Search Results for: memo to jeff

Memo #3 to Jeff — Data & User Profiling for The Washington Post

 

For customer-related technologies, the financial and intellectual backing of Jeff Bezos, and his Amazon experience can give The Post a huge competitive advantage. Here is what should be at the top of the to-do list. 

Every digital manager must plan to tap into Amazon’s fantastic engineering firepower. (Even though Bezos bought the newspaper out of his own pocket, the first thing he’ll do — if he hasn’t already — will be drafting some of his techies as “advisors” to The Post.) The key point being: the influx of engineering brainpower must not be limited to the digital side of the house, or to the newspaper’s IT infrastructure. It should impact all activities: editorial, marketing, subscriptions and paid-for products. Let’s dive into details.

Turbo-boosting the editorial. Let’s start with the basics: What characterizes media outlets playing in The Washington Post’s league? It is their ability to line up top journalistic resources to cover stories that matter, in-depth, with multiple angles and treatment modes (text, features stories, photographs, graphics, multimedia storytelling, live blogging, opinions, etc.), while deploying the best expertise on topics covered. These are the five items that make the difference between the bulk of pure players and true legacy media.

In many ways, the above is anti-economic, it is loaded with inherent inefficiencies — dry holes, dead ends, waste of time on promising leads —  that drive nuts “quant zealots” obsessed with KPI’s and productivity measurements. At this point, the difference between great newsroom managers (i.e. editors) and average ones lies in their ability to make some room for “managed inefficiencies”. An editor’s key, delicate duty is weighing the purpose of resource-intensive tasks such as flummoxing the competition, pursuing a worthy story, or launching a months-long journalistic project aimed at a Pulitzer prize. Unfortunately, weak leadership, balking at tough choices and yielding instead to a sorry attempt to spread an even level of (dis)satisfaction among constituencies causes inefficiencies to grow like weed.

The foremost goal of technology-enhanced news content is smartly weaving together all components of a topic. The idea is to keep the reader aboard by encouraging multiple levels of reading, with different angles for a subject, calls to essential archives or to other forms of journalism such as blogs or infographics. In this field, Amazon is light-years ahead of the news industry. By raising the number of editorial treatments seen by the reader, almost twenty years of Amazon’s e-commerce recommendation engine refinements will undoubtedly benefit The Post.

Another key item will be the level of news personalization. What should a Post reader see mostly? News that matters to him or her, or everything the paper’s staff collects? How to define mostly? Fully tailored contents based on past navigation? Stated preferences combined with the preserved serendipity that together make the core of news construction? This is a deeply involved problem — and the subject of a future Monday Note.

Reader profiling. All digital publishers dream of knowing exactly what reader sees what content, where, at what time of the day and on which vector: web, smartphone, tablet. The finer the granularity, the better. Slicing and dicing readership in segments of age, professions, residence, income, interests yields three types of uses:

  • increasing news content stickiness by serving customized content as mentioned earlier
  • smarter customized advertising, as opposed to dumbly drowning users into a flood of ads for months by using data collected during the shopping season. This practice, known as “retargeting”, is one of the internet “seven plagues” and the most potent repellent to advertising
  • channelling the reader to the catalogue of ancillary products any news outlet should operate. For example: once a reader is identified (even anonymously) as working in the legal field, for a media group struggling to fill the last seats of its conference on privacy laws, why not show this loyal reader a one-time only, 50% discounted ticket, valid for 24 hours only? Simplistic as this example might seem, its large scale application is far from trivial: it requires super-accurate analytics, the deployment of “event engines” that will trigger the display of the right offer, at the right time, to the right segment of the population. Fortunately, this is the kind of work Amazon geeks are particularly good at.

For The Washington Post, the benefits are numerous. Research shows that serving the right ad to the right profile can raise its value by a factor of 1.5x to 2x. And the performance of ancillary products (conferences, business events, news-related ebooks or professional products, education packages, etc.) will become easier to measure.

Impact on paywall and subscription models. Paywall theory can be summarized as follows:

  • deploying a wide range of tactics all aimed at significantly raising the number of news contents items (not necessarily articles) a reader watches every month. Let’s make no mistakes: the main dial is under the newsroom’s control, marketing wizardry won’t do the trick
  • finding readers most likely to convert to a paid-for subscription and, week after week, serving them (I write serving, not bombarding) offers they can’t refuse: an extended test-period, or a news-related bonus that reflects the breadth of the company’s line of products.

