As radio sellers navigate increasing pressures to deliver digital results, Frequence has released its 2024 Local Advertising Sellers Index. Drawing from insights from 500 digital ad sellers, the report identifies several key challenges shaping digital advertising.
The study is especially prescient for radio, given how intertwined digital sales have become for the medium. BIA Advisory Services found traditional and digital media spending are nearly equal in 2024. Digital is projected to surpass traditional in 2025. Radio digital is projected to grow at a 3% CAGR from 2024 to 2028, accounting for 3.4% of digital advertising in 2024, including political ads.
The survey indicates that 69% of respondents believe advertising budgets will remain stable or increase in 2024, offering a more stable environment for planning and investment. However, broader economic uncertainty persists, with some clients holding off on large investments until clearer signs of recovery emerge.
Even with the expectation of higher budgets, ad salespeople are feeling the strain of rising internal and external demands. Internally, 83% of respondents cited moderate to extreme pressure to grow revenue, up from 78% last year. Externally, 65% of respondents reported client pressure to achieve a revenue increase of at least 20%, while 64% are tasked with increasing revenue by as much as 30-40%.
Because of this pressure, an increasing amount of digital ad sellers are turning to AI to bridge the gap, with 80% of respondents reporting the use of AI in areas such as campaign management, media buying, and performance forecasting.
Campaign management/workflow automation was cited as the most common use (59%), followed by media buying and forecasting (53%). However, gaps remain in certain tasks like proposal creation, where only 34% of professionals are utilizing AI. Frequence noted that the slow pace of AI integration in critical areas like proposal building highlights significant opportunities for further automation.
73% of respondents admitted feeling behind on the latest digital ad technology advancements, including programmatic buying and CTV/OTT strategies, as clients increasingly expect omnichannel strategies that deliver measurable results across platforms.
BIA forecasts that the synergy between radio advertising and CTV/OTT spending will grow in 2025, with businesses that invest heavily in radio also allocating significant ad budgets to CTV/OTT.
In 2024, 71% of respondents reported heightened client demand for integrated campaigns spanning digital, social media, and connected TV. However, executing and managing these complex strategies remains a major challenge, with 32% of professionals identifying in-flight campaign adjustments as a key source of stress, up from 27% last year.
The report’s full findings and recommendations are available via Frequence.
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