In the first eight months of 2024, digital channels captured $107 billion in media spending, or nearly two-thirds of all available advertising dollars in the U.S.

Is it the end of the road for legacy advertising channels like print, TV, radio or out-of-home?

Keeping track of media spending

I’ve spent the past 20 years working in advertising, on the buy side, sell side, and right in the middle as a third-party data provider. I can’t recall a time when the industry didn’t predict that digital advertising would one day overtake traditional advertising. In the U.S., that threshold was reached in 2019 — to no one’s surprise — and digital media now accounts for 65% of all media spend around the country. But over the past year, I’ve noticed a fascinating new dynamic at play.

It appears that new digital channels aren’t stealing media dollars from traditional channels like they might have done in the past, but from other digital channels.

At MediaRadar, we monitor millions of brands around the clock and keep track of their day-to-day media investment decisions. We help advertisers understand what their competitors are up to and publish regular public reports on the state of the industry. We just released a new comprehensive report that shows that digital channels are continuing to grow, but at uneven rates, and that some traditional channels are surprisingly resilient, against all odds. For media executives looking to stand out in an incredibly crowded media environment, the strategic implications are momentous.

Digital channels dominate media spending budgets

There’s no question that digital media still dominates media budgets across most industries — from CPG to department stores, automotive, quick-service restaurants (QSRs), tech, or financial services. Digital channels like paid search, mobile, or paid social offer advertisers superior targeting capabilities, immersive user experiences, and a direct link to crucial outcome metrics like sales and new subscriptions.

Paid Search, for instance, grew 6% for the Jan-Aug 2024 period compared to the same period in 2023. Mobile grew 9% and display advertising 20%, buoyed by their versatility along the whole consumer journey (from top-funnel brand awareness campaigns to bottom-funnel sales conversions) and a mature programmatic ecosystem.

Traditional channels show resilience

Traditional channels aren’t growing as fast but they’re holding their ground. Linear TV, for instance, experienced a 3% increase in spending in 2024, driven by the continued appeal of high-profile sporting events and record-breaking political ad spending. These events draw large, engaged audiences to linear TV, and that won’t stop anytime soon now that TV rights for the NFL and NBA have been renegotiated.

Local radio remained relatively stable too (it declined by 1% in 2024), offering consistent reach for both local and national advertisers. Its ability to target specific geographic areas with tailored messaging continues to make it invaluable for local businesses. 

Where to draw the line?

What should we make of new media channels like over-the-top (OTT) streaming, podcasts, or retail media? Are they new digital channels or digital reincarnations of traditional media channels with a different distribution method?

We’re starting to see some evidence that much of the money being poured into OTT these days isn’t coming from linear TV budgets anymore but from other digital channels, like online video. Similarly, podcasts aren’t cannibalizing local radio, and retail media isn’t growing at the expense of in-store advertising. Those new channels are as much a threat to digital media dollars as they are to traditional media dollars.

Traditional media channels are reinventing themselves for the digital age, and the line is starting to blur between traditional and digital media. At the Upfronts and NewFronts this year, streaming will be a central part of the conversation, not just a sideshow, and it will be crucial for media executives to offer combined audience packages that integrate the reach of traditional media with the targeting capabilities of streaming platforms.

Cross-channel synergies are the future

With so much fragmentation in the media environment, it’s become extremely difficult for brands to reach their target customers and prospects. Omnichannel marketing has become a top priority for them, which means that media companies need to collaborate more with one another to present a united front — from planning to activation and measurement.

Now more than ever, a well-balanced media mix is crucial for advertisers to maximize reach and engagement. Digital channels like paid search (24% of total media spend), mobile (14%), or paid social (10%) are leading the charge. But traditional media like linear TV (23%), radio (3%), and even print (6%) still hold significant value, especially near the top of the funnel. It’s time to develop more cross-channel synergies so that advertisers may curate a consistent and engaging user experience across all the touchpoints in their media mix, captivate consumers, and nurture long-lasting relationships with them. AI and advanced analytics can help, but only if the strategy is clear.

So yes, after years of digital channels hijacking media dollars from legacy channels, legacy channels are now flipping the script and reinventing themselves on the back of digital channels. In 2025 and beyond, let’s not talk about who is stealing what share of voice from whom anymore. Rather, let us focus on working together to meet advertisers’ objectives and deliver a better all-around consumer experience. The advertising pie will take care of itself.