As with most theories, practice is much harder. A paid-for system is a long-term, investment-intensive, staffing-critical effort. Two legacy media did it particularly well: The Financial Times and The New York Times. The former built a subscription base that now surpasses the paper’s; the latter added $100m a year in revenue that did not exist three years ago. Most paywall strategies underperform for two reasons: first, an error in predicting the editorial contents’ ability to retain readers beyond a free threshold of 10, 15, or 20 stories a month; second, a failure to build the data-driven infrastructure that is mandatory for any paid-for product. The Washington Post does relatively well with the first test. For the second, the backing of Amazon tech brains will give it the best chances to succeed.

frederic.filloux@mondaynote.com

Memo #2 to Jeff Bezos: Let’s talk about news products and design

 

Should the new owner of The Washington Post dump the print edition? What should its digital online strategy and tactics look like, both in terms of contents and platforms? 

The questions stated above might not fall into Jeff Bezos areas of sharpest expertise. But there is no shortage of smart people within The Washington Post — at least a core group eager to seize their new owner’s “keep experimenting” motto and run with it.

What can he do? For today, let’s focus on editorial products.

#1. The printed newspaper. Should The Washington Post dump its print product altogether? The short answer is no. At least not yet and not completely. Scores of digital zealots, usually with a razor-thin media culture, will push for the ultimate sacrifice. But in every market — Washington, London, Paris — there still exists a solid base of highly solvent readers that will pay a premium for the print product. This very group carries two precious features for newspaper economics: One, they are willing to pay almost any price to have their precious paper delivered every day. For a proof of that statement, see how quality papers repeatedly hiked prices in recent years, $2 or €2 is no longer a psychological threshold. Hefty street prices helped many to offset the decline of advertising revenues. Keeping the printing presses running offers a second advantage, the ads themselves: They gave lost ground, but the remaining print ads still bring 10 or 15 times more money per reader than digital versions — which is, let’s be honest, a complete economic failure of digital news products.

How long will it last? I’d say around five years. It actually depends of the evolution of the print product. Look at this weekend paper’s layout:

wapo pages

Is there anyone at The Washington Post who seriously believes this paleolithic visual will help retain readers?

Bezos should bring in a team of modern art directors from abroad. One such example is Innovation Media Consulting, an organization that works in many countries and has a great track record (I know one of Innovation’s partners well, Juan Señor, but I have no interest whatsoever in the firm.) Visually, the Post should consider a new layout (the Berliner format is a much better fit for tomorrow’s print than the old broadsheet). Also, to get a much-needed glimpse on what’s going on outside the Beltway, management should use their Amazon account to buy copies of the excellent Best Newspapers Design compilation.

Regarding the national vs. local/regional question, to me, the debate is settled: There is no point at having a physical daily newspaper with a national reach, period. (This could change if, one day, the Post is down to just one thick weekend edition.) Last August, in a remote trading post of Northern New Mexico, I found a fresh copy of the New York Times, most likely printed in Denver or Santa Fe, four hours truck drive from where I was (just have a look at this Google Map featuring the NYT printing plants locations to see my point). National + global scope belongs to digital.

#2. Digital products. The plural is important because, for a news company such as the Post, no single focus will do. At least three avenues ought to be considered: Web, mobile and tablets. (For the moment, we’ll put the Web aside, where The Post is doing great.)

For all publishers, mobile is way more tricky than initially imagined: as long as we can’t integrate content subscription in cell carrier billing, it will be difficult to have people pay for it — except if we consider some kind of in-app purchase for specialized contents. As for advertising on mobile, it now grows in “spectacular” fashion — going from the infinitesimal to insignificant. Furthermore, when comparing their product line to pure players such as Circa, we see how legacy media experienced difficulties in catching the mobile wave (see a previous Monday Note) or Pocket. The Post better work in that direction.

Tablets promise much better monetization. For this, assess the rate of iPad ownership among the Post’s readers (I bet it must be around 60%). Unfortunately, in the old press, the current rationale calls for flavors of print replicas, usually based on a PDF. As I’m writing this paragraph, I’m trying to download this morning’s Sunday edition of the Post for their iPad app; I’m stuck at about 20% of the download. (I certainly won’t ridicule the Post’s occasional glitches since it still occurs too often at my own paper– and I’m the one responsible…)

Why are digital publishers like us still struggling with this? It’s because we are stuck with a technology — namely PDF — that wasn’t designed for low download times, nor for interaction with the user, enhanced contents, social sharing, etc. Plus, many of us can’t depart form the idea that readers need to find on our apps the exact page look and feel, column structure and general layout of the print version. That assertion becomes less and less valid as the number of online readers keeps growing. That audience can become several orders of magnitude larger than the print edition’s readership: Simply consider that the NYT has 50 million people who are in contact with its online version one way another (including the very long tail), that’s more than fifty times it’s print circulation on any weekday.

