Newsrooms are essential to our democracy, and local news is vital for a healthy community. However, local media has been struggling for years, unable to compete for ad dollars with platforms like Meta, Google, and TikTok, which now capture the lion’s share of global ad spend. These ‘walled gardens‘ distribute news but create little of it, leveraging their first-party data to capture the lifeblood of any news organization – ad revenue.
The Role of Local Media
Local media are the ones reporting on important local issues, updating the community on local politics, and providing details on community events like sports teams or holiday parades. They are often the first and only outlet covering local restaurants or the new store opening on main street. Local journalism shoulders this responsibility, advocating for local associations and charities, and much more. Despite their crucial role, local media often struggles because people are unwilling to pay for news or get it directly from local media sites. It’s not that people don’t value being informed; they just don’t appreciate the path news takes to reach them.
The Decline of Local Media
In 2005, there were approximately 9,000 media publishers in the US. By 2024, that number is expected to drop to 6,000. In 2023, media companies closed at an average rate of 2.5 per week. According to David Bauder of the Associated Press, of the 3,143 counties in the US, 204 have no local news outlet, and 1,562 counties have just one remaining outlet, with 228 of those on a ‘watch list.’
The decline in local news outlets across the U.S. is accelerating despite efforts to help. While digital outlets are emerging to fill some of the voids left by print, they are closing at roughly the same rate they are opening. Local TV and radio stations, where they still exist, are also feeling the squeeze and struggling to stay afloat as they are feeling the same ad revenue exodus that has affected newspapers.
Hope Factory: Strengthening Community Engagement
Media companies are an important part of the fabric of their communities. Hope Factory’s solution empowers media companies to strengthen their role as vital pillars of the community by driving increased revenue for local businesses, charities and also for themselves
Strengthening Local Businesses & Main Street
Supporting small businesses boosts the local economy and solidifies the media company’s role as a community champion. Thriving small businesses contribute to a healthy local economy, which benefits the community and, by extension, the media company’s audience. Promoting local businesses provides fresh, engaging content that attracts readers and viewers. Additionally, building relationships with local businesses opens up advertising opportunities, leading to increased ad revenue.
Strengthening Local Charities
Supporting charities highlights the media company’s commitment to social responsibility and strengthens community ties. Charitable activities build trust and goodwill within the community, enhancing the media company’s reputation. Stories about local charities resonate with audiences, driving higher engagement and viewership. Collaborating with charities can lead to mutually beneficial partnerships, further embedding the media company in the community fabric.
Residents’ Role in Supporting Local Media
Residents can help in several ways:
- Pay for local news subscriptions or donate to non-profit publishers, and even for-profit publishers when asked.
- Get their news directly from the online platforms of their local media.
- Support local businesses that, in turn, support local media.
Local Businesses’ Role in Supporting Local Media
Local businesses can contribute by purchasing ad packages from local media instead of buying programmatically from Meta, Google, or TikTok. This approach not only supports local media but also helps businesses connect more effectively with their communities. Small local businesses cannot compete with big corporate retailers on large social media platforms, leading to a negative flywheel effect where both local media and small businesses start to close.
The Impact on Charities
If 53% of Americans want to volunteer or donate more locally, they need local media to inform them about opportunities and events. Without local media, local charities struggle to reach the community, making their work even more challenging.
Hope Factory’s platform seamlessly integrates with the media company’s operations, making it easy to support local businesses and charities while driving revenue. Our SaaS solution is designed for simple implementation, ensuring a smooth transition and minimal disruption. The platform provides valuable data on consumer spending and donation patterns, enabling targeted campaigns and strategic partnerships. Media companies can scale their support efforts efficiently, reaching more businesses and charities without additional overhead.
By leveraging Hope Factory’s technology, media companies can create a positive ripple effect, benefiting the entire community ecosystem, while at the same time differentiating from their competitors, by positioning themselves as forward-thinking and community-focused. This unique opportunity enhances their community influence, drives new revenue streams, and fosters deeper connections with the audience, ensuring the sustainability and growth of vibrant, thriving communities. It is essential for all stakeholders—residents, businesses, and charities—to support local media, ensuring that it continues to be a cornerstone of democracy and community health.