Is quality journalism sustainable? Here are 20 media organizations that are solving this problem

This post is part of a study that identifies 20 media organizations from 16 countries and four regions  --Eastern and Central Europe, Western Europe, Latin America, and the United States-- that have developed sustainable business models for high-quality journalism. This list is by no means exclusive. The examples were chosen to present a variety of solutions to this challenge. We welcome comments on other media we could have included.

-- James Breiner

Click graphic to enlarge.

The audiences are in charge: are publishers listening?

Recently I was invited to give a lecture at the University of Malaga--"The audiences are in charge: Are publishers listening?" The audience had students in their doctoral, master's and bachelor's programs, as well as a number of faculty.

Below is a summary of the presentation.

1. The marriage of convenience between advertising and journalism is over. For proof, look no further than the graphic below, which shows that newspapers in Spain have lost more than 500 million euros in ad revenue since 2009, and that includes the revenue they get from digital. (The U.S. is very similar.)

In the future, news media will need to develop a deep relationship with their users. The important thing will be not the quantity of eyeballs reached, as measured by page views and unique users, but the quality of the relationship with the users.

Versión en español

Journalists and sales: don't sell your soul

Over the past several years, I have written a number of blog posts about how journalists can get involved in sales and marketing without violating their ethical standards or damaging the credibility of their publication. Here are a few of them.

1. Journalists selling ads: think of it as a fair exchange

When I was going through the transition from editor of a business publication to the role of publisher, I dreaded sales calls with clients.
"It meant I had to ask clients for money, which was a new and uncomfortable experience. The hilarious irony of this is that, as a reporter and editor, it was my job to ask people much tougher, more-intrusive questions, and I did it with no problem -- grieving parents about the death of their child, a political candidate about his sexual escapades, a business executive about her salary.
How tough could it be for a former reporter to ask an advertiser for money?

8 practices of successful entrepreneurial journalists

Editor's note: This post was updated 3 June with an eighth best practice.

For the last seven years I have been interviewing and profiling successful entrepreneurial journalists in various countries of various  socieconomic classes. I've talked to publishers and editors with staffs of as many as a hundred as well as some one-man/one-woman bands.

The ones that survive and thrive after several years share some common practices:

1. They develop multiple sources of revenue. They embrace sponsorships rather than advertising, memberships rather than subscription paywalls. They recognize that they can't make money on standard cost-per-thousand or cost-per-click advertising rates. They seek sponsors who embrace their mission and core values. They monetize their audience by creating clubs or groups of members who support their journalism mission. They can actually charge much more than a subscriber would ever pay.

Among other revenue sources: direct sale of products such as books, music, clothing; creation and management of websites and social media channels for third parties; creation of content for blogs and websites; consulting on digital media; sale of data; foundations; events; crowdfunding; and more (12 revenue sources for digital media organizations).

2. They build communities around high-quality contents. They satisfy a need of their users or help them solve a problem. Eldiario.es of Spain has created a type of club of 10,800 partners who pay 60 euros a year and receive certain benefits, such as access to articles a few hours before non-partners. However, access to the site is free, so what they are really paying for, says founder Ignacio Escolar, is to support high-quality watchdog  journalism that is free of political influence. Although these users represent only 2 tenths of 1 percent of the 6 million monthly users, they are enough to provide 570,000 euros and a third of the annual revenues (his financial report to readers, in Spanish). The site has a staff of 40, and growing.

Deal with the Devil: Facebook, Google, mobile apps

A deal with the devil.

Versión en español

It was the science fiction writer Arthur C. Clarke who wrote, "Any sufficiently advanced technology is indistinguishable from magic." And clearly many people think that way about applications for smartphones.

 

Mobile apps can show us detailed maps of most places on earth. 

 

They can read QR codes that tell us when the next bus is coming to this stop. 

 

They alert us to the scores of sporting events we care about. 

 

They allow us to send text messages, free, to billions of people anywhere in the world (WhatsApp and WeChat users alone account for nearly 2 billion).

 

So we willingly give ourselves over to these services that do all these amazing things for us. Often we sign in to them using our Facebook or Google or Twitter accounts, thereby giving those social network platforms access to information about our preferences for products, who are friends are, where we are dining, and how we are amusing ourselves.

 

Reader loyalty gains strength as a news metric

Michael McCutcheon of Mic.com

As the publisher of a business newspaper in Baltimore, I used to tell advertisers confidently that no other news medium could duplicate our audience of CEOs, business owners, and high-income decision makers.

