Local media may not be faring as badly as some observers think.
Of media professionals surveyed, 45% say their digital revenue rose in 2024, while 30% report it was flat and 16% report it fell, according to Local Media Insights, a study from the Local Media Consortium (LMC).
Advertising revenue from display banner ads, video, audio and newsletters grew 41% while 25% indicate it was flat.
And 46% saw an increase in consumer revenue, including website and newsletter subscriptions and donations, and 29% experienced flat growth.
But 53% cite advertising declines as their most serious challenges in 2024, way up from 2023. Second was staffing/training, a concern that rose by 136% YoY.
And while $11 billion was spent on digital advertising during the 2024 election, local media did not get much out of it. A mere 4.6% saw a 50% increase in political ad spend and 20% enjoyed no lift at all.
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If all these statistics are accurate, there is opportunity here. While far from grim, the numbers could still be better.
What generated the most traffic in 2024? News was cited by 57%, while 36% say it drove an increase in ad revenue. Sports was a distant second with 15% claiming it was the biggest traffic booster and 6% saying it increased revenue.
Looking forward, the LMC forecasts “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,” says Fran Wills, CEO of the Local Media Consortium.
Specifically, 68% expect their digital revenue to grow and 15% that it will be flat.
Meanwhile, 83% see audience growth and engagement as their top priority for 2025. Also, 78% are focusing on advertising monetization and 26% on consumer registration/subscriptions.
In addition, 25% will pursue video monetization and 25% on data and audience insights.
As for AI, Wills notes that 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. 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.”
The LMC surveyed thousands of media professionals from Sept. 27 to Oct. 11, 2024.