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  • New York Times culture

    The internal Innovation report by The New York Times leaked widely and has been reported on, mainly in how it reflected the internal politics that led so the departure of Jill Abramson from the paper. It has also been heralded as document of importance in the industry. Given the nature of the document I decided to do page-by-page commentary on the report (so that you don’t have to read all 96 pages). I read it once first of all to get an overall picture of it and then made notes on a page-by-page basis as I read it a second time in more depth. Below are the notes that I made on the second pass through the document:

    Page 3 – The memo starts by outlining its faith in the quality of the journalism at The New York Times. I think that this may be their first flaw as later they compare themselves unfavourably to outlets such as Yahoo! News which implies general news coverage is a commoditised product and The New York Times isn’t providing enough analysis of sufficient value to share.

    Page 4 – This is an executive summary of recommendations, most of which are quite prosaic. Develop the audience, strengthen the news room through working with other parts of the business and develop a newsroom strategy team. First up, developing the audience focuses on growth; there isn’t a mention about the quality of the audience – which would matter to advertisers. Strengthening the newsroom as described shows a willingness to bend the journalism / sales Chinese wall to breaking point.

    Page 5 – A graph of what I presume is monthly unique visitors under the headline of “…But Many Competitors Are Growing Faster” calls out Huffington Post and Buzzfeed as competitors who are outstripping The New York Times in reader traffic. There are no qualifying demographics for this; in the print space would The New York Times compare itself with The New York Post? Both are newspapers but both have different demographics.

    Page 6 and 7 – “Our Proposals, In Brief” basically reiterates pages 4 and 5.

    Page 8 – “Our Mission (And How It Evolved)” explains the methodology behind the report. Having read it, there were a couple of knowledge sources that didn’t seem to have been tapped, but that would have been useful.  Interviewing some of the media agencies to get their takes on media consumption trends, looking at external data sources such as comScore, Nielsen Net Ratings and academia such as the MIT Media Lab, Annenberg Journalism School and the Berkman Center for Internet & Society to peer further into the future.

    Page 12 – the start of the “Growing Our Audience’ section starts with a users guide to the report which basically explains the filters they used in writing and presenting the report in order to dumb it down for the readership.

    Page 14-15 – contrast moves in the news media industry with moves at The New York Times.  The three big NYT moves were:

    • Redesigning nytimes.com
    • Ravaging and rebranding The International Herald Tribune as The International New York Times (this alone would have precipitated a need for a redesign or reengineering of the nytimes.com).  The report itself calls The International New York Times a launch
    • The rollout of native advertising described as a ‘new world’ giving it a romantic heroic quality rather than it having been demanded by media buyers and becoming the norm

    The New York Times is facing the classic disruptee problem, trying to re-orientate itself for the digital age whilst change churns around it. The report treads lightly rather than scaring the bejesus out of its readership  (who are likely part of the problem and need to get on board with a radical attitude adjustment and become part of the solution).

    Page 17-18 is interesting as the document sets out “A Competitor Cheat Sheet”:

    • Buzzfeed
    • Circa
    • ESPN
    • First Look Media
    • Flipboard
    • Vox
    • Yahoo! News

    Here was a few of my takeaways from that list:

    Circa and Flipboard are aggregators with a bit of smarts behind them. These are disrupting the editorial process. I would argue that this goes back further than Circa to email newsletters like Dave Farber’s Interesting People or conferences on The WeLL. Neither of these are new and a news room should have recognised and evolved with this years ago.

    ESPN is particularly interesting as this is a traditional media company that has embraced digital particularly well, highlighting a failure of imagination and gumption in management.

    I think that First Look Media is less about the disruption of news media by digital technology and more about younger consumers being hungry for a reboot of news journalism. This is the reason why Shane Smith and company have moved style and culture magazine VICE successfully into news journalism; showing up major news organisations on their coverage of North Korea and the situation in Ukraine.

    Again there is no questions about whether these companies have the right type of audiences, merely the size of the audiences attracted.

