HOME
          
LATEST STORY
Newsonomics: The Financial Times triples its profits and swaps champagne flutes for martini glasses
ABOUT                    SUBSCRIBE
Aug. 1, 2011, 4 p.m.

“A great story to tell to advertisers”: How TPM increased its ad sales revenue 88 percent from last year

TPM is parlaying reader engagement into a business model by focusing on direct ad sales.

This June, Talking Points Memo had the biggest ad sales month in its eleven-year history, closing out a half-year period that saw ad sales revenue grow 88 percent over the same period in 2010.

First of all: Yowza. Second of all, though: That number, while big, isn’t entirely out of left field. “We’ve been growing at double-digit — sometimes approaching triple-digit — growth ever since we started our direct-sales ad program,” TPM’s founder/editor/publisher, Josh Marshall, told me. So while the 88 percent stat is a record, and “we love that number,” he notes, it’s also “not dramatically different from what we’ve had in previous years.”

Still, though, it’s worth a moment of pause. Because here is a web-native news organization that started as, you know, Some Guy’s Blog and that is now able to sustain itself — actually, grow itself — based on digital ad revenue. At a time when many news publishers are struggling in a sea of digital dimes, TPM, it seems, is finding a way to turn those dimes into dollars.

Marshall attributes the success largely to TPM’s organizational double-down on direct ad sales. In 2009, as it expanded its presence in D.C., the site — which had previously relied on networks like Blogads to support its operations — began investing in in-house advertising efforts, bringing on a sales VP and taking advantage of TPM’s famously loyal user base to make a compelling pitch to advertisers. And at higher CPMs.

“The big thing is really talented people doing the sales,” Marshall says.

And another thing is time: Ad sales are about relationships, and cultivating them can’t happen overnight. The real growth of TPM’s ad sales numbers really “started to kick in after we’d had some time to tell the advertisers about the site, about the value proposition of advertising with us,” Marshall notes.

And a big part of that proposition is the thing that advertisers are actually buying when they sign on with TPM: the TPM audience, the collective of dedicated (and also, generally: affluent, educated, influential) people whose eyeballs advertisers generally want to reach. Advertisers so far have included big national brands like Toyota, BP, HBO, Goldman Sachs, and CVS; media outlets like Current TV, The New York Times, and the Wall Street Journal; and organizations like Harvard Business School, America’s Natural Gas Alliance, the Association of American Railroads, the American Council of Life Insurers, and the Obama 2012 Re-Election Campaign. (That last group is a big part of TPM’s ad strategy, particularly for its D.C.-based audience. The advocacy market tends to have deep pockets — and “everybody wants to have their story told to the people who are calling the shots, who live in D.C.,” Marshall points out.)

But TPM’s readership isn’t limited to the District (indeed, this has been a pretty good month to remind us that Washington news is national news), and part of TPM’s pitch is that its audience nationwide is particularly engaged with its content and mission. (And also, again: affluent, educated, influential.)

And that’s evidenced in part by an annual reader survey that TPM conducts, consisting of over 30 questions, asking readers to send TPM data about themselves and their reading habits. TPM’s 2011 survey was introduced with a quick request for completion from Marshall; it was live for 24 hours; and it received, Marshall told me, some 26,000 completed results.

Again: Yowza.

So TPM offers not just a quality audience, in terms of the demographics advertisers like, but also a highly — even hyper- — engaged one. Readers often visit TPM multiple times a day. They trust it. They consider themselves, often quite literally, to be a part of it. Because of all that, Marshall says, “we have a great story to tell to advertisers.”

It’s a story, sure, that’s a fairly unique one in today’s news environment. Political coverage of the depth and intensity TPM offers may lend itself to reader engagement; it’s also hard to duplicate, though, especially at more general-interest publications. But as news outlets big and small, general-interest and niche, consider their futures, TPM’s experience can be instructive — not only editorially, but also financially. There are basically two TPMs: There’s TPM, the new media visionary and crowdsourcing pioneer and Polk Award winner and “prototype of what the successful Web-based news organization is likely to be in the future“; and then there’s TPM, the scrappy startup that is trying to make a viable business of web-native political reporting. TPM’s ad-sales success suggests the tantalizing possibility that, even in today’s murky media environment, TPM 1 and TPM 2 can actually be the same thing.

POSTED     Aug. 1, 2011, 4 p.m.
SHARE THIS STORY
   
Show comments  
Show tags
 
Join the 15,000 who get the freshest future-of-journalism news in our daily email.
Newsonomics: The Financial Times triples its profits and swaps champagne flutes for martini glasses
The FT is a leader in crossing over from print — digital subscribers now make up 70 percent of its paying audience, a number that keeps growing.
A farewell to #content: Optimism, worries, and a belief in great work
A few thoughts on the state of media (and meta-media) from our departing staff writer.
On convening a community: An excerpt from Jake Batsell’s new book on engaged journalism
“An engaged journalist’s role in the 21st century is not only to inform but to bring readers directly into the conversation.”
What to read next
789
tweets
Snapchat’s new Discover feature could be a significant moment in the evolution of mobile news
By putting mobile-native news adjacent to messages from friends, Snapchat could be helping create part of the low-friction news experience many want and need.
750Snapchat stories: Here’s how 6 news orgs are thinking about the chat app
From live events to behind-the-scenes tours, The Huffington Post, Fusion, Mashable, NPR, Philly.com, and The Verge tell us how they’re approaching Snapchat.
714Here’s how the BBC, disrupted by technology and new habits, is thinking about its future
The British broadcaster released a new report looking at the future of news as it looks toward its royal charter renewal in 2017.
These stories are our most popular on Twitter over the past 30 days.
See all our most recent pieces ➚
Fuego is our heat-seeking Twitter bot, tracking the links the future-of-journalism crowd is talking about most on Twitter.
Here are a few of the top links Fuego’s currently watching.   Get the full Fuego ➚
Encyclo is our encyclopedia of the future of news, chronicling the key players in journalism’s evolution.
Here are a few of the entries you’ll find in Encyclo.   Get the full Encyclo ➚
Craigslist
Charlottesville Tomorrow
Reddit
Corporation for Public Broadcasting
Examiner.com
The New Republic
National Review
Foreign Policy
Gawker Media
Ars Technica
Demand Media
The Economist