The numbers are hard to ignore. Borrell Associates reports that local advertisers spent $151.6 billion in 2025, and a staggering 72% of that total flowed into digital channels. That’s a dominant share — and it’s raising a fair question about AI advertising and where those dollars might migrate next.
ChatGPT now serves an ad after nearly every user message, and some estimates place its daily American user base at roughly 24 million people. If you’re a broadcaster or publisher watching your digital revenue, this probably should be on your radar.
Still, perspective matters here. Not every emerging platform has translated massive user engagement into a sustainable advertising ecosystem. Social media promised to upend everything, and it did reshape the landscape — but traditional media didn’t vanish.
The question isn’t whether AI advertising will grow. It’s whether it’ll grow fast enough, and with enough precision, to meaningfully pull dollars from the channels that local advertisers already trust.
Let’s be honest: the money being poured into AI infrastructure is staggering. You’d have to be naive to assume that ad dollars won’t follow the eyeballs. That’s always been the deal in media.
A Shifting Battlefield
What makes AI platforms different from previous digital disruptors is the intimacy of the interaction. When someone asks ChatGPT for a restaurant recommendation or a product comparison, they’re not passively scrolling — they’re actively seeking. That’s prime real estate for an advertiser. The contextual relevance of an AI-served ad could, theoretically, outperform a display banner or even a targeted social post.
That said, the format is still maturing. Consumers aren’t entirely used to being advertised to mid-conversation, and the novelty could wear off before the monetization model fully solidifies. There’s also the trust factor — users go to AI platforms because they believe they’re getting unbiased answers. Introduce too many ads, and you risk poisoning the well.
The space will adapt, though. It always does. And as it adapts, it’ll get better at convincing advertisers that it’s worth the investment.
In the past, local media companies have been slow to adapt, to be frank. Radio is still playing catch-up in the digital space. Major brands are still asking, “Do you think we should have a YouTube channel?” Local TV companies are shouting from the rooftops that they can’t compete with Big Tech. Newspapers have been on the decline due to their own ignorance and poor decisions for more than two decades.
Those who don’t study history are doomed to repeat it, right?
What Local Media Can Actually Do
Here’s the reality that every broadcaster and publisher should accept: you can’t stop the money from chasing AI. What you can control is your own value proposition. The answer isn’t to panic — it’s to compete.
Super-serving your clients has always been the best defense against any advertising threat, and this situation’s no different. Results drive renewals. If your campaigns are delivering measurable outcomes, your clients don’t need to experiment with ChatGPT ads. Give them a reason to stay, and most of them will.
Beyond that, local media holds something AI platforms can’t easily replicate — genuine community connection. A morning show host in Tulsa knows the mayor’s name. A local news station covered last week’s flood. That authenticity resonates with local advertisers who want to be seen as part of the community, not just another algorithm serving up suggestions. It’s a distinction worth marketing loudly.
The threat from AI advertising is real, but it isn’t a death sentence. Local media has survived the internet, social media, and streaming. It can survive this, too — as long as it keeps doing what it does best.
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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.
