The Real Reason Local Media Is Struggling with Ad Declines and Why Branded Content Offers a Solution

If you look at the latest Local Media Consortium industry survey, one thing stands out:

Advertising declines aren’t just a challenge; they are the main challenge.

Thirty-one percent of local media leaders say advertising declines are a top issue, tied with traffic declines as the industry’s biggest concern.

But here’s the uncomfortable truth that often goes unsaid:

This isn’t just a problem with the market. It’s a problem with the business model.

The Old Model Is Breaking and We Know It

For decades, local media have followed a simple formula: build an audience and sell access to it. However, our sales process has long depended on demand. Most companies do not promote their solutions well, many sales teams count on past customers renewing, and the industry faces ongoing price pressure and audience fragmentation.

At the same time, the model faces pressure from online giants who control targeting with their advertising options, programmatic ads that lower prices, and AI that is starting to make content more generic.

Many companies stick with advertising because it is the easiest digital marketing solution to sell. They resist diversifying and continue to depend on it.

And the data confirms it.

Even though ninety-two percent of local media companies still depend on advertising for revenue, it is also the most unstable and pressured source.

Meanwhile, traffic, which fuels that model, is declining for thirty-one percent of companies.

So we are trying to grow a revenue stream that relies on something that is shrinking.

That is not a strategy. It is a slow decline.

The Quiet Signal Everyone Is Overlooking

Deeper in the report, there is a much more interesting finding:

• Sixty-five percent of local media companies are already using branded content.

• It is also one of the fastest-growing revenue categories.

Think about that for a moment.

Branded content is no longer experimental.

It is not just a 'nice to have.'

It is already mainstream.

And yet,

It is still treated like a side project in most organizations. At the Branded Content Project, we have worked with hundreds of media organizations to help them increase their digital and, in many cases, traditional revenue by selling branded content. Still, we find many organizations are hesitant to fully adopt it, and many do not promote it as quality content on their sites and channels.

Branded Content Solves Problems That Traditional Advertising Cannot

Here is why this matters.

Branded content doesn’t rely on:

• Pageviews

• Click-through rates

• CPM pressure

Instead, it is built on something much more lasting:

Trust + storytelling + business outcomes

Gordon Borrell once called Branded Content a superpower for media companies because it is a product that no competitor can copy. It combines your storytelling skills, the trust in your brand, and your audience. Traditional ads interrupt, but branded content fits in naturally. Ads compete for attention, but branded content earns it. Ads are bought, but branded content educates, empowers, entertains, and informs the audience on a deeper level.

And most importantly:

It aligns with what advertisers actually want today—help telling their story, not just placing their ads.

The Strategic Shift: Moving from Selling Space to Creating Value

The companies that succeed in the next three years will make one key change:

👉 From media company

👉 To marketing partner

That is exactly where branded content fits. It helps you become a trusted advisor, sets your offerings apart from the competition, and lets you use all your strengths to serve your audience. However, to truly make it a superpower, your organization must support it at every level.

It forces organizations to:

• Think like strategists, not order-takers

• Collaborate across sales, editorial, and creative

• Focus on outcomes, not impressions

And here is the key point:

It increases revenue per client and reduces the need to rely on scale.

You do not need more traffic.

You need stronger partnerships.

Why Most Media Companies Still Struggle with Branded Content

If branded content is so effective, why is not everyone succeeding with it?

Because it requires changes that can be uncomfortable:

• Sales teams must lead with ideas, not inventory

• Newsrooms must collaborate (without compromising integrity) or, at minimum, create space for this content to be highlighted

• Organizations must productize creativity

In other words:

It is not just a change in product. It is a change in mindset.

The Opportunity Right Now

The survey shows the industry is already prioritizing:

• Advertising/monetization (77%)

• Audience engagement (50%)

Branded content brings both goals together.

It monetizes and engages.

It grows revenue without requiring more traffic.

It also puts local media companies in a position that platforms cannot easily copy:

Local trust + local storytelling + local relationships

The Bottom Line

Advertising declines are not just something to manage. They are a sign that your organization needs to act now. Consider offering more digital marketing services.

And remember, Branded Content is not just the future—it is the present, and too many organizations are not using it enough.

A Question Worth Asking

If 65% of your peers are already doing branded content…

The real question is not 'Should we invest?'

It’s: Are we treating it as a core revenue strategy or just a side project?

We would love to help your organization make better use of Branded Content. Subscribe to our email list to get new Branded Content ideas, invitations to our Big Branded Call series, and training opportunities. We are here to help.

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About the Author:

Shannon Kinney is a seasoned startup Founder and Executive with over 30 years of experience in digital marketing. She has been at the forefront of digital transformation for media companies since 1995, and has consulted with and presented to media companies large and small worldwide. She is considered a thought leader in the online space, and is a highly sought after keynote speaker, advisor and consultant. With deep experience in sales, marketing, online product development and leadership, Dream Local Digital is her third nationally-scaled digital marketing solution company. She founded the company in 2009 “to bring the power of online marketing to small and medium sized businesses ”. She has a wide and highly engaged network of leaders in media, technology, and startups worldwide, and has developed Dream Local Digital to be a widely recognized brand as best of breed in online marketing. She has helped more than 75,000 small and medium sized businesses and media companies through her work with Dream Local Digital. She spent many years on the Local Media Foundation and Local Media Association boards and is passionate about their mission to create sustainable business models online. 

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 The Branded Content Project is designed through a strategic partnership between Local Media Association and the Local Media Consortium, with funding from the Knight Foundation, to help facilitate additional growth, engagement, and revenue success for more publishers of all shapes and sizes.