NEW YORK — The projected local radio ad revenue for 2025 is estimated to reach $12.3 billion, encompassing both over-the-air and digital radio. That’s according to data released Wednesday from the RAB, based on BIA Advisory Services’ latest U.S. Local Advertising Forecast.
This figure indicates a slight adjustment compared to 2024, the Radio Advertising Bureau advocacy organization reports.
The comprehensive analysis of “the evolving radio landscape” also finds that local radio ranks as the fifth-largest advertising medium within the $171 billion local advertising marketplace.
What are ranked one through four? The RAB doesn’t share that. But, it notes that “several key categories are driving investments in radio advertising.” They include investment and retirement, quick service restaurants (QSRs), supermarkets, commercial banking and hospitals.
Advertising trends indicate “robust” engagement in digital radio advertising from both the finance and insurance sectors, as well as QSRs, with expected investments exceeding $95 million for each, the RAB reports.
“Notably, hospitals are projected to be one of the top spenders in local radio advertising in 2025, according to our advertising forecast,” said Celine Matthiessen, VP of Insights and analysis at BIA Advisory Services. “As they allocate parts of their media budgets to Radio Over-the-Air (OTA), Radio Digital and other platforms like Connected TV (CTV), it’s evident that local radio continues to be a trusted and culturally relevant medium, especially in rural and remote communities.”
Moreover, significant growth in Radio’s Digital ad spending is expected in verticals such as real estate development (projected to increase by 15.8%), full-service restaurants and bars (+8.6%), and mattress and sleep centers (up 7.2%).
“Local radio is undergoing a significant transformation,” said Matthiessen. “The fusion of digital innovation with traditional broadcasting capabilities enables radio to uphold its crucial role in local market communications while creating new value propositions for advertisers.”
As RAB President/CEO Mike Hulvey sees it, “Broadcast radio and its digital assets can deliver the services that local businesses want and need to increase their sales revenue. Local businesses across sectors are dependent upon marketing professionals to help guide their growth. Understanding challenges of advertising categories and potential opportunities that exist is the value that this information brings to RAB members and to their prospective advertisers.”
