Advertising Forecasts Mixed But Remain Stable for 2026

U.S. radio advertising revenue is projected to remain largely flat in 2026, with growth in local ads and digital extensions balancing declines in national and network spending, according to multiple industry analysts including Kagan, Borrell Associates, Guideline, and BIA Advisory Services.

Kagan forecasts overall radio revenue to stay mostly stable, as 1-3% growth in core local broadcast advertising offsets low single-digit declines in national and network categories. Analyst Justin Nielson highlights that local markets should remain relatively strong, with an additional potential lift from political advertising during the midterm election cycle.Digital components provide key stabilization and upside. 

Borrell Associates projects radio's digital revenue to rise about 9.5% to $2.5 billion in 2026, representing more than 24% of the industry's total revenue. This follows a record $2.3 billion in digital ad sales in 2025 (about 24.4% of total). Borrell notes that 9.5% digital growth offsets an expected 3% decline in core (traditional) radio, resulting in continued overall revenue stability. The firm describes radio as having "found the formula" by effectively pairing traditional spots with digital offerings, positioning audio for resilience amid broader local ad market dynamics.

Guideline forecasts U.S. digital audio ad spend—including radio and podcasts—to increase 9.3% to $2.9 billion in 2026, up from $2.6 billion in 2025. This growth rate reflects market maturation, with more dollars competing in a larger pool, even as overall traditional formats (including radio) face downward pressure.

BIA Advisory Services emphasizes radio's "resilience through digital extension" as one of the top 10 trends shaping the $182 billion local advertising market in 2026. The firm highlights how broadcasters are evolving rapidly by expanding into streaming, podcasts, geotargeted digital inventory, programmatic audio, in-car listening, and interactive voice ads. These extensions enable radio to capture cross-platform campaigns and compete more effectively as audience behaviors fragment and digital transformation reshapes media channels.

Overall, while traditional radio faces ongoing challenges from shifting advertiser preferences, the integration of digital strategies across forecasts points to a steadier year for the industry compared to steeper declines in some other traditional media. Radio and audio channels are positioned to lead relative local ad growth through hybrid models that blend on-air reach with targeted digital capabilities