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REGION: North America
TOPIC: Politics
Online NewsHour
Vote 2008THE PRIMARIES
BACKGROUND REPORT Posted: July 19, 2007     
Candidates Find Top Dollars in Bottom-up Online Campaigns

As the 2008 presidential campaign becomes known as the Internet election, candidates who are successful at building online communities are tapping into millions of dollars in donations.

Internet fundraising prompt on the site of former Sen. John Edwards, D-N.C.In the first six months of this year, the top three Democratic presidential hopefuls -- Sens. Barack Obama of Illinois, Hillary Clinton of New York, and former Sen. John Edwards of North Carolina -- raised more than $28 million dollars in online donations, according to the New York Times, a figure that excludes Clinton's second quarter online contributions which she declined to report.

Republicans lagged behind, but the top three -- former New York Mayor Rudy Giuliani, Arizona Sen. John McCain and former Massachusetts Gov. Mitt Romney -- cleared more than $14 million online.

Together, that's a significant chunk of the approximately $265 million that the candidates have raised from all sources so far.

But even as online fund raising increases overall, some candidates are benefiting from it far more than others. Obama has a clear lead; nearly one-third of his money has come from Internet donors, many of whom have sent the candidate multiple small-dollar donations.

"It's very clear that Barack Obama has created the most robust online fund-raising machine ever seen in American politics," said Andrew Rasiej, editor of the blog TechPresident, which tracks the 2008 candidates' online campaigns.

Edwards is a close second. He also raised nearly one-third of his money online, although his total fund-raising numbers are lower than Obama's.

On the Republican side, none of the front-runners stand out for their online fund-raising efforts, said Rasiej. On the other hand, libertarian-leaning long-shot candidate Rep. Ron Paul, R-Texas, has "a rabid online community."

In general, Americans are becoming more accustomed to supporting causes with online donations, said Michael Bassik, the vice president for Internet advertising at MSHC partners, a democratic consulting firm.

"I think we're in the golden age of online giving," he said. Former presidential contender "Howard Dean, the tsunami and Hurricane Katrina left America with a culture of online giving."

But it's important to make a distinction between people who would have donated money to a campaign anyway and simply choose the Internet as the most convenient means to do so, and those who most likely wouldn't have donated before the Internet, said Rasiej.

It's that second group -- new donors -- that candidates such as Obama are attracting, Rasiej said. And they're doing it by giving voters the tools to build their own communities online.

"Online fund raising is generally a byproduct of community development," Rasiej said. "Candidates that build robust communities are the ones that are going to have financial rewards. And that comes from the vibrancy of their voter-to-voter communications, as opposed to candidate-to-voter communications."

Candidates are creating profiles on social networking sites such as Facebook and MySpace, where supporters can gather. They're also using their official campaign Web sites to create networks of supporters. Obama and Edwards, for example, both encourage supporters to create personal Web pages within the campaign site where they can blog, donate money and connect with other supporters.

This is a kind of "bottom-up" fund raising where the impetus comes from supporters, rather than the traditional "top-down" approach where the impetus comes from campaign staff, Rasiej said. "The key is to give people a site where they're part of a larger community and can talk to each other without the direct involvement of the campaign," he said.

In general, he said, campaigns that are more comfortable with this kind of bottom-up communication will attract more online money than those with very centralized power structures. That's why Obama is doing so well, while Clinton lags behind, Rasiej said. "The Clintons have relied for decades on a close analog system of donors, as opposed to an online community."

It's also part of the reason why the Republican candidates trail the Democrats in attracting online donations, in Rasiej's opinion. "The Republicans in general have a very hard time with the culture of the Internet, because for decades they've been masters at managing campaigns from the school of top-down politics," he said. Giuliani, for example, doesn't have a Facebook profile, and his MySpace page is private and accessible only to people who receive approval, according to the New York Times.

Campaigns still rely on top-down communication and fund-raising gimmicks, though, particularly when there's an urgent fund-raising need, such as raising quick funds before the Federal Election Commission's filing deadlines.

Obama's campaign, for example, announced it would enter anyone who donated at least $5 to the campaign into a lottery to win a dinner with the candidate and three other supporters. John Edwards' wife, Elizabeth, sent an e-mail to supporters saying that she was trying to attract 10,000 contributions during the week of his birthday, June 10, and that the campaign would send anyone who donated at least $6.10 Edwards' mother's pecan pie recipe.

Of course, setting up a Web site and sending fund-raising e-mails is not enough to guarantee online fund-raising success. Edwards, for example, has many of the same tools as Obama on his Web site, but his total and online fund-raising numbers are much lower.

In the end, said Bassik, it's the excitement and momentum behind the candidate and his or her message and the accompanying media coverage that make a difference.


-- By Lea Winerman, Online NewsHour

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