Local Media Industry Bullish on Digital in 2025; 83% Forecast Digital Ad Revenue to Increase or Hold Steady

Insight from annual LMC survey on successes, challenges, priorities and predictions

NEW YORK, Jan. 14, 2025 /PRNewswire/ -- The Local Media Consortium today announced the findings from its Local Media Industry Insights Survey 2024, which asked local media industry professionals about the year-over-year state of the industry and outlook for 2025.

"Based on insights from our annual survey, the Local Media Consortium is forecasting an increase in 2025 digital revenue led by an uptick in consumer and advertising revenue associated with the continued maturation of video-focused efforts, subscriptions and newsletter engagement strategies," said Fran Wills, CEO of the Local Media Consortium. "This annual survey helps us better understand the opportunities and challenges facing local media so we can prioritize new digital partnerships and initiatives such as NewsPassID, which delivers improved programmatic performance for both advertisers and local media."

2024 at a Glance

Roughly half (45%) of survey respondents reported overall digital revenue was up in 2024, with 30% saying it was flat and 16% reporting a decrease in digital revenue which includes all revenue derived from digital channels including advertising, consumer, affiliate, ecommerce and other online sources.

• For 2024 digital advertising revenue, defined as all ad-based revenue, including display banner ads, video, audio and newsletter ads, 41% of respondents reported an increase and 25% said it was flat year-over-year.
• Similarly, 46% of respondents reported consumer revenue up versus last year, while 29% said it was flat and only 7% saw a decrease. Digital consumer revenue consists of website and newsletter subscriptions, donations, etc.

Top digital successes for local media in 2024 were video/OTT/CTV, digital subscriptions and newsletters, with a 279% YOY increase in respondents reporting it as their leading success. The LMC survey also found that in 2024 news content generated the most traffic and the highest revenue, followed by sports and arts/entertainment content. Health and wellness punched above its weight in revenue generation as compared with traffic.

2024 Top Digital Challenges

Top local media industry digital challenges in 2024 were advertising declines with 53% of respondents citing it as their top challenge versus 2023 and staffing/training up 136% from last year. Traffic declines and tech resources are also concerns but did not rank as high as 2023. Recognizing the continued need for digital resources, the LMC was pleased to announce a partnership with the Reynolds Journalism Institute, made possible by a $2.5 million investment from the John S. and James L. Knight Foundation, to expand its Digital on Demand Services (DODS) program, which provides local newsrooms with resources to foster sustainable digital growth.

While political ad spending was up nationwide with a reported record-breaking $11 billion spent in the 2024 election, LMC survey results reveal that the local media industry was not a recipient of the fruits of these political ad buys.

• Only 4.6% of LMC survey respondents saw a 50% increase in political ad spend in 2024 versus 2023.
• Nearly 20% did not see any lift at all and a quarter (24%) saw less than a 10% increase.
• The LMC expects local news organizations to continue to balance the importance of credible reporting on timely topics such as local and national politics with solutions that offer brand-suitable content that appeals to advertisers such as the recently released NewsPassID Local News Taxonomy.

2025 Outlook 

Looking ahead to 2025, the industry appears bullish on digital transformation, with 83% of local media professionals projecting digital revenue to increase (68%) or stay flat (15%). Only 1% expect a decrease in digital revenue in 2025.

The survey found the highest priority focus for local media outlets in 2025 is audience growth and engagement, with 83% of respondents reporting it their top priority. Other areas they plan to focus on include advertising monetization (78%), consumer registration/subscriptions (26%), video monetization (25%), data and audience insights (18%) and content innovation (18%). 

Local Media AI Use in 2025

For the second year in a row, AI is the leading trend to watch with 66% of respondents citing plans to use AI for operations and 47% planning to use AI for content such as headline writing or summaries. Other trends on the local media radar include community engagement (61%), video creation, monetization and distribution (39%), cross-platform strategies (37%) and podcasts (23%).

"The 2023 local media survey revealed a 'watch and wait' approach to AI, but in 2024 the industry began to roll up their sleeves to utilize AI to move their businesses forward," said Fran Wills, CEO of the LMC. "Our survey finds that in 2025 local media outlets plan to further integrate AI into their business utilizing AI for headline writing, SEO, operational efficiencies, ad creative and more."

Wills adds that, "Local media has an opportunity to leverage AI to their benefit.  AI can't create local news, so we anticipate a heightened need for journalists to report on and validate local news, creating an opportunity for a more balanced value exchange with tech platforms. We can't wait to see what the new year has in store." 

Survey Methodology

The LMC extends its thanks to the local media industry participants who shared their time and invaluable insights by participating in this survey, which is vital to helping us understand the state of the local media industry. The survey, which was conducted September 27-October 11, 2024, was open to Local Media Consortium members and non-members. Respondents included C-suite executives, sales, operations, editorial, IT, finance and other professionals employed by local newspapers, broadcast, and online news outlets that encompass community, multi-market and major metropolitan media companies in North America and Puerto Rico.

About the Local Media Consortium

The Local Media Consortium delivers more than $50M in annual economic value through digital partnerships and strategic initiatives on behalf of more than 150 local media companies in top markets across the United States, Canada, and Puerto Rico, and includes more than 5,000 newspaper, radio, TV and online-only news outlets. By harnessing the combined volume and scale of its members, the LMC reduces costs and increases revenue with technology and service providers like Google, Meta, Monster, and others. The aggregated LMC audience footprint spans 200 million unique monthly visitors, and its member companies serve more than nine billion pageviews to consumers. More information is available at http://www.localmediaconsortium.com 

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SOURCE Local Media Consortium