Lack of priorities and alignment is driving product managers out of journalism

Product managers at publishers see a lot of room for improvement. Only 18% of 52 product managers surveyed by Brian Morrissey’s Rebooting thought their product implementation was excellent or good. A majority - 38% each - found it fine or needed improvement. Regarding funding, 51% thought they had too little funding, and 9% rated their funding as abysmal. The biggest challenge that product managers said they faced (32%) was misaligned incentives.

This echoes the findings of research I carried out for a master’s degree in innovation management and leadership from the University of York. (I graduated two years ago this week.) As I’ve mentioned before in the newsletter, my research looked at how the cross-functional work (boundary-spanning in academic terms) product managers did at news organisations affected their professional sense of well-being. Were they thriving, surviving or burning? I interviewed 17 product managers across broadcast, print and digital organisations, both large and small. Large being national news organisations and small being local or regional. While a relatively small sample, five had left roles or the industry entirely in the year before I interviewed them. Obviously this is important because while the news industry is looking to invest in their product management capacity, it’s difficult if they can’t retain staff.

As Brian found, lack of alignment was a major issue. Some of the themes that came out of the research were:

  • Lack of senior management support for cross-functional work

  • Lack of alignment amongst managers at different levels about goals and priorities

  • No support to set priorities or goals.

What resulted was that despite the talk about being audience-centred, product managers could be relagated to little more than project managers carrying out the initiatives of senior managers. “Decisions are made from the top down. ... We call it HPPO (pronounced hippo), the highest paid person’s opinion,” said a product manager who worked at a small broadcaster.

At best this left product managers with a feeling that they lacked agency. “You are at the center of decision making, when you often don't actually have the power to make the decision,” said a product manager at a small digital news outlet. This lack of agency raised issues for product leaders. “How can we motivate people to continue even working on this, if you know they see their colleagues not understanding the value?” a product manager at a small broadcaster said. This is leading to retention issues. One of the participants at a large newspaper said a colleague had left because “I was tired of taking orders and not feeling like I have any agency.”

Apart from retention, this lack of alignment leads to conflict and failed digital transformation issues. A product manager who had left a position at a large newspaper in the US said that senior leadership had failed to agree on goals. “(T)he goals that his manager had provided to guide product development had not been agreed upon by the newsroom.” People dug in, and when it became clear to him that his manager was not long for her position, he left, describing his experience as “searing”. It is an example of what Brian called “church-state”, editorial-business-techical divides that product teams need to navigate at news organisations.

This isn’t to say that product management has failed at news organisations. I also spoke to product leaders who were driving transformational change and delivering great audience-focused products. One product leader said that C-suite alignment on goals and priorities was critical. It gave product leaders a framework to say yes and, just as importantly, to say no.

This is just the tip of the iceberg. I found some other issues in my research, which I’ll discuss in the coming weeks. But for now, onto the links. In the world of AI and publishign, Perplexity is now offering a rev share with publishers. We are going to see a lot of different approaches as the big players in genAI strike deals to feed their models.

I am still adding to my knowledge about subscription operations, but as a recovering journalist, I had never heard of involentary churn - churn driven by failed payments - until I started doing more work on this part of publishing operations. More than just managing involuntary churn, this piece is worth reading because it highlights the rising importance of retention for publishers. In the State of Mobile Publishing Report we just released at Pugpig, one publisher we spoke to said they had to focus more on retention to combat “subscription fatigue”.

I had a slightly cynical response to this on first blush. “Oh look, they have reinvented the personal ad,” I thought, but it’s an interesting move for a public broadcaster.

US public media outlets continue to lay off staff. Southern California and LAist said the group faced a $4 to $5m budget shortfall over the coming two years. The group accepted 21 voluntary buyouts but also eliminated seven additional positions. The group is losing some amazing talent, including Ariel Zirulnick, director of news experimentation, who has been a leading figure in the engaged journalism movement in the US.

Scripts, shot lists and good planning go into making good videos for TikTok. For me, the important take away from this piece is how a small newsroom uses that planning to get the most out of every bit of media they create, not just for TikTok but for other platforms as well.

I had to check the date on this. In 2017, I wrote a report for the Reuters Institute about journalism formats that went beyond traditional storytelling, and VR was one of those formats. The New York Times gave away 1m Google Cardboard VR viewers that transformed your smartphone into a VR set, but to my knowledge, the NYT doesn’t produce VR content anymore. It fizzled. I’m not sure that we’re seeing a resurgence of VR storytelling from news orgs, but maybe the launch of Apple’s Vision Pro has publishers thinking again.

Onboarding: The science of building audience habits that create loyal subscribers

My last role was as the director of digital products and platforms at a public service broadcasting group in the US. For anyone familiar with public broadcasting in the US, most of any station’s revenue comes from members - viewers and listeners who pay whatever they want. When I was asked about our digital strategy, I said it was to build habit and loyalty that led to membership. The BBC has quantified the goal with its 552 strategy. The “BBC aims for audiences to use its services for at least five hours a week, across at least five days, and on at least two platforms on both traditional broadcast and digital products”, as outlined in the Digital BBC Report (PDF). This is all in keeping with research from the Medill Spiegel Research Center at Northwestern University. Researchers there analysed data from 106 newspapers in the US and found that regularity, more than pageviews or session duration, was most correlated with subscription purchase and retention.