First Yahoo Finance undermined us. With their user database, they could deliver advertisers the same people who were reading our newspaper, plus many with that profile who were not.

(Versión en español)

Now social networks like Facebook are using their data to do the same thing. They can promise to deliver that same targeted audience a lot cheaper.

This is bad news for news publishers, especially since they have become more dependent on Facebook and other social networks for their Internet traffic. Publishers have a harder time establishing the value of their brand to advertisers.

Pew Research reported in 2014 that 30 percent of U.S. adults get news from Facebook. That percentage has been growing, and other social networks, such as LinkedIn, are trying to become publishers, not just platforms, as Mathew Ingram of Gigaom has reported.

7 mobile stats that should scare digital publishers

After years of predictions that this year would be the year of mobile, finally it has arrived. So here are some numbers that should prompt strategizing and action by digital media publishers.

1. Web traffic from mobile devices was up 78 percent year over year in mid-2013, and 109 percent over 2011, according to Ayaz Nanji, writing in Marketing Profs.

To cite one prominent media example of the trend, ESPN has been registering more than half of its traffic from mobile. For publishers the message is clear: you need a mobile app or mobile-friendly version of your content or your audience will leave you behind.

2. In 2013, for the first time, Americans spent more time on their mobile devices every day than on the desktop, according to eMarketer.  Mobile's share of daily time spent, 19.4 percent, is the only category that grew in the past year: television, desktop computers, print and radio all declined, as they have each year since 2010.

3. As of the fourth quarter of 2013, almost half of Facebook's $2.6 billion in total revenue came from advertising sold on mobile devices. This is the world's largest social network, with half a billion daily active users. Facebook has made it clear that it is betting heavily on mobile. Why? Because about three-fourths of its users are there. (As a point of comparison, three-fourths of Twitter's audience and 65 percent of its ad revenues come from mobile. )

10 entrepreneurs test new style of learning

Tenth in a series on teaching entrepreneurial journalism. Parts of this post are adapted from an article originally published in Revista Mexicana de Comunicación.

Latin American journalists have a great thirst for establishing independent media. Many of them are tired of working for low pay at media outlets that protect the friends and punish the enemies of the owners. 

They want to cover topics neglected by the mainstream media, such as education, health, environment, human rights and indigenous culture. They want to expose incompetence and corruption in government.

More than a dozen digital news entrepreneurs described how they are overcoming financial obstacles to sustain independent journalism during the Ibero-American Colloquium on Digital Journalism this spring sponsored by the Knight Center for Digital Journalism in the Americas. 

Journalists selling ads: think of it as a fair exchange

When I was going through the transition from editor of a business publication to the role of publisher, I dreaded sales calls with clients.

It meant I had to ask clients for money, which was a new and uncomfortable experience. The hilarious irony of this is that, as a reporter and editor, it was my job to ask people much tougher, more-intrusive questions, and I did it with no problem -- grieving parents about the death of their child, a political candidate about his sexual escapades, a business executive about her salary.

How tough could it be for a former reporter to ask an advertiser for money? (I borrow this example from Robert Niles's book.) Not that tough, as it turns out.

You create more value with 'community' than 'audience'

Versión en español aquí.

When I teach entrepreneurial journalism, the first thing I emphasize is the need to create a community.

An audience is just a group of observers.  A community shares values and a deep interest in a topic or geographic area. It often has a bias toward action. That is where value comes in.

Connecting these people and creating value for them is the beginning of a community. Only when you have connected them can you begin to get their financial support.

Memberships, not paywalls; sponsorships, not ads

I was reminded of the power of community, as opposed to audience, when reading Martin Langeveld's post for Nieman Lab on what is ahead for journalism in 2013.

When will mobile ad revenue reflect time spent?

Two years ago the buzz was that mobile was the next big thing, and now that consumers are moving to tablets and smartphones, the moment has arrived.

• Nielsen says that 50.4% of mobile users now have a smartphone.
• More than two-thirds of those in the 25-34 age group have a smartphone. The report is here.

This slide from Mary Meeker of Morgan Stanley shows
the opportunity for mobile advertising. Although consumers spend
10% of their time with media on mobile platforms, mobile
is getting only 1% of the ad revenue, a $20 billion opportunity.

Making money Part IV: Events build your brand

Last weekend I spent a day and a half participating online in NewsU's Revenue Camp for Journalism Entrepreneurs, an intense session on some of the new ways journalists are making money on the Web. (The entire course will be available to view online in a few days; Twitter comments from the course are at #revcamp.)

