I’ve worked for both large and small operators, also owned my own firm. I’ve had just about every job imaginable in the industry, from overnight jock to market manager to corporate executive.
What I’ve always been most interested in the challenges facing smaller broadcast companies that have survived by simply doing what they do best. Serving local communities and building relationships with wonderful reach efficiency. The hard part for these smaller companies rests in a dramatic shift in the environment.
The question for them used to be whether digital advertising really mattered. Today, it’s whether their companies can survive without expanding into digital strategies and tactics.
The honest answer seems to be that it is possible in the short term. However, it will become increasingly difficult, if not extremely unlikely, in the long term. The biggest reason points to basic economics.
Like geese heading back north, the ad dollars have migrated. Giants like Google and Meta dominate even local conversations. Why? Because they offer targeting, attribution, and measurable ROI. Whether the data is entirely believable hardly seems to matter.
What does matter is that traditional media often struggles to point to much more than an increase in cash-register activity.
Local small businesses, which have traditionally been at the core of local direct dollars for radio and TV, have come to expect digital dashboards, clicks, and the ever-so-idolized conversion metrics. The perplexing part is that I’ve seen many who don’t even understand it, much less review it.
They simply feel a level of comfort in knowing they receive it. I have honestly talked to people who want to be sure they get their data but never bother to review it.
In a Westwood One article a few weeks ago on Inside Radio, Cumulus Chief Insights Officer Pierre Bouvard notes the extremely high ROI efficiency of audio — specifically AM/FM radio — while also pointing to the dichotomy of its perceived effectiveness.
Pierre is quoted as saying, “Audio has entered a golden age of measurement with a wide array of firms now quantifying audio sales effect, brand lift, search and site attribution, and creative effectiveness.”
In my mind, the issue is more about getting advertisers to accept that.
What Pierre so deftly proves is that broadcast audio has not lost its inherent value. Quite the opposite. Traditional AM/FM audio still offers scale, credibility, emotional storytelling, and brand-building power that digital platforms often cannot replicate — all at one of the most efficient CPMs available. Couple that with the many studies showing that combining it with digital significantly improves campaign effectiveness, and the issue is no longer relevance — it’s completeness.
Smaller broadcasters that depend solely on spot revenue now face increased risk factors. Revenue concentration is when more than 80 percent of revenue comes from traditional spot sales. Any economic downturn threatens local spending even more. Those shifts can create instability in revenue.
When a competitive disadvantage occurs, agencies and advertisers increasingly look for integrated solutions. Those selling only spots compete against companies offering SEO, SEM, social, streaming, video, display, CTV, OTT, and attribution in one comprehensive bundle.
Perhaps the biggest threat isn’t financial at all. It’s psychological. As noted in the Westwood One article, advertisers have perception issues seeing AM/FM radio below most other media on the list. Despite the fact its ROI efficiency ranks second only to social media.
The narrative suggests radio is outdated, even if the audiences remain strong.
Hyper-local smaller companies with dominant market positions, high-profile personalities, continued community trust, and limited competition can likely continue generating enough revenue to move forward. Niche formats in rural markets may maintain advertiser loyalty longer than many others.
Cost structure is also a factor. Privately owned stations with little debt and lower expenses certainly have more flexibility than others. Still, survival without any digital offerings — or at least a plan for digital growth — carries real risk.
The realistic strategic question isn’t whether you should enter the digital sales realm. It’s how fast and how far you can jump in. Successful smaller broadcasters usually adopt one of three approaches:
Local Value Added
This approach offers streaming sponsorships, social media assistance, and basic digital or display ad products on your own websites to enhance traditional spot sales. All of these can be done internally without a huge investment.
Agency Model
This means transitioning into a full-service local marketing partner offering SEO, SEM, social, programmatic, CTV, OTT, video, and more. It likely requires hiring a local digital strategist or technical expert to assist with these services.
Partnership Strategy
Many medium and larger companies operate this way in the digital space. It typically involves contracting with a third-party digital vendor to expand offerings without heavy internal investment while also helping train the sales team. There is no shortage of vendors available, including several that specialize in broadcasting.
Digital success for broadcasters will come from utilizing existing strengths: trusted relationships, local knowledge, and storytelling expertise.
Keep in mind that many local sellers may be seasoned pros who have had little exposure to this form of advertising beyond seeing it on their own phones. This creates a different kind of hurdle. Many small broadcast companies were built around programming and local spot sales, not digital marketing. Shifting that mindset is often the most difficult part.
The companies that thrive no longer consider themselves “radio stations” or “TV stations.” Instead, they view themselves as true marketing partners for their clients, using every available tool to connect businesses with customers.
Digital isn’t replacing broadcast. It has become the price of remaining competitive alongside it in a changing world. So, can smaller broadcast companies survive without a larger investment and deeper entry into the world of this shiny new toy?
For a while, yes. Forever? It certainly wouldn’t be easy.
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