Local advertisers are almost always apprehensive during an election year. But Gordon Borrell of Borrell Associates believes 2024 could be the year that serves as the precursor to a big 2025 in the advertising world.
Much of the advertising market in 2024, logically, was centered upon the presidential election. More than $11 billion was spent on the presidential race, key Senate battles, and other issues-based ballot initiatives.
And that uncertainty led to an anxious advertising market throughout the calendar year.
But from Borrell’s perspective, it likely means 2025 will be a big year in the marketing realm.
“While overall it was a good, it wasn’t a bad year, but there was just this tightness about it that made it uncomfortable,” Borrell said. “I’m more eager to put 2024 in perspective by looking at what that did to 2025 or what that is likely to do in 2025. I think you have kind of a reserve and desire to increase advertising budgets, and very high potential for the floodgates to open next year for that advertising. So I think 2024 was a big setup for what may be a banner year for advertising, at least on the local side and I’m sure the national as well.”
Borrell added that the cycle of advertisers being reticent during an election year before returning to normal or even increased levels of spending the following year isn’t unprecedented. However, he believes the intensity in which local marketers will return to the scene in 2025 will be unique.
“In late November, we did another survey and the optimism went through the roof. It was right after the election, so there was this feeling — put the politics aside for a moment — the cold hard facts are that local businesses really don’t give a rip, they just want some level of certainty and good feelings before they invest their advertising dollars … so now that the decision has been made, they’re feeling really good about the economy and the future. We got this sudden burst of optimism for the end of the year, November on, and that will really characterize 2025 for us.”
Borrell Associates focuses its research and data specifically on local advertisers. And its findings suggest that new marketing opportunities will be what many of those in the sector are seeking out in 2025.
“I’m looking at the results for social media in terms of the advertisers saying they bought it, not just fiddle around with it for marketing purposes,” said Borrell. “On social media, a significant increase in the percentage saying that they’re going to either buy next year for the first time or increase their spending. So the net interest is 24%, so that’s roughly a 1/4 increase in in usage. We also saw slightly more in search engine marketing. It’s still there and it’s still deemed extremely effective. It’s phenomenal. Our advertisers felt the effectiveness of social media and search marketing.”
Gordon Borrell added that other avenues like banner ads and streaming audio were also primed for growth in 2025.
Absent from the list was radio. Borrell shared that its likely in large part related to the fact that there aren’t any new shiny innovations with the medium like there are in other sectors. But there is one place that radio companies can capitalize with local advertising in the coming year.
“If you look for the past 10 years, the number one used and purchased medium has been social media,” shared Borrell. “It’s always been at the top. It beats out everything else, usually social media and search marketing. That’s what attracts the most individual advertisers.
“In 2024, event sponsorships passed it for the first time. Event sponsorships — outdoor events, indoor events, cocktail parties, whatever — as a marketing method, surpassed social media. And that really gave us whiplash. Because if you think of the two, they’re same. They’re interacting with people. One is virtual, one is real. The advertisers and businesses think that social media is great, but I just want to get a way to supplement my virtual stuff and get out and shake a real hand and see somebody possibly come over to my booth or my table, get my name out there … that’s really taken off and that’s just an interesting phenomenon of 2024, how events have become a big deal.”
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Garrett Searight is Barrett Media’s News Editor, which includes writing bi-weekly industry features and a weekly column. He has previously served as Program Director and Afternoon Co-Host on 93.1 The Fan in Lima, OH, and is the radio play-by-play voice of Northern Michigan University hockey. Reach out to him at Garrett@BarrettMedia.com.
