Radio’s Festive Comeback: Adex set to rise 15% as brands bet on reach, recall and local connect

India’s radio industry is gearing up for a bumper festive season, with advertising expenditure (adex) expected to jump 12–15% year-on-year, according to industry executives. The optimism comes on the back of recent GST revisions, rising consumer sentiment, and the medium’s enduring power to deliver localised, cost-efficient, and high-frequency messaging.

While Godrej Consumer Products Limited (GCPL) has dropped radio from its evolving media playbook, several household names continue to bet big on the medium. Amul, Dabur, and DS Group remain active advertisers, leveraging radio’s regional depth, interactive RJ-led formats, and topical storytelling to strengthen consumer connect during the crucial festive quarter.

Read more: GST 2.0 likely to lift festive cheer: India’s AdEx set to top Rs 55,000 cr in FY26, up 18–20% YoY

“FMCG as a category has always leveraged radio effectively and continues to do so. It remains among the top 10 categories for radio advertising,” said Nisha Narayanan, COO of Red FM and Magic FM, adding that brands from auto, education, health and retail are also lining up festive campaigns.

According to her, this festive season is expected to see a 12-15% uptick in radio adex compared to last year.

While the FM Phase-III batch III e-auction response was somewhat muted, she shared that Red FM is set to launch four new stations in the South in the next phase of expansion. In parallel, the recent GST revisions have sparked optimism across sectors. As businesses look to capitalise on rising consumer sentiment and spending power, many are turning to trusted, high-impact platforms like radio.

Read more: Jewellery brands boost festive ad spends by up to 45% despite Trump tariffs and gold price surge

"Together, these developments mark a promising inflection point, radio is well-positioned to grow in both relevance and revenue."

Radio’s strength lies in its versatility - cost efficiency, geographical penetration, and ability to complement digital and television. RS Sodhi, President of the Indian Dairy Association and former MD of Amul, noted that “radio is extremely powerful where music is a brand asset. It offers frequency, localisation, and interactivity that few other mediums can match.”

For the festive season, radio players are already witnessing strong advertiser sentiment, which signals that radio will play a pivotal role in amplifying festive cheer and driving purchase intent this year.

Dabur India’s VP Marketing Rajiv Dubey acknowledged that while streaming platforms have altered urban listening habits, radio still commands relevance in specific markets.

Read more: India’s festive digital AdEx to surge 25% in 2025; influencer & CTV spends to corner up to 35% of budgets

“It may not always be the lead medium, but it plays a role in certain geographies and contexts. Our association with Kareena Kapoor Khan’s ‘What Women Want’ on radio is an example of how it delivers recall and reach in the right markets,” he said.

Beyond advertisers, the sector itself is showing signs of resilience.

India’s radio broadcasting industry drew ₹3,853 crore in FDI in 2024, its highest inflow since 2016, according to the Ministry of Information and Broadcasting. While broadcasters continue to expand, challenges persist.

The rise of digital audio among Gen Z, muted Phase III auction participation, and younger media planners’ lack of radio familiarity threaten its long-term positioning. “In metros, FM struggles, but in rural and TV-dark markets, it will continue to matter,” said a senior FMCG advisor.

Read more: Rural demand and early bookings to fuel up to 30% surge in festive OOH adex

"Another issue is with the new generation of media planners...many of them have grown up without listening to radio, so it doesn’t even occur to them to include it in a plan. That has impacted its (radio's) relevance in the ecosystem," pointed out a senior media executive.

This festive season, though, the story is one of optimism. With categories betting big on demand revival and GST-led consumer cheer, radio is expected to ride the festive wave, reinforcing its place in India’s media mix - not as the lead driver, but as a powerful amplifier of festive recall and purchase intent.

Read more: Radio players' conservative bid in third batch of phase-III FM e-auctions