Why real estate & auto top radio’s advertising charts

The familiar voice of a radio jockey cutting through the morning traffic is still a daily ritual for millions of Indian commuters. Between traffic updates, film songs and quick-witted conversations, radio continues to accompany listeners through their routines. For advertisers, that everyday presence offers a steady channel to reach audiences at moments when they are attentive and often on the move.

Yet the role of radio in India’s advertising ecosystem is quietly evolving. While the medium remains widely consumed, advertising growth has been incremental but its share of the overall media pie remains small.

According to the Pitch Madison Advertising Report 2026, radio advertising expenditure in India grew by 2 percent in 2025 to Rs 2,515 crore, up from Rs 2,462 crore in 2024. At the same time, its share of total advertising slipped marginally from 2.3 percent to 2.2 percent.

Read more on radio AdEx in 2025

The numbers underline radio’s current position in the media mix. It is no longer treated as a primary reach driver but rather as a tactical medium that works best for specific categories and moments. In 2025, real estate and automobile brands emerged as the strongest contributors to radio’s ad revenues, using the medium’s city-level reach to speak directly to potential buyers.

City Connect: Why Real Estate Loves The Airwaves

Real estate remained the largest advertising category on radio last year, accounting for Rs 393 crore in spends and contributing around 16 per cent of the medium’s AdEx.

Industry executives say the reason lies in radio’s ability to connect with audiences at a local level. Property purchases are closely tied to geography, and developers often want to target consumers in specific cities or neighbourhoods where their projects are located.

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Abe Thomas, CEO of Music Broadcast Ltd, says this hyperlocal connect continues to make radio valuable for the sector.

“Real estate leading the category mix actually highlights radio’s strongest competitive advantage which is its hyperlocal connect with city audiences. Property developers rely on radio because it drives immediate action within specific cities and neighbourhoods, something national media platforms often struggle to deliver,” he said.

Developers typically use radio alongside other traditional media during project launches. While print advertising helps announce new developments, radio helps maintain everyday recall through frequent messaging during commute hours.

Language flexibility also plays a role. In cities such as Bengaluru or Hyderabad, developers can advertise on regional-language stations to reach local residents, while Hindi stations allow them to connect with migrant professionals working in sectors such as IT.

Drive-Time Advantage: Auto Brands Stay Tuned In

If real estate anchors radio’s ad revenues, the automobile sector is increasingly adding momentum to the medium’s growth.

Auto advertising on radio rose 13 per cent in 2025 to Rs 299 crore, making it the second-largest category on the platform.

The relationship between automobiles and radio has long been natural. Listening peaks during commute hours when audiences are already behind the wheel, making it an ideal moment for automobile messaging.

Thomas says this timing advantage continues to make radio relevant for auto brands.

“Auto continues to rely heavily on radio because car buying decisions are still highly local and radio provides strong city-level reach during commute hours,” he said.

Chandan Das, VP and Business Director, Mirchi, says radio’s ability to deliver city-level targeting and personalised engagement makes it particularly useful for automobile marketers.

“At the same time, radio continues to work well for multiple categories, particularly auto and real estate. Auto brands, including large manufacturers as well as regional dealerships with limited budgets, find radio effective because it allows them to target audiences within a specific city and build regular recall,” Das said.

He added that the medium also allows advertisers to create more personalised engagement through activations and RJ-driven campaigns.

“The medium also enables personalised activations such as RJ visits to showrooms, test drive promotions and social media content created by radio jockeys, which would be significantly more expensive through print or television and harder to personalise,” Das said.

Two-wheeler brands also benefit from the medium’s regular presence in listeners’ daily routines.

“Urban consumers increasingly own both cars and bikes due to rising traffic congestion in cities. Radio helps these brands stay top of mind through regular reminders and campaign properties that have built recall over the years,” Das added.

Adex Grows Slowly but the Mix is Changing

While radio continues to attract strong participation from sectors such as real estate and automobiles, the medium’s overall growth has been modest.

Industry leaders say this is largely due to shifts in advertising budgets rather than a decline in radio’s relevance.

Thomas notes that the advertiser mix on radio has been evolving over the past few years.

“Radio’s growth in 2025 reflects the broader advertising environment rather than any structural weakness in the medium. While some large national categories have moderated spends as digital absorbed a larger share of incremental budgets, several sectors such as auto, jewellery, foods and education are growing strongly,” he said.

He added that the medium is also seeing increased participation from smaller markets.

“The medium is seeing healthy expansion from Tier-2 and Tier-3 markets, particularly in categories like real estate, education and local retail. So while headline growth appears modest, the category mix is evolving and becoming more regionally driven, which is a positive structural trend,” Thomas said.

Red FM Director and COO Nisha Narayanan says the industry has also been dealing with multiple structural pressures, including pricing challenges and changes in media consumption.