Granted, a news product must have a visual identity, recognizable in every possible form, but that certainly doesn’t mean sticking to a 1993 technology with guys like us trying to keep outdated stuff alive, like a Havana car repairman nostalgically tinkering with a 1956 Chevrolet Bel Air

Jeff Bezos must keep one important things in mind: The modernization of print media has always been driven by the magazine industry, not by newspapers: From graphic design, to marketing, to advertising, weeklies and monthlies have lead innovation for decades. Now, as their print vector is dying, many of them tend to innovate on digital. They’re not doing it equally well, of course: a large group such as Condé Nast is pathetically backward — most of its titles offer only ultra-basic and unstable apps — but many publications (Fast Company, Business Week) made the leap forward with digital magazines really designed for the tablets. Even the NYT is about to launch a digital magazine for tablets that will feature great productions such as the Pulitzer Prize winning Snow Fall. So will ProPublica, I’m told.

fastco app

The Post should get rid of the cumbersome PDF legacy and switch to a full blown e-newspaper for iPad, generic Android tablets and Kindle Fire. There is no shortage of inspirational works available in the AppStore and in Apple Newsstand: Longform for the curation (my favorite weekend readings), The Magazine, TNW and more, all filled with interesting ideas or features…

To further stimulate innovation Jeff Bezos should call in firms able to genuinely think outside of the box such as Ideo or smaller shops who design great selling apps like Caroline+Young (the dataviz app mem:o), the people who did the sketching app Paper53… Personally, I’d even go as far as picking up the brain of great architects like Norman Foster, Rem Koolhas or workspace specialists NBBJ who have been commissioned to build Amazon new headquarters… It would be the most enthralling experiment to mix such great and diverse design talent pool with the Post’s journalistic excellence…

frederic.filloux@mondaynote.com

Memo #1 to Jeff Bezos: Try Washington Post Prime

 

We can be sure Jeff Bezos will try many things with the Washington Post. One could be drawing inspiration from Amazon’s fabulously successful Prime service. (First article in a series) 

Changes at The Washington Post’s will be the most watched media story of the coming months and, perhaps, years. Why? First of all, with the iconic Watergate saga, The Post epitomized a historic high in print journalism. The episode combined the fierce independence of a great media company, the courage of two people — namely Katherine Graham, the paper’s proprietor, and editor-in-chief Ben Bradlee — who together bet on the tenacity and energy of two young reporters, Bob Woodward and Carl Bernstein. For my generation, these times are part of the mystique of great journalism.

wpost_watergate
The grand old days (credit: Washington Post, Watergate Files)

Second, The Washington Post was sold (for cheap, only $250M) because it faced a certain death. Its weekday circulation fell by 60% since 2003 (still 472,000 copies today), and the advertising-loaded Sunday issue lost more than half of its audience (more details in Alan Mutter’s coverage). As for digital advertising, The Post has been unable to compensate for the in print advertising hemorrhage, gaining only $1 in digital while at the same time the print ads were losing $16 — similar to everyone else in the business.

Like most of its peers, The Post was far too slow in its shift to digital journalism, leaving an open field to new, more agile ventures such as Politico, a pure digital player that even managed to snare talent form the historic newsroom. Eventually, management got around to adjust all dials in the best possible manner (see a previous Monday Note on the subject) — alas without inverting the trend.

But the main reasons to watch Bezos’ next moves remain his appetite and proven ability to reinvent aging business models. He did so with the retail business, energized by two of the celebrated obsessions that became religion in his company: maximum efficiency applied down to the minutest of details, and an unprecedented care for the customer.

Can these two ingredients apply to the  news business?

