Local radio could face a smaller advertising market in 2027 even as its digital business grows, according to BIA Advisory Services’ latest forecast discussed by the Radio Advertising Bureau, or RAB.
In an October 6 contribution to RAB’s public blog, BIA executive Michael Guerity projected local-radio advertising of $12.2 billion in 2026 and $11.4 billion in 2027 as major-election spending recedes. The 2026 estimate includes $9.8 billion in over-the-air revenue and $2.4 billion in digital revenue.
Excluding political advertising, radio’s digital revenue is forecast to rise 3.4% in 2027.
Build commercial demand before political money disappears
BIA identifies opportunities in advertiser categories that spend substantial amounts locally but allocate relatively little to radio, including realtors and law firms.
For stations, the question is whether new digital sales produce meaningful retained revenue after fulfillment and platform costs. Advertisers also need clear evidence of results rather than a larger bundle of products.
These figures are projections from BIA’s September forecast update, not measured 2027 revenue. Results will differ by market and advertiser category.
Source: BIA’s analysis published by RAB.