In its latest Local Ad Forecast, BIA Advisory Services expects spending to rise, and forecasts digital media revenue to drive a slim majority of that spending.
“BIA Advisory Services estimates that in 2025 U.S. local advertising revenue will reach $171 billion, excluding political spending. This represents a 6.1 percent increase over 2024, driven mainly by spending on digital media.”
The chart below illustrates the slight leadership of digital media revenue ($89.6B) over traditional media revenue ($81.3B.
The dataset above excludes political spending, and BIA tells us: “When political advertising is included, the total estimated spend of $171.4 billion will be a slight decline of 0.5 percent below 2024, given last year’s relatively large political spend.”
In a video presentation of this forecast, we hear: “Consumer viewing patters are evolving more rapidly than anticipated. Digital platforms are exceeding growth expectations. Traditional channels are displaying softer performance than initially forecast.” The video is HERE.
“This tempered outlook reflects sustained high interest rates and slower consumer confidence recovery. –BIA
