NAB Show Recap: The ‘74% Problem’ Facing Radio’s Digital Sales Teams

Why It Matters

Closing the 74% gap could unlock billions of incremental revenue and reverse the decline in traditional broadcast sales, while skilled digital‑savvy sales teams become a competitive differentiator.

Key Takeaways

• Digital revenue hit $2.3 B in 2025, 24.4% of ad mix.
• 74% of existing advertisers still not buying digital products.
• Top clusters earn 3‑4× average digital revenue via niche focus.
• Radio sales force shrank 55% since 2014, now 7,300 reps.
• Stations training reps weekly see 30%+ digital revenue growth.

Pulse Analysis

The radio industry’s digital transformation is no longer a side‑show; it now accounts for nearly a quarter of all advertising dollars. Borrell Associates’ 14th Annual Digital Benchmarking Report shows digital revenue surged from $600 million in 2016 to $2.3 billion in 2025, flattening the overall revenue curve that had been sliding for years. This growth is driven primarily by streaming audio and targeted banner ads, and the forecast of $2.5 billion for 2026 signals that digital is becoming the engine that sustains the sector.

Yet a striking 74% of existing radio advertisers remain untapped for digital sales, a shortfall Borrell calls the “74% problem.” The report finds that stations that deliberately capture niche market share—auto, HVAC, restaurants—outperform peers by three to four times in digital revenue. This suggests that strategic, category‑focused selling, rather than broad‑brush tactics, is the key lever for unlocking hidden revenue. At the same time, AI tools are reshaping media planning; while some AI recommendations sideline radio, direct queries to platforms like ChatGPT still endorse it, highlighting the importance of how marketers frame their questions.

The human element remains critical. Radio’s sales workforce has halved over the past decade, dropping from 16,400 reps in 2014 to 7,300 today. Stations that invest in weekly, cross‑disciplinary training—covering SEO, direct mail, and AI—are four times more likely to post 30%+ digital revenue gains. As advertisers become more sophisticated, the stations that combine data‑driven market‑share strategies with a continuously upskilled sales force will capture the bulk of the untapped digital spend, reshaping the economics of local media for the next decade.