”
Advertisers are prioritising measurable media
For marketers, one of radio’s biggest challenges today is measurability.
Digital platforms offer sharper targeting and visible metrics such as clicks, conversions and engagement rates. That has made it easier for brands to justify spending online. Masuma Siddique, Founder and Chief Strategist at InkCraft Communications, says radio now works best when there is a clear local-market objective. “For most brands, radio is no longer the first medium that comes up in a media plan unless there is a clear local-market objective. It still works when the brief is hyperlocal awareness, drive-time recall, RJ integrations or event amplification, but it is increasingly being evaluated alongside digital, influencer-led content, podcasts, social video and regional content platforms.”
Even so, several advertiser categories continue to spend heavily on FM.
Real estate, retail, healthcare, education, jewellery, regional entertainment and political campaigns still see value in radio because of its ability to create familiarity within specific cities and markets.“The strongest value today comes in categories where local visibility and repeated consumer recall directly influence decision making,” says Nair.
Parag Mhatre, Head - Media Buying at Media Circle, says radio’s local connect remains one of its biggest strengths. “The advantage of radio has been its mass reach, habit-driven daily consumption and cost-effective frequency builder. For a long time, radio has benefitted from morning/evening commute listening, low production cost, strong local city connect and dependence of retail advertisers,” he says.
At the same time, he adds that advertisers are increasingly moving towards targeted and performance-led media.
Rising costs are hurting broadcasters
The industry’s problems are not only linked to changing audience behaviour. The economics of running FM stations have also become harder to sustain.
“Over the years, many media houses invested heavily in aggressive license bids and large-scale infrastructure, often driven by the prestige and promise associated with FM radio,” says Anil Srivatsa, co-founder and Director of Radiowalla. “However, the economics of the medium have not always supported such high operating costs.”
Broadcasters continue to deal with high spectrum fees, infrastructure expenses and talent costs while competing in a market where ad pricing remains under pressure.
Pramod Pawar, Quantitative Research - Vice President at Hansa Research Group, says profitability has become difficult outside a few major markets. “Ad inventory is increasingly sold at discounted rates, while operating costs, including spectrum fees, infrastructure and talent remain high,” he says.
The industry has seen similar consolidation pressures before. Over the years, broadcasters, including BIG FM and several regional operators, have rationalised operations, surrendered frequencies or shifted focus towards digital audio and branded content businesses.
Reinvention could shape radio’s future
Despite the challenges, most industry executives are not writing off radio entirely.
In Tier-2 and Tier-3 markets, FM still offers reach, affordability and trust that digital platforms cannot always replicate consistently. In-car listening also continues to support habitual radio consumption outside the biggest metros.
Ketan Mankikar, Head & VP Marketing & PR at Zuno General Insurance, says radio still works effectively when integrated with larger campaigns. “FM remains effective in driving awareness, recall and regional relevance, particularly when campaigns are rooted in culture, communities or behavioural change,” he says.
But there is broad agreement that radio’s future depends on evolving beyond traditional broadcasting. “The radio industry is at a point where adaptation and reinvention will be essential for long-term survival,” says Srivatsa. “Over the next five years, radio will likely need to evolve beyond its traditional format and embrace a more diversified, multi-platform approach.”
Broadcasters are already expanding into podcasts, digital streaming, branded content, live events and creator-led programming to offset pressure in traditional advertising.
“The future of FM will depend on how successfully it expands beyond traditional broadcasting,” says Nair. “The real opportunity lies in building connected audio ecosystems that combine live radio, digital streaming, creator-led programming, branded content, and regional audience communities into one continuous experience.”
The medium is unlikely to disappear entirely. Its strengths still matter in a country as diverse as India. But the days when FM could comfortably function as a standalone mass medium appear to be fading. For now, the dial has not gone silent. But it is changing frequency.
