Sunday, May 10, 2009
A soundbite worth mentioning
So, the soundbite was from Senator John Kerry last week who had a senate hearing on the newspaper industry. He said that newspapers were an endangered species. You can read more here.
Just a couple of days earlier, Warren Buffett clearly stated that he saw no future in newspapers and would not invest in them. Here's a great write up on this topic from the blog, Everything Warren Buffett. I also read that he said that in spite of being an investor in the Washington Post Company. The paper is losing money and is making up with its TV/cable outfits.
So, now, there is great hue and cry about whether with newspapers being a dying breed, whether journalism is reaching its end too. These are very serious questions that are being asked, including at the Senate Hearing (are we looking at the preview of another industry's bailout? I hope not!). In my opinion, I don't believe that for an instant! My prediction is that journalism will not die as long as democratic and capitalistic societies continue to exist (and thrive again some day, we hope...).
Yes, the business model will need to change. Free newspapers online may not be as ubiquitious and inevitable in the future as they appear to be now. I trust the entrepreneurial, and even corporate world to come up with a new business model that will work for them and the readership....although it may take a few trial and errors before this happens.
Wednesday, May 6, 2009
The next generation of newspaper readers
Newspaper Circulation - a sign of the times
Where most of these declines were in the 10% range, the New York Post and Atlanta Journal Constitution had the steepest declines of 20%. This is a rough, rough time for newspaper publication. Change is in the winds and many waited to adapt or did not see (or chose not to see) the warning signs. I have seen editorials that predict gloom, doom and despair regarding the end of an important era, and the end of local news as we know it. I am unable to comprehend this. Just because the newspaper fades away, why does it mean that news and news reporting should? Isn't it about a new medium where content still remains king? Whereas the business model is not altogether clear, I feel sure that if there is a demand for local news, then there will be a business model that evolves to support it. Perhaps that also means that online content or rather, high-quality online content won't be free forever. Publishers just need to find that business model that works.
Tuesday, April 14, 2009
Positioning for the future
- It is estimated that the newspaper will lose $85 million this year alone
- Its ad revenue fell 18% last year
- Since 2004, its ad revenue declined 34%
- Its weekday readership during the same period fell 28%
A lot of this can be attributed to the economy and probably is. I tend to think this is more of a natural trend that is occuring, and that bad economic times have merely accelerated and dramatized the shift.
Just as this news is important for those in and around the newspaper publishing business, it is also important to those who are in the business of marketing. Things are changing. Rapidly.
We can brace ourselves for the changes yet to come. Or we can embrace the changes. I say, choose the latter. We will not only be positioning ourselves better for the future. We will be ready for the new opportunities that will come our way.
If you thought the above was scary, here is another one for you. Dan Kennedy, Boston media columnist and blogger of Media Nation is also an assistant professor for journalism at Northeastern U and writes for the Guardian. By the way, I got all these Boston related tidbits, ironically enough from an article in the NY Times (online). Mr Kennedy was quoted in the same article regarding a freshman journalism course he taught there. He said - “one of the things that really struck me was these students had basically no experience reading a newspaper of any kind.”
So, if these Boston Globe (and many, many other newspapers) numbers look bad today, can you imagine what they will look like in the future?
Change is inevitable, folks. The question is will it be voluntary, strategic, well-planned and embraced - or will it be forced on you? I am guessing that we all agree on which the preferred alternative is...
Monday, April 13, 2009
Another great book!
This is interesting for us in our professional life, as well as our personal life, and talks extensively about small changes in our communication that can yield significantly different (...and positive, if the changes are what they recommend) results.
Since I had just read the book and found it immensely useful, I am writing my thoughts down soon after reading it.
Here's what I liked best about the book:
- the scientific testing that backs up each of their claims
- ease of reading the book...you just keep flipping those pages!
- ease of implementing their persuasion strategies
- such interesting persuasian strategies! Some seem like common sense and then some seem counter-intuitive.
- applicability to so many situations (you will understand this when reading the book)
I am sure I will be using this book as a reference often, primarily in how I conduct my business. Right now, I have used one of the strategies discussed in the book and am routing it around to each member of my team. Let's see if it works!
Preetha
P.S. Here's a real interesting piece of recent information. Time magazine just reported how President Obama used behavioural neuroscience and economics to help him get elected. And, in this article, both Dan Arieli and Robert Cialdini are mentioned and quoted. It's all quite fascinating!
