Local Advertisers Increasing Budgets Despite ROI Doubts

RADIO ONLINE | Tuesday, July 22, 2025 | 10:18pm CT

Borrell Associates

A new report from Borrell Associates finds that while most local ad buyers intend to increase or maintain their ad budgets this year, many remain unsure if they're spending the right amount - or if their advertising is even working.

In a 45-minute webinar presented Tuesday, Borrell unveiled results from its Spring/Summer 2025 survey of 1,248 direct ad buyers and 126 agencies. The findings reflect both optimism and uncertainty in a shifting local media landscape.

Buyers Unsure About Budget and ROI

• 59% of respondents say they don't know if they're spending the right amount on advertising.

• 39% of buyers report they don't have a process in place to measure return on investment (ROI).

While these findings suggest a degree of confusion, many businesses are forging ahead with larger budgets anyway.

What's Growing: CTV, Streaming Audio, and Social Media

• The fastest-growing advertising categories include:

• Streaming video/OTT (Connected TV): Most widely seen as effective, yet underutilized (16% use it).

• Social media and SEM: 24% and 20% of buyers plan to increase spending in these areas, respectively.

• Streaming audio and podcasting: Though currently used by just 11% of buyers, Borrell calls it a "sleeper" poised for growth.

One standout finding: ad buyers using paid social media report significantly better effectiveness than those relying on free usage. For example, 46% of those buying Facebook ads found them "very or extremely effective," compared to just 26% of unpaid users.

Traditional Media Still Has a Place-Especially for Newer Businesses

Surprisingly, businesses founded since 2020 were more likely than older businesses to plan spending increases on:

• Radio

• Broadcast and cable TV

• Newspapers and magazines

This trend suggests newer advertisers may be looking to traditional platforms for differentiation or local branding.

Forecast Adjusted Upward for 2025-2026

Borrell revised its local advertising forecasts upward for most formats in 2025 and 2026, citing continued advertiser resilience. However, channels like broadcast TV and telemarketing are projected to decline.