Mumbai: The Madison Advertising Report 2025 has noted that radio continues to be a cost-effective and impactful advertising medium, especially in Tier 2 and Tier 3 cities.
Indian radio stations are rapidly evolving beyond traditional FM inventory, integrating digital content to attract advertisers and expand their reach. Recognising the shift in audience preferences and the dominance of digital platforms, radio networks are leveraging streaming, social media and digital-first strategies to offer advertisers a more dynamic and engaging ecosystem.
The report expects radio to grow by another 9% in 2025, taking total Radio Adex close to Rs. 2,700 crore. Unfortunately, despite this growth Radio Adex will maintain just a 2% share.
Key sectors like Auto, FMCG, Retail and Government bodies during assembly elections are expected to increase their spending on Radio, leveraging its hyperlocal influence. By combining traditional reach with digital innovation, Radio is creating new opportunities for advertisers to connect with audiences in a more engaging, data-driven and interactive manner, giving boost to Radio advertising in India.
Cinema: The Indian cinema advertising industry is expected to witness a slower growth rate of around 9% in 2025, despite the relatively smaller base it operates from. Historically, cinema advertising has maintained a share of less than 1% of the total Adex over the years, showing a stagnant trend that has not seen much growth in comparison to other mediums.
In 2025, the total Cinema Adex is projected to reach approximately Rs. 950 crore, still falling short of the pre-COVID revenue mark of Rs. 1,050 crore. This indicates a continued challenge in recovering fully from the impact of the pandemic and the path to pre-COVID numbers is likely to take longer than anticipated. The rise of Over-the-Top (OTT) platforms has significantly impacted cinema advertising. With more viewers shifting to digital platforms for their entertainment, the footfall in cinemas has decreased.
The key reason for this slower growth is the heavy reliance of Cinema advertising on the consistency of blockbuster movie releases. When the film industry sees a steady stream of big hits, cinema advertising thrives. However, in the past 2-3 years, the Bollywood industry, which traditionally dominated the space, has struggled with inconsistency in delivering hit movies month after month.
This lack of consistent blockbuster releases has resulted in a reduction of advertising revenues. On a more positive note, the biggest contributor to Cinema advertising revenues over the past few years has been the South Indian film industry. The Southern film industry has consistently delivered multiple mega hits, which have been instrumental in driving the advertising revenues in the cinema space.
Looking ahead to 2025, this trend is expected to continue, with South Indian cinema maintaining its dominance in driving ad revenues.