Friday, April 10, 2009
About Marketing and Tapestries
She compares marketing to a tapestry and how it is not about one medium or one message, but when well done, is like a finely woven tapestry. For those interested in marketing, I would highly recommend it - you can read it here.
I have been writing recently on what is happening with the newspaper industry - how its advertising model just is not working anymore. This article takes us into the finer points of what is happening in the overall advertising industry...and touches on all the new ways of marketing, including insights into how social media can be utilized in this new world. I will be writing a lot about this industry transition - or is it transformation? that is occuring.
Lisa's blog post resonates very well in these times, and for me, since my business is all about marketing technology, more specifically targeted marketing technology. As a result, I tend to delve deep into what is going on with digital media and voraciously look for reading material anywhere I can find it. I find a lot of it online and in blog posts.
As marketing budgets get scrutinized, more than ever, in these tough economic times, it is imperative that marketers and business owners figure out how their marketing plans need to evolve. Sure, marketing budgets can be cut, but how is that going to impact your business in an already difficult environment? The idea is to figure out how you still get the kinds of exposure that you need by spending less. It is very possible. And, with all the new media out there that has yet to be fully explored or exploited, I would venture to say you could even work it to get better marketing results with less.
More later.
Thursday, April 2, 2009
Print Newspapers - this is getting depressing!
Ad revenue is too low and costs are too high to keep up. Any publishers who are not rethinking their strategies for the future will not be around for too long. As sad as this is - because surely this is the end of an era where people depended on printed newspapers, we need to look ahead at new opportunities in the online world. Or we can hold onto the last bastion of newspapers, much as some writers clung on to their typewriters in a world where computer technology and word processors galloped forward and took over. Once this started, it didn't take long for it to come full circle, and the clinging, undoubtedly, did not last long either.
To see this in a financial perspective, here is a link to an article published in January by the Silicon Alley Insider which states that printing the New York Times costs twice as much as sending each and every NYT subscriber a free kindle! Those are not cheap - today's price on Amazon.com is $359 a pop!
But the economics are just failing to support this industry, and the current economic climate is accelerating the inevitable. We need to look upon this as the passing of a baton from one type of medium to one or more other media. So that we look upon it less like a death and more like a transition.
Wednesday, April 1, 2009
What a great book!
Whether you are a businessperson, in sales, in any profession, a homemaker, a student - you will find this to be a useful and engrossing book. It is actually fun and very easy to read. Now, it sits here close to my office desk, where I can use it as a reference for some of the decisions I need to make (such as product pricing and positioning...).
The book's tagline is "The Hidden Forces That Shape Our Decisions". It provides meaning to the crazy, impulse purchases or decisions you and I have made. The great thing is it is backed up by real experiments and real data.
You might already be a fan of this book. But, if not, go ahead. Buy it and read it!
Sunday, March 22, 2009
Microsoft's Vision 2019
And, while on the subject of computer science and exciting technologies, my son Sirish sent me a link to some wonderful short videos that have been released by Microsoft. They are calling them Vision 2019 and can be accessed here.
They are really something. I am not one of those folks who either love Microsoft or hate Microsoft. I am somewhere in between, where I admire many of their products and then wonder about some others. Overall, though, and in the interest of full disclosure, I must say that I do lean more towards the "admire" category for them.
Here, Microsoft Office Labs have really done a great job of using video to articulate life (with technology) in 2019. These are not just admirable, I believe they are inspiring. Have a look at this montage! It's only a couple of minutes long and I have watched it a few times. Each time, I pick up something new. Once you watch the montage, you can then watch the future vision video for Manufacturing, Retail, Health and Banking.
I hope it gives credence to some of my excitement about the future of technology in general, software in particular...
My niece, the computer scientist?
I remember when I started studying computer science, in my first programming class, we used punched cards. That's how old I am...but it was still exciting. When I started my profession, I lucked out and ended up in a company that was pioneering computer graphics. You would think us programmers there ruled the world! We worked on a multi-million dollar program for the Defence department of the U.S. government, that rendered terrain models in all kinds of different perspectives and shades. Looking back and comparing it to say one of the graphics on of the most simply rendered online games of today, those graphics were like a kindergarten project. But, hey, we were one of the first ones to do it...and we needed a mini computer that had its own specially air conditioned rooms, the size of one of those huge custom refrigerators, with fancy flashing lights in order to do it. The fun was in solving the problem and seeing the wonder in all those techies eyes when they first saw the display.