As for customer care, in general, the press has a long way to go. As both a heavy consumer (my many digital subscriptions) and a long time media professional, I can offer many sorry testimonials to the media industry’s backward customer service. From order fulfillment (weeks in some cases) to client-support, media lies at the polar opposite of the digital industry, especially Amazon. From day one, I’ve been a paid subscriber to the Wall Street Journal and an Amazon customer. After gross overcharges for my subscriptions to the Journal, its customer service repeatedly failed to even to grant me an explanation. I finally gave up: As soon as my subscription is over, I’ll walk. Fortune Magazine has been landing in my physical mailbox for many years; sadly, it is apparently unable to provide the codes required to enjoy my subscription on Apple’s Newsstand. Again, I gave up. Another example outside the news sector: Canal+, one of the largest paid-for TV network in the world (I’m not a customer): according to several customers and two consultants I spoke with, the network’s main strategy to retain subscribers is the use every possible trick to prevent them for terminating their subscription. “Even death might not be enough to exit the service”, joked a media professional…

If Amazon had behaved like that, it would have never become the retail behemoth it is today. It started in 1995 with no credibility — actually, it even had a negative image stemming from the suspicion surrounding online shopping at the time. Like others, Amazon had to build its reputation one customer at a time. I was an early adopter and, today, my reliance on Amazon keeps growing steadily (there were a few glitches along the way, quickly fixed.)

Why mention customer service? Evidently not by reason of the need to take good care of a digital or print subscriber — that should be the bare minimum. But because a media outlet such as the Post will eventually sell many other products and services beyond news; therefore, instilling a strong customer service mentality will be a prerequisite to expanding its business into other areas. Also, the move to digital raises the customer care standards bar. More for the Post than for any other media company, customers will use Amazon services as the benchmark of quality.

My bet is Jeff Bezos will use lessons from Amazon’s Prime service. For Monday Note readers outside the United States, Amazon Prime is a special service from which, for an annual fee of $79 (€60), you get free two-days shipping, free video streaming and the right to borrow Kindle titles in a catalog of 350,000 (I can hear writers and bookstore owners faint…) The least we can say is that it worked: more than 10m people joined the Prime program (including a couple of friends of mine who quickly dumped their cable subscription — call it collateral damage…) And that’s just the beginning: Amazon expects to reach 25m Prime customers by 2017. Even more interesting: when you cough up eighty bucks a year to use the service, you also tend to buy more, that’s the juiciest psychological facet of the Prime program. See how it works for the famous tech writer Farhad Manjoo (who wrote an interesting piece in Slate If Anyone Can Save theWashington Post, It’s Jeff Bezos

 I was recently looking back at my Amazon order history. Before 2006, the year I first signed up for Prime, I placed less than 10 orders per year at the site. Prime completely changed my shopping habits. In my first year with the service, I placed 46 orders. This year my household is on track to quadruple that.

These macro level numbers confirm the success: the Amazon Prime customer spends much more than a regular one: $1224 (€930) vs. $524 (€400) per year. Furthermore, Prime accounts for one third of Amazon’profits (see a detailed story by FastCompany on the matter). In short, an immense product line, served by a near-perfect execution (an Amazon order is shipped about 2.5 hours after you clicked the “Place your  order” button), augmented by a psychological incentive smelling of free, fast and convenient all conspire to generate both high ARPU and loyalty — two outcomes newspapers economics are starving for. How can such reasoning apply to our industry? Can the antique “bundling” systems benefit from it and, as an example, open the way to new super-subscriptions? What tools can Jeff Bezos leverage to pull this off?

We’ll explore answers in further columns.

frederic.filloux@mondaynote.com

Is Yahoo serious about media?

 

Under Marissa Mayer’s leadership, Yahoo keeps making substantial efforts to become a major news media player. Will a couple of well-know bylines and a shiny mobile app do the job? 

A big Silicon Valley player entering the news business has long been the worst nightmare of legacy publishers. Combining an array of high tech products with the ability to get all the talent money can buy, the Valley giant could be truly disruptive. Ten years ago, the ongoing fantasy was Google or a Yahoo gulping the New York Times or another such big media property. For many reasons — economical as well as cultural ones — it didn’t happen. Yahoo once approached NYT’s columnist Thomas Friedman, offering him a hefty pay raise to become its star writer. But the Times’ globo-pundit quickly backed off when he realized that most of his reputation —  as arguable as it can be (see the cruel Tom Friedman OpEd Generator) — was tied to his employer. Yahoo and others put the issue at rest for years, focusing on core challenges: survival for Yahoo and global domination for Google.

Until now.

