From community events to first-party data, Todd Handy’s latest Local Media Innovation Insights report offers a roadmap for diversifying revenue and building sustainable local media businesses.
Local media companies may be sitting on valuable opportunities to grow revenue without realizing it.
That’s one of the central messages of Monetizing Local Content, a new Local Media Innovation Insights (LMII) report from Local Media Association, authored by Todd Handy, founder and chief revenue officer of Disruptive Impact.
The report explores how local media organizations can build new revenue streams while strengthening the businesses they already operate. It also offers practical guidance for identifying opportunities, testing new products and measuring results.
In a recent episode of LMA’s Keep It Local podcast, Handy said the first step isn’t necessarily developing a new product. It’s understanding what makes a local media organization valuable in the first place.
“The revenue question, how do we make more money, really is downstream of something that’s more fundamental, which is what do we actually have that people are willing to pay for,” Handy said.
Local media’s most valuable assets go beyond content
News organizations understandably think of journalism and other content as their primary products. But Handy identifies several additional assets that can help generate revenue, including audience trust, community relationships, first-party data and content archives.
Local media companies have something national technology platforms often struggle to replicate: longstanding relationships with the communities they serve.
That creates opportunities to connect advertisers and audiences in ways that extend beyond traditional display advertising or sponsorships.
It also creates what Handy calls “convening power,” the ability to bring people together around shared interests, community issues or local experiences.
Why events deserve a place in the revenue conversation
Events are one opportunity Handy believes local media organizations should explore, even those operating with limited staff and resources.
They don’t have to begin with expensive conferences or large productions. Community listening sessions, town halls and small sponsored gatherings can help news organizations strengthen relationships while testing potential revenue opportunities.
Handy points to The Salt Lake Tribune’s approach, which began with a relatively small pilot event and used feedback from attendees, sponsors and staff to inform future efforts.
The lesson? Don’t expect every new initiative to become profitable immediately.
Instead, establish a hypothesis, launch a manageable test, gather feedback and make improvements before committing additional resources.
Diversification matters more than the number of revenue streams
How many revenue streams should a local media company pursue?
According to Handy, there’s no magic number.
The bigger concern is how heavily a company depends on any one source of income. Organizations that generate most of their revenue from a single product or platform can be especially vulnerable when market conditions change.
Newsletters, events, subscriptions, sponsorships and other products can all contribute to a more balanced revenue mix.
But Handy cautions against launching too many initiatives simultaneously.
Instead, organizations should choose opportunities that align with their strengths, available resources and audience needs, then give those initiatives enough time to demonstrate whether they can succeed.
AI can help, but measurement remains essential
The report also examines ways artificial intelligence can support revenue growth.
Handy identifies several potential applications, including predicting subscription behavior, personalizing newsletters, adjusting paywalls based on audience engagement and automating advertising creative.
But technology alone isn’t a revenue strategy.
Media companies also need clear goals, reliable audience and advertiser data, and consistent measurement.
Handy recommends tracking metrics appropriate to each revenue stream, including monthly recurring revenue, advertiser churn, subscription retention, event margins and sponsorship renewals.
He also outlines a 90-day approach that begins with examining advertiser churn and identifying top accounts, followed by strengthening customer relationships and repackaging an existing product into a recurring monthly offering.
Building the next business while protecting the current one
Perhaps the report’s most important lesson is that local media companies don’t have to abandon their existing businesses to pursue growth.
Handy advocates a dual transformation approach: improving the performance of established revenue operations while developing new opportunities alongside them.
That requires coordination among leadership, editorial, sales and operations, as well as the systems necessary to support new products.
The goal is to protect the trust and relationships local media companies have spent years building while developing business models capable of sustaining them into the future.
Keep It Local is a podcast from Local Media Association featuring conversations with the people building the future of sustainable local journalism.
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🎧 Listen on Spotify: https://open.spotify.com/episode/5LP8FxRKqcjGVqtskwjasK
🎧 Listen on Apple: https://podcasts.apple.com/us/podcast/beyond-advertising-todd-handy-on-monetizing-local-content/id1808196993?i=1000797346221
🎧 Watch on YouTube: https://www.youtube.com/watch?v=QwgG9Os1OV8
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Editor’s note: Artificial Intelligence was used to transcribe the podcast and create a summary.