Radio And Audio Lead Local Ad Growth In 2026 Amid Shifting Media Landscape.

As the U.S. economy shows a mixed picture, local advertisers are cautiously optimistic about their spending in 2026, according to a recent Borrell Associates webinar. While retail sales are improving, SMBs remain wary about the near-term outlook. As Executive VP of Local Market Intelligence Corey Elliott noted, “45% of the SMBs we surveyed said the next six months, the economic conditions are going to get worse, while only 16% said they’re going to improve.”

Despite this caution, total local advertising is expected to grow 3% in 2026, with digital channels leading the way at 4.5% growth, while non-digital spending is projected to decline slightly by 1.1%.

Radio advertising is emerging as a bright spot. CEO Gordon Borrell said that “radio seems to have a really good message,” and “might have found the formula” by combining traditional spots with digital offerings. While core radio revenues declined for most companies in 2025, iHeartMedia stood out: strong digital sales offset a 5% decline in core radio revenue, Borrell noted.

Audio, including streaming audio and podcasts, is also showing growth. Elliott noted that streaming audio rose 9.2% year-over-year in 2025, and Borrell emphasized that “audio is clearly a standout… a little surprised to see it overlap streaming video.” Partnerships, such as Amazon’s DSP integration, are enabling radio reps to sell streaming audio alongside traditional spots, expanding inventory and audience reach. Streaming video continues to grow rapidly. Borrell pointed out that “social video… total expenditures… surpassed that of broadcast TV advertising,” underscoring the shift toward high-engagement platforms. Meanwhile, AI is emerging as a major influence on local marketing. Nearly a third of advertisers are turning to AI for recommendations, including decisions about traditional media: “10% of advertisers are already turning to AI for recommendations… 23% are thinking about it soon,” Borrell said.

The report concluded that while local SMBs are cautious, radio and audio are poised for growth in 2026 due to digital integration and cross-platform opportunities. For media sales teams, the challenge will be providing clarity and guidance to businesses navigating a rapidly evolving mix of digital, traditional, and AI-driven advertising options.

In short, radio and audio are carving out a resilient niche, digital growth is fueling overall ad spending, and AI is set to reshape local advertising strategies, offering both opportunities and challenges for 2026.