Borrell: How Radio Can Win More SMB Ad Dollars In A Changing Market.

Selling to small and medium-sized businesses is becoming more nuanced – but also more promising – for radio companies willing to adapt. That was the central message from a Borrell Associates webinar, which highlighted how shifts in the business landscape are changing not only who advertisers are, but how they make decisions.

“There’s no shortage of businesses,” CEO Gordon Borrell said. “What’s changed is where they are, how they operate, and how they make marketing decisions.” The numbers support that claim. The U.S. added about 1.7 million business establishments between 2020 and 2025, a 16% increase. But that headline growth masks a deeper reality: expansion is uneven, with some metro areas growing at multiples of the national rate while others fall behind. For radio sellers, that divergence means the traditional approach of broad prospecting is becoming less effective.

“The advertising base is shifting… and it’s not moving evenly across all markets,” President Jim Brown said. “That should fundamentally change how media companies think about who they target and how they sell.” Instead of casting a wide net, the focus is shifting toward understanding local dynamics at a granular level, down to specific business categories and how they are performing in each market.

One of the most actionable strategies discussed was tracking market share within categories. Brown said doing so can fundamentally change how sales teams operate. “Instead of just chasing the next deal, you start thinking about how to expand within a defined opportunity set,” he said. “It exposes gaps… and reveals unseen revenue opportunities.” Yet many companies aren’t there yet. Roughly two-thirds of webinar participants said they either don’t track market share or aren’t sure if they do, leaving them without a clear sense of where they stand or where growth may exist.

At the same time, the businesses radio is trying to reach are evolving quickly. The number of local ad salespeople has declined sharply over the past decade, while internal marketing roles have surged. Today, marketing professionals inside SMBs outnumber external ad sellers by roughly three to one. These marketers are also becoming more experienced. A decade ago, about 74% of SMB decision-makers were considered marketing “novices.” That figure has dropped to around 56% as more business owners gain hands-on experience.

“They’re getting smarter and smarter about marketing,” Borrell said, warning that sales reps who fail to keep pace risk being sidelined. “If local ad sales reps can’t keep pace, they’ll be viewed merely as sellers.” Technology is accelerating that shift. About 60% of SMBs now use artificial intelligence tools to assist with marketing tasks, from campaign planning to analyzing performance. “Small businesses are more informed than ever,” EVP Corey Elliot said. “They’re making decisions with data.”

For radio, that doesn’t eliminate opportunity – it raises the bar. Sellers are increasingly expected to bring insights and strategy, not just inventory. That includes understanding where specific categories are growing, how competitive they are, and where advertising dollars are flowing. Borrell suggested that sales reps should be prepared to walk into meetings with detailed, market-specific intelligence that positions them as advisors rather than vendors. “You’re suddenly becoming an expert,” he said. “That’s the level of expertise they’re looking for, not somebody just peddling products.”

Another key shift is the changing composition of local economies. Service-based businesses are growing more rapidly than traditional retail, which continues to be disrupted by e-commerce. Because services must be delivered locally, they represent a particularly strong opportunity for radio. As competition within these categories increases, so does the need for advertising. That dynamic creates a natural opening for local media to help businesses stand out.

The webinar also pointed to where ad spending is heading. While overall local ad growth is expected to remain steady through the end of the decade, dollars are shifting toward more targeted and measurable channels. Digital formats – including targeted display, streaming audio and video, and digital out-of-home – are among the fastest-growing segments. “Hit your sales wagon to a rising star,” Borrell advised, noting that aligning with growth categories can help offset pressure in legacy media.

At the same time, the sheer increase in the number of businesses is intensifying competition in many categories, which can drive advertising demand even if individual businesses are small. That makes understanding the competitive landscape just as important as understanding total spending. As Elliot explained, analyzing how a local market compares to national averages can reveal both overdeveloped and underdeveloped sectors, helping sales teams decide where to focus—or where to deprioritize.

Ultimately, the message was that success with SMBs is less about working harder and more about working smarter. “Not every dollar is attainable, and not every category is worth pursuing,” Brown said. “But when you understand where the money is… you can make smarter decisions about where to put your time.” For radio, the path forward lies in combining local market knowledge, data-driven insights, and evolving product offerings to meet SMBs where they are now—more informed, more independent, and more selective than ever.