    Finally a good piece of news for Marissa Mayer at Yahoo!. At least The New York Times thinks that her efforts are delivering business difference, I was surprised to see Yahoo! cited as a competitor news source due to the brand positioning. Yahoo! has been experimenting with original news on-and-off for the best part of a decade such as The Hot Zone which featured reportage from journalist Kevin Sites back in 2005/6.

    Page 23 – highlights three graphs under the heading “Tough Trends”. In contrast to the soft soap language that accompanies the charts the data is displayed in a manner to ‘cut to the chase’ and it is important to bear this mind when reading a chart.

    Home page visitors had almost halved over three years. This could be due to changing usage patterns has The New York Times introduced its paywalls. Overall page views showed a less aggressive rate of decline. Time spent on the site dropped by a third which I suspect again is a function of the digital paywall The New York Times introduced. I try and only pick my 10 articles a month carefully to maximise the utility of it.

    It was also interesting to see a drop in mobile readership using the iPhone app.

    Page 24 – there was one quote that stood out for me:

    “The hardest part for me has been the realisation that you don’t automatically get an audience,” said Janine Gibson, editor-in-chief of The Guardian’s website. “For someone with a print background, you’re accustomed to the fact that if it makes the editor’s cut – gets into the paper – you’re going to find an audience”

    I think that this rationale is based on a logical fallacy, that if a paper is put into the hands of a reader it will be devoured cover-to-cover. I would flicking though a paper analogous to skimming past links without clicking.

    Digital now makes this more apparent which is where Gibson had her satori that content needs to be promoted to an audience on digital platforms.

    The authors of the report split their view of competitors into content and delivery mechanisms:

    But BuzzFeed, Huffington Post and USA Today are not succeeding simply because of lists, quizzes, celebrity photos and sports coverage. They are succeeding because of their sophisticated social, search and community-building tools and strategies, and often in spite of their content.

    I think that this division is particularly interesting. Firstly, content is complementary to and indivisible from search and social strategies that these people may have. Secondly, the last bit of the quote dismisses the ‘snackable’ nature of these content formats, when in reality this might be part of their success.

    Page 25 – features a bit of future gazing on how with the right contextual information available, content could be serviced just-in-time to a mobile device from the paper’s news section, alongside archive content like restaurant reviews etc. There is also an ongoing challenge in managing that data to keep the context fresh and relevant – for instance knowing restaurants close or move location.

    Page 26 – “Our Proposals, In Brief”. I am shocked that the current technology used by the paper to support it’s newspaper seems to not used to tag or structure the vast amount of data published to date.

    Page 27 – is an explanation of ‘deep linking’ without mentioning that terminology once. The concern about readers not going to a home page or a section page is interesting, these are print paradigms put into pixels; yet on page 26 the authors had pointed out that one of the paper’s CMS limitations was that it was structured to reflected just this kind of print view.

    Page 28 -30 – talks about using curation to highlight older relevant content that can be used to provide context for a newer piece or timely collection. This raises the lifetime value of archive content because of the increased option for ad inventory to be viewed. I know this might sound obvious, bit it was obviously a revelation for the authors.

    Page 31-32 is a basic schooling in the scientific method  of experimentation – presumably to inspire innovation in the report readership.

    Page 33-35 look at how clustering coverage around common interest collections can increase readership

    Page 36 “Balancing Act: One-offs vs. Replicability” compares and contrasts The New York Times blockbuster approach to big digital projects versus competitors who build tools that they can use again and again; in order to maximise technical investment. An example of this would be Quartz’ Chartbuilder.

    Page 39-40 – The New York Times reimplemented a function to allow readers to follow columnists. Some of the data on the page would make me question the value of a prominent journalist in terms of the amount of loyalty and fan base that they can build. This is basically advocating that the journalists cultivate fame and a fan base. It would have been interesting to explore a bit more the dynamic between the newspaper brand and the journalist brand.

    Page 41 – talks about structured data and tagging. What I am surprised didn’t come up was the topic of folksonomies which could have been an answer to the ‘tag famine’ that they paper seems to suffer from. For instance, no tag for Benghazi despite the fact this was a story that would run-and-run.

