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The New Growth Path and How to Get There
The document discusses organizing models for news publishers as either aggregating content into a few daily stories or atomizing content into many short stories throughout the day. It also discusses the need for culture change at publishers to focus on growth, prioritizing digital platforms, experimenting with new products, and attracting new talent. The future will see both opportunities and challenges from declining print revenue and the rise of mobile connectivity.
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The New Growth Path and How to Get There
- 1. The New GrowthPath and How to Get There Earl J. Wilkinson Executive Director and CEO INMA @earljwilkinson
- 2. Encyclopedia Britannica 32 volumes 130 pounds US$1,400 Print edition Middle class buying a 1768-2012 dream
- 3. Encyclopedia Britannica 1990 sales ofUS$650,000,000 Microsoft Encarta forces digital encyclopedia (US$1,400 to US$40) Digital business: libraries, schools Revenue falls 80% to US$130,000,000 Print edition 2/3 of revenue from online sales 1768-2012 Higher margins, smaller business
- 4. Overriding issues facing publishers Identifyinggrowth Being more relevant Managing complexity
- 5. This presentation Organising models Whatwe market: products to brands Culture change and the growth path What’s next?
- 6.
- 7. Organising model Aggregate 1 deadlineper day Hundreds of OK stories Be better at 15+ subjects Deep engagement/platform
- 8. Organising model Atomize 1,440 deadlines(minutes) 5 great stories per day Own 3 unique subjects Multi-media flickers
- 9. Organising models Atomize Aggregate 1,440 deadlines (minutes) 1 deadline per day 5 great stories per day Hundreds of OK stories Own 3 unique subjects Be better at 15+ subjects Multi-media flickers Deep engagement/platform
- 10. Organising model Based onhow people consume us Affects content, distribution, marketing, advertising … everything Can’t be both … make a choice
- 11. What we market: productsto brands
- 12. Marketing a print newspaper Homedelivery Content packaging Shut out the world Status symbol
- 13. Marketing a Web site Easyaccess Infinite information Get it quick Sharing with friends
- 14. Marketing a mobile app/site Newsin pocket Skimmable information Get it anywhere Fillers for your day
- 15. Marketing an iPad app Beautifulexperience Curated information Second screen Personal enjoyment
- 16. Marketing your products Newspaper Web site Mobile app/site iPad Home delivery Easy access News in pocket Beautiful experience Print packaging Infinite info Skimmable info Curated info Shut out world Get it quick Get it anywhere Second screen Status symbol Share with friends Fillers for your day Personal enjoyment
- 17. Multi-platform subscription bundles Overview: howto bundle print, Web, mobile, tablet Axel Springer: + iPad2 @ €49.99 per month L.A. Times: + membership model Helsingin Sanomat: 33% of subscribers in bundle New York Times: driving print sales with digital! The Times: packs for weekday, weekend
- 18. Marketing a news brand Convenience Relevance Consumptionchoice Empowerment
- 19. Marketing newspapers No longerdestination purchase (producing and distributing important) Now highly discretionary purchase (selling and marketing important) Re-create demand for products
- 20. What companies sell P&G:shampoo shine to confident and sexy Disney entertain to make dreams come true Apple: make products that people will love
- 21. What newspapers sell Notcontent but convenience and delight Not the news, we help improve people’s lives Transport hearts, minds to world of discovery
- 22. What we arenot marketing Journalism Trust Role in democracy Reflection of you
- 23. Not about howhard we work (not about us) Is your writing better? Do you care more? Have your people been doing this a long time? Has your brand been around a long time?
