A new financial forecast from BIA Advisory Services projects that the total market for local advertising in the U.S. will reach $182 billion in 2026. This analysis indicates that while the advertising landscape is becoming increasingly fragmented across various platforms, the bulk of ad spending remains focused on local markets. The report suggests that for broadcasters in smaller communities, the key to capturing a larger share of this revenue lies in their ability to demonstrate tangible results to advertisers, particularly as newer digital platforms like over-the-top (OTT) and connected TV (CTV) become standard components of advertising sales packages.
The data highlights a significant opportunity for radio stations, provided they can effectively position audio advertising within broader, outcome-based media plans that also include video and location-based marketing. This is becoming more critical as national brands shift greater portions of their budgets toward performance-based marketing at the local level. The forecast projects that local CTV advertising alone will grow to approximately $3.6 billion in 2026, excluding political ad spend, representing a 10% increase over the previous year.
For local radio sales teams, the implications are clear: the traditional approach of selling audio spots in isolation is becoming less effective. To compete for the growing pool of local ad dollars, radio must be sold as an integral part of a cross-platform strategy that can deliver measurable outcomes for businesses. This shift requires sales professionals to be adept at explaining how audio complements and enhances other media channels, ultimately driving consumer action in their specific geographic areas.