    Page 43-44 – “Promotion” talks about social. Here’s what it says about email newsletters:

    Other competitors, like The Atlantic and Politico are also using emails as direct channels to readers. This basic tool has become one of the most popular and efficient ways to cut through all the noise of the social web and reach readers directly.

    The New York Times already does use email marketing. This ‘us and them’ view of journalists and the audience lacks subtlety. It neglects to take into account that some of their readers are tastemakers or curators that their friends tap into. Influencing people who can propagate content links even further is a relatively easy win. RSS seems to be the Rodney Dangerfield in this picture getting no respect. Whilst there aren’t prolific RSS usage amongst the masses, it is often used by curators and as pipework for aggregators like Feedly or Flipboard.

    Page 45 – what becomes apparent is that linkages such as social sharing analytics isn’t being used to drive editorial decisions. The twitter metric of engaged fans in a chart that compares The New York Times to other media outlets is interesting. What does ‘engaged fans’ mean in this content?

    Page 49-54 – “Connecting” is about The New York Times getting closer to the reader as a corporate brand:

    • User-generated content
    • Expand Op-Eds
    • Events
    • Using reader data to know them better

    Page 55-59 – “Strenghtening Our Newsroom”. I was gobsmacked reading this section. The New York Times seemed to be way behind peers like The Telegraph in terms of using data for the news room. Secondly, they have a consumer insight group yet didn’t have this expertise to help drive editorial decisions as a proxy reader’s champion.

    Page 60-70 – discuss what the authors call reader experience. This touches on content but also goes into how the content is manifested and the user experience. In a world where data journalism is freely bandied around, I can’t understand the gulf here. Back when I used to work at Yahoo! tweaking user experience was a major part of the creation process across the Yahoo! network properties.

    Page 71-74 – The New York Times editorial team don’t seem to network with peers and keep abreast of industry developments. They hadn’t been thinking about how to change news reporting to remain current and relevant.

    Page 75-77 – is a simple explanation of the ‘fast failure’ model of innovation.

    Page 78-80 – outlines the cultural challenges that the editorial team need to scale in order to be able to change the organisation. A lot of this mirrors what reporters would have written about businesses in mature economies adapting to change. Integrity seems to have been interpreted institutionally has embracing a luddite philosophy.

    Page 81-87 – “Digital First” isn’t exactly a new concept it has been the clarion cry of news media groups for years.  It is concerning that they even have to have a boxout defining what is means to be digital first on page 82.

    Page 88 -90 “In Their Own Words: Digital Departures” looks as the reason why digital journalists have been leaving the paper. These outtakes from what amounted to be exit interviews reflected the need for a flatter structure and more agile business.

    Page 91 – One quote said it all for me when they talked about talent “Winning The Talent Wars”:

    We need makers, entrepreneurs, reader advocates and zeitgeist watchers.

    How can you have a news organisation that is that isn’t lacking in curiosity amongst it’s journalists that the above statement needs to be said?

    More information
    The leaked New York Times innovation report is one of the key documents of this media age | Nieman Journalism Lab
    Mondo Vice: going backwards to bring news media forwards
    Quartz Chartbuilder on Github

  • Beats + Apple post

    Before Beats there was Mega Bass

    Before you can talk about Beats, you need to go back into the history of consumer electronics. If you had a Japanese made personal stereo in the 80s through to the early noughties the words ‘Mega Bass’ meant something. It was printed on everything from clock radios and boom boxes to personal cassette and CD players.
    Sony Walkman WM A602
    It was the button you pressed to give the bottom end of the music you listened to more umpf.

    Different Japanese companies had their own spin on it. I remember Hitachi luggable cassette systems having ‘3D Bass’ or a ‘3D Woofer’ label on the speaker grill to highlight their sonic capabilities. Aiwa had personal stereos with a more sophisticated bass function on them called DSL.

