As the local advertising landscape evolves, media sellers must stay ahead of the latest trends shaping the industry. From the continued rise of digital to the growing role of AI, here are the key developments that will impact local ad sales in 2025 and beyond.
Digital advertising is set to dominate local ad spending, capturing 52% of the market. According to BIA’s forecast, local CTV/OTT ad spending will grow by 20% from 2023 to 2025, reaching $2.8 billion. As digital investments surge, media sellers must prioritize their digital offerings to remain competitive.
This means expanding their inventory to include CTV, DOOH, and other emerging digital formats that provide targeted, data-driven solutions. By integrating these channels, media sellers can offer advertisers more precise audience reach, enhanced measurement capabilities, and innovative ad experiences that align with evolving consumer behaviors.
Digital audio consumption has seen significant growth in recent years. In the United States, the average daily time spent listening to digital audio reached one hour and 40 minutes in 2022. This increase is driven by the rising popularity of podcasts, streaming music services, and the widespread adoption of smart speakers.
Reflecting this trend, advertisers are allocating more budget to digital audio platforms. In 2024, digital audio accounted for 40.4% of the total $17.61 billion in audio advertising revenue in the U.S. This shift underscores the recognition of digital audio's ability to reach engaged listeners in personalized and immersive environments.
Additionally, radio ad sellers are increasingly exploring over-the-top (OTT) opportunities, tapping into the $2.8 billion OTT market. By leveraging programmatic video in addition to audio, they aim to improve targeting and efficiency, offering new ways for advertisers to integrate audio seamlessly into their omnichannel strategies.
Last year saw big strides in how advertisers can leverage data to precisely target their audiences, with two trends in particular driving this next-gen data evolution: AI and interoperability.
AI tools (like those we’re testing at Madhive) enable platforms to process vast amounts of behavioral signals that lead to smart contextual targeting. Using real-time data and user intent to deliver more relevant, personalized ads, AI is enabling more timely targeting, ensuring they resonate with consumers at the right moment.
Additionally, advertisers increasingly have access to platforms that “speak to each other”, allowing for more custom audience targeting using multiple sources — aka, interoperability. By combining diverse data sets, advertisers can achieve deeper insights and target more specific subgroups, enhancing the overall effectiveness of campaigns.
Both of these developments stand to empower local and SMB advertisers that have a greater need for efficiency and ROAS with their campaigns.
Live sports programming is the holy grail for many advertisers, but historically with linear TV, this supply has been reserved primarily for brands that can coordinate direct buys.
But sports continue to grow on digital channels, which opens them up to programmatic possibilities. In fact, 2025 kicked off with an announcement from Disney that they’re introducing biddable deals for live sports inventory.
While significant limitations still exist, the industry continues to improve standards for programmatic sports advertising. That means more brands — regardless of size — will have access to these premium opportunities.
In recent months, consumers have looked to make more intentional choices about where they spend their money, with a growing emphasis on supporting local businesses. According to a late 2024 LendingTree survey, 90% of people believe that shopping locally has a positive impact on their community, and more than half said they are willing to spend more to support local businesses.
Media sellers should highlight this trend by helping brands — both small businesses and national advertisers with a local footprint — connect authentically with local audiences. Local advertising has the advantage of creating intimacy with communities, at a time when many are looking for that sense of connection.
According to the IAB, digital out-of-home (DOOH) is steadily increasing each year, consuming more and more of advertisers’ OOH budget. IAB projects that by 2028, nearly half of all OOH ad spending will go toward digital formats.
DOOH is likely growing in popularity because it lowers the barrier to OOH. Digital provides flexible, dynamic ad placements that allow local businesses to engage potential customers at whatever scale they can afford, rather than committing to a multiweek campaign.
Measurement has also improved with digital; real-time tracking, geo-fencing, and location-based targeting are making attribution more precise than ever.
The advertising industry is constantly evolving, with new technologies, consumer behaviors, and market dynamics shaping the landscape at a rapid pace. Staying ahead requires continuous adaptation and a keen eye on emerging trends.
We'll continue to monitor these shifts on a quarterly basis, providing in-depth insights to help media sellers navigate the changing terrain. To receive updates to your email, sign up for our newsletter on the right.