“Radio AdEx growth has remained moderate largely because the industry has been navigating multiple structural pressures at the same time. While the market has tightened, we have grown 4–5 percent ahead of the industry and category momentum has been visible across sectors such as real estate, auto, retail, BFSI and health services,” she said.

Narayanan pointed out that revenue growth has also been affected by aggressive pricing in certain markets.

“Aggressive pricing in pockets of the market has created confusion around rate benchmarks, prompting some advertisers to divert spends to adjacent formats such as audio OTT. Non-metro markets have delivered healthy volumes, but lower ad rates have kept overall revenue growth moderate,” she said.

From Broadcast to Integrated Audio

While the growth numbers may appear modest, radio companies say the medium itself is undergoing a broader transformation.

Narayanan says radio is increasingly being positioned as part of integrated marketing solutions rather than a standalone advertising platform.

“Radio is no longer offered in isolation and delivers a media multiplier effect when combined with digital, social and on-ground experiences. Brands today are favouring integrated solutions that blend radio with digital audio, social media and live experiences,” she said.

Stations are therefore investing more in branded intellectual properties, on-ground events and community-driven initiatives that extend beyond the traditional 30-second advertisement.

According to Narayanan, the future of the industry lies in building a broader “audio plus experience” ecosystem.

“As this evolution continues, the industry is moving toward a more integrated ‘audio plus experience’ ecosystem where storytelling extends across platforms and touchpoints, allowing brands to build deeper and more culturally resonant connections with audiences,” she said.

Thomas describes this transition as a shift in how brands perceive the medium.

“Today brands increasingly use radio for integrated city-level campaigns combining on-air reach, digital amplification and on-ground activations. The role of radio is shifting from frequency to engagement, which actually strengthens its strategic relevance,” he said.

The Measurement Challenge

Even as radio evolves, one issue continues to concern advertisers: measurement.

Chandan Das, VP and Business Director, Mirchi, says that while engagement with the medium remains strong, the absence of a unified measurement system can make it harder for marketers to justify large spends.

“Brands want clear numbers they can present in boardrooms, but radio still lacks a centralised measurement system that the entire industry can rely on. When advertisers cannot quantify impact in clear metrics, they often move budgets to alternatives like digital platforms where performance can be tracked instantly,” Das said.

At the same time, he emphasised that the medium continues to work well for categories that depend on strong city-level visibility.

“People continue to engage with radio during daily routines such as commuting, and the medium still has a strong local connect. Categories like auto and real estate find it particularly effective because they can target audiences within a specific city and build regular recall,” Das said.

He also pointed to listener engagement as a key indicator of radio’s continuing relevance.

“From an industry lens, radio continues to stand out as one of the most participative and locally connected mediums. Listener interaction remains a strong indicator of this engagement. For instance, in the Bengaluru market, the Mirchi Kannada station receives around 15,000 listener calls or messages every month, with audiences actively sharing stories, participating in conversations, and engaging with RJs. When combined with interactions on the Hindi station Radio Mirchi 95 FM, the scale of engagement becomes even larger, highlighting the deep connect radio continues to have with its listeners,” Das said.

He added that radio’s language diversity within a city also helps brands reach different audience groups.

“Another unique strength of the medium is its ability to reach different audience segments within the same city. In Bengaluru, the Mirchi Kannada station connects strongly with native audiences, while the Hindi station Radio Mirchi 95 FM is largely consumed by the migrant population. This dual-language ecosystem enables radio to represent the true cultural mix of a city and help brands reach diverse audiences through a single medium, making it a uniquely powerful local platform,” Das said.

A Marketer’s Changing View

While many advertisers continue to rely on radio, some marketers say traditional spot advertising has become less central to their strategy as digital audio platforms gain traction.

Karan Kumar, Chief Marketing Officer at Hero Realty, says conventional radio advertising has gradually moved out of his company’s core media mix.

“From our experience, conventional radio has increasingly stopped being a core part of our marketing mix. We experimented with it earlier but eventually moved budgets to platforms like YouTube Music and Spotify which reach urban youth more effectively,” he said.

However, Kumar believes the medium can still deliver results when it moves beyond standard advertising formats.

“We did a radio-led activation in Mohali where an RJ visited around 30 condominium societies and interacted with residents, which was then amplified on air. Activations like these help because you are physically engaging with people and creating a stronger connection,” he said.

Finding Its Spot

For radio, the challenge is not simply to compete with digital platforms but to define its role within a rapidly changing media environment.

Its ability to deliver hyperlocal messaging and everyday presence continues to attract sectors where purchase decisions are closely tied to geography. Real estate developers promoting new projects and automobile brands driving showroom visits still find value in the medium’s reach during daily commutes.

As advertising strategies become increasingly fragmented across platforms, radio’s future may lie in combining its traditional strengths with new formats and experiences. The airwaves may no longer command the largest share of ad budgets, but for many advertisers seeking local relevance, they remain an important part of the conversation.