Take a peek at any statements from radio company leaders after an earnings report, and an increasingly common phrase will appear: Digital First.
Townsquare Media has made no bones about its strategy as a “digital first” company.
“Townsquare is a local media company focused on — really the whole premise of the company originally was to use radio as a Trojan horse to build a digital-first company. This was formed in 2010, originally with about 17 markets, 60 radio stations,” CEO Bill Wilson said in 2024. “One of the important things was the premise all along was to build a digital company on the back of a radio company and to focus on markets outside the top 50.
“For two reasons. One, radio means a lot more in markets outside the top 50. And we can go through some of the statistics that bear that out. And two, the competition for digital advertising and digital marketing solutions is going to be a lot less competitive in markets outside the top 50 versus New York, LA, Chicago, and Nashville. We’re very proud of the radio business, and to me, we would never have had the success over the last 14 years in transforming into a digital-first company without the DNA of radio.”
Recently, Beasley Media Group made a similar declaration, with its CEO — Caroline Beasley — saying “As a company today, if you don’t have a digital-first strategy, my fear is that you’re really going to be left behind,” on a Borrell Associates podcast.
At the same time, if you look at the stock price of some radio companies, those figures have clearly seen better days.
So, the question is: is the “Digital First” approach too little too late? We turned to one of the foremost experts on radio in the digital age — Jacobs Media President Fred Jacobs — to get answers to those questions.
“It’s a really good question,” Jacobs admitted. “I don’t think it’s ever too late. Every company is going to be in a different position from the standpoint of growth, and need, and all of that. I look at this as I wish it would have been a conversation 20 years ago, 10 years ago, and even five years ago, at least in more places than it actually was.”
Those needs are obviously different depending on market size. And Jacobs shared that smaller companies in smaller markets may be better positioned to keep their attention focused on AM/FM radio.
“There’s a lot of smaller companies that are still trying to assess whether digital is really going to last. Some of this is very much dependent on the marketplace, as well,” said Jacobs. “If you’re in a smaller market, you probably have some time to do something. So I don’t think it’s too late. But I do think that if it’s going to happen, it must be executed well, if it’s going to have any hope for success.”
“Digital First” doesn’t mean the same thing for every company. When looking at earnings reports, some will highlight how much growth they’ve seen from the sector, while others will point out how much of their overall revenue is earned from that category.
Jacobs noted that it is an advantage of the pivot.
“I think the good news for radio is that whatever ‘Digital First’ is can be defined by the company to incorporate whatever tools and delivery mechanisms that they deem to be most appropriate for their audience,” he shared. “Hopefully, a lot of research and data analysis is going into this, as opposed to just hanging out the sign in front of the building and saying ‘We’re digital first.'”
As with any company, the definition of success in a shift to a digital first strategy will also be about revenue generation and profitability.
But Fred Jacobs shared there’s a deeper definition of success when making the change from a company-wide standpoint.
“Clearly, demographics and audience are going to play a role there as well,” he said. “For a digital initiative to be successful, it has to be engaging, and it has to engage the right people. This is an aging industry. It’s been aging for a long time.
“To me, part of the litmus test is, ‘Who all is part of the appeal here?’ and ‘Is it working on that particular level as well?’ I mean, that’s not to say that revenue, of course, isn’t important. It is,” he continued. “But I do think the changing demographics is a real challenge and a real problem, and ought to be part of at least the calculus of a digital first program.”
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Garrett Searight is Barrett Media’s News Editor, which includes writing daily news stories, features, and opinion columns. He joined Barrett Media in 2022 after a decade leading several radio brands in several formats, as well as a 5-year stint working in local television. In addition to his work with Barrett Media, he is a radio and TV play-by-play broadcaster. Reach out to him at Garrett@BarrettMedia.com.
