Foglio's Field Notes

Leif Utne's random rants, musings and meditations

Posts Tagged ‘business models

Issue Ads: New way to fund journalism, or a fool’s bargain?

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Last weekend at the Journalism that Matters-Pacific Northwest conference, Bart Preecs proposed an intriguing new business model for funding coverage of the Washington State legislature. He pointed out that issue advertising — thoseĀ  is the only ad category that is growing right now. Last August, BusinessWeek blogger Jon Fine wrote:

For the foreseeable future, and for that matter probably forever, we are in a world where major legislative battles will be accompanied by major ad campaigns… Through mid-August, $436 million had been spent on issue-related ads this year.

That roiling font of cash is awfully enticing, especially in a down economy where the job category of “professional journalist” is beginning to look almost as anachronistic as “typesetter” or “bootblack.” According to Bart, $52 million was spent in 2009 on lobbying the Washington State government. Just one percent of that could fund a decent online journalistic operation, adding several full-time reporters to the state capitol press corps. To capture that revenue, Bart proposed creating a web-based directory listing all of the organizations that spend that money. Each directory page would include info about an organization and a summary of its legislative priorities and positions. It would also include links to other organizations opposing its positions on those issues. As in the Yellow Pages, the listed organizations could pay a premium to sponsor a large section of the page, which could include their own written statements on the issues, perhaps with links to their position papers, or banner or video ads about their positions.

I have a couple of concerns about this business model:

1. I’m not sure it’s viable. What is the incentive for a lobby group to spend money on a premium listing, especially on a directory page that includes links to their opponents, when they can already get their messages out unfiltered via existing TV, radio, print and online ad buys? Organizations like the Washington Hospital Association or the Washington Association of Realtors are generally more interested in drawing public attention to the issues as they frame them and often shy away from attention to themselves. That’s why there are so many “astroturf” (fake grassroots) front groups. This raises questions about who the intended users of this directory would be. The general public, or political insiders? For the general public, such a directory would be a great resource, bringing more transparency to the murky sausage-making that happens in Olympia. But those advertisers aren’t promoting transparency with their dollars. They’re trying to sway legislators’ votes, which too often means clouding the issues by rallying public opinion around hot buttons like “big government,” “cap-and-tax,” and “socialism!” If, however, the site is targeted at political insiders, maybe a subscription model, or a freemium service would be better.

2. Increasing reliance on issue-ad dollars to fund political journalism may be bad for political journalism (and for democracy). Lobby groups are boosting their ad spending for a reason. It gives them a platform to deliver their messages directly to the public, unfiltered by journalistic scrutiny. The vast (and growing) majority of that money is coming from well-heeled interests often pushing messages that are very harmful to the public and the planet. Consider, for example, the barrage of ads last year against Obama’s healthcare reform proposal, or the Employee Free Choice Act, or the campaigns greenwashing nuclear power, so-called “clean coal,” and companies like Exxon and BP.

Such ads make this progressive’s skin crawl. And the FCC can’t regulate them for truth the way the FDA regulates health claims or the FTC polices truth-in-advertising for consumer products. I fear that creating more real-estate for such messages will outweigh the public good from the journalism those ads help to underwrite.

I realize it may not sound like it, but I’m a staunch advocate of free speech, an actual card-carrying member of the ACLU. And I’m not naive enough to think I can just wish those ads away.

What we need is to reinstate the Fairness Doctrine for broadcast media. For online media like the lobbying directory Bart proposes, we need a code of ethics and some new practices around truth-in-advertising. I’d suggest:

  1. All advertising must be clearly marked as paid-for by the sponsor, for obvious reasons; and
  2. User comments should be enabled on all political ads. User comments would allow advertisers’ claims to be challenged in the same forum where they appear, and would engage the audience actively in the discussion/debate on the issues. Some online ad networks, including Federated Media, have tested ads that enable user comments. I would personally be impressed with advertisers who are willing to engage in a conversation with their audience in this way. But I have doubts about it’s attractiveness to most of the big money advertisers, which brings us right back to square one.

I commend Bart’s initiative. We are all desperately seeking new business models to fund the political journalism that is so vital to a functioning democracy, and drinking from the firehose of issue ad dollars is tempting. But unless we can come up with effective ways to safeguard against unethical ads and promote greater transparency, we may be making a fool’s bargain.

Written by leifutne

January 13, 2010 at 6:25 pm

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