Tag Archives: chief executive

FIPP 09: Lévy’s forecast gloomy but print magazines still important for luxury brands, says Gucci Group media director

There aren’t enough ad dollars on the planet for everyone, Stevie Spring, chief executive of Future, said, in her opening remarks for yesterday’s session at the 37th FIPP World Magazine Congress that looked at ‘what advertisers want’.

Magazines are ‘all having to fight much much harder to grow our share of media spend,’ she added. So, she asked, just ‘what the hell’ did advertisers want from magazines?

Nikolas Talonpoika, worldwide media director for the Gucci Group said that he thinks online will see a decrease in advertising spend from the luxury sector.

Magazines are still the most important part of the Gucci Group’s print advertising spend, Talonpoika told delegates.

While acknowledging that this year is tough and ‘lots of titles will disappear this year, Talonpoika was optimistic for the role that print magazines will continue to play.

Unilever’s CMO, Simon Clift said that for his company the ‘lion’s share’ of advertising is in television, and only 13 per cent of its overall advertising budget is spent in print – but said the magazines accounted for 90 per cent of that print spend.

Clift said that his company – which, with its £41 billion turnover, is seeing three quarters of its growth in developing and emerging markets – is thinking about different ways to promote its products via print.

For example, one Greek newspaper was once printed entirely on aromatised paper for one particular washing product campaign.

Clift said that consumers were not beginning to ‘define the agenda’ and that Unilever was looking for new ways to promote brands via editorial or advertorial content.

Clift argued that these methods ‘can build integrity rather than compromise it,’ he argued. Joking that advertising was something editors have to put up with, he said advertisers don’t want to see a publication damaged by the advertising. ‘A successful parasite doesn’t kill its host,’ he quipped.

It was about creating interesting content, he said ‘whether it comes from an editor or an advertiser’ “When those things [editorial and advertising] are parallel it magnifies and develops our message,” he said.

Dove is the Unilever brand which is most advertised in magazines, and a product which is an example of a cross-media promotion: online, in magazines and on television.

In the previous session, Maurice Lévy, chairman and CEO of the Publicis Groupe, spoke of the world ‘the ad agencies have to live in now, where a couple of words on a search engine page is sometimes considered by our client as more effective than a wonderful TV spot.’

Newspapers and magazines could not expect to retain their share in the advertising market, despite analysts’ more optimistic predictions for 2011, he said.

“We have to change and we do change each day. You have to adapt yourself to this new world,” he said.

“It’s not yet time for obituaries,” he claimed. “I’m a little bit shocked when I see print media forever discussing their own death,”

“Please always remember the small guy in the digital world – Bill Gates. He repeated loud and clear ‘content is king’ (…) and you [the magazine industry] own it.'”

“Would you go as often on the internet, if you could not find newspapers and your favourite magazines online?” he asked. “I don’t think print media is dead, quite the contrary,” Lévy added.

“Think what semantic can do when combined with marketing. Now is time to innovate.”

“You have to look at this as an opportunity to leverage new opportunities with the strength of your brand and your audiences,” he said.

FIPP 09: Fears ahead for magazines – what concerns those at the top?

As reported over on the Journalism.co.uk main site, leading industry figures shared their hopes for the magazine market at the FIPP World Magazine Congress 2009 this morning.

But they were hopes in the context of an economic downturn. William Kerr, chairman of board for the Meredith Group joked that ‘being 12 per cent down is the new up’. 

Each of the panel looking at ‘riding the storm’ shared their fears for the magazine industry:

  • Carolyn McCall, chief executive, Guardian Media Group: is worried that the industry would ‘not make structural change quickly enough’.
  • William Kerr said that his main fear was that the ‘best and brightest [candidates] had migrated to other areas’ for employment. 
  • Aroon Purie, editor-in-chief and chairman of the India Today Group said he was worried about the ‘magazinification’ of newspapers in terms of content and design: it is a ‘threat to magazines, as newspapers go in that direction,’ he said. 
  • John Smith, chief executive of BBC Worldwide, said his main concern was the dominance of Google as an online sign-post. it was a ‘dangerous’ situation he said, to have all the power in one company. Google’s 63.7 per cent grasp on search traffic made it necessary for other companies to enter the territory, he said.  

FT.com: Aggregators should pay for news, says Bild publisher

New copyright laws are needed in Europe to stop aggregators using content from news sites for free, Mathias Dopfner, chief executive of Axel Springer, tells the Financial Times.

“Asked if he wanted to see a position where Google was contributing to Axel Springer’s costs if it was going to use its content, he said: ‘Right, yes.’,” writes the FT.

Full article at this link…

New York Observer: Newspapers should focus on what they’re good at, reduce staff, says Glocer

Newspapers can cut costs by concentrating on their strongest coverage, Tom Glocer, Thomson Reuters chief executive, told an industry gathering on Monday.

“Why does The New York Times need to have 600-700 journalists? Why not 30 journalists with 30 apprentices?” he said.

Full story at this link…

Announcement of pay cut for Rusbridger and no bonus for McCall following NUJ comments

The Guardian News & Media (GNM) editor-in-chief, Alan Rusbridger, has made his ten per cent pay cut public, following public comments by the National Union of Journalists (NUJ) about Guardian executive bonus payments at a time when cuts are being made at regional newspapers within the Guardian Media Group (GMG).

