Saga Bets On Digital Shift To Double Its Revenue.

Saga Communications is betting that a sweeping transformation of its business model can double its annual gross revenue — and early results suggest the strategy is working. The company is pivoting beyond its traditional reliance on broadcast radio toward what CEO Chris Forgy calls a “blended advertising” model that integrates radio with search and display to meet advertisers at every stage of the consumer journey.

Forgy told investors at the Noble Capital Markets conference that the opportunity is enormous. Of the $421 billion spent on U.S. advertising in 2024, roughly 73% went to digital channels, while radio captured just 5%. Saga’s goal is to win 5% of the available digital dollars in its small and mid-sized markets, which Forgy said would be enough to double the company’s annual gross revenue. “Radio alone, by itself, is not going to be enough,” he said. “Every radio ad leads to a search — and if our clients aren’t there when people go looking, we’re just creating business for their competitors.”

Saga operates in 27 markets, 21 of which are smaller than market No. 100 — communities Forgy describes as “ripe for disruption.” Many local advertisers in those markets, he said, are overwhelmed by too many digital vendors and conflicting solutions. Saga’s approach simplifies the process by pairing the emotional power of radio with the targeting precision of digital, helping advertisers be “wanted, found, and chosen.”

Early results support the shift. Internal data show that advertisers buying blended campaigns increased their overall spending with Saga by 27%, and even their radio budgets rose 9%. Advertisers who didn’t buy the blended option still increased radio spending slightly after being offered it, while those who were never presented with the strategy cut budgets by double digits. Digital now accounts for 16% of Saga’s total revenue, and the company expects that share to grow steadily quarter over quarter. Forgy envisions a long-term model in which roughly one-third of revenue comes from radio, one-third from search, and one-third from display advertising.

Saga has also brought most of its digital capabilities in-house. Local sellers have been retrained and rebranded as “media advisors,” with digital expertise built into their roles rather than outsourced to third parties. Forgy said that shift has improved efficiency, reduced costs, and boosted margins. “They don’t have digital specialists in the building,” he said. “They are the digital specialists.”

The company’s conservative balance sheet remains a cornerstone of its strategy. CFO Sam Bush said Saga expects to close a tower sale valued between $8 million and $11 million, with proceeds directed toward share repurchases, potentially including private transactions with existing shareholders. He said demonstrating the success of Saga’s blended model will be key to closing its valuation gap with peers.

“Local radio can grow again — but only if it blends,” Forgy said. “Search gets them found, display gets them chosen, and radio gets them wanted.”