Local Media Industry Optimistic About Digital Growth in 2025 With Strong Ad Revenue Prospects

The Local Media Industry's Positive Outlook for 2025

The Local Media Consortium (LMC) has recently shared promising insights from its Local Media Industry Insights Survey 2024 conducted among local media professionals. The key revelation is a strong belief among 83% of respondents that digital ad revenue is expected to increase or remain steady in 2025, indicating a bullish perspective towards the evolving digital landscape.

Fran Wills, the CEO of the Local Media Consortium, noted that the growth will be fueled by a rise in consumer interactions and advertising revenue, particularly as the industry continues to refine its video initiatives, subscription services, and newsletter engagement tactics. Wills emphasized the importance of this survey in comprehending the myriad opportunities and challenges local media faces, allowing for better strategic planning and partnerships like NewsPassID, which aims to enhance programmatic performance for advertisers.

2024 Overview

According to the findings, approximately 45% of survey participants reported an increase in overall digital revenue for the year 2024. Conversely, 30% deemed their revenue stagnant, while 16% faced a decline. When narrowing down to digital advertising revenue—which comprises diverse channels such as display ads, videos, and newsletters—41% recorded a year-over-year increase, whereas 25% saw no change.

This growth was echoed in consumer revenue as well, with 46% of respondents noting an upswing, thereby highlighting the increasing significance of online subscriptions and donations in generating income. The top-performing areas in 2024 revolved around video and over-the-top (OTT) services, digital subscriptions, and newsletters, demonstrating a 279% surge compared to the previous year. Notably, news content emerged as the highest revenue and traffic generator, while health and wellness content also exceeded expectations in revenue performance.

Challenges of 2024

Despite these optimistic trends, the local media industry faced notable challenges, particularly an advertising decline that 53% of the surveyed professionals identified as a major hurdle. Staffing and training issues also saw a concerning rise, reflecting a growing need for skilled professionals amid an ever-evolving digital landscape. Thankfully, the LMC's partnership with the Reynolds Journalism Institute, bolstered by a $2.5 million contribution from the Knight Foundation, aims to provide vital digital resources to local newsrooms, ensuring sustainable growth.

Interestingly, while political ad spending surged nationwide in 2024 with an unprecedented $11 billion allocated for elections, only 4.6% of LMC members reported a significant increase in political ad revenue. Many local outlets continue to seek a balance between delivering credible reporting on pressing political issues and providing advertisers with content that aligns with their branding needs.

Looking Forward to 2025

As the industry gears up for the year 2025, the forecast remains positive, with a notable 83% of local media professionals projecting an increase in digital revenue or at least maintaining current levels. The key priorities for local media players in the upcoming year will center around audience growth and engagement, identified by 83% of respondents as paramount. Other critical areas include monetization strategies, video content opportunities, data insights, and fostering innovation in content delivery.

Artificial Intelligence (AI) adoption is another significant trend on the rise. For the second consecutive year, 66% of professionals indicated plans to leverage AI in their operational strategies, while 47% expressed intentions to utilize AI for enhancing content creation processes such as headlines and summaries. Additional focal points consist of community engagement initiatives and effective monetization of video content.

Fran Wills remarked on the industry's shift from a cautious to a proactive approach regarding AI, recognizing its potential benefits to streamline operations and enhance productivity. As local media outlets position themselves to harness AI tools effectively, there is an increasing expectation for journalists to affirm the relevance and reliability of local reporting. This synergy between technological innovations and traditional journalism could pave the way for a more robust media landscape.

Conclusion

Thanking the industry participants for their insights, the LMC reiterates the importance of these findings in understanding the current state of local media. The survey, conducted from September 27 to October 11, 2024, reflects a broad spectrum of voices from C-suite executives to various professional roles across local newspapers and digital outlets. As the LMC continues to advocate for its members, it remains committed to fostering partnerships that enhance revenue generation and reduce operational costs through collective collaboration.

The Local Media Consortium, which delivers substantial economic value through strategic alliances, expects to see continued advancements in the local media sector as it adapts to the digital realm.