Local radio is positioned for modest growth in a recovering but competitive advertising market in 2026, as digital platforms drive expansion while traditional over-the-air (OTA) broadcast remains the core strength, according to BIA Advisory Services’ latest U.S. Local Advertising Forecast.
The forecast was detailed during a Radio Advertising Bureau (RAB) webinar titled “Radio Ad Forecast 2026: BIA’s Latest Projections” and summarized by Celine Matthiessen, VP of Insights and Analytics at BIA, in the RAB blog.
Total local advertising spending is expected to hit $184.5 billion in 2026, with digital accounting for $104.1 billion — 56.4% of the total — and growing at an 8.3% compound annual growth rate.
Traditional media is forecast to stay essentially flat at 0.1% growth.
Local radio revenue is projected at $12.5 billion, a 2.4% increase from 2025. OTA radio is expected to generate more than $10 billion, while digital radio contributes more than $2.3 billion. OTA revenue is forecast to decline at a -2.8% CAGR, offset by roughly 2% growth in digital radio.“Radio’s strength is its combination of reach and trust,” Matthiessen wrote.
Key categories driving radio ad spend include finance and insurance ($2.1 billion OTA), retail ($1.5 billion), and restaurants ($1 billion). Political advertising is expected to add nearly $293 million for radio across OTA and digital.
The forecast highlights strong opportunities in cross-platform packages that blend radio’s local credibility and mass reach with connected TV (CTV), over-the-top (OTT), streaming audio, and digital video targeting.
“Audio is evolving, but radio still leads the way,” Matthiessen added. “AM/FM remains the dominant ad-supported audio platform and a daily habit for millions of Americans, including younger listeners.”
AM/FM radio continues to command 64% of ad-supported audio listening. Analysts note the main challenge for stations is balancing traditional strengths with digital integration to capture more advertiser dollars.
“The themes and highlights deliver many reasons why radio should feel optimistic,” Matthiessen concluded. “Radio continues to prove its power when it focuses on what it does best: delivering trusted, local, live content — and pairing that with smart digital strategies that drive results for advertisers.”