Local Radio Revenue Projected at $12.3B in 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.”