Five Key Reasons Radio Should Feel Optimistic

Contributor: Celine Matthiessen, VP of insights and analytics, BIA Advisory Services

As 2026 heads into its second half, local radio sellers and marketers are facing a complex but opportunity-rich marketplace.

During RAB’s webinar, “Radio Ad Forecast 2026: BIA’s Latest Projections,” BIA’s insights from its updated U.S. Local Advertising Forecast provide an overview into the opportunities for radio – across broadcast and digital.

There are overarching themes within the 2026 forecast:

• Local ad dollars are growing, and radio is part of that story. Local advertising spending is rising again, fueled by healthy consumer demand and advertisers’ renewed focus on performance. Even as budgets get more data-driven, radio continues to play a critical role in capturing attention, driving awareness and supporting local businesses.
• Radio’s strength is its combination of reach and trust. Radio’s over-the-air audience remains one of the most powerful assets in local media, especially in the car and in communities where personalities are deeply connected to listeners. Advertisers value that credibility, and when radio blends its OTA (over-the-air) presence with digital extensions, it becomes an even more compelling partner.
• Digital is a growth engine for radio. While traditional channels across the industry are evolving, digital is where much of the new growth is concentrated – and radio is increasingly participating in that upside. From streaming audio and station websites to targeted campaigns and cross-platform packages, stations that lean into digital are better positioned to grow revenue and deepen relationships with advertisers.
• Political and CTV open powerful cross-platform packages. Election cycles and the rapid rise of CTV/OTT are creating new opportunities for radio sellers to bundle solutions. Campaigns and brands want the mass reach and local credibility of radio, paired with the precision and visuals of CTV, making cross-channel packages more attractive – and more valuable.
• Audio is evolving, but radio still leads the way. Streaming, podcasts and video are expanding the audio universe, yet AM/FM remains the dominant ad-supported audio platform and a daily habit for millions of Americans, including younger listeners. Radio’s opportunity is to embrace this broader audio ecosystem, connecting its brands and talent to listeners across platforms while keeping OTA at the core.

Drawing from BIA’s April 2026 local forecast update and new analysis of radio, here are five key highlights:

1. Local advertising is expected to reach $184.5 billion in 2026, with digital making up $104.1 billion (56.4% of spend). Digital’s growth rate is projected at 8.3% CAGR, while traditional media remains nearly flat at 0.1%.

2. Local radio revenue is forecast at $12.5 billion in 2026, growing 2.4% from 2025. Over-the-air radio contributes over $10 billion, while digital adds more than $2.3 billion. OTA is expected to decline at -2.8% CAGR, but digital will grow at about 2.0%.

3. Key spending sectors include Retail ($26.3 billion), Finance & Insurance ($24.4 billion) and Restaurants & Food ($16.1 billion). For radio, OTA spending leaders will be Finance & Insurance ($2.1 billion), Retail ($1.5 billion) and Restaurants ($1.0 billion) in 2026.

4. Political advertising remains critical, with radio OTA capturing 2.7% of ad spend and digital 0.8%, totaling just under $293 million. CTV/OTT is becoming important for radio, particularly for sectors like Legal Services.

5. AM/FM radio still dominates ad-supported audio listening, representing 64% in 2025, while podcasts and streaming are growing. The challenge for radio lies in competing while also leveraging digital formats to reach audiences.

The themes and highlights deliver many reasons why radio should feel optimistic. Radio continues to prove its power when it focuses on what it does best: delivering trusted, local, live content – and pairing that with smart digital strategies that drive results for advertisers.