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The New Growth Pathand How to Get ThereEarl J. WilkinsonExecutive Director and CEOINMA@earljwilkinson
EncyclopediaBritannica32 volumes130 poundsUS$1,400                        Print editionMiddle class buying a   1768-2012dr...
EncyclopediaBritannica1990 sales of US$650,000,000Microsoft Encarta forces digitalencyclopedia (US$1,400 to US$40)Digital ...
Overriding issuesfacing publishersIdentifying growthBeing more relevantManaging complexity
This presentationOrganising modelsWhat we market: products to brandsCulture change and the growth pathWhat’s next?
Organising models
Organising modelAggregate1 deadline per dayHundreds of OK storiesBe better at 15+ subjectsDeep engagement/platform
Organising modelAtomize1,440 deadlines (minutes)5 great stories per dayOwn 3 unique subjectsMulti-media flickers
Organising models           Atomize                     Aggregate1,440 deadlines (minutes)   1 deadline per day5 great sto...
Organising modelBased on how people consume usAffects content, distribution,marketing, advertising … everythingCan’t be bo...
What we market:products to brands
Marketing aprint newspaperHome deliveryContent packagingShut out the worldStatus symbol
Marketing aWeb siteEasy accessInfinite informationGet it quickSharing with friends
Marketing amobile app/siteNews in pocketSkimmable informationGet it anywhereFillers for your day
Marketing aniPad appBeautiful experienceCurated informationSecond screenPersonal enjoyment
Marketingyour productsNewspaper         Web site             Mobile app/site     iPadHome delivery     Easy access        ...
Multi-platformsubscription bundlesOverview: how to bundle print, Web, mobile, tabletAxel Springer: + iPad2 @ €49.99 per mo...
Marketing anews brandConvenienceRelevanceConsumption choiceEmpowerment
Marketing newspapersNo longer destination purchase(producing and distributing important)Now highly discretionary purchase(...
What companies sellP&G: shampoo shine to confident and sexyDisney entertain to make dreams come trueApple: make products t...
What newspapers sellNot content but convenience and delightNot the news, we help improve people’s livesTransport hearts, m...
What we are notmarketingJournalismTrustRole in democracyReflection of you
Not about how hard wework (not about us)Is your writing better?Do you care more?Have your people been doingthis a long tim...
Avoid muddled brandsLet’s not be old guy tryingto act youngNurture brands with clearcharacteristicsGrow old with today’ssu...
Marketing anews brandConvenienceRelevanceConsumption choiceEmpowerment
Culture changeand the growth path
Pew study onbusiness modelsPowerless to change cultureHaven’t needed innovative peopleEmployees operationally focusedBattl...
Google macro-cultureSpeed over perfectionLow-cost innovationPlacing many small bets
Google micro-cultureHire people smarter than you, get out of wayHire generalists to deal with “what’s next”Don’t reward go...
Culture change (us)1.   Listen to the market2.   Focus relentlessly on differentiators3.   Prioritise expenditures to USPs...
Culture change:only path to growth1.   Operationally excellent2.   Raw content engine good enough3.   Structural advertisi...
VÄSTERBOTTENS-KURIREN (VK) | SWEDENCulture auditCurrent: culture of hierarchy/clanFuture: culture of innovation, entrepren...
DESERET MEDIA | UNITED STATESBe true to your USPsFamilyFinanceResponsibilityFaith-basedEducationCare for the poorValues in...
JOURNAL-REGISTER COMPANY | UNITED STATESDigital firstNew news ecology: prioritise platforms byvelocity (fast to slow)Sell ...
SCHIBSTED | SWEDENNews audiences aslead generatorsOwns 16 assets nationally2 newspapersTraffic aggregation, e-commerceBloc...
IDG | UNITED STATESPrint vs. digital200 magazines, Web-centric companyManage print for profitManage digital for growthPurs...
Culture changeEditorialAdvertising salesThe people equationOrganizing marketingManaging, leading audience development
Advertising salesIntegrate at same pace as your advertisingcommunity        Whyteams“newspapers”Keep print and digital sep...
AudienceWhat we sell: bundled subscriptions across                 Whyplatforms (print, Web, tablet, smartphone)      “new...
MarketingShift from pushing products to brandsOut:         Why     “newspapers”Tactile benefits of print or shut out world...
ResearchNeed one over-arching metric               Why LUN)Implement dashboard (FINN,      “newspapers”Goal: know more abo...