Publishers and broadcasters are focused on developing regularity and relationships with audiences. Getting someone to register or subscribe is the start of a relationship, but media operators know that this is just the beginning. Onboarding has become a key activity to communicate the value of the registration or subscription, and it starts immediately. Christian Röpke, Chief Digital Officer of ZEIT Verlagsgruppe, told the WAN-IFRA Digital Media Europe conference last year about how the German publisher had to shift balance its focus on conversion with equal energy put into retention. They had launched a discounted subscription to convert more users but then struggled to move these new cut-rate subscribers to a full-cost plan. They found new subscribers weren’t engaging with content within the first 24 hours after they paid. Interestingly, they also found from qualitative research that new subscribers felt overwhelmed by the volume of content. Die Zeit rolled out an engagement score as part of their “First Day Subscription” strategy so that they could understand how well new subscribers were engaging with content to support retaining these.

Publishers are experimenting with a wide range of ways to communicate the value of a subscription to new subscribers and help them find things that interest them. You only have to look at The Economist’s new printed welcome pack to appreciate the breadth of these experiments. They had seen email open rates decline and felt that their “older and affluent” audience might respond to this high-touch offering. It complements rather than replaces their email onboarding series. By using an A/B test, they found that users who received the welcome pack were 3.5% more engaged.

If you want an in-depth case study of how to design an onboarding programme, David Tvrdon outlines the approach he took for Denník SME in Slovakia. A quick takeaway is that onboarding now starts immediately but goes on much longer. And it delivers. The subscribers who have gone through David’s onboarding programme have a 40% higher Customer Lifetime Value than the rest of the publishers’ digital subscribers.

David also demonstrates how important great user experience is. He started by revamping the group’s newsletter strategy and made sure that their news app engaged users.

He then mapped out all of the features that built habits and delivered value to users. Add them all, and then focus. For him, these are features that “bring immediate value to the subscribers” such as news apps with push notifications, a fast, responsive mobile web experience, paid newsletters and ad-free experiences. He added these into a 10-step onboarding experience.

And now onto our links for this week. With the unfolding crisis in local news in the US, a lot of energy and money is flowing into the system. Matt DeRienzo talks about how the future of local is small scale rather than the big groups that rose and now have fallen. To support these smaller organisations, they need support in building skills, capabilities and technology. This new de-centralised system will need new funding models.

Oddly, running counter to that shift to de-centralisation, the National Trust for Local News is working to rebuild the centralised services that have declined as the major chains’ models have failed.

Interesting. Researchers in the US have found audiences believe “that the news industry as a whole values profits above truth or public service”. People assumed that the ad model forced publishers to pursue large audiences rather than accurate reporting. Well, there were also study participants who believed that news organisations got paid off by the American Right’s bogeyman, George Soros. Sigh.

Research from FT Strategies has shown that publishers are more resilient if they have more than two revenue streams (although there is a law of diminishing returns with more than five or six). At Condé Nast’s Bon Appétit brand, they have moved beyond food with a range of adjacent products.

WordPress VIP has an excellent article on how publishers can adapt to Google’s algorithm changes this year. Publishers have been punished for site reputation abuse. Google’s “policy targets websites that host low-quality content created by third parties with little oversight”. I have seen this with sites that have syndication services to generate revenue. One publisher I advised saw their traffic drop by 60% overnight, and it was down to a low-quality syndication service.

One takeaway is that publishers need to lean into distinctive, high-quality, helpful content. The changes that Google has rolled out require changes in content strategy, not just technical solutions.

International developments: Aussie publisher shuts licenced US news brands and user needs process in India

Nine in Australia had pursued a strategy that I’ve seen a number of publishers pursue by licencing US brands. You’ll see that in the magazine, broadcasting and digital space. But Nine have now decided to shutter these US brands and focus on their own.

To have a successful subscription or membership strategy, publishers need to have a deep understanding of their audiences, and the user needs model has become one of the most widely used models to achieve this. It has helped them develop an app that has helped them build on their subscription success.

And I’ll add this interesting news item from India, where they are looking to develop a public AI platform.

Publishers should be more open with audiences about the financial crisis in journalism

The Reuters Institute's latest Digital News Report found that across 20 countries subscription growth has been stalled for the last three years at 17%, and they also found that 57% of people would never consider paying anything for news. Worse yet, in the UK, where I’m sitting right now, 69% would not pay anything for news, which is why the UK (8%) is dead last in terms out of the 20 countries when it comes to people who have paid for news in the past year. Ouch.

It reminded me of the research that I highlighted a few weeks ago research covering Chicago area news audiences from Northwestern University’s Medill School of Journalism, Media, Integrated Marketing Communications. In line with the Digital News Report, the Northwestern University study found that 19% of those surveyed had paid for or donated to a local news outlet and 16% paid money to a national outlet. And 51% of those surveyed said that no one should have to pay for news with another 29% saying that only those who could afford it should pay.

