Contributor: Celine Matthiessen, VP of Insights and Analytics, BIA Advisory Services
As we near the end of the year, it’s important to maximize opportunities and also work towards 2026. With shifts in consumer behavior and spending across key local business categories, having insights into the current and future marketplace will be key advantages to driving growth.
“Finish 2025 Strong; Kickstart 2026 with Momentum” is the theme behind the latest advertising revenue forecast from BIA Advisory Services.
Examining spending across key business verticals in local audio, here are five key highlights from the webinar:
- Local Radio’s Position in Advertising: In 2025, total local advertising spending is projected to reach $170 ($168.8) billion, with local radio as the fifth largest media in terms of ad spending. BIA’s forecast estimates that local radio will generate $12.3 billion in 2025, with $2.3 billion coming from Radio Digital.
- Vertical Advertising Insights: In 2025, the traditionally radio-focused advertising verticals are expected to lead the way: Investment & Retirement Advice, Quick Service Restaurants (QSRs) and Fast Food, Supermarkets, Commercial Banking and Hospitals.
- Growth in Radio Digital: Radio Digital will experience advertising spending increases in Real Estate Development (up 8.2% YoY), Mattress and Sleep Centers (up 2.3% YoY), as well as Direct Life Insurance Carriers (up 2.2% YoY). These categories will want to tap into radio’s digital assets to grow their businesses.
- Connected TV (CTV) and Over-the-Top (OTT): With the expanding landscape of CTV and OTT, new avenues for local radio will appear. CTV and video ads will be used to complement traditional spot radio ads. This trend is allowing advertisers to bundle radio and CTV ads through radio stations, enhancing advertiser reach.
- Identifying Key Spenders: Tier 2 Local Auto Dealer Associations, Direct Health & Medical Insurance and Clothing Stores are just a few of the spenders that will potentially boost the end of 2025.
Other key insights from BIA highlight how AI is influencing local radio and include an early analysis of business categories that look strong for 2026. As an organization focused on zeroing in on marketplace factors that impact revenue in the local marketplace, BIA believes that radio’s strength is always in focusing on its OTA content while also maximizing key digital strategies to increase revenue and growing sales for local businesses.
RAB members can register for the webinar here or watch it on demand.
This post was originally published on Radio Matters.