IPRA XIX World Congress “If media are in such terrible decline, why is media relations in such terrific demand?”

1. IPRA XIX World Congress“If media are in such terrible decline, why is media relations in such terrific demand?” Presented by Dix & EatonLima, Peru, June 2010

2. What we will discuss… • News media are not in a state of decline • Some are in decay, but many are thriving • Business model is not the actual issue • How you deliver unwanted news is irrelevant • Cheapened content is the real problem • Media fell into “greed trap” starting in 1990s

3. What we will discuss … • But some media are figuring this out • As per Bill Clinton, “It’s the content, stupid …” • Here is what it means for public relations • Content was never really king, but it is now • Why media relations is still in big demand • “Creative destruction” spawns more channels

4. Media are not in decline … • Clearly certain media properties are in decay, and there is anguish at media companies about challenges they face • Globally, news media are not in decline as growth markets emerge in certain markets as well as for specific niches

5. Media are not in decline … • Media companies with content consumers want find they can build a “pay wall” • These media companies are proving to be extraordinary, and profitable, performers • Some are in developed nations, others are based, or succeed, in emerging markets

6. It’s not the business model … • Mainstream media often are confused on how to adapt in the face of the challenges • Many of them think social media represent the business model required to succeed • So they create Facebook or Twitter links but keep pushing out the same content

7. It’s not the business model … • The problem is not developing a new business model to carry existing content • Few people want and almost none will pay for existing content that is not useful • The problem is that content has been cheapened in order to maximize profits

8. It’s the content model … • Media companies began to cut costs, and that includes editorial staff, 15 years ago • Content reduced to common denominator across all audiences and geographies • Profits rose fast so owners disregarded audience losses as quality dropped • Internet, starting with news aggregators, brought with it “creative destruction”

9. It’s the content model … • Mainstream media attack aggregators, e.g. Google as “pirates” or “parasites” • We all use these aggregators because media do not give us what we want • Aggregators provide not just news but also information, and that is the difference • Will we pay for content? We already are

10. Four trends that get me excited • Hyper Local • What is happening in each neighborhood, sometimes on every street or every block • Deep Analysis • How leaders, analysts and executives use insights to make strategic decisions

11. Four trends that get me excited • Online Only • Why specialty media succeed general media on politics, sports and more • Global Growth • Where even mainstream media proliferate as companies and consumers devour news

12. First Trend: Hyper Local • Local and daily newspapers commoditized news across their entire circulation areas • Loss of classified advertising to Craigslist sharpened cuts in costs and coverage • One result was getting news you did not want, and not getting news you did want

13. First Trend: Hyper Local • Entrepreneurs seized on soaring demand for news, information in each community www.pleasanton.patch.com • Others are Going.com, EveryBlock.com, Outside.inand Placeblogger.com

14. First Trend: Hyper Local • Some papers grasp trend and create content for each community, as people want a “micro focus” on their own city http://www.miamiherald.com/fort-lauderdale

15. Second Trend: Deep Analysis • Globalization creates opportunity but also risk as decisions on faraway markets are difficult and can be “make or break” • Corporate executives, financial analysts demand heavily detailed insights to make right calls on products, stocks etc. • Bloomberg, Thomson Reuters, Dow Jones and other global services expand analysis of markets, regions, sectors

16. Second Trend: Deep Analysis • Bloomberg New Energy Finance … • One of myriad publications, newsletters or wire stories that examines just an individual industry or sector in exquisite detail … http://www.newenergyfinance.com/

17. Second Trend: Deep Analysis • But wire services also create enterprise stories for broad global distribution. Special Report: Fast machines, genes and the future of medicine By Maggie Fox, Julie Steenhuysen and Ben Hirschler, edited by Jim Impoco

18. Third Trend: Online Only • As mainstream media retrench, they are leaving coverage gaps of specific beats • Journalists leaving old-line broadcast and print media set up new, online only, media • Some ventures include local media, more focus on topics of widespread interest

19. Third Trend: Online Only • Investigative Journalism Propublica.org • Leader is former editor for Wall Street Journal • Just won Pulitzer Prize, first for online media • Economic Issues The Fiscal Times.com • Staffed entirely by former national reporters • Examines domestic budgets, taxes, policies

20. Third Trend: Online Only • Health Care Kaiserhealthnews.org • Provide in-depth coverage of health issues • Funded by foundation behind health insuror • The Sporting News Sportingnews.com • Started in 1886, oldest sports media in US • Huge popularity enables online “pay walls”

21. Fourth Trend: Global Growth • Vibrant media markets emerging in key regions China, India and Middle East • Print, broadcast, online media proliferate, fueled by strong advertising growth • Many are local language – 21 TV networks across in 3 different languages in India • But many are in English to reach larger numbers of business and other groups

22. Fourth Trend: Global Growth • China 21cbh.com • 21st Century Business Herald is one of the most important media in the country • As with global wires, it is also moving into providing analysis via English-language web

23. Fourth Trend: Global Growth • India Livemint.com • Joint venture involving HT (Hindustan Times) Media and The Wall Street Journal • Seven editions in biggest cities across India, with global, national and local business news

24. Fourth Trend: Global Growth • Middle East Thenational.ae • Daily paper, modeled on western media, is based in UAE and covers the Gulf Region • One of myriad media start-ups whose staff are locals or descendants returned home

25. Here is what this means … • More channels available than ever before • More access to every individual audience • More credibility established with each one • More opportunity to deliver desired results • More capability to measure actual impact • More value demonstrated to leadership

26. Here is what this means … • Media are not in terrible decline, but trends changing old media also create climate for a wider and more important media world • Media relations is in terrific demand as “creative destruction” brings more useful new channels and improves existing ones

27. IPRA XIX World Congress“If media are in such terrible decline, why is media relations in such terrific demand?” Presented by Dix & EatonLima, Peru, June 2010