Leveraging the Local Radio Ad Spend Forecast for 2025
A recent BIA-Kelsey local ad revenue forecast for 2025 points to specific ad categories to watch for broadcast and digital radio.
The Revenue Picture for 2025
BIA estimates local radio will generate $12.9 billion in ad revenue in 2025, with $2.9 billion coming from digital radio. While digital spending is expected to remain flat, the forecast is down slightly overall from 2024, accounting for the fact that 2025 is a nonpolitical year.
Top 5 Verticals for 2025
BIA expects the following business categories to power local audio in 2025:
- Quick service restaurants/fast food
- Investment and retirement advice
- Supermarkets and other grocery stores
- Commercial banking
- Hospitals
This potentially bodes well for local NPR stations because, with the exception of fast food, all of the other categories have traditionally been strong for public media, especially finance and healthcare.
OTA vs. Digital Spends
There are slight nuances when looking at over-the-air (OTA) vs. digital, with BIA projecting significant digital ad spend from both the automotive and technology sectors in 2025:
With technology a growing B2B sub-category for many stations, this represents continued opportunity for public radio and especially our digital offerings. And while automotive has traditionally been a harder sell for public media, when you also consider that there is an upward trajectory in the adoption and corresponding marketing and advertising of electric vehicles, the affluent, environmentally-conscious public radio audience positions us well to capture some of these ad dollars.
Considerations for Multi-Platform Ad-Spending
BIA also offers interesting considerations for multi-platform ad spending which hold particular relevance for public media joint licensees. BIA reports that radio and streaming audio are increasingly turning to connected TV (CTV) and video ads to offset audio ads. According to a 2024 RAB study, advertisers that buy ads from radio stations also purchase CTV from them. With many public TV stations now selling local pre-roll on PBS Passport, this may help differentiate local stations as a cost-effective, one-stop shop for sponsors that want to buy both audio and TV streaming in a brand-safe, uncluttered environment.
Even for radio-only stations, BIA suggests it can be helpful to look beyond our own medium and “examine the full local advertising marketplace to track shifts and opportunities that can be seized and capitalized on.” If we keep a pulse on spending and shifts within business categories we can remain powerful consultative sellers and keep public radio firmly in the consideration set of local advertisers across our strongest categories.
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