Local digital advertising surpassed $100 billion in 2024, capturing 70% of all local ad spending, indicating a structural shift in business-community connections.
Borrell Associates projects digital ad revenues to grow by over 13% by 2028, continuing to erode traditional media’s market share.
Over 4 million new SMBs have emerged since 2019, with some rediscovering traditional channels like radio for simpler advertising solutions.
Streaming video and AI tools are driving digital’s dominance, with video ads projected to command 78% of digital and 57% of all local advertising.
The local advertising arena is being fundamentally reshaped, with digital channels now firmly in command and a surge of new SMBs emerging post-pandemic. Borrell Associates’ latest Annual Digital Benchmark Report quantifies the change, showing local digital advertising surpassed $100 billion in 2024, capturing roughly 70% of all local ad spending. The milestone signals a structural transformation in how businesses connect with their communities, moving beyond temporary trends.
Digital’s Climb: The report projects this digital momentum will only build, with revenues set to accelerate by more than 13% by 2028 and grow an estimated 3.9% this year. “Fully emerged from the effects of the pandemic, it’s clear that digital’s growth jag hasn’t ended,” the Borrell report states, adding, “In fact, the trajectory is accelerating, albeit only mildly.” The ongoing ascent is steadily eroding the market share once held by traditional print, broadcast, and cable media.
SMBs Pivot: The pandemic also “altered the source of advertising expenditures – the thousands of SMBs in each market,” notes the Borrell report, with over 4 million more such businesses operating now than in 2019. Facing digital’s complexities, many newer SMBs—14% of which plan to boost radio spending—are rediscovering traditional channels like radio, perhaps seeking simpler solutions or “a real person to assist them“. The renewed interest aligns with radio’s growing perceived effectiveness; one in three local advertisers now rate it highly, up from one in four in 2017.
Video & AI Fuel: Fueling digital’s local dominance are search, display, and particularly streaming video. Borrell Associates notes the “trajectory of the green line – Video/CTV/OTT” is strong, projecting these and SEM/banner ads will soon command 78% of digital and 57% of all local advertising. While giants like Google continue to lead in revenue, platforms like Instagram Reels show explosive growth, and the increasing integration of AI tools further democratizes access for SMBs by simplifying campaign optimization, targeting, and content creation.
Confident Outlook: Looking ahead, Gordon Borrell, CEO of Borrell Associates, remains optimistic about the local advertising market for 2025, stating, “I feel that the year is going to be ok… It’s not going to be a downer or dismal year for people.” He observes that local advertisers “are really very practical” and believes that with clearer economic strategies, “people have a bit more confidence.” Digital advertising’s proven resilience underpins this confidence; as Borrell highlighted, it was “the only thing that increased during the pandemic.”
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