Local Radio Remains A Top 5 Advertising Platform

Local radio continues to maintain a strong presence in the U.S. advertising landscape, securing its position as the fifth-largest advertising medium within the $171 billion local ad marketplace, as reported by BIA Advisory Services.

This ranking highlights radio's enduring relevance amid a rapidly evolving media environment, where it competes with both traditional and digital platforms for advertising dollars.

According to BIA's latest U.S. Local Advertising Forecast for 2025, local radio is projected to generate $12.3 billion in advertising revenue, encompassing both over-the-air (OTA) and digital channels. This figure reflects a slight adjustment from 2024 estimates, with a forecasted decline of 4.9% year-over-year when including political spending, and a 6% drop for OTA revenue alone. Despite this dip, radio’s ability to hold its top-five spot underscores its resilience and adaptability, particularly as it integrates digital innovations with its traditional broadcasting strengths.

The forecast points to significant growth in digital radio ad spending, driven by key sectors such as financial services, insurance, and quick-service restaurants (QSRs), each expected to invest over $95 million in 2025. Hospitals are also emerging as a notable spender in local radio advertising, reflecting the medium's appeal to diverse industries seeking to connect with local audiences. This blend of traditional and digital revenue streams enables radio to remain a vital tool for advertisers, especially in rural and remote communities where it retains strong cultural and practical relevance.

BIA Advisory Services emphasizes that local radio's transformation—merging compelling content with digital capabilities—positions it to offer unique value to advertisers. This adaptability ensures it continues to compete effectively within the broader $171 billion local advertising marketplace, trailing only larger mediums like digital ads, television, direct mail, and newspapers, though the exact rankings of the top four are not specified in the provided context.