Borrell: Local Digital Ad Growth Slows as Share Wars Begin

Why It Matters

The slowdown signals a maturation of the local digital market, forcing media owners to shift from growth‑by‑volume strategies to share‑capture tactics. Companies that can measure and monetize specific market opportunities will dominate the increasingly concentrated digital ad landscape.

Key Takeaways

• Digital local ad spend reached $17.8 billion in 2025.
• Growth slowed to low single digits, the weakest since the Great Recession.
• Only iHeartMedia and New York Times posted overall revenue growth.
• Display, social, and video now outpace flatlining search ads.
• Four‑plus‑times market share held by a narrow operator group.

Pulse Analysis

The latest Borrell Associates report underscores a pivotal transition for local media: digital advertising, once a high‑growth engine, is now maturing into a low‑single‑digit growth phase. After years of double‑digit expansion that offset declines in traditional broadcast and print, the sector faces a structural imbalance. With digital accounting for 72% of local ad spend and generating roughly $17.8 billion, the slowdown forces owners to reassess revenue models and invest in measurement tools that go beyond simple year‑over‑year comparisons.

Competitive dynamics are sharpening as a small cohort of operators consolidates market share. Townsquare Media, iHeartMedia, and The New York Times illustrate how focused digital strategies can sustain overall revenue growth, while legacy players like Cumulus Media see digital declines. The report highlights that display, social, and video formats now eclipse search, which has flatlined. This diversification of formats creates opportunities for firms that can orchestrate cross‑channel campaigns and leverage data to out‑bid rivals in specific market niches, effectively turning share acquisition into the new performance metric.

Meanwhile, the advertiser landscape is evolving. The United States added 1.7 million new business locations between 2020 and 2025, with non‑metro markets expanding 31%—far outpacing metro growth. Professional services, construction, and information‑sector firms now dominate new formations, reshaping the local advertising mix. Media sellers must adapt by tailoring offerings to these emerging segments, integrating programmatic solutions, and demonstrating clear ROI. Companies that align their digital inventory with the shifting demand will capture the next wave of local ad spend, turning a period of slowed growth into a strategic advantage.