• by Ray Schultz , Columnist, February 12, 2026

Local media are focusing on cross-platform digital ad revenue this year as subscription growth flattens. That’s the takeaway from a study released this week by the Local Media Industry (LMC).  

Of the publishers surveyed, 47% say their digital revenue was up in 2025, 24% say it was flat and 19% say it declined.

“Subscription growth has plateaued, and AI-driven search is reshaping traffic patterns,” says Fran Wills, CEO of the LMC, in a statement. “Publishers are responding with new, innovative cross-platform ad strategies and audience engagement programs to drive revenue in 2026.” 

Still, digital revenue grew—for some.  

For instance, 37% reported increases in online ad revenue, 30% were flat and 23% down. That growth came from cross-platform campaigns, branded content, and video.

In contrast, revenue from subscriptions and donations was up for 30%, flat for 33% and down for 6%. The number of publishers citing subscriptions as a top challenge has risen by 383% YoY.

In response, 61.5% of local media organizations are increasing their digital revenue budgets in 2026. Their top priorities are advertising monetization, audience growth and engagement, and deeper use of audience data and insights.

To help them, the LMC is expanding initiatives like NewsPassID to help marketers advertise adjacent to brand-suitable content from credible local news outlets, and its Digital-On-Demand Services.  

These shifts are not AI-related, as you might expect. Rather, AI has been overtaken by interest in new advertising models (60%) and audience engagement (56%). 

LMC surveyed members and non-members from Sept. 22 to Oct. 17, 2025. The participants included executives and professionals working in local newspapers, broadcast and online news outlets in North America and Puerto Rico.