Human resourcesCan’t treat today’s young generation like recentlydeparted  Why      “newspapers”Training, coaching, member...
EditorialNo print or digital journalism, just journalism            WhyPlatform managers looking across platforms        “...
ManagementNeed brutally simple metric: rally all around          WhyIn-your-face ways of communicating success      “newsp...
Culture change foundation formulti-media model
Growth pathUnderstanding consumer behaviourRapid digital adoptionProduct development pipelineSmart marketingData analytics...
What’s next?
What’s next?Opportunities in printNew product development strategyCore competenciesLearning rulebook for digital advertisi...
WHAT’S NEXT?Future of printWill decline as mass-market vehicleGradual reduction in frequencyGradual reduction in pages + f...
What’s next?Opportunities in printNew product development strategyCore competenciesLearning rulebook for digital advertisi...
WHAT’S NEXT?New productdevelopmentHow many in pipeline at once?1 big initiative or many small ones?Time frame for success ...
What’s next?Opportunities in printNew product development strategyCore competenciesLearning rulebook for digital advertisi...
WHAT’S NEXT?Core competenciesCompanies that invent new markets,shift consumer choiceCompetencies engine for new businessde...
WHAT’S NEXT?Competenciesdetermine productsJournalismStory generationStorytellingCommunication
What’s next?Opportunities in printNew product development strategyCore competenciesLearning rulebook for digital advertisi...
WHAT’S NEXT?Your crossover pointIf print advertising is declining, what mustdigital growth rate be to run a growingbusines...
WHAT’S NEXT?The new solutionsSearchSocialMobileGeo-targetingBehavioural targeting
WHAT’S NEXT?Digital First MediaSolutions               ProductsGeo-target audience     Web site bannersTarget behaviours  ...
WHAT’S NEXT?1 + 1 = 3?What do these revenue solutions add up to?How do we structure industry re-training?Is this 100%/80%/...
What’s next?Opportunities in printNew product development strategyCore competenciesLearning rulebook for digital advertisi...
iPhone’s impact onmobile pageviews 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000               +1,700% 1,000,000  800,...
Putting mobile inperspectivePhase 1: connecting people (86% penetration)Phase 2: connecting people to Internet (33%)Phase ...
Mobile: connecting“everything”Cars                   SecurityAssisted living        Traffic managementClinical remote     ...
Impact of mobileconnectivity on youRelevant services in embedded environmentContent with different screensEnabling readers...
Economics ofsmartphonesProcessing power improvingAccess speed fasterSmaller and thinnerCheaper device + time
Economics ofnewsprintDemand will weakenPaper mills: consolidateSuppliers: contractPrices will riseTargeted opportunities
When platformeconomics collideCheaper to give away $50 tablet than printing/delivering     Tipping point? Price? Speed? De...
What’s next?Opportunities in printNew product development strategyCore competenciesLearning rulebook for digital advertisi...
WHAT’S NEXT?Attracting talentNot attracting best/brightestCreative class can’t overcome imageNobody wants to climb the mou...
WHAT’S NEXT?Level the mountain!Average age of newsroom: 58Massively holding back changeWhy not hire a young gun?2 years of...
WHAT’S NEXT?Employee oxygenInternal trainingExternal trainingAccess to informationAccess to peersEncouragement by youEduca...
Conclusions
Why own anewspaperProfitabilityPolitical influenceBusiness/civic influenceAudience traffickerContent pool for niches
We need to buy timeMaintain print long enough for digitaladvertising to scaleLag between advertiser, consumer shifts todig...
Under-valuingourselvesHow to price newspaperHow to price Web contentHow to price apps
Pegging our valueHotel chain breaks downpieces of hotel roomAsks guests to place financialvalue on piecesPrint newspaper w...
Pegging our valueUniquenessRelevanceAuthenticityWhat does news brand do forme?
Be creative (evenwith an end point)Life cycle: born, live, dieArrogance from idea of living foreverLive: discipline, confi...
The New Growth Pathand How to Get ThereEarl J. WilkinsonExecutive Director and CEOINMA@earljwilkinson
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The New Growth Path and How to Get There

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"The New Growth Path and How to Get There" was the closing address at the International News Media Association (INMA) World Congress in May 2012 in Los Angeles. The presentation was made by Earl J. Wilkinson, executive director and CEO of INMA.

