Aug 06

Two Centuries of Brand Building Pays Off

Today's guest post is by London Peppercommer Carl Foster.

Times2 The balance sheet of most major newspapers looks something like this: 

CirculationDown
Advertising RevenueDown
Editorial StaffDown
OutlookBleak

The most radical move to counter this downward spiral has come from one of the world’s oldest newspapers, The Times (Incorrectly referred to by many as The Times Of London or The London Times). Last month The Times put all its content behind a pay wall – the first major, non-financial daily newspaper to do this. It is probably no exaggeration to say that the outcome of this experiment will determine the future of the newspaper industry.

Subscription to thetimes.co.uk costs £1 for a 24 hour pass or £2 for a one week pass. (The daily print issue costs £1.) In the weeks leading up to the introduction of the pay wall, when visitors were asked to register to view articles, traffic fell 58 per cent. The paper’s share of UK news traffic, from sites like Google News, fell from 4.37 per cent to 1.83 per cent.

Losing almost two thirds of your customers overnight is enough to panic any business owner, but  is it really that bad? I don’t think so. First of all, have you lost 58 per cent of your customers or just 58 percent of your footfall coming through the shop door? How many people clicked through from Google News not caring if they read a story in The Times, The Daily Telegraph or, the 800 lb gorilla in the room, the publicly funded BBC? The fact that people should be focusing on (and the newspaper industry rejoicing at) is that 42 per cent of people chose to pay for their news from The Times. That is the kind of brand loyalty that 225 years of publishing gets you.

The other positive is that the people paying to access The Times’ content are a much more lucrative demographic than the froth that washes up on the site from a news aggregator. People see more value in things that they consider worth paying for, and that goes for consumers and advertisers. This is completely the opposite strategy to that taken by another stalwart of the British newspaper industry, the Evening Standard. As I blogged about last year, after more than 150 years, the Standard became a free newspaper. Yes, the readership grew significantly, but the brand, and the value of its content was reduced, irrevocably, in my opinion.

I am heartily encouraged by the apparent success at The Times and what it means for mainstream publishing. Yes, citizen journalism is important, and in situations like the Iran elections it can be invaluable. But don’t discount the big media groups. There are times when only the resources of a major newspaper can tell a story adequately. Two examples of this are the recent leak of the Afghanistan files to Wikileaks, which in turn passed them to The New York Times, The Guardian and Der Spiegel. The other is the British Parliamentary expenses scandal, when thousands of pages were passed to The Daily Telegraph, which ensured the story was analyzed and told properly and responsibly.

There is much ill will directed at Rupert Murdoch, but as owner of The Times his brave experiment will hopefully prove to be the turning point for a troubled, yet vitally important industry.

Apr 09

How do I love BBC America? Let me count the ways

I am seriously fed up with domestic news coverage. It's banal, repetitive and parochial. And, that's on a good day.

April 9 If one were to watch a batch of NBC, Fox, CBS, CNN and MSNBC coverage, one would think the world begins in Hawaii and ends somewhere in Maine.

It doesn't. That's why I've wholeheartedly embraced BBC America as one of my primary sources of news and information.

Where else would I learn of the Iberia Airlines/British Air merger? Where else would I learn about the unrest in Kyrgyzstan? And, where else would I see commercial plugs for the latest installments of 'Dr Who'?

There are many reasons why the sun is setting on the U.S. empire. One of the prime drivers is our incessant and myopic view of life. We believe the rest of the world, if not the entire universe, revolves around the United States. Sadly, the inverse is true. America is increasingly less relevant. As our global deficit rises, our relative importance declines.

That's why it's so important for those of us in communications to understand what the REST of the world thinks is newsworthy. They're not concerned about Charlie Sheen's latest spousal abuse charge. Nor do they care about American Idol, the start of yet another major league baseball season or the Tea Party's views on what's wrong with Washington, D.C.

With BBC America, you'll see far less coverage of Obama's game of HORSE with CBS's Harry Smith and far more insight into what really matters: namely, the latest Middle East news as well as what's happening in emerging First World powers such as Brazil, India and China. You'll see little, if any, mention of the latest Hollywood scandal (think: Sandra Bullock) and nothing about the latest murder/suicide in Boynton Beach.

It's far too late for America to turn back the clock. But, American PR types like you and me still have a window of opportunity with which to understand how dramatically the world has changed (and how we can continue to play a key role in the dissemination of news and information).

Whether you're a student, a PR professional or, heaven forbid, a medical supplies executive, do yourself a favor: pick up a copy of the F.T., listen to BBC Radio or, better yet, tune into BBC America's nightly newscasts. I guarantee your P.O.V. will change faster than Ms. Bullock's marital status.