Digital Sector in Local Media Remains Optimistic for 2025 Expansion

Digital Sector in Local Media Remains Optimistic for 2025 Expansion

The Local Media Consortium (LMC), a collective of over 150 local media companies, has released the findings of its 2024 survey, predicting an increase in digital ad revenue for 2025. The surge in digital revenue is attributed to the continued maturation of video-focused efforts, subscriptions, newsletter engagement strategies, and the adoption of artificial intelligence (AI).

According to the survey, 46% and 45% of respondents reported an increase in consumer revenue and overall digital revenue respectively in 2024. Notable companies like TEGNA reported a 12% increase in digital ad revenue last year and anticipate further expansion by leveraging AI tools for content creation and ad optimization in local news ecosystems.

The survey reveals that by 2025, 66% of local media professionals plan to use AI for operational purposes, and 47% for content generation. Efficiency improvements via AI (automated ad placements, SEO optimization, content drafting) are expected to bolster revenue streams without compromising journalistic authenticity.

Despite challenges such as staffing shortages and technology integration costs, digital ad revenues in local markets show resilience and potential for further increase in 2025. The LMC's aggregated audience footprint spans 200 million unique monthly visitors, and the member companies serve over nine billion pageviews to consumers.

Cross-platform strategies are a focus for 37% of local media outlets in 2025, with podcasts being a focus for 23%. 83% of local media executives believe digital ad revenue will either increase or hold steady in 2025.

Fran Wills, CEO of the Local Media Consortium, made the following statement: "The Local Media Consortium Survey 2024 projects an increase in digital ad revenue for local media in 2025, reflecting ongoing growth fueled by AI adoption and operational efficiencies."

The LMC delivers over $50 million in annual economic value through digital partnerships and strategic initiatives, such as NewsPassID, which aims to improve programmatic performance for advertisers and local media. The trends indicate a continued upward trajectory for local digital ad revenues in 2025, driven by technological innovation and strategic adaptation to digital platforms.

[1] Source: Local Media Consortium Survey 2024

1. The LMC's survey shows that 83% of local media executives believe digital ad revenue will either increase or hold steady in 2025.
2. Notable companies like TEGNA, anticipate further expansion by leveraging AI tools for content creation and ad optimization in local news ecosystems.
3. Cross-platform strategies, including podcasts, are a focus for 37% of local media outlets in 2025.
4. Efficiency improvements via AI (automated ad placements, SEO optimization, content drafting) are expected to bolster revenue streams without compromising journalistic authenticity.
5. The Local Media Consortium, through initiatives like NewsPassID, is aiming to improve programmatic performance for advertisers and local media, delivering over $50 million in annual economic value.

Read also: