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Nonprofit news: Audience research, engagement strategies drive revenue momentum

by: Michele McLellan |

Knight's new study, Finding a Foothold: How Nonprofit News Ventures Seek Sustainability, provides a detailed look at 18 nonprofit news organizations, ranging from the two large nationals, ProPublica and the Center for Investigative Reporting, to the much smaller Wyofile and Florida Center for Investigative Reporting.

The study explores their reach and engagement strategies as well as how they make money and how they spend it. It builds on Getting Local, a similar Knight study two years ago of eight nonprofit news organizations. (Note: I helped research and write both studies.)

Two years ago, the big headline was that the news organizations needed to devote more resources to marketing and revenue development in order to lessen their reliance on foundation funding, which in many cases will not be a long-term source or at least not a primary one. Many of the organizations were devoting most of their resources to editorial content - at levels that were unlikely to be sustainable without additional revenue growth.

Happily, the new Knight study shows that most of the sites are making significant progress in growing revenue and diversifying their revenue streams from sources such as memberships, sponsorships or advertising, event sponsorships, and syndication - selling their content to other news organizations.

Three organizations stood out as making the most progress with revenue diversification - MinnPost, Texas Tribune, and Voice of San Diego. As I looked for commonalities across those sites, two things jumped out at me:

  • Each organization uses research to understand its audience and uses that understanding to support its revenue strategies
  • Each organziation is actively engaging citizens both onlne and off.
Texas Tribune, a powerhouse in developing revenue from corporate and institutional sponsors for its content and events, uses an annual reader survey to document that it has an affluent and engaged audience that is attractive to sponsors.
Similarly, MinnPost, which as developed a significant stream of revenue from advertising, surveys readers to show they have a desirable audience.
Voice of San Diego used audience research to strengthen its membership program and grew the program as a result.
Oakland Local and New Jersey Spotlight conduct audience research and tie them to revenue strategies as well.
Many of the 18 nonprofit news organizations see engagement as core to their mission, much more so than traditional news organizations. Voice of San Diego is particularly active on the engagement front, seeing community events and conversations as integral to its journalistic mission.
CEO Scott Lewis says events are another interface with the community, a way to build loyalty, excitement. VOSD maintains a busy events schedule - 20 events that attracted more than 3,000 people in 2012.
While Lewis stresses the journalistic mission, it is also clear that events and other community engagement activity will be integral to the business model that VOSD and other nonprofits are developing. Unlikely to ever achieve a mass audience, they must have highly loyal and engaged audiences that will be attractive to sponsors and other funders.
Exprimentation with audience development and engagement underscores how the emerging nonprofit news may achieve community connections that eluded many traditional news organizations - and how their financial survival may depend it.

Michele McLellan

Michele McLellan is a writer, editor and consultant who works on projects that help strengthen the emerging local news ecosystem,
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