    Before Beats – Boodo Khan

    Sony took this experience to its logical conclusion with the Sony Boodo Khan Walkman (DD-100) and its matching headphones (DR-S100). This was designed to provide dynamic bass amplification, a function that Sony previously had developed for high-end hi-fi’s. The DD-100 used a system called DOL.
    Sony DD100 Boodo Khan reproduced from Sony's 1987 product brochure
    The Beats brand replicates the less sophisticated Mega Bass feature in the headphones rather than the smartphone or iPod to which they are attached. From a design point of view this approach makes perfect sense. However the science of personal bass amplification doesn’t seem to have moved on much from the late 1980s. Any pair of Beats that I have listened to boom on the bottom end and sound ‘muddy’ higher up. Beats headphones sound less clear to me than the original Sony Boodo Khan combo from two decades ago, despite the advantages of digital technology.

    Why Beats?

    So why would Apple care about possibly acquiring Beats?

    • Buying Beats takes the brand off the table for both PC and mobile device manufacturers. H-P  used to have Beats as a feature on some of its laptops as did HTC smartphones
    • Apple buying Beats at a premium price would raise the acquisition cost of other businesses that have a unique offering to augment the mobile experience. It’s cash mountain gives Apple cheap capital and such high acquisition costs could be a barrier to entry for the likes of Lenovo or Huawei
    • Buying Beats takes a subscription-based music platform off the table, the team could be used to strengthen a future iTunes subscription product or simply open doors in the music industry wider for Apple. Tim Cook is not the media mogul that Steve Jobs was, he doesn’t have the Pixar studio that made him the peer of other media companies
    • Beats is a premium priced brand, it has a good fit in its hardware alongside many Apple products
    • Beats gets a different demographic of music lover. EDM has put dance music back on the map commercially and is now more important to Apple
    • Beats may provide Apple with an alternative brand to go into new media and product areas that would benefit from its urban and dance music caché

    Whilst Apple has done a good job of getting a lot of dance back catalogue into its library, problems remain with regards dance and urban music consumption patterns and iTunes. It is probably no surprise, given that Apple was more comfortable having The Pixies as the soundtrack to it’s latest advertisement rather than say Skillrex.

    If one looks at the way Apple iTunes treats ‘DJ’ artists like DJ Honda or DJ Shadow and bands with ‘The’ in the name like The The or The Bar-Kays  you can see that they didn’t think about dance music in their design to the extent that they should do. All ‘The’ bands are treated alphabetically so The Beatles would go in the B-section after The Beach Boys but before Bomb The Bass. By comparison all DJ artists are grouped together.

    Other examples of the way iTunes doesn’t get dance music is that you can’t get music in the way that you would buy it in a shop:

    • You can’t sort or search by record label
    • You can’t sort or search by remix producer

    Dance music generally isn’t like other genres, the band may not be the hero. Labels have their own ‘sound’, the educated consumer knows roughly what to expect looking at the label whether it was Tamla Motown, Salsoul or Horse Meat Disco. Remix producers like Tom MoultonSasha, Tony De Vit, Todd Terje or Skillrex all had their followers looking to buy their latest work.

    Lastly and probably most importantly, dance music and urban music has been the place were many niche competitors like Bleep.com and Beatport have managed to build niche, but profitable footholds. This also indicates that there could be opportunities for direct Apple competitors. More related content here.

  • AirBnB + other news

    AirBnB

    AirBnB seems to be the goldilocks of the sharing economy. It has at least as much disruptive negative impact as Uber, yet doesn’t seem to attract the same level of vitriol. On the demand side of things, while I know people who have had negative AirBnB experiences, they still don’t seem to realise its its the platform and solely blame the host. ABC News | tweedier – The Sharing Economy – Mark Pesce on Uber and AirBnB. How Airbnb and Lyft Finally Got Americans to Trust Each Other | Wired – Wired does an in-depth piece on the supply side of the sharing economy. I think its going to be a while before people really wake up to how toxic AirBnB and the sharing economy are.

