LMC Survey: Digital Ads To Anchor Local Media Growth In 2026.

Cross-platform digital advertising revenue is expected to anchor local media strategies in 2026 as subscription growth levels off, according to the Local Media Consortium’s annual Local Media Industry Insights Survey.

The findings show that 72% of publishers reported digital revenue was either up or flat in 2025, and 85% anticipate similar performance in 2026. At the same time, publishers reported mounting pressure on subscription growth, with a 383% year-over-year increase in respondents citing subscriptions as a top challenge. The results mirror a recent Medill survey indicating that only 15% of consumers are willing to pay for news.

“Subscription growth has plateaued, and AI-driven search is reshaping traffic patterns,” said Fran Wills, CEO of the LMC. “Publishers are responding with new, innovative cross-platform ad strategies and audience engagement programs to drive revenue in 2026.”

Nearly half of respondents (47%) said overall digital revenue — which includes advertising and consumer revenue such as subscriptions and donations — increased in 2025, while 24% reported it was flat and 19% saw declines, particularly among independent media organizations in major metropolitan areas. Digital advertising revenue alone rose for 37% of respondents, remained flat for 30%, and declined for 23%, with growth attributed to cross-platform campaigns, branded content and expanded video offerings. Consumer revenue was reported up by 30% of respondents, flat by 33%, and down by 6%.

Among the top successes cited for 2025 were video, OTT and CTV products, email newsletters, digital advertising revenue and website or app redesigns. Forty-one percent of respondents identified digital subscriptions as a leading success. Fewer respondents pointed to agency services as a growth area as gains from third-party advertising products such as search and social began to plateau.

Despite those gains, publishers cited advertising pressures, digital subscription challenges and traffic declines as their most significant hurdles. The sharp increase in subscription-related concerns was attributed in part to AI-generated search summaries that reduce referral traffic, advertiser brand-safety concerns and reduced ad spending by small businesses. Respondents also pointed to staffing, training and technology resources as ongoing obstacles.

The survey, conducted from Sept. 22 to Oct. 17, 2025, gathered responses from executives and professionals at local newspapers, broadcast stations and online news outlets across North America and Puerto Rico, including both LMC members and non-members.

Looking ahead, publishers are entering 2026 with what the survey describes as a renewed focus on monetization discipline rather than experimentation. More than three-in-five (61.5%) of local media companies said they plan to increase digital revenue budgets, with priorities including advertising monetization, audience growth and engagement, and deeper use of audience data and insights.

The Local Media Consortium says it delivers more than $60 million in annual economic value through digital partnerships and strategic initiatives on behalf of more than 150 local media companies in leading markets across the U.S., Canada and Puerto Rico, representing more than 5,000 newspaper, radio, television and online-only news outlets.