Outlook: Local Advertising Revenue To Top $171B This Year.

U.S. local advertising revenue will reach $171 billion, excluding political spending — an increase of 6.1% vs. 2024 and mostly propelled by digital media spending, according to estimates by BIA Advisory Services.

With political advertising included, the total estimated spend of $171.4 billion would be a slight decline of 0.5% below 2024, due to 2024’s relatively large political spend.

The latest forecast, BIA says in a news release, shows slight adjustments to previous 2025 estimates, with ad revenue (excluding political) upwardly adjusted by 0.03% from the prior forecast and total local ad revenue (including political) upwardly adjusted by 0.1%.

“Our latest forecast indicates that local advertising is showing resilience, despite the ongoing changes in the economic landscape,” Nicole Ovadia, VP of Forecasting and Analysis at BIA Advisory Services, says in the release. “Although we expect core advertising to remain stable, we’ve adjusted our outlook to account for various market factors like interest rates and consumer sentiment and significant changes in media consumption patterns that are driving digital growth.”

Among the reports key findings:

• Digital transformation is growing dramatically: Traditional advertising channels are showing weaker performance metrics, while digital platforms are exceeding growth expectations.

• Growth Platforms: Due to political advertising, there were more crowd-outs in 2024, so TV Digital grew faster than anticipated. Connected TV/OTT is still the fastest-growing platform overall.

• Political Impact: Despite being an off-election year, 2025 will see significant political advertising activity in key local markets affected by special elections and gubernatorial races.

In terms of sector growth, the outlook sees real estate up 9.3%; restaurants up 9.2% and retail 6.8% higher. These sectors, BIA says, are critical indicators of local advertising activity and trends. The education and automotive verticals are also expected to realize significant growth, with increases of 5% each.

“Key verticals are showing notable shifts in 2025,” says Rick Ducey, Managing Director at BIA Advisory Services. “While what we term the ‘3Rs’ — Restaurants, Retail, and Real Estate — lead growth, we see interesting opportunities in Auto and Education. Auto dealers are likely to revive aggressive financing promotions when interest rates ease, and educational institutions are increasing their digital presence, particularly through geo-targeted campaigns, to connect with price-sensitive students who might not have considered nearby educational options before.”