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  1. 1. The New Growth Pathand How to Get ThereEarl J. WilkinsonExecutive Director and CEOINMA@earljwilkinson
  2. 2. EncyclopediaBritannica32 volumes130 poundsUS$1,400 Print editionMiddle class buying a 1768-2012dream
  3. 3. EncyclopediaBritannica1990 sales of US$650,000,000Microsoft Encarta forces digitalencyclopedia (US$1,400 to US$40)Digital business: libraries, schoolsRevenue falls 80% toUS$130,000,000 Print edition2/3 of revenue from online sales 1768-2012Higher margins, smaller business
  4. 4. Overriding issuesfacing publishersIdentifying growthBeing more relevantManaging complexity
  5. 5. This presentationOrganising modelsWhat we market: products to brandsCulture change and the growth pathWhat’s next?
  6. 6. Organising models
  7. 7. Organising modelAggregate1 deadline per dayHundreds of OK storiesBe better at 15+ subjectsDeep engagement/platform
  8. 8. Organising modelAtomize1,440 deadlines (minutes)5 great stories per dayOwn 3 unique subjectsMulti-media flickers
  9. 9. Organising models Atomize Aggregate1,440 deadlines (minutes) 1 deadline per day5 great stories per day Hundreds of OK storiesOwn 3 unique subjects Be better at 15+ subjectsMulti-media flickers Deep engagement/platform
  10. 10. Organising modelBased on how people consume usAffects content, distribution,marketing, advertising … everythingCan’t be both … make a choice
  11. 11. What we market:products to brands
  12. 12. Marketing aprint newspaperHome deliveryContent packagingShut out the worldStatus symbol
  13. 13. Marketing aWeb siteEasy accessInfinite informationGet it quickSharing with friends
  14. 14. Marketing amobile app/siteNews in pocketSkimmable informationGet it anywhereFillers for your day
  15. 15. Marketing aniPad appBeautiful experienceCurated informationSecond screenPersonal enjoyment
  16. 16. Marketingyour productsNewspaper Web site Mobile app/site iPadHome delivery Easy access News in pocket Beautiful experiencePrint packaging Infinite info Skimmable info Curated infoShut out world Get it quick Get it anywhere Second screenStatus symbol Share with friends Fillers for your day Personal enjoyment
  17. 17. Multi-platformsubscription bundlesOverview: how to bundle print, Web, mobile, tabletAxel Springer: + iPad2 @ €49.99 per monthL.A. Times: + membership modelHelsingin Sanomat: 33% of subscribers in bundleNew York Times: driving print sales with digital!The Times: packs for weekday, weekend
  18. 18. Marketing anews brandConvenienceRelevanceConsumption choiceEmpowerment
  19. 19. Marketing newspapersNo longer destination purchase(producing and distributing important)Now highly discretionary purchase(selling and marketing important)Re-create demand for products
  20. 20. What companies sellP&G: shampoo shine to confident and sexyDisney entertain to make dreams come trueApple: make products that people will love
  21. 21. What newspapers sellNot content but convenience and delightNot the news, we help improve people’s livesTransport hearts, minds to world of discovery
  22. 22. What we are notmarketingJournalismTrustRole in democracyReflection of you
  23. 23. Not about how hard wework (not about us)Is your writing better?Do you care more?Have your people been doingthis a long time?Has your brand been around along time?