- 24. Avoid muddled brands Let’snot be old guy trying to act young Nurture brands with clear characteristics Grow old with today’s subscriber base Reposition for youth
- 25. Marketing a news brand Convenience Relevance Consumptionchoice Empowerment
- 26. Culture change and thegrowth path
- 27. Pew study on businessmodels Powerless to change culture Haven’t needed innovative people Employees operationally focused Battling inertia Culture: contact sport, 1 collision at time
- 28. Google macro-culture Speed overperfection Low-cost innovation Placing many small bets
- 29. Google micro-culture Hire peoplesmarter than you, get out of way Hire generalists to deal with “what’s next” Don’t reward good planning, reward results Attending meetings not getting things done Passion: feedback, don’t take it personally Save staff time: food, dry-cleaning, red tape Eat your own dogfood
- 30. Culture change (us) 1. Listen to the market 2. Focus relentlessly on differentiators 3. Prioritise expenditures to USPs, cut rest 4. Go where the growth is 5. Speed over perfection 6. Be willing to fail, but fail fast 7. Respect platform for its unique value
- 31. Culture change: only pathto growth 1. Operationally excellent 2. Raw content engine good enough 3. Structural advertising vs. order takers 4. Must change how we pursue revenue 5. Must change industry perceptions
- 32. VÄSTERBOTTENS-KURIREN (VK) |SWEDEN Culture audit Current: culture of hierarchy/clan Future: culture of innovation, entrepreneurship Business development fund = 5% of revenue Cross-departmental, analytics, market focus Seamless multi-media publishing model Change must begin with senior management
- 33. DESERET MEDIA |UNITED STATES Be true to your USPs Family Finance Responsibility Faith-based Education Care for the poor Values in media
- 34. JOURNAL-REGISTER COMPANY |UNITED STATES Digital first New news ecology: prioritise platforms by velocity (fast to slow) Sell digital first, print a differentiating second Cut legacy costs: infrastructure, Ben Franklin Business plan changes valuation metrics (25%-50% of EBITDA from digital)
- 35. SCHIBSTED | SWEDEN Newsaudiences as lead generators Owns 16 assets nationally 2 newspapers Traffic aggregation, e-commerce Blocket classifieds, Hitta search Digital company owns newspapers
- 36. IDG | UNITEDSTATES Print vs. digital 200 magazines, Web-centric company Manage print for profit Manage digital for growth Pursue digital audiences: social, syndicated, crowdsourcing Cut print products by half
- 37. Culture change Editorial Advertising sales Thepeople equation Organizing marketing Managing, leading audience development
- 38. Advertising sales Integrate atsame pace as your advertising community Why teams“newspapers” Keep print and digital separate, integrated when you need them Integrate everything, have platform specialists
- 39. Audience What we sell:bundled subscriptions across Why platforms (print, Web, tablet, smartphone) “newspapers” Selling and engaging 2 separate functions Have to be willing not to force print
- 40. Marketing Shift from pushingproducts to brands Out: Why “newspapers” Tactile benefits of print or shut out world Wow of home delivery or “newspaper in digital” In: What associating with news brand means to you Value proposition of bundle (portability)
- 41. Research Need one over-archingmetric Why LUN) Implement dashboard (FINN, “newspapers” Goal: know more about audience than your smartest advertiser Napkin data: advertisers, CEO, employees
- 42. Human resources Can’t treattoday’s young generation like recently departed Why “newspapers” Training, coaching, memberships, conferences (internal/external) Innovation found mostly by exposing employees to those outside company, country, industry What to reward: over-arching metric
- 43. Editorial No print ordigital journalism, just journalism Why Platform managers looking across platforms “newspapers” Platform specialists for platform engagement Social media specialists: make content social Newspaper anywhere model Same/similar content experiences across platforms? Different content/experiences across platforms?
- 44. Management Need brutally simplemetric: rally all around Why In-your-face ways of communicating success “newspapers” Best practices to drive cross-platform growth Reward numbers over “quality” Make audience the rallying cry
- 45. Culture change foundationfor multi-media model
- 46. Growth path Understanding consumerbehaviour Rapid digital adoption Product development pipeline Smart marketing Data analytics Scalable transaction business
- 47.
- 48. What’s next? Opportunities inprint New product development strategy Core competencies Learning rulebook for digital advertising Preparing for smartphone boom The people equation
- 49. WHAT’S NEXT? Future ofprint Will decline as mass-market vehicle Gradual reduction in frequency Gradual reduction in pages + format How to preserve print for mass market? How much to find new opportunities?
