You have to give people who believe in their mission credit in this time of shallow commitments and lack of loyalty. But that’s Gordon Borrell’s story. He has been a consistently loud and proud advocate for local market digital revenue – long before most people could even wrap their heads around the concept.
Now here we are in 2025 and the radio broadcasting business is finally catching up to Gordon, largely because so many companies have been late to this massive party. And as he’s been doing for years, Borrell Associates’ research is supportive, thorough, and well-done – to help broadcasters make their case AND make lots of money if they’re smart and strategic about it.
Enter Chris Brunt, Jacobs Media’s Director of Digital Revenue. He glommed onto Borrell’s research early on, and in today’s guest post, he lays out the strategy. After all, research is just a
bunch of disjointed charts and graphs until someone grabs it and runs with it.
In the less than 18 months since Chris has roamed our spacious hallways, he’s been a difference-maker, putting numbers on the board when they’re most needed. At a time when everything about revenue generation is under pressure, Chris has a story well worth your time.
This morning, I’m stepping aside to let him tell it. – FJ
For Radio, Where Does Digital Revenue Go From Here?
By Chris Brunt
Last month Borrell Associates released its 2025 Annual Local Digital Media Benchmarking Report. Among the piles of research and reports that are published literally every day in our industry, the Borrell report has an acute relevance to broadcasters who are making the precarious digital revenue transition.
If you’re not familiar with its methodology, Borrell surveys local media outlets’ advertising clients, gathering quantitative data on their marketing spend and mix, as well as qualitative insights into their perceptions of each medium’s advertising effectiveness. This info is combined with data from entities like Dun and Bradstreet, the Internet Advertising Bureau, and government agencies (including the IRS) to provide guidance on 1) how much money businesses in local markets are spending in digital advertising, and 2) how much of that spend goes directly to pureplays like Google and Facebook, and how much is earmarked for local media outlets — radio, TV, cable, and print.
This provides a solid picture of what’s going on in the nation’s 500+ Digital Media Regions. Unlike other media reports we pore over, Borrell’s reports suggest what companies are spending, as opposed to how much money media companies are bringing in.
Just like Nielsen ratings can confirm a programmer’s “Spidey sense” about the audience momentum on the content side, Borrell does that for digital advertising.
So what did the 23rd annual report show for radio? It was a mixed bag.
Any Future Ad Growth Comes from Digital Ads
From the big picture to local markets, we’ve all seen and felt the flow of advertising from the airwaves. Many of us have been on the other side of the desk when a client tells us that digital is really working. That trend continues in this year’s report.
On the positive side of the Borrell study, radio companies’ ad revenue – on average – is expected to rise to 25% from digital this year. That’s important, since audio and video broadcast advertising is predicted to drop by over $3 billion in the next three years, while digital rises by $17 billion. Where is that digital growth coming from?
More New Businesses Need Sophisticated Advertising Services
Since 2020, new business growth has accelerated rapidly. Many workers who were RIFed during the pandemic pivoted to entrepreneurship, leading to 4.1 million more small businesses today than in 2019 These young businesses have moved beyond the DIY stage of marketing and now need professional guidance to scale. According to Borrell’s data, businesses founded in the last five years are twice as likely to consider radio advertising compared to older businesses. That a huge data point.
However, netting these new businesses requires not only new prospecting tools but also an educated, digitally-fluent sales staff that understands the new marketing landscape clearly. We’re past the time of celebrating scoring a 70%-share of a client’s radio budget but a 0%-share of the digital budget. To nab the digital portion requires bona fide digital chops, however Borrell’s research shows that only 19% of traditional media advertisers view radio reps as highly skilled in digital marketing.
Therein lies the rub. With four million new business owners wandering the marketing desert looking for solutions, the skills of radio reps have to continue to sharpen to take advantage of the opportunity.
The Digital Media Mix Will Continue to Change
Local media companies are now capturing roughly 15% of the digital media spend — that’s a new high. Meanwhile, SEM spend is starting to slip, as businesses push back against rising pay-per-click costs while AI changes how consumers search the web. Add the growing demand for digital video and audio and the ability to prove ad performance, and the opportunity for real growth for radio is here, especially with radio’s boots-on-the-ground and trusted relationships with local decision-makers.
If the radio industry is prescient, smart, and aggressive enough to jump into the fray. Yes, that’s a big “IF.”
This opportunity is ours to seize or squander
It takes more than changing the name on the door from “radio” to “media” or to declare “We’re a “digital first” company. Instead, it requires commitment that translates to making bold, disruptive decisions and actually challenging the status quo. EVERYONE at the station either has to adopt a growth mindset or step aside. And radio is not growing.
The digital transition has been underway for 25 years. We are now in its final stage. Let’s meet the moment.
Talk to Chris. If you’ve been putting off the conversation or not sure where to start, shoot Chris an email here. He truly “gets” this space, and is an empathetic voice who will help you design a digital revenue program that works for your company or station.
And be sure to sign up for Chris’ newsletter, “Jacobs Edge,” dedicated to growing digital revenue. Get it here. – FJ
Originally published by Jacobs Media
