Borrell Associates Lays Out Steps To Capitalize On Growth In Digital Ad Market.

In a fast-paced webinar, Borrell Associates provided highlights from its 2025 Annual Digital Benchmarking Local Digital Media report, while providing action steps to help radio capitalize on the continued growth in the digital ad market.

Local digital advertising topped $100 billion in 2024 and accounted for 70% of all local ad spend. A projected 3.9% increase is expected in 2025 and similar gains through 2028, according to the report.

Local media companies reaped $15.3 billion in digital advertising in 2024, up 4.8% from the prior year. 2024 digital revenue surpassed $2 million for radio clusters.

Local radio industry digital ad revenue continues to grow. In 2020, it accounted for $1.1 billion. Radio saw net growth in 2024, in part due to increases in digital revenue. The 2025 forecast is pegged at $2.4 billion, according to the report.

To continue the upward trend, Corey Elliott, Executive Vice President of Local Market Intelligence, says media groups must “replace obsolete methods of sales prospecting with a data-based approach.” With thousands of new businesses launched since the pandemic, some may want to break away from digital-only marketing and sample what traditional media, such as radio, has to offer. “This is who we need to go after,” Elliott stressed to webinar attendees.

CEO Gordon Borrell suggested that media companies should invest at least 5% of topline revenue should be invested in research and development. This investment must be made from the top. “That's an owner’s decision,” Borrell said matter-of-factly. “It really does need to come from corporate, not out of current expenses.”

While 37% of advertisers plan to buy radio in 2025 (up 6.7% from 2023), 61% plan to place buy events/sponsorships, 58% are putting their money in social media, and 45% in banner ads – all options most radio groups can offer.

Education is key, both internally and within individual markets. Local advertisers want “education about media,” Elliott explained. “They are asking a local marketing expert… that’s what they want, and that’s what they need.” Elliott also suggested “that you educate yourself about marketing.” Entry-level marketers are new to the field and need to be fully trained to be marketing experts in their local market.