I was listening to KUT, the local NPR station, this morning and heard a story about how a recent research report showed that funding of newsrooms is correlated to profits. That is, media organizations that have higher levels for funding for their newsrooms make more money.

I couldn’t find a reference to the story on NPR.org, or PRI.org, so I can’t cite it.

Still, it got me thinking. First, this seems so obvious. People want news. If typical media organizations give it to them, they’ll be able to sell advertising. If they don’t, people will go elsewhere. If they can’t gather the news because they’ve cut funding…and therefore reporters…they can’t provide useful news.

One place people have gone to has been blogs. So, in addition to competing with bloggers for stories, media companies are now competing with bloggers for advertising dollars.

This may not be such a big deal, seeing as the media industry is such a large market; however, innovation occurs at the edges. I and my colleagues are now in media conversations that include bloggers in the consideration set of places to advertise. Why? Because they attract readers.

I had the pleasure of meeting with Reiva Lesonsky, Editor in Chief of Entrepreneur Magazine a few years ago to discuss a custom magazine for a client. She made it very clear that her top priority is her readers; our client would come second. She knew what the bloggers know; if you’re in a media business where you make money by advertising, you must be true to your audience, otherwise, they’ll leave you. If they leave you, advertisers don’t need you. Therefore, your audience is your top priority.

Simple truths.

Why point this out? Because I’m sensing a change in the agency business where media people are looking at blogging in a slightly different light. Instead of simply dismissing them, they’re looking at the numbers and letting that influence their decisions. Clients are still skittish, but less so. So, networks like John Battelle’s Federated Media have a fighting chance.