Non-political local ad spending is expected to increase 5.5% to $171 billion in 2025, according to a new forecast by BIA Advisory Services.
For the first time, digital spending will eclipse spending on tradition advertising in local markets, with digital accounting for 52% of the ad dollars, BIA forecasts.
When including political advertising, local ad spending is expected to be down 1.3% in 2025, compared to BIA’s revised forecast for 2024.
BIA raised its 2024 forecast to $173.7 billion as it increased its estimate for political ad spending by $560 million to $11.7 billion.
Local television continues to get the largest share of the spending. At the same time, the firm projects that Connected TV/Over-the-Top (OTT) will receive much of the additional political ad dollars added to the mix.
“With macroeconomic conditions impacting 2024 local advertising spending, it has been slower than anticipated, and we've adjusted this year’s forecast,” said Nicole Ovadia, VP of Forecasting & Analysis at BIA Advisory Services.
Non-political local ad spending is expected to increase 5.5% to $171 billion in 2025, according to a new forecast by BIA Advisory Services.
For the first time, digital spending will eclipse spending on tradition advertising in local markets, with digital accounting for 52% of the ad dollars, BIA forecasts.
When including political advertising, local ad spending is expected to be down 1.3% in 2025, compared to BIA’s revised forecast for 2024.
BIA raised its 2024 forecast to $173.7 billion as it increased its estimate for political ad spending by $560 million to $11.7 billion.
Local television continues to get the largest share of the spending. At the same time, the firm projects that Connected TV/Over-the-Top (OTT) will receive much of the additional political ad dollars added to the mix.
“With macroeconomic conditions impacting 2024 local advertising spending, it has been slower than anticipated, and we've adjusted this year’s forecast,” said Nicole Ovadia, VP of Forecasting & Analysis at BIA Advisory Services.
In terms of 2025, "We're taking a nuanced view to shape our expectations. If the Fed adjusts interest rates as indicated, post-Q1 2025 or early Q2, and inflation cools and the labor market settles out, we anticipate some economic relief by mid-year,” Ovadia said. “This will boost consumer confidence and, subsequently, increase media ad spend. While we're optimistic, we're also being cautious with our projections at this early stage.”
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