Axios Local Tops 1 Million Email Subscribers

The city-based network of free, local newsletters from Axios, called Axios Local, has surpassed 1 million cumulative email subscribers across its 21 locations, according to the publisher––a key milestone for a venture that launched in December 2020. The expansion of Axios Local into new cities across the U.S. has fueled its rapid growth, and the program aims to plant its flag in three more outposts––Houston, San Francisco and Miami––by the end of July. Its five biggest markets are Charlotte, Twin Cities, Denver, Tampa Bay and Washington D.C. Axios Local generated $5 million in revenue in 2021 and projected $10 million in revenue by the end of 2022, though chief business officer Fabricio Drumond declined to share updated financial figures. The program is not profitable but is front-loading investment in order to focus on growth, Drumond said. Axios Local has made a number of key hires to help shepherd the program, including welcoming New York Times veteran Jamie Stockwell as its executive editor in early March. On Friday, it added Jacquelyn Cameron as its new senior vice president of client partnerships and subscriptions, Adweek can exclusively report. Cameron, who joins Axios from The Washington Post, will lead revenue efforts across Axios’ advertising and subscription business lines for Axios Local, Axios Pro and Axios Core Media. By centralizing all subscription and advertising efforts under Cameron, the company hopes to streamline its revenue operations. “The more additional markets we reach, the larger our footprint grows and the more relevant Axios Local becomes for national brands,” Drumond said. “On the other end, the work Jamie is doing within the local communities has really helped strengthen our brand awareness and kickstart conversations with small businesses.” The methodical expansion of Axios Local has drawn attention from media pundits, as the model bills itself as a potential solution to the ongoing economic crisis crippling local news. Declining advertising revenues have hamstrung local legacy media, while national outlets have succeeded by creating location-agnostic content. Axios Local hopes it can stand up a sustainable business by exploiting the resulting gap. ‘100 is the Minimum’—Axios Local Expands to 11 New Cities As the footprint expands, so do the opportunities With every new city Axios Local expands into, the program gains both new editorial and commercial opportunities. From an editorial perspective, Axios Local hopes to use its network of outposts to work collaboratively on stories that resonate on a regional and even national level, Stockwell told Adweek. It worked with the Marshall Project on a package examining criminal justice across the country, and Stockwell hopes that its web of coverage will provide Axios a gauge on the national temperature in a way that other media companies would be hard-pressed to replicate. In regions where the program has multiple sites, such as Texas, where Axios Local operates in Dallas, Austin and soon Houston, the publisher plans to increase the number of stories it covers about state politics. The same network effect applies to regions, such as the Carolinas, where news stories cross state lines but touch on shared concerns, such as climate, immigration or industry. “We’ve reached a size where we can start doing a lot more collaboration across cities and with Axios proper,” Stockwell said. “With the Roe v. Wade news, for instance, all of our publishers jumped in to see how the news would affect their cities. Or with Uvalde, while we didn’t have local reporters there, each of our Texas cities played a significant role in covering gun control measures.” Likewise, Axios Local accrues commercial benefits as it expands. Every new city brings more scale, making the program more attractive to national advertisers, Drumond said. Interest from larger advertisers helps gin up immediate advertising revenue in new markets, which provides the local sales team time to canvas small businesses in the area and establish relationships. “The first 12 months in a city, we are probably 60% to 70% national advertisers and 30% to 40% local,” Drumond said. “But as we continue to expand, we’ll be able to activate more local advertisers.” Axios Local generates the bulk of its revenue from newsletter sponsorships, web advertising and a product called City Guides, an evergreen package that covers topics like real estate, outdoor activities and education. It also brings in revenue from job boards, events, social media activations (in Charlotte, Twin Cities, and D.C.) and a budding membership program. Local news deserts and mirages The Axios Local model works by entering into cities with a lean staff––two reporters per city, initially––while centralizing operational costs like human resources and accounting. As the outposts gain larger audiences and generate more revenue, the editorial team expands sustainably. However, critics have noted that few outlets can adequately cover the news of an entire city with just two reporters. Axios Local journalists conduct original reporting, but the daily newsletters also rely heavily on curating existing coverage from surrounding outlets. Tim Franklin, who leads the Local News Initiative at Northwestern University, sees potential in the Axios Local model but says it is not, in its current form, a solution to the problem of local news deserts. “At the moment, Axios Local just does not have the firepower––maybe they’ll grow to a point where they can fill that chasm, but they’re not there now,” Franklin said. “Still, I think it’s one of the most interesting business models we have in local news right now.” Axios Pro Deal Newsletters Launch, Starting at $599 Annually

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Axios Local Tops 1 Million Email Subscribers as it Eyes Its 24th City

The publisher has also hired a Washington Post executive to oversee revenue

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