The local advertising landscape in the U.S. is set for significant growth, with projected revenues across all local media expected to hit $171 billion by 2025, according to BIA Advisory Services’ recent U.S. Local Advertising Forecast. This marks a 5.5% increase in non-political spending over the revised 2024 estimates despite a slight overall decline due to a drop in political ad spending.
Digital and traditional media are evolving, with digital radio revenues anticipated to rise by 1.9% to $2.88 billion, while local OTA radio revenues will see a modest 1.8% growth. Nicole Ovadia, BIA’s VP of Forecasting & Analysis, highlights the impact of macroeconomic conditions on these projections, emphasising refined forecasts to align with the changing advertising marketplace.
As we look ahead, 2025 is expected to be a pivotal year where digital ad revenue will surpass traditional media, claiming 52% of the total local advertising spend. This shift is significant and BIA Managing Director Rick Ducey notes the continued opportunities within Connected TV/Over-the-Top (OTT) advertising, despite moderated growth expectations.
Key sectors driving this growth include restaurants, real estate, and retail—dubbed the “Three Rs of 2025.” These verticals are poised for significant expansion, emphasizing the critical role of both traditional and digital advertising in their success.
For a detailed analysis of these trends and what they mean for advertisers and marketers, dive into the comprehensive forecast and insights provided by BIA Advisory Services in Insight Audio Marketing article here.
