The Local Radio Renaissance: Navigating the Evolving Media Landscape
The local radio industry is experiencing a resurgence, defying the conventional wisdom that digital media would spell its demise. In 2026, local radio sellers and marketers are witnessing a complex yet promising advertising environment, characterized by shifting budgets, digital expansion, and evolving media consumption habits. This transformation is particularly fascinating, as it challenges the notion that radio is an outdated medium.
The BIA's U.S. Local Advertising Forecast highlights a crucial aspect of this evolution: local advertising spending is on the rise again. This resurgence is fueled by stronger consumer demand and advertisers' renewed focus on performance-based outcomes. Radio, with its unique strengths, is positioned to capitalize on this trend.
Celine Matthiessen, VP of Insights and Analytics at BIA Advisory Services, emphasizes radio's core strengths: reach and trust. The over-the-air (OTA) audience remains a powerful asset, especially in the car and communities where personalities resonate deeply with listeners. Advertisers value this credibility, and radio's ability to blend OTA presence with digital extensions makes it an increasingly attractive partner.
The integration of digital platforms is a key driver of radio's growth. Streaming audio, station websites, and cross-platform advertising packages are contributing significantly to revenue expansion. Stations that seamlessly integrate digital strategies with traditional broadcast offerings are better positioned to compete for advertiser dollars and strengthen client relationships. This strategic alignment is a testament to radio's adaptability and its ability to stay relevant in a rapidly changing media landscape.
The BIA forecast also highlights emerging opportunities in political advertising cycles and connected TV (CTV) and over-the-top (OTT) platforms. These formats create expanded cross-platform advertising packages, combining radio's mass reach and local credibility with the targeting and visual capabilities of digital video. This convergence of media channels is reshaping the advertising landscape, and radio is well-positioned to benefit from this trend.
Despite the growth in digital media, AM/FM radio retains its dominance in ad-supported audio. In 2025, it accounted for 64% of listening, even as podcasts and streaming services gained traction. The challenge for radio lies in balancing its traditional strengths with expanded digital opportunities. However, Matthiessen argues that radio's strength lies in focusing on what it does best: delivering trusted, local, live content, and pairing it with smart digital strategies that drive results for advertisers.
The BIA's April 2026 update provides valuable insights into revenue expectations and category-level spending trends. Local advertising is projected to reach $184.5 billion in 2026, with digital accounting for a significant portion. Local radio revenue is projected at $12.5 billion, reflecting a 2.4% growth over 2025. Over-the-air radio is expected to dominate, accounting for over $10 billion, while digital radio contributes more than $2.3 billion. This distribution highlights the continued importance of radio in the local advertising ecosystem.
Key advertising categories driving spend include retail, finance and insurance, and restaurants and food. Within radio, finance and insurance lead OTA spending, followed by retail and restaurants. Political advertising also plays a significant role, with radio capturing a substantial share of the spend. The integration of CTV and OTT platforms into radio sales strategies is particularly notable in verticals like legal services.
In conclusion, the local radio industry is undergoing a renaissance, leveraging its traditional strengths while embracing digital opportunities. By focusing on its core competencies and adapting to the evolving media landscape, radio is proving its enduring power. As the industry continues to innovate and evolve, it is poised to deliver trusted, local content to listeners across platforms, ensuring its relevance and success in the years to come.
