BIA: Radio Resilient As Audio Evolves In Local Ad Market.

The local advertising market is undergoing a significant transformation, with radio emerging as an enduring player by embracing digital extensions and innovative strategies. According to BIA Advisory Services’ latest report, “The $182B Local Advertising Opportunity: 10 Trends for 2026,” radio is poised to evolve rapidly, leveraging seven key digital trends to remain competitive in the shifting media landscape.

One of the most promising developments for radio is FM geotargeting, which enables neighborhood-level targeting and the creation of high-value ad units. This advancement allows radio sellers to deliver more precise and locally relevant advertising, catering to specific communities and boosting engagement.

Digital audio is also accelerating through personalization and programmatic advertising. By utilizing data-driven strategies, radio can offer more targeted ads across streaming platforms and podcasts, ensuring advertisers reach the right audience with tailored messaging. Additionally, interactive audio is gaining traction, enabling two-way engagement through voice-responsive ads on smart speakers, mobile devices, and connected cars.

Radio sellers are increasingly expanding into cross-platform advertising, including connected TV (CTV) and video. This shift allows them to capture budgets moving toward video and streaming platforms, positioning themselves as full-funnel, multi-platform partners rather than traditional spot sellers. Podcasting is also becoming a scalable local advertising vehicle, with geo-targeted and dynamically inserted ads in local and niche shows providing new opportunities for revenue growth.

In-car listening is transitioning to digital-first formats, with streaming dashboards blending over-the-air (OTA) radio with internet protocol (IP)-delivered audio. This shift reflects changing consumer behavior, as more listeners access audio content through connected dashboards and streaming environments. Radio sellers can capitalize on this trend by expanding inventory and unlocking new attribution opportunities, such as store visits, leads, calls, and conversions.

First-party data and audience extensions are further strengthening radio’s ability to target specific demographics. By leveraging richer listener data, radio can deliver multi-channel audience targeting with digital-style precision, reaching in-market audiences with measurable campaigns.

BIA’s report emphasizes the importance of radio sellers becoming full-funnel, cross-platform partners. By packaging OTA, streaming audio, podcasts, and CTV, sellers can secure larger, more strategic campaigns and reposition themselves as key players in the competitive local advertising market. Additionally, geo-targeting, programmatic audio, and first-party data can help radio deliver impactful, measurable campaigns at scale.

Beyond radio, BIA’s report highlights several other trends shaping the local advertising landscape in 2026. Local video remains a dominant driver of ad spend, with streaming platforms, social video, and connected TV reshaping audience behavior and advertising strategies. Local video ad spending is forecasted to reach $36 billion, with streaming services like Hulu and Disney+ expanding local ad inventory and social platforms delivering TV-quality video.

Hyper-local advertising is also gaining momentum, with verticals such as real estate, leisure/recreation, and restaurants expected to see the biggest growth in local ad spending. Real estate is projected to experience a 5.8% rise in spending, driven by lower interest rates and an increasingly digital-first buyer journey. Leisure and recreation spending is expected to grow by 4.3%, fueled by online gambling and shifting travel habits. Restaurants will see a 3.7% increase in ad spending, with a focus on targeted promotions and loyalty data.

Out-of-home (OOH) advertising is set to accelerate, with revenue forecasted to reach $9.2 billion in 2026, a 5% year-over-year increase. Digital OOH (DOOH) and programmatic OOH (prOOH) are driving this growth, offering dynamic creative, real-time optimization, and audience-based buying. Experience-driven sectors such as amusement parks, restaurants, and real estate development are expected to lead OOH spending.

The report also highlights the growing importance of localized media spending, with digital channels capturing 54.7% of all investment in 2026. Major events like the Winter Olympics, FIFA World Cup, and midterm elections will amplify local ad spending, creating opportunities for sellers to deliver measurable, market-level performance.

Social video is emerging as a breakout channel, with local social ad spend projected to grow from $36.7 billion in 2025 to $42.6 billion in 2026. Short-form video on platforms like TikTok, Instagram Reels, and YouTube Shorts is driving this growth, with more than 70% of local social ad spending expected to come from video formats.

As the local advertising market evolves, BIA emphasizes the importance of clarity and reliable insights for companies to stay ahead. By leveraging data-driven strategies and embracing digital transformation, local sellers can position themselves as strategic growth partners in one of the most competitive advertising environments yet.