If you have a digital news organization that has built a community, you can create profitable events. Your loyal audience is something like a fan club and wants to meet other members. They will pay to attend, they will bring friends, they will be an attractive audience for sponsors and they will spread the word about you.

A digital publication with a small but devoted audience might not generate enough from advertising alone, but events can plug the gaps. 

Making money Part III: How journalists can do ad sales

This weekend I spent a day and a half participating online in NewsU's Revenue Camp for Journalism Entrepreneurs, an intense session on some of the new ways journalists are making money on the Web. (The entire course will be available to view online in a few days; Twitter comments from the course are at #revcamp.)

The biggest mistake that journalism entrepreneurs can make in selling is assuming rational behavior on the part of the client, says Mike Orren, principal of Just Be Amazing, a consultancy on content, sales and marketing. 

We might think the client will buy based on the traffic numbers or the audience profile, but often the decision is an emotional one: the client likes the sales rep from your publication more than the rep for a competitor, Orren says. (My own experience as publisher of a business journal is similar to Orren's.)

How to sell advertising without selling your soul

(Versión en español aquí.)

Fayerwayer is one of the most popular blogs in the Spanish speaking world because of its frank and conversational commentaries about the latest gadgets and software. 

Its founder, Leo Prieto, of Santiago, Chile, tells an instructive story about how the blog's first advertiser created controversy among his collaborators and the blog's loyal followers. (photo from www.endeavor.cl)

Prieto started Fayerwayer (a phonetic spelling of "firewire" in Spanish) in 2005 because he was dissatisfied with what he saw as a lazy, mindless rehash of press releases in most technology blogs and print publications. 

He decided he would actually try out the products and services and see if they were as described by the public relations and marketing specialists. 

Court news, videos drive web operation in Colombia

Versión en español aquí.

Just two years after its launch, the local news website zonacero.info ("ground zero") in Barranquilla, Colombia, has managed to attract 200,000 visits a month. This in a city of just over 1 million population.

This small staff of journalists demonstrates how knowing the community and understanding the audience can make the difference between success and failure.

Good data is worth more than a thousand words

Versión en español aquí.

An in-depth analysis of the most popular contents on your website can produce some  surprises and yield some financial benefits.

I was recently advising the editor of a small newspaper whose website was not generating the desired traffic. We dug into the content section of Google Analytics to see what was popular with users. The consistent favorite was the town’s bus schedules.

How much to charge advertisers? As much as possible

Versión en español aquí.

Many digital news entrepreneurs have no idea how much to charge for the advertising on their sites.

To set a fair price you have to balance the interests of both the publisher and the advertiser. A fair price should represent the full value of service to the advertiser as well as a just reward for the media outlet.

Generally, Google’s Adsense will not give a publisher a decent price that reflects the content’s value. Adsense is an auction that favors the buyer of advertising since the supply of potential ad space is virtually unlimited.

Total users and pageviews are misleading measures of web traffic

Versión en español aquí.

When web entrepreneurs take a deeper look at their traffic in Google Analytics, they might be surprised and alarmed to learn that most of the visits probably last no more than an eyeblink, 10 seconds or less.

(This is not the bounce rate, but we will get to that in a minute.)

The dirty little secret among web publishers is that visitors to most websites have little or no interest in the content and are either browsing or lost. They arrive through referrals or search engines, don´t like what they see and leave.

Tech, intermediaries leave newspapers far behind

I came away from reading the State of the News Media in 2011 with the sense that newspapers in particular are being left farther behind by all of the advances in technology and payment systems.

One example is Apple. Although it is selling subscriptions to publications on its iTunes platform, it is taking 30% of the revenue and keeping the all-important customer data and credit card information to itself.

Facebook to overtake Yahoo in display advertising

The rich are getting richer in the online advertising market, which means the antitrust lawyers must be sharpening their pencils. eMarketer is forecasting that Facebook will have one-fifth of the online display advertising market in 2011 and will displace Yahoo as leader in the category.  

The digital research website is also predicting that the top four companies in the category -- including Google and AOL -- will have more than half the market by year-end. 

Google is a relative newcomer to display ads, but it dominates search-related advertising with its AdWords service, which will have three-fourths of the U.S. market in 2011, eMarketer predicts.

Google’s vast storehouses of data on consumer behavior, collected through its analysis of billions of searches, allow it to target display ads more effectively than some of its competitors.

All of these big players have automated ad-delivery systems that reduce the need for salespeople and cut costs to advertisers in terms of cost per impression, cost per click on an ad or cost per transaction. It is tough for smaller advertising networks to compete.