As subscription momentum slows across the publishing sector, the local media industry is sharpening its focus on cross platform ad growth to sustain revenue and adapt to shifting audience behavior in 2026.
New findings from the Local Media Consortium annual Local Media Industry Insights Survey show that publishers are recalibrating their strategies as digital subscriptions plateau and artificial intelligence reshapes referral traffic. The survey gathered input from media professionals about performance in 2025 and expectations for the year ahead.
According to the data, 72 percent of publishers reported that digital revenue was either up or flat in 2025, and 85 percent anticipate similar performance in 2026. However, subscription related concerns have intensified. The report notes a 383 percent year over year increase in respondents who cited subscriptions as a top challenge. That trend aligns with a recent Medill study indicating that only 15 percent of consumers are willing to pay for news content.
“Subscription growth has plateaued, and AI-driven search is reshaping traffic patterns,” said Fran Wills, CEO of the LMC. “Publishers are responding with new, innovative cross-platform ad strategies and audience engagement programs to drive revenue in 2026.”
In 2025, nearly half of respondents said overall digital revenue, including both advertising and consumer revenue, increased. Twenty four percent described it as flat, while 19 percent reported declines, particularly among independent media organizations in major metropolitan markets. Digital advertising showed mixed but resilient results, with 37 percent reporting growth and 30 percent saying revenue was flat. Respondents credited cross platform campaigns, branded content, and expanded video offerings for gains. Consumer revenue from subscriptions and donations saw 30 percent growth, though 33 percent reported flat performance.
Video, OTT, and CTV initiatives were cited as leading successes, alongside email newsletters, digital advertising revenue, and website and app redesigns. Forty one percent of publishers pointed to digital subscriptions as a top achievement in 2025, even as broader subscription headwinds emerged. Meanwhile, agency services lost momentum as growth from third party advertising products such as search and social began to level off.
Publishers also reported mounting challenges tied to traffic declines, advertiser brand safety concerns, reduced spending from small businesses, and limited staffing and technology resources. In response, the Local Media Consortium is expanding programs such as NewsPassID to help marketers align campaigns with brand suitable local journalism, and enhancing its Digital On Demand Services to provide technology support and training. The organization recently partnered with the Reynolds Journalism Institute to extend newsroom assistance through the News Media Help Desk.
Looking ahead, 61.5 percent of local media companies plan to increase digital revenue budgets in 2026, with a renewed emphasis on monetization discipline over experimentation. Cross platform ad growth, especially across video and audio formats, is expected to accelerate as publishers seek scalable, performance driven solutions. While artificial intelligence remains important, it is increasingly viewed as an operational tool supporting sales, workflow optimization, and product development rather than a standalone strategy. For the local media industry, cross platform ad growth now stands at the center of its 2026 revenue playbook.
Recommended Marketing News:
- Genesys Launches LAMs Powered Agentic Virtual Agent for CX
- Similarweb Launches AI Studio for Enterprise Market Intelligence
- Intuit Mailchimp Expands Data Driven Ecommerce Marketing Capabilities
For media inquiries, you can write to our MarTech Newsroom at info@intentamplify.com
