The U.S. local advertising market is poised for substantial growth, with revenues expected to reach $171 billion by 2025, according to BIA Advisory Services’ latest forecast. This reflects a 5.5% rise in non-political ad spending compared to revised 2024 estimates, despite an overall decline caused by reduced political advertising.
Key trends include the continued evolution of digital and traditional media. Digital radio revenues are projected to grow by 1.9%, while local OTA radio revenues will increase by 1.8%. By 2025, digital ad revenue is expected to surpass traditional media, accounting for 52% of local ad spend. Connected TV/Over-the-Top (OTT) platforms will remain key, though growth will moderate.
The forecast identifies restaurants, real estate, and retail as key sectors—dubbed the “Three Rs of 2025″—driving this expansion. Both digital and traditional advertising are crucial to the success of these industries as they expand in the coming years.
