Steve Forbes, Chairman & CEO, Forbes Media; David Granger, Editor-in-Chief, Esquire Magazine
As economy recovers will certain forms of media lead the way in growth: all past patterns thrown out the window because of changes with the web plus bad economy at the same time. Shouldn’t look to the past for comfort or discomfort the question is whether the changes made now will work. Will see advertising creating content now.
How does need for integrity mix with need to ally with advertisers: this is where brand is critical. People will rely on a brand to help them plough through all the information available. Important to use web to slice and dice to appeal to unique audiences.
Are media’s difficulties a good thing? No, but unavoidable. What the web is doing to media is just the beginning. Patterns in terms of advertising and classified changing made worse by recession. Not end of world, just means we have to figure out how to change content. One size fits all marketing no longer works. You need to devise specific solutions for each advertising client. Ge over platforms and delivery and figure out what is value added. People still want useful content. Get over idea that everything is corralled, can’t do it in age of digitization, but new models will emerge.
Can we get consumer to pay more of the freight? People accustomed to free content and will only pay if they truly feel they are getting value added information. Can’t be commodity news. Want unique information. Will pay for specialized information. However, whatever amount people will pay, it will not match revenue from advertising. Valued added: way presented, user delivery, content. Aggregators may be able to charge for specialized aggregation.
What about iPad and other platforms: there is an upside, but tablets will not do what Google did. These platforms will help your micro-pricing – pay 59 cents for this or that. Loves the Kindle because “an idiot like me” can use it. Accustomed to 9.99 pricing and having a hard time with increased pricing. This thing will not be a salvation but will enable you to reach audiences that you might not have otherwise reached. May have smaller audiences for specific pieces, but those small audiences may be very valuable to certain advertisers.
How do you measure success: not enough to have eyeballs, must break down your stuff that individuals can reach. On magazine side their paid circulation has never been stronger. Advertising is picking up a little bit. Get away from commoditization monster and appeal to special segments.
Where are you investing now: overseas editions and local editions of the web. Huge appetite for it. In Asia, print editions have small circulation but very successful and gives huge credibility to other things want to do. Print environment seems to give credibility overseas especially to the electronic side. Growth of the middle classes around the world will give huge opportunities.
Questions from audience
Piracy: in terms of Forbes’ content won’t miss a sale if someone pirates the content. With digital can take the initiative. Will have a real challenge with books, but can stay ahead of the hackers.
Do you need to maintain the print basis even if customers what digital only: print will be around, just models with change. People like magazines, the feel and flipping pages. In Asia having a print presence gives credibility even if people spend all their time on the screen.
