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OPEN ACCESS TO LEADING EDGE IDEAS | FRAMEWORKS | TOOLS The Media Issue Contents

SHORTER SPECIALS

2 Editorial Alexa, write my editorial

4 The Future of Media Perspectives on new media, traditional media and what it all looks like in the future.

8 Shorts Numbers, comments, stats and stories.

10 Horse’s Mouth Spark’s Sarah Williams on the brand’s evolution into media.

LONGER

14 The Sweet Spot Between Idiot and Expert Simon Bird takes an academic look at the hype surrounding emerging technologies.

25 What does it mean to be a New Zealander in 2020? True’s Janisa Parag on the “new New 27 The Hot List Zealand”; what’s changed, what it We, and the people, pick the best of the bunch in New Zealand’s media industry. means for businesses and brands, and what New Zealand looks like.

FEATURES

17 Follow the Money With newspaper ad spend on the way down, Erin McKenzie explores the different models local news media companies are using to fund journalism.

80 Big, beautiful branding: is the high-end TVC a relic of the past? Has digital made the TVC a thing of the past? Jonathan Cotton takes a look 5 4 Media Momentum at the value in beautiful high-end Who is winning the war for the consumer’s mind? NZ Marketing analyses and productions. critiques the channels. Editorial “because of the explosive power of exponential growth, the twenty-first century will be equivalent to 20,000 years of progress at today’s rate of change” (that topic is explored further in The Influence of Editor Erin McKenzie the Age of Acceleration feature on page 64). [email protected] ALEXA, Two notable changes identified in the Media 027 339 9531

Momentum section are the development of Staff Writers Magazine 360 and ThinkTV – a platform and Georgina Harris industry body, respectively, to promote the broader [email protected] WRITE MY 022 043 4109 reach and enduring resonance of magazines and TV. Both now have significant digital audiences, as Findlay Buchanan ﬁ[email protected] EDITORIAL do newspapers – although they are all hoping for 021 117 4262 more significant digital revenue, the vast majority Commercial Manager of which goes to Facebook and Google. Vernene Medcalf Sitting down to write To look at what publishers are doing to make [email protected] 09 966 0998 or 021 628 200 this piece and reflect up for the loss of ad revenue, I had the privilege of on what you’ll find in talking to some of the industry’s top editors and Design the following pages is a executives. There were a range of different species Wade Wu loaded task for me. This of money tree growing in newsrooms, but there Editorial Director/Publisher issue paints a picture was optimism from all and, as Follow the Money Ben Fahy [email protected] of the changes and on page 17 explains, journalism is as important as 021 245 4894 challenges I face as a it’s ever been – and possibly even more important. Erin McKenzie Retail & Subscriptions Manager journalist today, as well I wish I’d had that experience when I was at Monique Bulman Editor as what they, and the university completing my communications degree. [email protected] environment in which I will be working, look like in For those of us in the journalism major, we were told ICG Managing Director the job outlook wasn’t promising and I’d be lying Dave Atkins the future. In my nearly three years at NZ Marketing 021 781 002 and StopPress I’ve learnt that things never stand if I said there wasn’t some temptation to ditch the [email protected] still and the stories in this magazine are further journalism lecture for the neighbouring PR lecture. ICG Print proof of that. Now, seeing what’s come out of local newsrooms David Ashton But while New Zealand’s media industry is busy in the past year, I’m pleased I stuck with it. Stuff’s 021 951 403 finding ways to navigate its way through change, we ‘The Valley’ used VR to transport me to Baghak in Contact thought it was time to take a moment to celebrate, Afghanistan to learn what went down in 2012 when NZ Marketing is published by ICG Media assess and analyse the current climate. two New Zealand soldiers died in battle. I’ve also 19 Lyon Ave We’ve brought back the Hot List, alongside an listened to many podcasts and debated David Bain’s PO Box 77027, examination of the state of all things media, and innocence along the way (thanks for that, Black Mt Albert, Auckland 1350 09 966 0998, 09 360 5702 (fax) no better is it summed up than in the meeting we Hands) and watched NZ Marketing publisher Ben www.icg.co.nz had to decide on our cover. Fahy pop out of an AR Idealog cover. Subscribe to NZ Marketing via stoppress.co.nz, “Let’s put media on the cover,” we said. All went Maybe that’s how I’ll next present my editorial, at www.tangiblemedia.co.nz/product/nz- quiet. What does “media” look like, exactly? For or maybe instead of typing it I’ll speak it and let a marketing, by calling 0800 782 347 or emailing [email protected] inspiration I took to Google Images. That was no computer programme transcribe and craft it for me. help, unless we wanted a stock image brainstorm of There’s even Crystal, an app that analyses your past Distribution Gordon & Gotch Twitter, Facebook and YouTube logos. But that in writing to suggest how to sound more like yourself – itself was revealing. The three logos dominated the and resonate better with your audience. Printing search responses, with a newspaper (on an iPad) not There are so many options in media these days; Image Centre NZ Marketing is printed using vegetable appearing until a few lines down. A further scroll got so many ways to interact with and engage humans. or soy-based inks. Paper supplied by BJ me a print copy. It was then I saw a TV and a radio This can also be seen across the pages of the Hot List, Ball using wood from sustainable, well- managed forests. mic, but I stopped scrolling before I saw a magazine. a curation of the best thinkers, creators, products If it was up to Google’s algorithm, it would and businesses in media. Our annual celebration Copyright NZ Marketing is subject to appear new media has over-taken traditional of the industry shines a light on those innovating copyright in its entirety. The contents media. But is that the reality? The Media and excelling in their field and a theme in this year’s may not be copied without written permission from its owners. All Momentum section explores this, with the major spread is gaming and the rise of eSports. material sent to NZ Marketing will channels dissected to see how they are evolving Watch this space as the huge numbers of gaming be deemed to be publishable unless and how advertisers are using them. It’s a follow fans tune in to make it a prime opportunity for marked ‘not for publication’. NZ Marketing invites contributions up from the Media Momentum Index we wrote in brands to get involved. And looking at the money but takes no responsibility for 2016. So have things changed that much? to be made as a player/broadcaster – $US500,000 a unsolicited material. Possibly not. As the old adage goes, change month if Fortnite streamer Ninja is anything to go ISSN 0111 9044 is over-estimated in the short-term and under- by – it might not be comms that journalists should be estimated in the long-term. But, according to thinking about if they’re looking for a career change. Ray Kurzweil, director of engineering at Google, Admit it, you’re thinking it too. Plan smarter with Calibre, the ground- Buy smarter with our extensive national breaking audience measurement tool network, connecting your brand with developed by APN Outdoor. audiences at scale. That’s ‘smarter impact’.

