Saga’s Radio-Digital Blend Strategy Paying Off.

Saga Communications is turning its established radio relationships into bigger advertising deals, offering encouraging signs that its multiyear digital transformation is beginning to pay off. With fourth-quarter revenue pacing ahead of last year and early bookings pointing to growth in 2027, management says larger contracts and accelerating digital sales are providing evidence that the company’s strategy is gaining traction.

“We’re seeing more revenue, more customers, and longer contracts,” President/CEO Chris Forgy told investors during Saga’s quarterly earnings call Thursday.

The improving outlook comes as Saga’s fourth-quarter revenue is pacing 9% ahead of last year, with digital revenue tracking 10.7% higher. While political advertising is providing a significant election-year boost — without it, revenue for Q4 is pacing down 5.7% from last year — the company is also seeing encouraging signs beyond November. Preliminary first-quarter 2027 revenue is tracking 5.8% higher, with digital revenue up 29.5%.

Radio+Digital

Saga’s strategy centers on using radio’s established relationships with local advertisers to sell broader marketing campaigns that include search, targeted display, social media, video and other digital services. Saga’s blended digital revenue increased 24.9% during the third quarter and 55% through the first nine months of 2026.

“Our stations have established brands, local audiences, advertising relationships, content capabilities, and community credibility that cannot be replicated quickly or easily,” Forgy said.

He offered several examples of how the approach is generating larger advertising commitments.

In Columbus, OH, a lead from a radio morning show employee turned into a new advertising relationship earlier this year. The customer initially committed $15,000 per month for radio, search and display advertising. After seeing results, the client expanded its campaign into two North Carolina markets, bringing its total annual commitment to approximately $500,000.

In Bellingham, WA, a roofing company that previously spent $38,000 annually on radio renewed its broadcast advertising and added $46,000 in search and $90,000 in video. Its total annual advertising commitment jumped to $174,000.

Other recent successes include a $109,000 blended advertising renewal in Springfield, MA, and a $45,000 digital campaign secured by Saga's Spencer, IA operation.

“In all of these cases, the same thing is taking place. The orders are happening closer together, they're larger in scope, and they're happening in both large and smaller markets,” Forgy said.

Yet Forgy emphasized Saga isn't looking to replace radio with digital. Instead, the goal is to combine the strengths of both to capture a larger share of local marketing budgets.

“We do not view radio and digital as mutually exclusive,” he said. “Radio can generate a broad awareness and intent, while digital products can help target, measure, and convert that interest. The long-term objective is an integrated business in which each capability makes the other one more valuable.”

Mandatory Adaptation

Digital now accounts for 19% of Saga’s gross revenue, up from 16% a year earlier. Total digital revenue reached $14.5 million during the first nine months of this year, compared with $12.6 million last year. Overall digital growth has been more modest than the blended business, however, as declines in traditional streaming revenue offset some of the gains.

Forgy acknowledged that the transformation is taking longer than management had hoped, particularly as traditional advertising continues to face pressure.

“Although the results don't reflect it yet, we remain very encouraged,” he said.

Saga has also been investing in the infrastructure behind its strategy, including a partnership with Marketron for digital advertising fulfillment and an agreement with Borrell Associates to strengthen local market intelligence and sales capabilities. Forgy believes broadcasters have no choice but to adapt, since forecasters believe that by 2030, four of every $5 spent on advertising will involve digital.

“Discussions of digital versus non-digital advertising will, in essence, cease to exist,” he predicted. “Thus, we must integrate and execute.”