But it’s not all bad news. The Reuters Institute found that 36% of people would consider paying something for news if the price is right, and as INMA’s Greg Piechota pointed out, that creates the possibility to grow the paying audience across these 20 countries by 3.5x.

However, I want to make another point. For those who work or did work in journalism, this might seem impossible, but most people are not aware that journalism is in crisis financially. The Northwestern University research found that 71% of those surveyed “don’t know that the news business is in crisis”. More than half, 54% thought the local news businesses were doing somewhat well and 17% thought they were doing very well.

Maybe it is time to level with audiences about the financial pressures that our businesses are in before it’s too late. Poynter recently highlighted the case of LA Taco, a “food, culture and community” news outlet in Los Angeles that punched above its weight, enough to win a prestigious James Beard award, which honours chefs and food writing in the US. In April, they announced that they would have to furlough all of their staff because the bottom had dropped out of their business. LA Taco said that they had been doing OK with 2000 members but suddenly that number started dropping until they only had half that number. And then they lost their main advertiser.

But they had never done a membership drive, because as its editor-in-chief Javier Cabral told Poynter, they aren’t NPR. Some folks in the US refer to NPR pledge drives pejoratively as “beg-a-thons” so I took away from his comment that they felt uncomfortable asking. And they didn’t want to be a non-profit.

The crisis pushed the editors and staff to do an “emergency drive”, and they explained the situation to their community via social media. Within 24 hours, they had got enough support to hire back the furloughed workers, and now a couple of months later, they have 3000 members. It isn’t the 5000 members they think they need to be completely independent, but it’s a start.

My takeaway: Publishers and journalists need to get over their reluctance to talk about the dire straits journalism is in. When I was a local newspaper editor, I was honest and open in saying that to provide the kind of coverage our communities deserved I needed their help. I needed them to buy subscriptions, and I needed to work with them in partnership to fill in gaps in our staffing. That was a decade ago now, and the situation now is much, much more dire. It’s not easy. It does feel a bit like begging, but it is obvious that the public isn’t connecting the loss of coverage to the decline of journalism as a business.

Research backs this up, even in the UK where audiences are least likely to pay or even support paying. Last year, the Press Gazette highlighted City University research that compared four different types of paywall messaging with 815 people in the UK.

  1. ‘Normative messaging’ that emphasises their subscription would support “independent, inclusive and watchdog journalism”.

  2. A ‘price transparency’ message that spoke about the financial crisis in the industry.

  3. A ‘digital-specific’ message that focused on the value of the subscription such as exclusive content.

  4. A ‘social message’ about how the subscription would allow access for events and would make the subscriber a part of a community.

No single message worked, but a combination of the first two that focused on supporting independent journalism and a message about the dire financial situation of journalism performed the best. I know that this might prick at our pride, but research shows two things. People are not aware of how bad the crisis is, and they will respond to it in subscription or membership calls to action.

And now the links for this week.

GQ found that feeding the algorithm was not building a loyal audience, only people who came from social media, got that quick hit story and then promptly went back to whatever network they came from. They now look at where they can add to the conversation, add value. Their audience numbers are down but the total minutes spent with their content has rebounded in the past year.

Less is more. It really is, and data bears this out. This is yet another data point that reinforces that the FT’s strategy to reduce the content that they produce by 15% each year has something to it. It is more important that we deeply understand what audiences want and need rather than simply feeding the algorithms, chasing the same audience with the same commodity content.

A great article on how to engage with comments on TikTok. Honestly, this feels very much like what I used to do in the Naughties, when I read blogs and listened to podcasts to find sources. (I still remember when I tracked down a podcaster who had recorded their escape from a Hurricane Katrina-flooded New Orleans when I worked for the BBC.) People are talking about the issues that you cover on social media platforms. The value isn’t in simply clipping up their videos or embedding their comments. The value is in following up with them with an interview.

This week in AI content abuse

The next two items are about AI companies being accused by publishers of stealing their content. (Heck even Amazon is accusing Perplexity of scraping its content without permission.)

A couple of stories about the ongoing crisis in news - local and digital. Paramount shuttered MTV News in May 2023, and now they have taken down the website, pulling years of content from the web. I think back fondly to the excellent coverage that MTV News did of elections with their Rock the Vote campaigns. Sigh.

In its World Press Trends report 2022-23, WAN-IFRA highlighted how funding from settlements with platforms was going to be a growth area for news organisations in some countries. That’s coming to an end in Australia, and that could mean the closure of 50 regional newspapers.

But the Associated Press wants to support local news and not just with wire copy. The cooperative has set up a fund to help green news deserts. US funders have really got the bit between their teeth and putting serious cash behind efforts to address the crisis.

A new book looks at how “fewer people are seeing a life in news as a worthwhile career. This reflects a broader problem — namely, the ways that relentless economic pressures are pushing people away from socially important careers.”

A call for media companies to invest in culture to make up for the lack of competitive pay. “By prioritising culture, career development, work-life balance, and meaningful recognition, media companies can build and retain effective teams that are happier in the workplace.”