BIA Forecast Sees Radio Digital Growth in 2027

RADIO ONLINE | Thursday, October 8, 2026 | 3:53pm CT

BIA Advisory Services

Local radio advertising revenue is projected to decline in 2027 as political spending subsides, but continued digital growth and opportunities in key advertiser categories offer reasons for optimism, according to BIA Advisory Services.

In a post on the Radio Advertising Bureau's (RAB) "This is Radio" blog, BIA Senior Vice President of Market Intelligence and Strategic Communications Michael Guerity outlined five opportunities for radio sellers based on the firm's September 2026 update to its U.S. Local Advertising Forecast.

BIA projects total local advertising revenue will reach $186.1 billion in 2026, an increase of $1.6 billion from its April forecast. Digital advertising is expected to account for $105.7 billion, or 56.8% of the total. Political advertising will contribute an estimated $9.7 billion, including $371.1 million for local radio across broadcast and digital platforms.

Local radio revenue is forecast to reach $12.2 billion in 2026, up 1.5% from 2025. That includes $9.8 billion in over-the-air revenue and $2.4 billion from digital advertising.

With no major election in 2027, BIA expects total radio revenue to decline to $11.4 billion. However, excluding political advertising, radio's digital revenue is projected to grow 3.4%. Digital currently accounts for approximately 20% of radio revenue and is expected to approach 25% by 2030.

"The local ad pie keeps getting bigger, and radio still has a big slice of it," Guerity wrote, noting that local radio continues to generate more advertising revenue than connected television and over-the-top streaming (CTV/OTT) and cable combined.

BIA identified finance and insurance ($2.48 billion), retail ($1.85 billion) and restaurants and food ($1.28 billion) as radio's largest advertising categories, collectively accounting for approximately half of the industry's revenue.

Among the fastest-growing categories for radio are electronics stores, with spending projected to increase 4.5%, online gambling at 4% and warehouse clubs at 3.5%.

Guerity also highlighted real estate as an underserved category. Realtors spend approximately $6.6 billion annually on local advertising, with spending projected to grow 10.3% in 2027. However, just 1.6% of their advertising budgets currently goes to radio, compared with the 7% average across all local advertisers.

CTV/OTT represents another potential revenue source for radio companies offering video advertising. Excluding political spending, BIA projects CTV/OTT advertising will grow 14.3% to $4.2 billion in 2027. The combined radio and CTV/OTT market represents a $15.6 billion opportunity, with radio's top 10 advertiser categories expected to add $200.8 million in CTV/OTT spending next year.

Audience research also strengthens radio's sales position. According to Nielsen's Audio Today 2026 report, AM/FM radio reaches 93% of U.S. adults monthly. Edison Research's Q2 2026 Share of Ear study found that radio accounts for 62% of ad-supported audio listening time.

BIA noted that agency buyers significantly underestimate radio's share of ad-supported audio, believing it accounts for just 26%.

Guerity said the challenge for radio sellers is translating the research into advertising opportunities by targeting underserved categories, expanding digital offerings and combining audio and video advertising solutions.

"The numbers can open the door," Guerity wrote. "The seller who connects those numbers to an advertiser's business is the one who can turn opportunity into revenue."

Read the full RAB This is Radio blog here.