    Business

    China builds for the future | HSBC – government looks to enhance environment for small business with tax breaks

    Here’s the chart that has Chinese stock markets so depressed – Quartz – good graph of HSBC PMI numbers, it is affected by sampling issues however

    Consumer behaviour

    VOX POPULI: Job security is everything for rookie employees | The Asahi Shimbun – Japanese workers want security

    China’s Young Male Factory Workers Change the Assembly Line – Businessweek – the little emperors on the line are bolshy, harass female colleagues and get bored easily

    Economics

    Alibaba’s IPO may not be as big as everyone is expecting | Quartz – interesting breakdown on IPO values across sectors

    US oil boom checks inflation | HSBCUS oil production has far surpassed expectations in recent years and the country could overtake Saudi Arabia to become the world’s largest producer of crude oil and oil products by 2015 – how sustainable is this?

    Cautiously optimistic: Innovation and Chinese FDI | Deloitte

    FMCG

    Is Burger King’s Big Mac Clone Stealing McDonald’s Lunch Money? | BloombergBusinessweek – what will the value promotions do to the McDonald’s brand equity?

    Ideas

    CABINET // Whitewood under Siege – fascinating story of pallets

    Luxury

    A goldmine in retail? | Marketing Interactive – interesting profile of Chow Tai Fook jewellery retail chain

    Louis Vuitton still number one in awareness for Chinese: report | Luxury Daily

    Chinese Tourist Spending In UK To Rise By 84 Percent | Jing Daily – the UK needs to do more to court Chinese consumers

    Coach Responds to Falling Sales By Raising Prices | BloombergBusinessweek – interesting move that didn’t work for Mulberry that well when they tried it

    How a Korean TV Show Sparked a Jimmy Choo Craze in China | WSJ – store staff noted that customers were coming in with pictures on a smartphone. The bit that’s missing is how did they discover that the shoes were Jimmy Choo and hence knew which boutique to walk into?

    Marketing

    The Mystery of Our Social Traffic | Baekdal – really interesting read

    Media

    Thumbnails: French proposal for payment of royalties by search engines | Kluwer Copyright Blog – it reminds me of the tax that used to happen on tape and CD media to compensate for piracy

    Say Goodbye to Paid Search Terms from Google – Digital Marketing Blog by Adobe – this has more of an impact than one would consider

    Baidu Launched Dynamic Search Ads Feature — China Internet Watch – powered by website content RSS?

    The reinvention of MTV, chapter one million | Quartz – interesting alchemy of social media and broadcast media

    Online

    月球车玉兔的微博|微博-随时随地分享身边的新鲜事儿 – Jade Rabbbit lunar rover Weibo account

    Software

    Rogue Amoeba’s Paul Kafasis on Consumer Recording, Provocative Branding, & Endangered Gizmos

    What The Heck Is Machine Learning? | BusinessInsider

    Wireless

    China Telcos Propose Base Station JV | Young’s China Business – interesting that Chinese carriers are collaborating on base stations, probably less equipment sales for vendors than they’re expecting. More related content here.

    Web of now web

    Data point: Enthusiasm about wearable tech highest in Latin America, lowest in North America

  • 10 considerations of branding

    Origins of 10 considerations of branding

    10 considerations of branding goes back to a Ten years ago I used to work in an agency representing one of the pioneers of modern branding Henrion Ludlow Schmidt. I was fortunate that I got to work with the two managing partners at the time Chris Ludlow and Klaus Schmidt. Chris retired from the business and Dr. Schmidt is no longer with us, so the branding agency dissolved after he died.
    1979 Mercedes-Benz 230/280 Coupe
    I have vivid memories from the meetings I went to in their Victoria headquarters. Dr Klaus Schmidt as an exuberant personality talking about all things brand related.

    Holistic branding and the 10 considerations of branding

    Dr Schmidt was an advocate of ‘holistic branding‘ taking into account all the brand touch points rather than just slapping a logo on things.

