In his seventh appearance on E&P Reports, Gordon Borrell, CEO of Borrell Associates, joined Mike Blinder to preview insights from his firm's latest advertiser survey and its implications for the media industry. Borrell Associates, widely regarded as a leading authority on local advertising trends, has released its fall 2024 survey, gathering data from over 1,100 advertisers and 122 agencies. The findings shed light on evolving advertiser preferences, challenges in media sales and strategies for 2025.
Advertising optimism amid uncertainty
Despite challenges facing the advertising industry, Borrell shared positive news: optimism among advertisers for 2025 has surged. He described this sentiment as “heartening,” noting that while not surprising, it is a promising signal for the coming year.
“There was a large spike in optimism for next year,” Borrell said. “Advertisers are feeling really good about what’s ahead compared to our previous surveys.”
The rise of events and sponsorships
Among the standout revelations in the survey is the resurgence of events and sponsorships as top advertising choices. For the first time in years, events have surpassed social media in advertiser preference, with 56% of respondents investing in them. Borrell highlighted the dual nature of events and social media as platforms for connecting with audiences.
“Events are the live version of social media, and social media is the virtual version of events,” Borrell explained. “Advertisers want to shake hands and make real-world connections.”
This shift underscores a broader trend of advertisers seeking more tangible, direct interactions with their target audiences, moving beyond the purely digital realm.
Media sales reps face a digital savvy gap
A recurring theme in Borrell's research is the persistent perception gap in the digital competence of media sales representatives. While overall marketing-savvy ratings for media reps have declined in recent years, the gap is particularly pronounced in digital expertise.
“One in three advertisers said their newspaper reps had no digital savvy,” Borrell revealed. “That’s scary. Advertisers are looking for more arrows in the quiver, and if reps can’t provide solutions beyond their core products, someone else will steal their business.”
Blinder echoed the concern, urging industry leaders to prioritize training and development so their sales teams remain competitive. “If our teams don’t understand all forms of media, we’re falling behind,” he said.
Direct mail defies expectations
In a surprising twist, direct mail has shown unexpected resilience, emerging as one of the media types poised for growth in 2025. While print media continues to struggle, the effectiveness of direct mail campaigns has caught the attention of advertisers.
“Direct mail is fantastically surprising,” Borrell said. “It carries the cost of being printed and delivered, but advertisers still see value in it.”
This finding challenges the narrative of digital dominance, highlighting opportunities for traditional media to remain relevant by adapting to advertisers’ needs.
The importance of digital competence
Borrell also emphasized the need for media organizations to address advertisers’ increasing reliance on data-driven decisions. He stressed the importance of understanding advertisers’ challenges and providing tailored solutions rather than defaulting to selling specific products.
“Advertisers don’t wake up thinking, ‘I need to buy newspaper advertising.’ They want solutions to their marketing challenges,” Borrell explained. “If your rep is perceived as someone who just sells your product, you’re in trouble.”
Looking ahead to 2025
Borrell’s insights offer a roadmap for navigating the challenges and opportunities as the media landscape evolves. From embracing events and sponsorships to closing the digital savvy gap, media organizations have clear paths to success. However, adapting to these trends requires proactive leadership and a commitment to meeting advertisers where they are.
“Consider events and social media as complementary tools,” Borrell advised. “Advertisers are seeking meaningful engagement, and we need to provide that.”
The fall 2024 advertiser study will be fully unveiled on December 12, and media leaders are poised to gain even more actionable insights to inform their strategies for 2025. Borrell concluded that the key to thriving in this dynamic environment is embracing change and delivering value to advertisers.
For those interested in exploring the full findings, Borrell Associates will host a webinar on December 12 at 11 a.m. EST, available for registration on their website and social media channels.
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