Local radio is poised for a resilient year in 2024, with ad revenue projected to reach $13.6 billion (Radio OTA + Radio Digital), marking an increase from 2023.
RAB, in partnership with BIA Advisory Services, took a deep dive into radio’s evolving landscape to help broadcasters navigate Q4 2024 and plan for 2025. Within the total local advertising marketplace spending of $174 billion, local radio is the fifth largest advertising media. BIA’s U.S. Local Advertising Forecast predicts a positive outlook for radio revenue for this year and next. For 2025, BIA estimates local radio will generate $12.9 billion, with Radio Digital delivering $2.9 billion of that amount.
In terms of vertical advertising, in 2024, political advertising will be the clear spending leader in local radio with just over $631 million. Other traditionally radio-focused verticals round out the top five, including Investment & Retirement Advice, Quick Service Restaurants (QSRs), Commercial Banking and Supermarkets.
Anticipated 2025 landscape shifts will create a couple of new spending leaders. QSRs will emerge as the top spender with $558 million. Similar categories from 2024 remain in the top next year along with the addition of Hospitals at number five with $429 million.
An analysis of radio’s digital KPIs generates interesting trends for 2025. Specifically, radio’s digital platforms and services serve as a growth medium for key local verticals. When examining the top 12 business categories in BIA’s forecast, the top two spenders in Radio Digital are Finance/Insurance at $586 million and Retail at $466.6M. Other top spenders include Restaurants, Auto and Technology.
“As the radio advertising landscape continues to shift, prominent opportunities are emerging amidst the changes,” commented Mike Hulvey, president and chief executive officer, RAB. “We collaborated with BIA Advisory Services to drill down and better understand how evolving consumer behavior, increased digital integration and key business verticals’ ad spending shifts can be leveraged by radio broadcasters to drive growth in local markets.”
“Local radio stations are rising to the challenge, producing compelling, original content and embracing digital integration. These shifts present fresh opportunities for advertisers to forge meaningful connections with radio listeners,” said Nicole Ovadia, vice president of forecasting and analysis, BIA Advisory Services. “Radio's ability to adapt and innovate will be crucial to its ongoing success and that’s where BIA is focused so we can be additive to the continued success of radio groups.”
RAB and BIA Advisory Services will host a live presentation, Navigating the Evolving Landscape of U.S. Radio Ad Spend, at noon CT on September 25 for RAB members. BIA's Ducey and Ovadia will share custom local radio data, insights and analysis. Register here. The presentation will be available for on-demand. RAB members can gain early access to the executive summary here.
“Local radio stations are rising to the challenge, producing compelling, original content and embracing digital integration. These shifts present fresh opportunities for advertisers to forge meaningful connections with radio listeners,” said Nicole Ovadia, vice president of forecasting and analysis, BIA Advisory Services. “Radio's ability to adapt and innovate will be crucial to its ongoing success and that’s where BIA is focused so we can be additive to the continued success of radio groups.”
RAB and BIA Advisory Services will host a live presentation, Navigating the Evolving Landscape of U.S. Radio Ad Spend, at noon CT on September 25 for RAB members. BIA's Ducey and Ovadia will share custom local radio data, insights and analysis. Register here. The presentation will be available for on-demand. RAB members can gain early access to the executive summary here.
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