Total local ad spending will reach $168.2 billion in 2025, excluding political advertising, with local radio ranking fifth among all media. BIA forecasts $12.3 billion in radio revenue, $2.3 billion from Radio Digital. The outlook, “Finish 2025 Strong; Kickstart 2026 with Momentum,” was discussed during an RAB Live session featuring BIA’s Celine Matthiessen and Senan Mele, moderated by RAB’s Jeff Schmidt.
Radio’s strongest verticals next year are projected to include investment and retirement services, quick service restaurants, supermarkets, commercial banking, and hospitals. On the digital side, categories showing growth include real estate development, mattress and sleep centers, and direct life insurance carriers. These sectors are expected to increase spending on radio’s digital assets.
The rise of Connected TV and OTT is opening opportunities for stations to package video with spot radio ads. Advertisers are already bundling radio and CTV campaigns to extend reach and effectiveness.
BIA also highlights potential year-end boosts from Tier 2 auto dealer associations, health and medical insurance, and clothing retailers. Matthiessen noted auto brands will continue advertising into the fourth quarter, with EV promotion remaining a major driver.
BIA further emphasizes the role of AI in shaping new revenue opportunities and identifies strong categories for 2026. The firm stresses the importance of maintaining focus on over-the-air content while maximizing digital strategies to grow revenue.
“Radio is still a very important ad platform,” Mele said. “Sixty-four percent of U.S. adults listen to traditional radio, and over half tune in to AM and FM daily, averaging more than 12 hours each week.”