A new report examining the Canadian audio market suggests the country’s commercial radio sector is facing a structural shift, with declining advertising revenue, reduced market share and falling profitability as digital audio platforms expand.
The findings come from the study “Broadcasting in Canada 2025,” prepared by Communications Management Inc. for the Canadian Association of Broadcasters. The report analyzes long-term trends affecting private radio and television broadcasters in Canada.
According to the report, radio once dominated Canada’s audio market but has steadily lost ground over the past two decades as digital listening expanded. In 2005, radio represented 94.4% of the country’s audio market. By 2024, that share had fallen to 47.2%, roughly half its level twenty years earlier. Private radio alone dropped from 74.8% of the market in 2005 to 33.8% in 2024, reflecting the growth of digital audio services and on-demand listening.
At the same time, Internet-based audio has grown rapidly. The report estimates digital audio generated $1.5 billion in revenue in 2024, representing 46.1% of the audio market, compared with $100 million and 5.6% in 2005. The shift is closely linked to the widespread adoption of smartphones and the expansion of mobile listening, intensifying competition between traditional broadcast radio and digital audio platforms.
Radio’s shrinking share of advertising
The report also highlights a major redistribution of advertising investment. Private radio’s share of Canada’s advertising market fell from 13.7% in 2005 to 4.6% in 2024. Over the same period, Internet advertising rose from 5.9% to 77.2% of total ad spending, reflecting a broad migration of marketing budgets toward digital platforms.
Another notable trend is the increasing share of advertising spending directed to companies outside Canada. According to the report, this rose from 4% in 2005 to 58% in 2024.
Historically, radio advertising revenues closely tracked retail sales, but that link has weakened. In 2024, radio advertising generated $1.31 for every $1,000 in retail sales, compared with $3.77 to $4.27 between 1979 and 1992 and roughly $3.50 between 1993 and 2012.
Declining revenues and profitability
Financial indicators for the radio sector show the same structural trend.
Commercial private radio revenues declined from $1.6 billion in 2015 to $1.1 billion in 2024, while operating profitability fell sharply. The sector’s PBIT margin dropped from 18.9% to 3.3% over the same period.
In 2024, 44% of private stations were operating at a loss, with 172 stations recording losses exceeding 20%, placing them in the report’s high-risk category.
The data also highlights differences between broadcast bands. FM stations reported a PBIT margin of 6.8%, while AM stations posted a negative profitability of –15.3%.
Looking ahead, the report projects that Canadian radio advertising revenue, which peaked at $1.6 billion around 2013, could fall to approximately $960 million by 2030.
Changing audio consumption
The report links the economic pressures on radio to a broader expansion of the audio ecosystem. Listeners now have access to a wider range of content options, including streaming audio, satellite radio and on-demand digital formats. As a result, audio consumption is becoming less tied to traditional broadcast formats and more responsive to on-demand listening habits.
Advertising strategies are also evolving. Some advertising budgets are now committed earlier in the planning cycle to digital platforms, leaving a smaller share available for traditional media.
The report also notes the growth of retail media, which generated $2.86 billion in advertising revenue in Canada in 2024, illustrating the diversification of digital advertising channels.
Radio retains role in news
Despite these pressures, the report notes that radio continues to play a significant role in news and information. In 2024, private radio stations in Canada spent an estimated $133 million on news and information programming, based on the finding that 47% of spoken-word content on stations could be classified as news or information.
Total programming payroll spending across the sector reached $282.9 million, with a substantial portion linked to spoken-word and news content. When public and private broadcasters are combined, the report estimates that radio news spending in Canada reached $247 million in 2024.
The authors conclude that the trends affecting Canadian radio are not cyclical but structural. Declining market share, reallocation of advertising and weaker profitability reflect long-term changes driven by digital consumption and competition from global platforms.
As a result, radio now operates within a broader audio ecosystem where the balance between traditional broadcast listening and on-demand consumption has been permanently reshaped.
This article originally appeared in RedTech’s sister publication La Lettre Pro.
You can read or download the “Broadcasting in Canada 2025” report below.
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