  24. 24. Avoid muddled brandsLet’s not be old guy tryingto act youngNurture brands with clearcharacteristicsGrow old with today’ssubscriber baseReposition for youth
  25. 25. Marketing anews brandConvenienceRelevanceConsumption choiceEmpowerment
  26. 26. Culture changeand the growth path
  27. 27. Pew study onbusiness modelsPowerless to change cultureHaven’t needed innovative peopleEmployees operationally focusedBattling inertiaCulture: contact sport, 1 collision at time
  28. 28. Google macro-cultureSpeed over perfectionLow-cost innovationPlacing many small bets
  29. 29. Google micro-cultureHire people smarter than you, get out of wayHire generalists to deal with “what’s next”Don’t reward good planning, reward resultsAttending meetings not getting things donePassion: feedback, don’t take it personallySave staff time: food, dry-cleaning, red tapeEat your own dogfood
  30. 30. Culture change (us)1. Listen to the market2. Focus relentlessly on differentiators3. Prioritise expenditures to USPs, cut rest4. Go where the growth is5. Speed over perfection6. Be willing to fail, but fail fast7. Respect platform for its unique value
  31. 31. Culture change:only path to growth1. Operationally excellent2. Raw content engine good enough3. Structural advertising vs. order takers4. Must change how we pursue revenue5. Must change industry perceptions
  32. 32. VÄSTERBOTTENS-KURIREN (VK) | SWEDENCulture auditCurrent: culture of hierarchy/clanFuture: culture of innovation, entrepreneurshipBusiness development fund = 5% of revenueCross-departmental, analytics, market focusSeamless multi-media publishing modelChange must begin with senior management
  33. 33. DESERET MEDIA | UNITED STATESBe true to your USPsFamilyFinanceResponsibilityFaith-basedEducationCare for the poorValues in media
  34. 34. JOURNAL-REGISTER COMPANY | UNITED STATESDigital firstNew news ecology: prioritise platforms byvelocity (fast to slow)Sell digital first, print a differentiating secondCut legacy costs: infrastructure, Ben FranklinBusiness plan changes valuation metrics(25%-50% of EBITDA from digital)
  35. 35. SCHIBSTED | SWEDENNews audiences aslead generatorsOwns 16 assets nationally2 newspapersTraffic aggregation, e-commerceBlocket classifieds, Hitta searchDigital company owns newspapers
  36. 36. IDG | UNITED STATESPrint vs. digital200 magazines, Web-centric companyManage print for profitManage digital for growthPursue digital audiences: social, syndicated,crowdsourcingCut print products by half
  37. 37. Culture changeEditorialAdvertising salesThe people equationOrganizing marketingManaging, leading audience development
  38. 38. Advertising salesIntegrate at same pace as your advertisingcommunity Whyteams“newspapers”Keep print and digital separate, integrated when you need themIntegrate everything, have platformspecialists
  39. 39. AudienceWhat we sell: bundled subscriptions across Whyplatforms (print, Web, tablet, smartphone) “newspapers”Selling and engaging 2 separate functionsHave to be willing not to force print
  40. 40. MarketingShift from pushing products to brandsOut: Why “newspapers”Tactile benefits of print or shut out worldWow of home delivery or “newspaper in digital”In:What associating with news brand means to youValue proposition of bundle (portability)
  41. 41. ResearchNeed one over-arching metric Why LUN)Implement dashboard (FINN, “newspapers”Goal: know more about audience than yoursmartest advertiserNapkin data: advertisers, CEO, employees
  42. 42. Human resourcesCan’t treat today’s young generation like recentlydeparted Why “newspapers”Training, coaching, memberships, conferences(internal/external)Innovation found mostly by exposing employeesto those outside company, country, industryWhat to reward: over-arching metric
  43. 43. EditorialNo print or digital journalism, just journalism WhyPlatform managers looking across platforms “newspapers”Platform specialists for platform engagementSocial media specialists: make content socialNewspaper anywhere modelSame/similar content experiences across platforms?Different content/experiences across platforms?
  44. 44. ManagementNeed brutally simple metric: rally all around WhyIn-your-face ways of communicating success “newspapers”Best practices to drive cross-platform growthReward numbers over “quality”Make audience the rallying cry
  45. 45. Culture change foundation formulti-media model
  46. 46. Growth pathUnderstanding consumer behaviourRapid digital adoptionProduct development pipelineSmart marketingData analyticsScalable transaction business
  47. 47. What’s next?
  48. 48. What’s next?Opportunities in printNew product development strategyCore competenciesLearning rulebook for digital advertisingPreparing for smartphone boomThe people equation
  49. 49. WHAT’S NEXT?Future of printWill decline as mass-market vehicleGradual reduction in frequencyGradual reduction in pages + formatHow to preserve print for mass market?How much to find new opportunities?
  50. 50. What’s next?Opportunities in printNew product development strategyCore competenciesLearning rulebook for digital advertisingPreparing for smartphone boomThe people equation
  51. 51. WHAT’S NEXT?New productdevelopmentHow many in pipeline at once?1 big initiative or many small ones?Time frame for success (print vs. digital)?Role of editorial?Loud vs. soft launches?
