NEW YORK – April 2, 2025 – The projected local radio ad revenue for 2025 is estimated to reach $12.3 billion, encompassing both over-the-air and digital radio. This figure indicates a slight adjustment compared to 2024, as reported by BIA Advisory Services' latest U.S. Local Advertising Forecast. 

RAB, in partnership with BIA Advisory Services, has conducted a comprehensive analysis of the evolving radio landscape to help broadcasters navigate the economic environment of 2025. Local radio ranks as the fifth-largest advertising medium within the $171 billion local advertising marketplace.  

Several key categories are driving investments in radio advertising: investment & retirement, quick service restaurants (QSRs), supermarkets, commercial banking and hospitals. Advertising trends indicate robust engagement in digital radio advertising from both the finance and insurance sectors, as well as QSRs, with expected investments exceeding $95 million for each. 

“Notably, hospitals are projected to be one of the top spenders in local radio advertising in 2025, according to our advertising forecast,” said Celine Matthiessen, vice president of insights and analysis at BIA Advisory Services. “As they allocate parts of their media budgets to Radio Over-the-Air (OTA), Radio Digital and other platforms like Connected TV (CTV), it’s evident that local radio continues to be a trusted and culturally relevant medium, especially in rural and remote communities.” 

Moreover, significant growth in Radio Digital ad spending is expected in verticals such as real estate development (projected to increase by 15.8%), full-service restaurants and bars (+8.6%) and mattress and sleep centers (up 7.2%). 

"Local radio is undergoing a significant transformation," said Matthiessen. "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." 

“Our continued partnership with BIA allows RAB membership insights into opportunity across local advertising categories,” commented Mike Hulvey, president and chief executive officer, RAB. “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.”  

RAB and BIA will host a live presentation, Radio Ad Forecast 2025: BIA’s Latest Projections, at noon CT on Wednesday, April 16, for RAB members. BIA's Celine Matthiessen will share custom local radio data, insights and analysis and discuss the “What’s Next?” economy, which examines BIA’s forecast through the lens of how issues like tariffs and consumer sentiment might impact ad spending. Register here. The webinar will be available for on-demand viewing along with a copy of the slide presentation and Radio OTA and Radio Digital one-pagers. 

RAB is the not-for-profit trade association representing America's broadcast radio industry. Its primary objective is to drive revenue growth through advocacy, providing the tools and resources to help the industry attract new sales talent to the medium and enhance industry professionalism through training and support. RAB serves more than 6,000 member stations in the U.S. and more than 1,000 member networks, representative firms, broadcast vendors, and international organizations. Learn more at www.rab.com.  

 

Unlock your audio business's full potential with BIA, your trusted partner in local advertising. Our expert analysis, strategic services, and interactive platforms provide the insights you need to maximize revenue, gain a competitive edge, and navigate the future. We're dedicated to helping you capitalize on radio's opportunities. Let's build a custom success plan together. Reach out at advantage@bia.com or visit us at www.bia.com. 

 

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