And, if my niece decides to take the plunge, how much more she has to work with! All the solutions of yesteryears have become but the building blocks and toolsets that can be used to solve new challenges and create cool and cooler new applications. There is a whole world of exciting work to be done, and the wonder of it is that this science can be used in ANY domain...in fact, I find it difficult to think of any area of work that it will not be a part of foundation or the puzzle. I really cannot. Medical? Check Manufacturing? Check. Energy? Check. Economy? Check. Retail? Check. Banking? Check. Marketing? Check....and the list goes on and on.
So, Sithara, my dear, not that I'm trying to influence you or anything, but if this area is something that you find very interesting now, I have a feeling you can keep that interest fueled for a long, long time to come. But, as always, I wish you well in whatever you choose to do!
So, the question is...
In the meantime, check out this image: http://mrod.wordpress.com/2009/03/19/altered-thomas-jefferson-quote-at-seattle-newspaper-hq/.
Monday, March 9, 2009
Now, The Seattle PI to close
This is a milestone - on the one hand is a newspaper that is some 146 years old. On the other hand, as reported, this may become the nation's first metro web-only newspaper. That's two venerable milestones.
For those who have long cherished their morning paper with their morning coffee, this is a big let-down. For those (like myself) who need both - the morning paper with coffee, as well as the NY Times and other news online every day, this is a foreshadowing of the inevitable drive to everything online. And then there are those that have long been predicting this outcome and are beginning to see things fall into place, slowly but surely.
Remember the dot.com boom? I can visualize the predictions, the potential and even the hype of those times beginning to happen now. What is happening with newspapers, in my opinion, is just one example.
How long before we are saying in wonder - "Did you know that City So-and-So still has a paper newspaper?". 3 years, 5 years or 10...it is just a matter of time.
In the meantime, it seems appropriate for companies either in or around this business to explore what new opportunities may exist - in reporting the news, in marketing products and in engaging readers. There is no question that many new opportunities do exist - and many have yet to be conceived.
So, while the Seattle PI announces its closing and therefore the loss of the majority of its newspaper jobs, somewhere, there are ideas bubbling that will take this content to more readers in a different (and hopefully better) way, and in the process create innovation and new jobs in new fields. There's a nice thought for the future, especially in these tough economic times.
Friday, March 6, 2009
That word again
So, what happened? Did Rocky Mountain News just lose relevance? We can look at this in a business context and say that they just were not bringing in the revenue to cover the costs of running the newspaper. Why would that happen? Probably because the advertisers were not spending enough money. And, why would that be? Probably because they were not getting the returns from advertising.
It brings me back to "relevance" and what any business needs to do to stay relevant. In world of media, there is no question that we are at a major turning point, as "traditional" media struggles to stay relevant in a world with an advent of new media - online, mobile, social media. The time each of us has to consume content has not changed that much, but how we consume is changing faster than we can say "relevance".
Thursday, February 26, 2009
An Important Word
Unfortunately, as with any word that starts getting used more often, the word can lose its significance and meaning due to overuse and hype. I hope that does not happen with RELEVANCE. It's a meaningful word for me in my business. In the area of marketing, people are talking about personalized and targeted marketing. All of that boils down to this - "is the message I am communicating relevant to the person I am talking to?"
If my communication is face-to-face, I can very quickly judge whether my conversation is relevant to the person I am speaking with. But, since not all communication is occuring face-to-face (is any?), how do we ensure that what we say has real meaning to the person on the receiving end?
In order to answer this question, I believe that first, marketers have to own up to a truth. As marketers, we have often assumed that just because we have been so creative or written the copy so well or packaged it all up so nicely - well, of course, we are relevant and people are interested in what we are telling them. They have to be. No, they don't! No, they have not (all) been listening. Until, we can own up to this, will we really look for a new way to market and to communicate? We definitely won't look for answers to the question - "is my message relevant to you?"
Well, I didn't expect to jump right into shop talk on my second blog post...but can't help it.
Tuesday, February 24, 2009
The first blog
His is one of the few blogs I read and the only one I read regularly. I started reading it because of who he is and what his expertise is in. Marketing. Now, I just read it because he always has some great tips for the marketer, the professional, the business person, the person.
Anyway, back to why I started the blog. Today was Mr.Godin's 3000th consecutive posting, and in today's blog he urged his readers to go start their own.
So, here I am.
All I can say is, that wasn't so bad.
And, thanks for the inspiration, Mr. Godin.