  52. 52. What’s next?Opportunities in printNew product development strategyCore competenciesLearning rulebook for digital advertisingPreparing for smartphone boomThe people equation
  53. 53. WHAT’S NEXT?Core competenciesCompanies that invent new markets,shift consumer choiceCompetencies engine for new businessdevelopmentCompetencies spawn unanticipatedproducts
  54. 54. WHAT’S NEXT?Competenciesdetermine productsJournalismStory generationStorytellingCommunication
  55. 55. What’s next?Opportunities in printNew product development strategyCore competenciesLearning rulebook for digital advertisingPreparing for smartphone boomThe people equation
  56. 56. WHAT’S NEXT?Your crossover pointIf print advertising is declining, what mustdigital growth rate be to run a growingbusiness?Digital First Media: digital growth of 50%
  57. 57. WHAT’S NEXT?The new solutionsSearchSocialMobileGeo-targetingBehavioural targeting
  58. 58. WHAT’S NEXT?Digital First MediaSolutions ProductsGeo-target audience Web site bannersTarget behaviours Yahoo inventorybased on customer mix Facebook contextual adsFacebook “likes” Directory packageImprove search enginepositioning
  59. 59. WHAT’S NEXT?1 + 1 = 3?What do these revenue solutions add up to?How do we structure industry re-training?Is this 100%/80%/60% printreplacement?Unsatisfied and nervous … and anxious tolearn
  60. 60. What’s next?Opportunities in printNew product development strategyCore competenciesLearning rulebook for digital advertisingPreparing for smartphone boomThe people equation
  61. 61. iPhone’s impact onmobile pageviews 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 +1,700% 1,000,000 800,000 600,000 400,000 200,000 0 v5 v9 v13 v21 v17 v25 v29 v33 v37 v41 v45 v49 ve 5 ve 9 ve 13 ve 17 ve 21 ve 25 ve 29 ve 33 ve 37 ve 41 ve 45 ve 49 ve 1 2011 v1 2010 v1 2012
  62. 62. Putting mobile inperspectivePhase 1: connecting people (86% penetration)Phase 2: connecting people to Internet (33%)Phase 3: connecting everything (5%)Source: Otto Sjöberg
  63. 63. Mobile: connecting“everything”Cars SecurityAssisted living Traffic managementClinical remote Meter readingmonitoringSource: Otto Sjöberg
  64. 64. Impact of mobileconnectivity on youRelevant services in embedded environmentContent with different screensEnabling readers to accesscontent/servicesSource: Otto Sjöberg
  65. 65. Economics ofsmartphonesProcessing power improvingAccess speed fasterSmaller and thinnerCheaper device + time
  66. 66. Economics ofnewsprintDemand will weakenPaper mills: consolidateSuppliers: contractPrices will riseTargeted opportunities
  67. 67. When platformeconomics collideCheaper to give away $50 tablet than printing/delivering Tipping point? Price? Speed? Device volume?
  68. 68. What’s next?Opportunities in printNew product development strategyCore competenciesLearning rulebook for digital advertisingPreparing for smartphone boomThe people equation
  69. 69. WHAT’S NEXT?Attracting talentNot attracting best/brightestCreative class can’t overcome imageNobody wants to climb the mountainLiberate people: give time for new ideasNewsrooms, advertising, marketing
  70. 70. WHAT’S NEXT?Level the mountain!Average age of newsroom: 58Massively holding back changeWhy not hire a young gun?2 years of trying … nobody will take it
  71. 71. WHAT’S NEXT?Employee oxygenInternal trainingExternal trainingAccess to informationAccess to peersEncouragement by youEducation about news industry
  72. 72. Conclusions
  73. 73. Why own anewspaperProfitabilityPolitical influenceBusiness/civic influenceAudience traffickerContent pool for niches
  74. 74. We need to buy timeMaintain print long enough for digitaladvertising to scaleLag between advertiser, consumer shifts todigitalLag between time mobile and smartphoneNeed to finance transition period
  75. 75. Under-valuingourselvesHow to price newspaperHow to price Web contentHow to price apps
  76. 76. Pegging our valueHotel chain breaks downpieces of hotel roomAsks guests to place financialvalue on piecesPrint newspaper worth $5If newspaper helps findjob, worth $2,000!
  77. 77. Pegging our valueUniquenessRelevanceAuthenticityWhat does news brand do forme?
  78. 78. Be creative (evenwith an end point)Life cycle: born, live, dieArrogance from idea of living foreverLive: discipline, confidence, creativityDon’t strive for “quality”Do strive for relevance
  79. 79. The New Growth Pathand How to Get ThereEarl J. WilkinsonExecutive Director and CEOINMA@earljwilkinson
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