Local advertising revenue is growing according to new data released by BIA Advisory Services this week.
According to the latest estimates, United States local advertising revenue will top $171 billion in 2025. That represents a 6.1% increase compared to last year, with digital media being tabbed as the largest driver of the increase.
When political advertising is included, the figure rises to $171.4 billion, but is a slight decline of 0.5% due to the whopping amount spent on the 2024 election cycle.
Both of those figures account for slight increases in the forecasting model used by BIA Advisory Services, which adjusted the total up by 0.03% and 0.1% with political advertising included.
“Our latest forecast indicates that local advertising is showing resilience, despite the ongoing changes in the economic landscape,” said BIA Advisory Services Vice President of Forecasting and Analytics Nicole Ovadia. “Although we expect core advertising to remain stable, we’ve adjusted our outlook to account for various market factors like interest rates and consumer sentiment and significant changes in media consumption patterns that are driving digital growth.”
The 2025 U.S. Local Advertising Forecast from BIA shows that traditional advertising channels are now showing weaker performance metrics while digital platforms are surpassing growth expectations. That has led to a “faster-than-anticipated shift” in strategy from some marketers, the company shared.
Additionally, some of the top growth sectors for 2025 include:
- Real Estate (+9.3%)
- Restaurants (+9.2%)
- Retail (+6.8%)
- Education (+5.0%)
- Automotive (+5.0%)
“Key verticals are showing notable shifts in 2025,” said BIA Managing Director Rick Ducey. “While what we term the ‘3Rs’ – Restaurants, Retail, and Real Estate – lead growth, we see interesting opportunities in Auto and Education. Auto dealers are likely to revive aggressive financing promotions when interest rates ease, and educational institutions are increasing their digital presence, particularly through geo-targeted campaigns, to connect with price-sensitive students who might not have considered nearby educational options before.”
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