BIA Advisory Services forecasts a 6.1% increase in U.S. local advertising revenue for 2025, totaling $171 billion, largely driven by digital media, which will reach $89.6 billion compared to traditional media's $81.3 billion. If political spending is included, the overall revenue may slightly decline by 0.5%. The report highlights a shift in consumer viewing patterns, with digital platforms outperforming expectations while traditional media struggles. Contributing factors include high interest rates and slow consumer confidence recovery, leading to a tempered outlook for the advertising industry.
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.
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.
Consumer viewing patterns are evolving more rapidly than anticipated. Digital platforms are exceeding growth expectations. Traditional channels are displaying softer performance than initially forecast.
This tempered outlook reflects sustained high interest rates and slower consumer confidence recovery.
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