Bloomberg Media CEO Justin B. Smith's 11-step program for publishers in the platform era

1. A Publisher’s
Survival Guide
for the
Platform Era
Justin B. Smith
CEO, Bloomberg Media
@Justin_B_Smith

2. A Publisher’s Survival Guide for the Platform Era 2
First, the
bad news for
publishers.

3. A Publisher’s Survival Guide for the Platform Era 3
Google and
Facebook are a
glaring duopoly.
Source: Bloomberg Intelligence, eMarketer. Based on U.S. spend.
Digital advertising revenue growth. ($B)
$2.17
$2.66
$2.90
$3.32
$2.40
$4.27
$2.25
$7.88
$2.69
$9.09

4. A Publisher’s Survival Guide for the Platform Era 4
Digital ad revenue
models are under
withering attack.

5. A Publisher’s Survival Guide for the Platform Era 5
Other revenue
streams haven’t
materialized
at scale.
Paywalls have largely failed
with very few exceptions.
Ancillary revenue such as events,
marketing services, and e-commerce,
have not closed the gap.
No high-growth, large-scale
new revenue streams on the horizon.

6. A Publisher’s Survival Guide for the Platform Era 6
Now, the
good news.

7. A Publisher’s Survival Guide for the Platform Era 7
Digital advertising is still in its infancy –
65% of spend is on traditional media.
Google and Facebook won Round 1, the
fight for direct-response advertising, where
micro-targeting makes sense and the
platforms have the customer data advantage.
But the real fight is Round 2, as $250B in
brand advertising locked up in TV and print
floods into digital.
Publishers were built for brand advertising.
We control the content in our environments,
have deep relationships with brands, and
know what our own audiences want.
The digital
revolution is just
getting started.

8. A Publisher’s Survival Guide for the Platform Era 8
Being a platform, not a content creator,
opens the door to “fake news,” low-grade
content, and other liabilities for brands.
Microtargeting raises prices, and does not
broaden the brand funnel.
Facebook and Google need publishers
because content drives engagement –
and they may be showing signs
of acknowledgment.
Platforms
have clear
vulnerabilities.

9. A Publisher’s Survival Guide for the Platform Era 9
So, what
should a
publisher do?

10. A Publisher’s Survival Guide for the Platform Era 10Summary
1. Obsess over differentiation
2. Become a brand management whiz
3. Fight (until your last breath) to keep
a direct relationship with your audience
4. Be tough and picky about platform partnerships
5. Reinvent brand advertising
and wean yourself off programmatic
6. Productize your data
7. Define the right video strategy for you
8. Think globally, but operate locally
9. Fragment yourself into as many niches as possible
10. Do things that platforms can’t do
11. Be relentless about talent and execution
A Publisher’s
Survival Guide
for the
Platform Era

11. A Publisher’s Survival Guide for the Platform Era 11
Obsess over
differentiation.
1
Digital journalism is commoditized.
Chase uniqueness, not scale.
Be the “must read” for your audience.

12. A Publisher’s Survival Guide for the Platform Era 12
Become a brand
management whiz.
2
Your brand is everything.
Adopt industry brand management
best practices.
Brand is the north star, above editorial
and business.

13. A Publisher’s Survival Guide for the Platform Era 13
Fight (until your last breath)
to keep your direct
relationship with your
audience.
3
Spend your time and resources
on innovating your direct relationship
instead of working with platforms.
Build your business around your own
products and services – apps, live events,
and new technology of your own.

14. A Publisher’s Survival Guide for the Platform Era 14
Be tough and picky
about platform
partnerships.
4
Publishers risk spreading themselves
too thin. Focus on platforms of greatest
importance for your audience.
Be willing to walk away from unfair deal
terms (i.e. most of them).
Court the “sleeping giants” – the telcos,
Amazon, and smaller social networks –
that could offer you better terms.

15. A Publisher’s Survival Guide for the Platform Era 15
Reinvent brand
advertising and
wean yourself off
programmatic.
5
Flip your model and shift your energy
and resources toward truly differentiated
advertising.
Move upstream into supporting brand
clients – with business solutions, marketing
insights, and custom content.
Programmatic is a race to the bottom
and prevents differentiation.

16. A Publisher’s Survival Guide for the Platform Era 16
Productize
your data.
6
Gathering data is table stakes – most
publishers are pooling 1st-party data in
data lakes and DMPs. But few have truly
cracked the code on how to monetize it.
Build products to drive audience
engagement or improve advertiser
targeting.
At Bloomberg, we are creating tools like
B-Match, which lets advertisers target a
specific audience, a specific type of article,
and a specific time of day.

17. A Publisher’s Survival Guide for the Platform Era 17
Define the right
video strategy
for you.
7
Develop a primary video strategy
that is not platform-reliant.
Focus on creating high-quality,
differentiated video on your own sites
and apps.
Monetize your video through licensing
agreements – not just advertising.

18. A Publisher’s Survival Guide for the Platform Era 18
Think globally,
but operate locally.
8
Most media conglomerates are
over-indexed on the U.S. – future growth
will be international and country-based.
There is no such thing as a “global
strategy.” Create a strategy for each new
region based on local needs, and be flexible
with your model, relying on freelancers,
partners, and licensing.
Geographic expansion – if executed
effectively – diversifies your revenue into
markets without as many strong incumbents.

19. A Publisher’s Survival Guide for the Platform Era 19
Fragment
yourself.
9
Create narrow brand verticals to develop
content and advertising engagement.
“Niche the niche” until you’re a mosaic.
Ensure a strong umbrella brand structure.

20. A Publisher’s Survival Guide for the Platform Era 20
Do things
that platforms
can’t do.
10
Position yourselves as custom content
creators and strategic partners.
Platforms are merely intermediaries.
Lean into your strengths – as storytellers,
designers, and brands.
Expand into creative design, marketing
services, live events, subscriptions,
e-commerce and even strategic consulting.

21. A Publisher’s Survival Guide for the Platform Era 21
Be relentless
about talent
and execution.
11
Build your team like you’re collecting art –
the group should be greater than the sum
of its parts.
Also, think like a conductor – how do all
the instruments work together to create
amazing and harmonious music?
Publishers need to reverse the talent
drain to the tech industry.

22. A Publisher’s Survival Guide for the Platform Era 22
Audience
QA
@Justin_B_Smith
1. Obsess over differentiation
2. Become a brand management whiz
3. Fight (until your last breath) to keep
a direct relationship with your audience
4. Be tough and picky about platform partnerships
5. Reinvent brand advertising
and wean yourself off programmatic
6. Productize your data
7. Define the right video strategy for you
8. Think globally, but operate locally
9. Fragment yourself into as many niches as possible
10. Do things that platforms can’t do
11. Be relentless about talent and execution