- 50. What’s next? Opportunities inprint New product development strategy Core competencies Learning rulebook for digital advertising Preparing for smartphone boom The people equation
- 51. WHAT’S NEXT? New product development Howmany 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. What’s next? Opportunities inprint New product development strategy Core competencies Learning rulebook for digital advertising Preparing for smartphone boom The people equation
- 53. WHAT’S NEXT? Core competencies Companiesthat invent new markets, shift consumer choice Competencies engine for new business development Competencies spawn unanticipated products
- 54. WHAT’S NEXT? Competencies determine products Journalism Storygeneration Storytelling Communication
- 55. What’s next? Opportunities inprint New product development strategy Core competencies Learning rulebook for digital advertising Preparing for smartphone boom The people equation
- 56. WHAT’S NEXT? Your crossoverpoint If print advertising is declining, what must digital growth rate be to run a growing business? Digital First Media: digital growth of 50%
- 57. WHAT’S NEXT? The newsolutions Search Social Mobile Geo-targeting Behavioural targeting
- 58. WHAT’S NEXT? Digital FirstMedia Solutions Products Geo-target audience Web site banners Target behaviours Yahoo inventory based on customer mix Facebook contextual ads Facebook “likes” Directory package Improve search engine positioning
- 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% print replacement? Unsatisfied and nervous … and anxious to learn
- 60. What’s next? Opportunities inprint New product development strategy Core competencies Learning rulebook for digital advertising Preparing for smartphone boom The people equation
- 61. iPhone’s impact on mobilepageviews 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. Putting mobile in perspective Phase1: connecting people (86% penetration) Phase 2: connecting people to Internet (33%) Phase 3: connecting everything (5%) Source: Otto Sjöberg
- 63. Mobile: connecting “everything” Cars Security Assisted living Traffic management Clinical remote Meter reading monitoring Source: Otto Sjöberg
- 64. Impact of mobile connectivityon you Relevant services in embedded environment Content with different screens Enabling readers to access content/services Source: Otto Sjöberg
- 65. Economics of smartphones Processing powerimproving Access speed faster Smaller and thinner Cheaper device + time
- 66. Economics of newsprint Demand willweaken Paper mills: consolidate Suppliers: contract Prices will rise Targeted opportunities
- 67. When platform economics collide Cheaperto give away $50 tablet than printing/delivering Tipping point? Price? Speed? Device volume?
- 68. What’s next? Opportunities inprint New product development strategy Core competencies Learning rulebook for digital advertising Preparing for smartphone boom The people equation
- 69. WHAT’S NEXT? Attracting talent Notattracting best/brightest Creative class can’t overcome image Nobody wants to climb the mountain Liberate people: give time for new ideas Newsrooms, advertising, marketing
- 70. WHAT’S NEXT? Level themountain! Average age of newsroom: 58 Massively holding back change Why not hire a young gun? 2 years of trying … nobody will take it
- 71. WHAT’S NEXT? Employee oxygen Internaltraining External training Access to information Access to peers Encouragement by you Education about news industry
- 72.
- 73. Why own a newspaper Profitability Politicalinfluence Business/civic influence Audience trafficker Content pool for niches
- 74. We need tobuy time Maintain print long enough for digital advertising to scale Lag between advertiser, consumer shifts to digital Lag between time mobile and smartphone Need to finance transition period
- 75. Under-valuing ourselves How to pricenewspaper How to price Web content How to price apps
- 76. Pegging our value Hotelchain breaks down pieces of hotel room Asks guests to place financial value on pieces Print newspaper worth $5 If newspaper helps find job, worth $2,000!
- 77. Pegging our value Uniqueness Relevance Authenticity Whatdoes news brand do for me?
- 78. Be creative (even withan end point) Life cycle: born, live, die Arrogance from idea of living forever Live: discipline, confidence, creativity Don’t strive for “quality” Do strive for relevance
- 79. The New GrowthPath and How to Get There Earl J. Wilkinson Executive Director and CEO INMA @earljwilkinson