BIA Advisory Services has increased its 2026 U.S. Local Advertising Forecast projection for total local ad revenue to reach $184.5 billion.

The previous estimate was $181.7 billion and is driven by stronger-than-expected performance in mobile (particularly social), video, and streaming, political ad spend, and advertising technology. Excluding political advertising the projection is up from $172.7 billion to $176.1 billion with real estate, restaurants, travel, retail, and financial services being key verticals.

BIA VP/Forecasting and Data Analysis Sena Mele said, “Our updated forecast reflects continued momentum in social and connected and over the top television, which are capturing a growing share of local advertising budgets. At the same time, traditional media such as broadcast television, cable and radio remain essential, providing the scale, credibility, and local connection that advertisers rely on to drive awareness and demand.”

Managing Director Rick Ducey added, “The local advertising marketplace continues to reflect a K-shaped consumer economy. Stronger spending from higher-income households is supporting discretionary categories like travel, leisure, and automotive, while value-oriented spending is shaping demand in retail, restaurants, and essential services.”

BIA says that while growth is being driven by digital channels – particularly mobile, social, and connected TV, radio remains a stable local medium, with additional opportunities emerging through digital audio, including streaming and podcasts. Mele followed, “Overall, the local advertising market is not contracting; it is transforming. The most successful media companies will be those that can combine local audience scale with targeting, optimization, and measurement to capture both cyclical political spending and ongoing demand from growth-oriented verticals.”