Local radio continues to hold its place as the fifth-largest advertising medium in the $171 billion local US ad marketplace. BIA Advisory Services’ new forecast projects total local radio advertising revenue, including over-the-air and digital dollars, to hit $12.3 billion in 2025.
The updated figure, slightly adjusted from 2024 expectations, is part of the firm’s latest US Local Advertising Forecast, produced in collaboration with the Radio Advertising Bureau. In particular, digital radio ad spend is projected to grow significantly, especially from the financial, insurance, and QSR sectors, each expected to invest more than $95 million.
As previously updated, BIA shows mixed 2025 projections for radio. Including political spending, total over-the-air and digital revenue is expected to decline by 4.9%, with OTA alone dropping 6% year-over-year. Digital radio, however, is projected to rise slightly by 0.1%. Excluding political spending, the overall decline narrows to 0.8%, marking a downward revision from BIA’s July forecast.
Among the top-performing categories for 2025 are investment and retirement services, quick service restaurants, supermarkets, and commercial banking. Hospitals, in particular, are projected to be a leading radio advertiser, as healthcare systems diversify their media strategies across over-the-air radio, digital platforms, and connected TV.
The report highlights emerging growth in digital radio advertising across multiple sectors, with projected year-over-year increases in real estate development (+15.8%), full-service restaurants and bars (+8.6%), and mattress and sleep centers (+7.2%).
BIA Advisory Services Vice President of Insights and Analysis Celine Matthiessen said, “Local radio is undergoing a significant transformation. The fusion of digital innovation with traditional broadcasting capabilities enables radio to uphold its crucial role in local market communications while creating new value propositions for advertisers.”
The RAB and BIA will host a live webinar, Radio Ad Forecast 2025: BIA’s Latest Projections, on Wednesday, April 16, at 1p ET for RAB members.
RAB President and Chief Executive Officer Mike Hulvey commented, “Broadcast radio and its digital assets can deliver the services that local businesses want and need to increase their sales revenue. Local businesses across sectors are dependent upon marketing professionals to help guide their growth. Understanding challenges of advertising categories and potential opportunities that exist is the value that this information brings to RAB members and to their prospective advertisers.”
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