• by Wayne Friedman , August 7, 2024

U.S. non-political, core local advertising spend is projected to rise 5.5% to $171 billion in 2025, according to BIA Advisory Services.

When including political ads for 2025, BIA says this would be a 1.3% decline from $173.7 billion from 2024.

For this year, BIA estimates political ad spend will grow 21.3% over last the general election to $11.7 billion, and will sink to $560 million in 2025. 

Next year, digital media is estimated to take in $89 billion -- up from $85.3 billion in 2024. Digital media now has a 52% share of all local media spend. Traditional media will sink $82 billion from $88.4 billion -- now with a 48% share.

Top-performing ad categories include restaurants -- projected to grow 9.5% -- followed by real estate, estimated to be up 6.7%; and retail, rising 5.5%.

Looking at specific local media platforms -- without political advertising -- internet-based (PC/laptop) media are projected to rise 13% versus 2024, with local connected TV/OTT growing 9.1%; out-of-home, up 5.9%; and TV-based digital media platforms, adding 5.4%.

Commenting on specific results for the closely watched CTV/OTT segment, BIA Managing Director Rick Ducey said in a release, that is has now moderated growth expectations:

“While streaming viewing is growing, there’s less available ad minutes in streaming versus linear TV. However, this channel continues to present valuable opportunities for advertisers due to how it combines the power of premium TV with the precision of digital audience targeting.”