BIA Projects 2025 Local Ad Spending Trends.
- Inside Audio Marketing
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While digital platforms and connected TV continue to capture growing shares of local advertising dollars, traditional broadcast media — including radio — are navigating a rapidly shifting landscape.
That uncertain terrain was at the center of the webinar, “State of Media Sales 2025: Revealing Insights and Trends.” The event drew from findings derived from the annual “State of Media Sales Survey,” in which media sales pros outline their priorities, challenges and expectations for the upcoming year. The webinar, co-sponsored by SalesFuel and BIA Advisory Services, featured C. Lee Smith, CEO and Founder, SalesFuel; Audrey Strong, SVP of Communications, SalesFuel; and Christina Hurley, VP of Sales, BIA Advisory Services.
The session touched on an array of topics, including areas of opportunity and challenges perceived by media sellers; the evolving role of AI in media sales; and verticals with potential growth (and some that are concerning).
Released in August, BIA Advisory Services’ 2025 U.S. Local Advertising Forecast provides a detailed projection of local ad spending through 2028, analyzing data from 210 local TV markets and 16 media types across 96 business verticals. While much of the attention centers on the dramatic shifts in local video advertising, the broader findings shed light on the evolving role of radio in a digital-first advertising environment.
BIA’s report highlights that economic conditions, employment trends and population changes continue to influence advertising budgets across all platforms. Competitive pressure from digital and over-the-top (OTT) services is reshaping where and how advertisers allocate their dollars.
Among all local media, local video is projected to generate $29.8 billion in 2025, accounting for 17.7% of total local advertising. Over-the-air (OTA) TV remains the dominant force in video, capturing $14.3 billion — nearly half the category — though its share continues to erode under the weight of digital migration.
Radio, which BIA includes in its broader media tracking, was not spotlighted in this year’s summary figures but remains part of the ongoing analysis BIA conducts within its 16 media types. Historically, radio has maintained a steady, if slightly declining, portion of local ad revenue. However, it is increasingly being challenged to innovate in response to the same headwinds facing television.
One topic that’s weighing heavily on the minds of ad sales managers, according to the survey data, is the ability to hire and retain successful reps. Smith said it’s a problem that goes beyond media sales.
“There is a large distrust and a large disinterest, quite frankly, in the sales profession by the younger generations,” Smith said. “And I’m thinking of people specifically 30 and younger. It’s not a sexy industry. They perceive it as this high-commission grind, and the only way they’re going to make any money is to force people to do something they don’t want to do, and it’s not in alignment with their beliefs and their philosophies.”
Smith called for a change in how the industry talks about the sales profession and making sure that appeals made to younger generations should “speak to their cause driven side.”
Hurley credited sales managers with getting their teams up to speed on sales of digital products, noting that they now sell online, digital advertising, marketing services and more.
“In the current position, everything has gotten harder for the seller to be able to meet all of these goals and to be able to do what they need to do to help the advertiser get their brand and their product out there,” he explained. “And so I think that companies have done a great job at getting your people up to speed on selling digital services, especially when historically they sold the traditional services.”
Looking ahead to 2026, political advertising is expected to reach $8.8 billion — a potential boon for media companies. Over-the-air TV is expected to capture the largest share at $3.9 billion (44.8%), but digital platforms such as CTV/OTT and online video are also poised to benefit.
Although radio is typically a recipient of political ad dollars, its share has declined in recent cycles as campaigns increasingly favor platforms with enhanced targeting capabilities.
The report also suggests creating community-oriented marketing partnerships — a strategy where radio’s local presence and loyal listener base could provide a distinct advantage.
Among top verticals for Radio OTA, direct, health and medical insurance offer promise, as does Tier Two local automotive associations, clothing stores, hobby and toy stores, jewelry, luggage and sporting goods stores.