    Holistic branding included all functions of the business, product design and experience design. It seems self-evident that a business brand is the sum of it’s stakeholder’s experiences but that concept and the design reputation of founder F.H.K. Henrion brought them clients like Mercedes-Benz , the former British Midland (bmi) airline, Krups, Barbican, London Underground, Deutsche Bank and German mobile operator E-Plus.

    Chris Ludlow and Klaus Schmidt boiled their thinking down into 10 considerations of branding which I have paraphrased here:

    1. Does the brand really need a rebuild? It is amazing how brands often get changed just for the sake of it. At the time I was working with Henrion Ludlow Schmidt the disastrous rebrand of the Post Office Group to Consignia and back was still fresh in the public memory.
    2. Can or should the brand be saved? Is economically viable to save it. Is it cheaper to develop a new one or acquire a well-respected brand instead? A classic recent example of this was where News International shut down the News Of The World and published The Sun on Sunday instead.
    3. Everything communicates: remember that every action, or lack of it, within a business communicates. Fixing the brand may fall outside ‘conventional branding’ issues to include: product design, human resources, operations, logistics and environmental policies.
    4. What does your brand really stand for? This means asking a set of hard questions: What does your brand really means to customers and other stakeholders? What is the gap between the values that the brand is supposed to have and how it is perceived by customers? Are there positive attributes attached to your brands by customers, that were not part of the brand values that you meant it to have? Are any of the values attached to the brand no longer relevant?
    5. Rebuild the brand from the bottom up, rather than imposing one from the top down. There is more than a hint of the German corporate philosophy that led to worker representation on the management board in this.
    6. Build the brand around a vision relevant to all stakeholders: it is easy to be cynical about the soft part of branding, how many of us have rolled our eyes at a new vision statement we can’t remember a week after hearing it alongside been given a new mug, mouse mat, notebook or lanyard? I even sat in a meeting with a large Chinese client and a number of sister agencies where the question ‘What is your lanyard strategy?’ came up.
    7. How is your brand taken to the customer? When looking at your brand you need to look beyond the most obvious contact points that help make up a customer’s brand experience. Are there new channels that can be exploited? Are channel partners on board and, if so, are they conducting themselves in a way which is detrimental to your brand? This aspect of presentation is the reason why BMW dealerships look so plush and why advertising agencies can charge much more for the same activities in comparison to PR agencies.
    8. A brand is a long term project: when thinking about the attributes of a brand, these need to be able to outlast customer fads or the latest business trends. A brand is a strategic consideration.
    9. Shrink the brand: many brands need a refresh due to excessive product extensions which washes out the meaning. Going back to the core can be the reset required.
    10. Evolution rather than revolution: be prepared to change your brand gradually. It is a balance between remaining relevant and keeping the goodwill and recognition built up over time.

    More information

    Consignia: Nine letters that spelled fiasco | BBC News
    Heroes – F.H.K. Henrion | Designers Journal

  • Loose lips sink ships

    During the second world war nations promoted a heightened state of awareness in citizens that they could be overheard through the use of propaganda materials. Including the iconic phrase loose lips sink ships.

    Loose talk can cost lives

    Loose lips sink ships is also a good maxim for modern business lives. We are now in an age when everyone can be a ‘self-facilitating media node’ as Nathan Barley put it. There is no longer any off the record. Jeremy Clarkson’s precarious position highlighted the perils of this with his apparent remarks committed to video tape. In the Financial Times this morning there is a great example of a similar unguarded comment providing rival automakers with a source of embarrassment.

    At the Frankfurt Motor Show in 2011 Volkswagen Chairman Martin Winterkorn was filmed admiring the i30 model on the Hyundai stand. In particular, he noticed the lack of noise on the adjustable steering wheel a feature that neither BMW or Volkswagen Group could match and discussed this with his chief designer.

    Hyundai has used this video clip as a proof point of their own engineering prowess ever since.

    What needs to be done?

    • Educate staff members to act as if anything they do can end up on the front of the Daily Mail
    • Off the record is never off the record
    • Everyone is a journalist
    • Be more circumspect in public discussions that can be overheard, make notes, bring them up at a safer forum back at the office

    More social related content here.