Report: Local Radio To Generate $12.9 Billion In Ad Revenue In 2025.

Ad revenue for local radio is projected to reach $13.6 billion (Radio OTA + Radio Digital), marking an increase from 2023.

The RAB partnered with BIA Advisory Services for a deep dive into radio’s evolving landscape to help broadcasters navigate Q4 2024 and plan for 2025. Within the total local advertising marketplace spending of $174 billion, local radio is the fifth largest advertising media. BIA’s U.S. Local Advertising Forecast predicts a positive outlook for radio revenue for this year and next. For 2025, BIA estimates local radio will generate $12.9 billion, with Radio Digital delivering $2.9 billion of that amount.

In 2024, political advertising will be the clear spending leader in local radio with just over $631 million, according to the RAB and BIA Advisory Services. Rounding out the top five radio-focused verticals are Investment & Retirement Advice, Quick Service Restaurants (QSRs), Commercial Banking, and Supermarkets.

Anticipated 2025 landscape shifts will create a couple of new spending leaders. QSRs will emerge as the top spender with $558 million. Similar categories from 2024 remain in the top five in 2025, with the addition of Hospitals at number five with $429 million.

An analysis of radio’s digital KPIs generates interesting trends for 2025. Specifically, radio’s digital platforms and services serve as a growth medium for key local verticals. When examining the top 12 business categories in BIA’s forecast, the top two spenders in Radio Digital are Finance/Insurance at $586 million and Retail at $466.6 million. Other top spenders include Restaurants, Auto, and Technology.

“As the radio advertising landscape continues to shift, prominent opportunities are emerging amidst the changes,” RAB President/CEO Mike Hulvey said in a news release. “We collaborated with BIA Advisory Services to drill down and better understand how evolving consumer behavior, increased digital integration, and key business verticals’ ad spending shifts can be leveraged by radio broadcasters to drive growth in local markets.”

“Local radio stations are rising to the challenge, producing compelling, original content and embracing digital integration. These shifts present fresh opportunities for advertisers to forge meaningful connections with radio listeners,” BIA Advisory Services President of Forecasting and Analysis Nicole Ovadia added. “Radio’s ability to adapt and innovate will be crucial to its ongoing success and that’s where BIA is focused so we can be additive to the continued success of radio groups.”

A live presentation of the findings “Navigating the Evolving Landscape of U.S. Radio Ad Spend,” will be held Sept. 25 at 12pm CT for RAB members. Registration information can be found HERE.