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November 24, 2008

Why are some publishing companies run by people who seem to hate publishing?

(Cross-posted on RexBlog.com)

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No stamps honor
publishers who hate
publishing.
In Advertising Age, Simon Dumenco asks a very important question, Do Magazine Publishers Still Believe in Publishing? And no, he isn't asking that question in the way "print-is-dead" zealots ask it. He's asking that question because, like me, he's looking around and wondering what's up with the people are who are running media companies who can't figure out how to make money with brands that millions of readers care about. And again, this is not a question about print -- this is a question about print or online.

Quote:

"That big publishers can't manage to sell enough print ads, in a post-print media economy shadowed by a larger economic meltdown, is not exactly shocking. What is shocking, though, is that they're essentially saying to scrappier, upstart online competitors: Take our business, please! We're throwing in the towel! If we can't play by the old rules of publishing -- the profit-soaked, imperial model with endless layers of coddled management ensconced in luxe trophy offices -- then we don't want to play at all!

Frankly, I should be rejoicing over the phenomena Dumenco is observing as I'm a member of Team Scrappy and not Team Coddled Management. But still, it stuns me to observe what Dumenco sees when he asks, "Looking around at some of America's largest magazine publishers, I see...publishers who are anti-publishing."

A few years ago, I was interviewed by Media Life Magazine on the topic, "Why Magazines Matter" and was asked the question, "Are there any industry-wide practices that you consider detrimental to the business of magazine publishing?

Here was my answer in 2005:

"I think people who don't even read magazines, who certainly don't think about magazines, make way too many decisions about the business and editorial aspects of the industry."

Almost four years later, I'd augment that observation slightly to add that people who don't read magazines or use the Internet or watch TV or go to movies seem to be running certain media companies.

Team Scrappy has the whole innovation playground to itself because people who love media actually run those companies.

Later: So what will happen when publishers who hate publishing pull the plug on publishing? Well, I would be less than transparent if I didn't suggest my belief that companies like Hammock, who help the marketers formerly known as advertisers, create their own print, online and video media, will benefit from this trend. So I'll go ahead and say it. Indeed, I'll go ahead and invite marketers who want to speak directly with customers and not through publishing companies who seem to hate publishing to contact me at rexhammock@gmail.com.

But another thing is happening, as well. As reported in the New York Times this morning, the Kaiser Family Foundation is starting a news service to produce in-depth coverage of the policy and politics of health care, both for an independent Web site and in collaborations with mainstream news organizations. In my book -- and I have 20+ years in this book -- such an endeavor used to be called "custom publishing" and was viewed as something tainted as "non-idependent." I, of course, have been a champion of the notion that media created by or for associations, foundations and even corporate marketers, can provide great journalism, insight and be of the highest quality.

I just never thought I'd be assisted in my advocacy of that point-of-view by media companies run by people who hate media.

Serving Marketers is Our Business - Thoughts from the ABM Top Management Meeting

Last week, I attended the annual American Business Media Top Management Meeting in Chicago. Rather than its typical multi-topic conference approach, the meeting focused primarily on presenting the results from a major industry study and recommendations from the consulting firm Booz & Co.

I found the approach refreshing, more like a deep-dive seminar than the typical panel-led sessions of most conferences (did I just telegraph my opinion of most conferences?). The Booz & Co. study (as reported by Hamsa Ramesha for Northwestern University's Medill News Service) focused on "pathways to profitability" for B2B media companies in a period when traditional media is shrinking and digital media is expanding.

As ABM member companies are fully involved in events, digital and print media, it was not a Print vs. Web thing -- most companies are way past that. This study was more focused on the question: "Based on the reality we're living in, what must your company become to be successful in five years?"

Perhaps one of the reasons I really enjoyed the study results may be the way in which the findings and recommendations so closely correspond to much of what we at Hammock have been focused on during the past couple of years.

While I plan to write much more about this in the coming weeks, let me preview it by saying that the Booz & Co. study finds that for business-to-business media companies to succeed, they must focus on one of two pathways: Being a company that serves end-users (subscribers, attendees, etc.) or being a company that serves marketers (custom media, marketing services, etc.). While companies can offer services that target both end-users and marketers, Booz & Co. have not yet found an example of how a company has become a leader in both strategies.

It makes sense to me why they have not, but the reasons why that is so are going to be a part of my follow-up posts on the topic. (How's that for a tease?)

In the meantime, let me say, we at Hammock know exactly what our pathway is: We are going to continue to serve savvy marketers in their efforts to generate more profitable relationships with their customers or members.

Our services will grow to include even more ways to help marketers accomplish that goal via print and all forms of digital and online media. Our services will also grow in ways that will offer marketers the means to measure and manage such programs in ways that clearly provide tangible business benefits to our clients.

We look forward to the continuation of this journey. And I look forward to posting more about it over the coming weeks.

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Rex Hammock
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