Local Ad Market Shifted Toward Digital and AI
Broadcasters and agencies must pivot sales strategies as political spending drops and digital demand grows in 2027.
Updated on Oct. 13, 2026 in Advertising
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BIA Advisory Services projects total 2027 local advertising revenue will reach $186.5 billion, driven by $9 billion in non-political growth. Operators must account for an expected $8.6 billion decrease in political spending compared to 2026.
Why it matters
The contraction in political ad volume creates a revenue gap that businesses must fill through organic non-political growth. Simultaneously, the rise of AI-driven search is fundamentally changing how digital properties compete for customer attention.
BIA projects 2026 over-the-air radio revenue at $9.79 billion and digital radio revenue at $2.41 billion. Total local advertising is forecasted to reach $186.5 billion in 2027, with non-political spending growth of $9 billion offsetting an $8.6 billion decline in political revenue.
The players
BIA Advisory Services
A research and consulting firm specializing in local media and advertising market data.
The details
Local sellers are encouraged to integrate digital inventory with traditional reach to maintain market share. Firms should pivot sales training toward performance metrics, attribution, and automation to navigate the transition. As AI-generated search results replace traditional clicks, content strategies on digital properties require significant adjustment to stay effective.
Timeline
September 2026: BIA released its radio industry outlook report.
2026: The projected timeframe for full-year radio revenue results.
2027: The year for which the total local ad revenue projections apply.
2030: The conclusion of the BIA local business growth forecast period.
Market Landscape
This forecast continues the industry-wide shift toward digital-first local advertising, particularly favoring CTV and OTT channels through 2030. It marks a departure from reliance on cyclical political spending, forcing a pivot toward sustainable non-political revenue streams.
Owners and managers should audit their sales team training to prioritize performance attribution and digital reselling capabilities. Prepare for a tightening of available ad revenue as political cycles normalize in 2027.
The takeaway
Operators must proactively transition sales teams from a reliance on political ad volume to long-term digital performance strategies. Monitor the growth of CTV and OTT channels as these remain the primary vehicles for sustaining revenue through 2030.
Further reading
For broader trends impacting regional media spend, see Advertising.
Source note: This article includes information reported by Radio Ink.
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