Last year, we first witnessed a significant move from the tech galaxy: Jeff Bezos acquired the Washington Post by. As mentioned in the Monday Note (see the Memos To Jeff series), Amazon’s technical firepower will undoubtedly exert a transformative — rather than merely incremental — impact on the Post. Further, I guess this will end up being a welcome stimulus for the entire industry, it really needs a tech kick in its sagging backside.

Then came the Yahoo initiatives. Last fall, Marissa Mayer, snatched three visible talents from the New York Times: Megan Liberman, until then the Times’ deputy news editor, was appointed Yahoo News editor in chief; Mayer also tapped iconic tech columnist David Pogue; a month later, she picked the Times’ chief political correspondent Matt Bai. Finally, on November 25th, Marissa Mayer announced that she hired former TV host Katie Couric as the portal’s “global anchor”.

Here we are: Expect Yahoo to simultaneously enter three major information segments: General audience programming with Katie Couric’s show; political and national issues; and tech coverage (in addition to the classical Food site). Logically, Yahoo started with the tech side. Pogue himself introduced Yahoo Tech on stage at CES last week — and didn’t pass up the opportunity to blast its competitors, mocking their nerdy and obscure language. Interface wise, I found the site pretty clever with its one page, endless scrolling structure — a trend to be noticed —  and articles showcased in about 120 tiles (approx 7 tiles x 18 rows), each expanding as needed and keeping its own URL, which is essential for social sharing uses.

Regardless of David Pogue’s ability to put a the human face on technology, Yahoo Tech is entering an increasingly crowded segment. This month, the Wall Street Journal rolled out WSJD, set to take Walt Mossberg’s and Kara Swisher’s AllThingsD slot, itself reborn as Re/Code (can’t find a geekier name), operated by the same duo. The Re/Code money machine will be the already sold-out Code Conference and its offsprings. WSJD features potent editorial firepower with no less than 50 writers on deck.

Marissa Mayer made no mystery of the fact that her editorial initiatives will be directed at Yahoo’s #1 priority, “the company’s commitment to mobile”. When she landed at Yahoo, Mayer was dismayed to discover that everyone received a Blackberry. Now, the company wants to board every relevant ecosystem, starting with iOS and Android.

That’s what Yahoo does with its interesting NewsDigest App for iOS, launched at CES. As its tech web site does, the mobile app focuses on a series of hot trends. First of all, with its truncated structure, the app borrows a lot from Circa (see a previous Monday Note); it also inherits technology developed by Summly, the startup it acquired in March last year (merely five months after the app’s launch). Summly’s core idea is a news summarizing algorithm. The NewsDigest iteration does actually much more than condensing stories: In a neat interface, it creates context by slicing coverage as follows:
–Image gallery
–Infographics
–Maps
–Stock charts
–Main Twitter feeds
–Video
–Wikipedia
…plus a set of references if you want more.

For a story picked up yesterday, it looks like this:

304_yahoo_news

Evidently, there is room for improvement. Weirdly enough, the app is updated only twice a day and carries less than ten stories. Both elements go against the idea of a smartphone app supposed to update on a permanent and to provide content in an endless stream. Plus, automated as it is, the prose can’t quite compete for a Pulitzer Prize. But, if Yahoo decides to hand the key ingredients over to a competent editorial team, the NewsDigest could become a really good product.

Coming back to this column’s main topic, I believe Yahoo is really up to something in the news sector:
— Yahoo enjoys huge traction in the mobile world: According to Marissa Mayer, among the 800 million people who access Yahoo every month (excluding Tumbler), roughly 400 million reach the portal through their mobile phone. (Despite that number, one irritating thing: Yahoo made its app available to the US AppStore only, ignoring the hundreds millions of English-speaking users on other shores, East and West of Sunnyvale, California.)
— Unlike with Google’s mobile strategy, Yahoo is free from Android’s strategic goals and from a difficult relationship with Apple. It can therefore play the two ecosystems equally, opening the potential for one to gain leverage against the other.
— Even better, by last week acquiring Aviate, an Android customizing interface layer, Yahoo can now create its own branded experience on top of the standard Android interface.
— Assuming it enters the news business for good, Yahoo will act like a tech company, not a legacy media one. In other words, it will first build a sizable audience for its news ecosystem while deliberately ignoring the revenue side as long as needed. Then, it will optimize and datamine this user base to understand in the most granular way what works and what doesn’t. Having successfully gone through those steps, Yahoo will then transform the (hopefully vast) newly acquired audience into a money machine.
This is the way it works nowadays.

frederic.filloux@mondaynote.com

@filloux