Earlier this week the NUJ published a full page advert in the Guardian which said there were “devastating staff cuts to service the ongoing expansion of the Guardian – which is losing many millions but still paying executive bonuses.”

An article published today on MediaGuardian.co.uk reports that Rusbridger is not part of the GMG bonus scheme and had last year informed the Scott Trust, owners of GNM’s parent company GMG, of his plans to take a pay cut.

The article states that Carolyn McCall, chief executive of GMG, had told the company’s remuneration committee in January that she would not take a bonus for the 2008-9 year.

“”Ordinarily such information would only be made public when GMG’s annual report is published in the summer. However, as the group’s two most senior executives, and in light of recent comments by the NUJ, they felt it was appropriate to inform the [union] chapels,” a GMG spokesman said.”

As part of the pay freeze announcement in February GMG said that it would not pay financial performance bonuses for the financial year 2008-2009, ‘which form the larger part of overall bonuses,’ it continues.

“But its remuneration committee – which consists of independent directors and the chair of the Scott Trust – decided that bonuses based on the achievement of personal objectives could be paid.”

GMG has suspended its bonus scheme for this financial year, the article reports.

Motions from Manchester: “This chapel declares it has no confidence in the Scott Trust”

The Manchester Evening News National Union of Journalists Chapel has passed the following motions at a mandatory meeting held today, and sent this email to GMG Regional chief executive, Mark Dodson.

To: Mark Dodson
Cc: Paul Horrocks; Jim Banham; Carolyn McCall; Liz Forgan
Subject: MEN NUJ chapel resolutions

Dear Mark,

At a very well attended, mandatory meeting earlier today, the MEN NUJ chapel unanimously passed the following resolutions:

  • This chapel extends its thanks to the Guardian/Observer chapels for their declared support;
  • This chapel deplores the company’s refusal to invoke a 90-day consultation period which could have been used usefully to explore other options and urges it to think again;
  • This chapel declares it has no confidence in the Scott Trust or the GMG board;
  • This chapel believes that Dame Liz Forgan, in her role as chair of the Scott Trust, has a moral duty and responsibility to speak to journalists at the MEN and its weekly newspapers and those at Surrey and Berkshire about how these devastating jobs cuts chime with Trust values BEFORE they are implemented;
  • This chapel supports the weekly newspaper chapels in their decisions and pledges to support them;
  • This chapel agrees to ballot for industrial action, up to and including strike action;
  • This chapel reiterates its willingness to meet management at any time to talk with a view to resolving the current problems.

FT.com: Freesheet model could be first to fail

Once seen as the enemy of the paid-for newspaper, freesheets are not ‘in the frontline trenches of this war’, says Trinity Mirror chief executive Sly Bailey.

Their ad-based model makes them particularly vulnerable, says this article, which looks at the plight of free newspapers in Europe.

Full article at this link…

MediaGuardian: Sir Anthony O’Reilly leaves Independent News&Media

“Sir Anthony O’Reilly, the chief executive of the Independent’s owner Independent News & Media, has announced he will retire in May, with his son Gavin O’Reilly replacing him with immediate effect,” reports MediaGuardian.

Full story at this link…

Letter to GMG Regional Media’s Mark Dodson from MEN NUJ chapel

A letter from the Manchester Evening News National Union of Journalists chapel to GMG Regional Media chief executive, Mark Dodson, following yesterday’s announcements.

Dear Mark,

At a lengthy and very well-attended MEN NUJ Chapel meeting earlier today, members unanimously passed the following:

“The Chapel utterly condemns this week’s announcements of sweeping job at the MEN, our Greater Manchester weekly newspapers and the
group’s  publications in Surrey and Berkshire and believes they  will have a devastating effect on local democracy and regional journalism.

We also condemn the redundancies inflicted on other sectors of our business.

The Chapel rejects absolutely any compulsory journalistic redundancies, which are especially unpalatable at a time when the organisation is still making a profit. The total number of proposed redundancies is unjustifiable and unsustainable. We demand an early explanation of how you envisage a future MEN/weeklies newsroom will work.

Management should be under no illusion that we stand shoulder-to-shoulder with our colleagues. We will be meeting again shortly to discuss our next steps.

However, since it is clear that these executive decisions have been demanded by the GMG board and sanctioned by the Scott Trust, we request that Dame Liz Forgan and her fellow trustees come to Manchester as soon as possible to speak to us.”

CrainsNewYork: Daily News refutes blog post predicting its demise

There’s been a lot of interest in this list which appeared on Time.com: ‘The 10 Most Endangered Newspapers in America’ (originally from the 24/7 Wall Street blog, it seems).

Now, this, from Crain’s New York Business.com: a rebuttal from the Daily News chief executive, Marc Kramer. ‘Every so-called fact [in the post] is wrong,’ Crain’s reports Kramer as saying. Full story at this link…

Earlier in the week, a post on Cleveland.com reported the Plain Dealer publisher Terrance Egger’s comments, which also dismiss the predictions.