BIA Advisory Services has revised its local advertising projections to reflect an 8.1% year-over-year uptick.
The company now forecasts that $184.5 billion will be spent on local advertising in 2026. Previously, the number was projected as $181.7 billion. However, stronger-than-expected growth in mobile, video, streaming, and political advertising has led to the increased forecast.
When political advertising is excluded, the company’s forecast is at $176.1 billion. That’s an increase from its previous projection of $172.7 billion.
“Our updated forecast reflects continued momentum in social and connected and over-the-top television, which are capturing a growing share of local advertising budgets,” said BIA Advisory Services Vice President of Forecasting and Data Analysis Senan Mele. “At the same time, traditional media such as broadcast television, cable and radio remain essential, providing the scale, credibility, and local connection that advertisers rely on to drive awareness and demand.”
Political advertising is projected to reach $8.4 billion, according to BIA Advisory Services. That will be split across broadcast television, linear cable, CTV/OTT, radio, and direct mail.
The company’s Managing Director, Rick Ducey, says the forecasted increase comes from higher-than-expected spending by the average American.
“The local advertising marketplace continues to reflect a K-shaped consumer economy,” said Ducey. “Stronger spending from higher-income households is supporting discretionary categories like travel, leisure, and automotive, while value-oriented spending is shaping demand in retail, restaurants, and essential services.”
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