BIA: Local Radio Growth Continues As Media Mix Evolves.

Local radio sellers and marketers are navigating what industry analysts describe as a complex but opportunity-rich advertising environment in the second half of 2026, shaped by shifting budgets, digital expansion, and changing media consumption habits.

During an RAB webinar titled “Radio Ad Forecast 2026: BIA’s Latest Projections,” analysts outlined findings from BIA’s updated U.S. Local Advertising Forecast, highlighting where radio fits within a broader local media ecosystem that continues to evolve across broadcast and digital platforms.

The forecast, Celine Matthiessen, VP of Insights and Analytics, BIA Advisory Services, explains via the RAB blog, identifies several overarching themes shaping the year ahead. Local advertising spending is rising again, driven by stronger consumer demand and renewed advertiser focus on performance-based outcomes. While media buyers continue to lean on data and measurement, radio remains positioned as a key channel for delivering awareness and supporting local businesses.

“Radio’s strength is its combination of reach and trust,” Matthiessen writes. “Radio’s over-the-air audience remains one of the most powerful assets in local media, especially in the car and in communities where personalities are deeply connected to listeners. Advertisers value that credibility, and when radio blends its OTA (over-the-air) presence with digital extensions, it becomes an even more compelling partner.”

Digital platforms continue to emerge as a primary growth driver for radio operators. Streaming audio, station websites, and cross-platform advertising packages are increasingly contributing to revenue expansion. Stations that integrate digital strategies alongside traditional broadcast offerings are better positioned to compete for advertiser dollars and strengthen client relationships.

The BIA forecast also points to growing opportunities in political advertising cycles and connected TV (CTV) and over-the-top (OTT) platforms. These formats are creating expanded cross-platform advertising packages that combine the mass reach and local credibility of radio with the targeting and visual capabilities of digital video.

“Audio is evolving, but radio still leads the way,” Matthiessen writes. “Streaming, podcasts and video are expanding the audio universe, yet AM/FM remains the dominant ad-supported audio platform and a daily habit for millions of Americans, including younger listeners. Radio’s opportunity is to embrace this broader audio ecosystem, connecting its brands and talent to listeners across platforms while keeping OTA at the core.”

BIA’s April 2026 update provides additional detail on revenue expectations and category-level spending trends. Local advertising is projected to reach $184.5 billion in 2026, with digital accounting for $104.1 billion, or 56.4% of total spend. Digital advertising is forecast to grow at an 8.3% compound annual growth rate, while traditional media remains largely flat at 0.1%.

Local radio revenue is projected at $12.5 billion in 2026, reflecting 2.4% growth over 2025. Over-the-air radio is expected to account for more than $10 billion of that total, while digital will contribute more than $2.3 billion. OTA radio is forecast to decline at a -2.8% compound annual growth rate, while digital radio revenue is expected to grow at about 2%.

Key advertising categories driving spend include retail at $26.3 billion, finance and insurance at $24.4 billion, and restaurants and food at $16.1 billion. Within radio specifically, finance and insurance leads OTA spending at $2.1 billion, followed by retail at $1.5 billion and restaurants at $1 billion.

Political advertising also remains a meaningful contributor, with radio OTA capturing 2.7% of spend and digital accounting for 0.8%, totaling just under $293 million. CTV and OTT platforms are increasingly integrated into radio sales strategies, particularly in verticals such as legal services.

The report also underscores AM/FM radio’s continued dominance in ad-supported audio, representing 64% of listening in 2025, even as podcasts and streaming services continue to grow. Industry analysts say the challenge for radio lies in balancing its traditional strengths with expanded digital opportunities.

“The themes and highlights deliver many reasons why radio should feel optimistic,” Matthiessen writes. “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.”