BIA Advisory Services Issued 2027 Advertising Forecast

The firm projects $186.5 billion in total local advertising revenue for 2027 as political spending is set to decline.

Updated on Oct. 13, 2026 in Advertising

BIA Advisory Services Issued 2027 Advertising Forecast

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Is now a good time for local businesses to shift their advertising budget toward digital strategies?

BIA Advisory Services has released its latest projections for the United States local advertising market, estimating total revenue will reach $186.5 billion in 2027. This forecast accounts for an expected $8.6 billion drop in political advertising spending alongside a projected $9 billion gain in non-political advertising growth.

Why it matters

The shift away from political campaign cycles requires local advertising sellers to adapt their strategies toward digital and AI-driven services. As political spending declines in 2027, the focus shifts to sustained growth areas like streaming and digital inventory to maintain revenue stability.

BIA Advisory Services projects 2026 over-the-air radio revenue will reach $9.79 billion, while 2026 digital radio revenue is estimated at $2.41 billion. Total local advertising for 2027 is forecast at $186.5 billion, balancing a $9 billion growth in non-political ads against an $8.6 billion drop in political spending.

The players

BIA Advisory Services

This firm provides strategic consulting and data analysis for the local media and advertising industries.

The details

To navigate the 2027 landscape, experts advise that sales forces prioritize training in automation and performance attribution. Combining traditional media reach with digital inventory through direct account reselling is recommended to mitigate the impact of changing content strategies and AI-driven search habits.

September 2026: BIA released its radio industry outlook report.
2026: The full year period for projected radio revenue totals.
2027: The year for the total local advertising revenue projection.
2030: The conclusion of the BIA local business growth forecast period.

Market Landscape

This forecast aligns with broader industry trends that emphasize a transition toward digital, streaming, and AI-integrated advertising models. It positions traditional media sellers against a competitive environment where performance-based attribution and automated ad buying are becoming standard.

Business owners and advertisers may see an increase in digital and streaming inventory availability as firms pivot away from traditional political ad cycles. These changes could influence the cost and effectiveness of local campaigns as platforms shift toward automated purchasing and AI content strategies.

The takeaway

Advertisers should prepare for a transition away from temporary political spending spikes by strengthening their digital and streaming portfolios. Training staff on AI and performance-based metrics is essential for maintaining growth when the market faces reduced political ad volume.