Borrell Associates’ 23rd Annual Benchmarking Webinar delivered a clear message: radio must innovate quickly or risk losing relevance. While digital platforms dominate local advertising, radio has a chance to regain lost ground—but only with serious investment in research and development.
CEO Gordon Borrell and EVP Corey Elliott presented findings from extensive data sources, including over 1 million data points and responses from more than 1,000 advertisers. Their analysis showed digital advertising continues to lead, with paid search, social media, and streaming video accounting for 78% of digital ad spending. To stay competitive, media companies must match or exceed the roughly 4% annual growth rate in this sector.
The report highlights three major trends reshaping the media landscape: a post-pandemic surge in new local businesses, the explosive rise of short-form video, and massive R&D investments by tech giants—investments largely absent in the radio sector.
Artificial intelligence is another disruptor, increasingly drawing both attention and ad dollars away from traditional paid search. Borrell predicted that streaming video could soon surpass all other formats. Yet, no radio company in their sample reported any dedicated R&D spending. “If you’re not investing in innovation, you’re falling behind,” Borrell warned.
Some local media outlets are bucking the trend. The top performers, dubbed “market dominators,” are securing up to 60% of local digital ad dollars. These companies stand out for offering diverse digital products, focusing on high-value clients, and using data-driven strategies to reach emerging advertisers. In contrast, companies relying on traditional sales tactics are missing the boom in newly formed businesses.
There is hope for traditional media, however. Businesses founded after 2020 are twice as likely to invest in radio, TV, and print ads. These newer companies want to stand apart from digital-only competitors, leading to a notable jump in perceived effectiveness for radio advertising—from 25% in 2017 to 33% in 2024.
Borrell’s team advises local media companies to invest at least 5% of their top-line revenue in real innovation. That means more than hiring new sales reps—it means cultivating a culture that values data, digital strategy, and marketing education.
“The one thing tech platforms can’t deliver is local expertise,” Borrell said. “Radio can, but only if it evolves.”