Borrell: Local Advertisers Seek Budget Guidance From Media Partners

Local advertisers are looking to media companies for advice on how much to spend on marketing, according to Gordon Borrell, CEO of research firm Borrell Associates.

“They need budget advisement and a trusted advisor,” Borrell said Wednesday during a webinar reviewing five-year local advertising trends.

The comments come as digital platforms continue to capture a growing share of local ad dollars. Borrell Associates projects local advertising spending will grow about 4% annually through 2030, with digital expected to claim roughly 80% of those budgets by the end of the decade. That would leave about $35 billion for traditional media such as broadcast television, radio and newspapers.

The firm has raised its near-term outlook for digital growth, forecasting an 8.6% increase in local digital advertising in 2026 — up from an earlier estimate of 4.5% — and 6.7% growth in 2027. Digital is projected to reach 75% of local spending by the end of next year. Traditional media is moving in the opposite direction: local radio is forecast to decline about 4.5% in 2026, broadcast television 4% and newspapers 12%.

Streaming video has overtaken search as the largest category of local ad spending, according to the firm’s updated forecasts. Many smaller businesses that historically could not afford traditional television are now buying video advertising, contributing to the shift.

Borrell said many local advertisers are frustrated with results from social media platforms, particularly Meta’s Facebook and Instagram, and are seeking practical guidance on spending levels, media mix and expected outcomes. He cautioned that media sales representatives should not treat that desire for advice as an invitation for a conventional product pitch or a needs analysis that simply leads to recommending their own inventory.

The question for radio and television stations is whether they can reverse or slow the flow of dollars toward digital platforms — particularly in advertising categories that do not depend primarily on search-engine-driven consumer discovery. Borrell’s research suggests traditional media outlets may strengthen relationships with local businesses by offering budgeting and marketing counsel rather than relying solely on the reach of their core advertising products.

Borrell Associates has tracked local advertising for more than two decades. The firm’s latest forecasts draw on extensive data covering hundreds of organizations and business categories across U.S. counties.