Digital Ad Revenue Improves for Almost Half of Local Media

• by Ray Schultz , Yesterday

Digital ad sales are on the uptick, according to a new study from the Local Media Consortium (LMC): Local Media Industry Insights Survey 2023.

Of the local media executives surveyed, 49% say digital revenue rose in 2023 YoY, while 21% report it was flat and 19% saw a decrease. 

Moreover, 79.7% expect an increase this year, while 9.3% expect revenue to stay flat and 9.3% foresee a decrease.  

Only 7% list AI as a priority for 2024, although 49% feel it bears watching.  

The top 2024 trends include:

• Audience engagement—59% 
• AI for operations—49% 
• Cross-platform strategies—48%
• AI for content—43% 
• Video distribution—29% 
• Podcasts—17%
• VR/AR technologies—4% 

The big successes of 2023 included:

• Digital subscriptions—21%
• Website/app redesigns—17% 
• New digital tools/technology—13%
• Video/OTT/CTV—13% 

On the negative side, the challenges were:

• Tech resources/expertise—39%
• Traffic declines—25% 
• Advertising revenue declines—20%
• Staffing training—11% 

The LMC surveyed members and non-members in September 2023.