After an eventful 2024, radio stations are now looking to the opportunities that 2025 will bring for local ad revenue. Overall, spending will increase, as forecast by the experts at BIA Advisory Services. Most of this will come from digital, with airtime ad dollars mostly flat. As you seek to improve profits, you’ll need to update your local media sales strategy.

It’s not just the projected spending that will shape your approach. Consumer media preferences impact local businesses, which means you’ll need to help them adapt. Also, some industries will be expanding spending while others retract.

Our radio revenue experts have curated this list of tips to help propel your ad sales in 2025.

Make Digital Inclusive Without Sacrificing Radio Spend

You’ve likely been hearing for years from the industry that digital should be part of your ad offerings. Most radio stations have adopted it – some with greater success than others. One source of friction is the misnomer that digital has to rob from radio dollars. It doesn’t when you develop multi-tactic campaigns that deliver on advertiser goals.

Radio can always be the heart of this, delivering the greatest reach of any mass media.

However, targeting must be part of this playbook, too. That’s the beauty of digital: You can narrow an audience based on many factors that put the ad in front of the right person at the right time.

This strategy of delivering a media plan versus selling some ads will be critical for 2025 and beyond. To execute on this, you need the following:

  • Sellers who are confident in recommending digital tactics to meet advertiser objectives
  • Technology and processes that make it easy to propose digital and airtime as one package.
  • Strong talking points about shifting ad budget – not away from radio but rather other buckets of traditional media like print, billboards or direct mail.

Prioritize CTV/OTT as a Tactic

Once again, CTV/OTT will be the fastest-growing local digital category in terms of spending. As consumers stream more and abandon broadcast TV, it’s where viewers are spending their time. CTV/OTT is also targetable in a way that legacy TV could never be.

While there’s promise, there are also obstacles. CTV/OTT is a premium tactic, so it does cost more. However, you’ll be less restricted if your digital advertising platform doesn’t have minimums.

The second challenge is when advertisers say they don’t have creative. Luckily, there are many easy, cost-effective ways to develop video. You can find a list of options in our post on helping advertisers with video.

Whether the advertiser is a long-time customer or a new prospect, your sales team should be talking about CTV/OTT and its value. It’s targetable and measurable. There’s also a way to tie the ads to goals by using QR codes, so watchers can scan and shop, sign up or convert in some other way.

Selected verticals planning to spend more money on local CTV/OTT in 2025 include real estate, fast food restaurants, and full-service restaurants and bars.

Deliver Fresh Ideas for Businesses in Highly Competitive Industries

A highly competitive industry is good for your local media sales strategy. These companies are always striving for market share and gaining the attention of consumers. To do this in 2025, they’ll need new ideas.

Restaurants have long been a reliable vertical for local advertising. In 2025, BIA predicts they’ll spend 9.5% more. They’ll be battling out for consumers looking for budget-friendly deals. Loyalty won’t be on the menu as diners look to stretch their dollars. So, restaurants will need guidance on competitive tactics and campaigns.

Tactics they can use include geofencing competitors with ads that highlight special promotions. Display targeted at those in specific geographies could also be a wise option. To potentially keep long-term customers, greater visibility around restaurant loyalty programs will be a must. Those ads could run on radio, display and OTT/CTV.

The other major competitive industry to consider is retail. They are dealing with much the same bag as restaurants. They need to capture the attention of consumers with messaging that matters — big promotions and deals that last all 12 months, not just Q4.

The tactics suggested for restaurants will work for retail, too. Add social media, as well, to take advantage of other media sources where many spend time. Different platforms will be the best option depending on the demographic or offer. For example, concentrate on Snapchat, TikTok and Instagram to reach Gen Z. Facebook works best for those over 55 and families.

Rethink Ad Tactic Suggestions for Long-Time Local Advertisers

There are several more industries in your playbook that need a refresh – auto and legal services.

Auto advertising has been stagnant in the past few years. First, inventory was a problem that sprung from the pandemic. Once inventory caught up, incentives were few because of high interest rates. Consumers have also been holding on to cars longer than ever before for financial and personal preference reasons.

With interest rates dropping, deals are increasing. The used car market has also been performing well. New and used dealers will increase local ad spending in 2025, concentrating on digital and traditional channels. They’ll use more display and CTV/OTT but also continue spending on broadcast TV.

How you approach these businesses for 2025 campaigns should focus on the digital campaigns they think they want and need. You don’t have to bash legacy TV, but it’s important to remind these business owners that its viewership is declining while ad spots become more expensive.

They can get better returns by combining OTT/CTV, display and radio for reach and targeting.

The legal industry is both old school and looking forward. They still invest a lot in print, especially billboards. These ad placements are purely for awareness rather than creating or converting interest.

BIA notes that legal digital spending will outpace traditional in 2025. The type of law an organization practices will determine the best tactics and targeting. In looking at the potential for rising demand, estate planning may be on the rise as Baby Boomers and Gen X age.

A large block of legal services advertising falls into personal injury, criminal law and driving violations. There will always be consumers who need this type of legal assistance.

Differentiation of messaging matters here, and tactics do, too. A multi-tactic campaign that combines digital and radio can perform much better than a single one.

Optimize Audio Advertising with Radio + Streaming Audio

Another trend on the local advertising radar is the continued powerful impact of audio ads. When we listen to an ad, it’s a different experience than watching one. Often, this creates greater attention and recall.

It’s critical to advise local advertisers of this so they understand that audio can be just as engaging as video. For audio campaigns, you should also suggest radio spots and streaming audio. Again, this combination answers the need for reach and targeting. You’ll cover almost every demographic with radio and layer it by narrowing the audience with streaming ads.

This bundled campaign could also be a good option for radio advertisers trying out digital with you. It offers a way to experiment and demonstrate how digital advertising allows them to build an audience.

Local Media Strategy Updates for 2025

With these insights, you can reshape your local media strategy. The next year still comes with uncertainty, so your approach should be agile and ready to respond to economic and other factors outside your control.

We’ll be monitoring the numbers, forecasts and projections and deliver critical information you need to pivot!

Read our post on local digital advertising projections for 2025 for more information.