ALISTAIR JAMISON CHIEF EXECUTIVE STARCOM MEDIAVEST GROUP People are accustomed to paying to remove the ads with services like Netﬂix and Spotify. Will ads just become a tax on the poor? Will free-to- air TV still exist in 10 years? I think the first thing I would say (politely) is that I am not is that they would prefer to avoid ads, but I don’t think the entirely sure this hypothesis is right. I don’t think that in the primary driver for uptake of any of the ‘new’ distribution case of Netflix people are paying to remove ads. I think they are services is ad avoidance…it’s all content driven. paying for access to what they perceive to be quality content So coming to your question, will free-to-air TV still exist? and it just happens to be a by-product that is delivered without I think it will still exist and there will still be a need for ad- ads. In the case of Spotify, I again think people are paying for funded content to be available. It will continue to evolve and access to content in a format they want it, not to avoid what is in the delivery mechanisms will change but I think free-to-air reality a pretty light load of advertising. will exist. Granted what we consider free-to-air today may look Conversely I think there are also examples where consumers different and I suspect the FTA broadcasters will have elements pay for content and accept it comes with ads (i.e Sky). of the pay model in their businesses, but some content will be That is not to say that I don’t think the consumer mindset available free-to-air.

4 | STOPPRESS.CO.NZ | The Media Issue 2018 SEAN MCCREADY CO-FOUNDER & OWNER MBM RICHARD THOMPSON Can Sky survive without sport? FUTURE STATE CONSULTING Unfortunately the answer is probably not. Live sport is PARTNER AT FUTURE STATE Sky’s unique content offering. It’s the programming that CONSULTING NZ can’t be easily replicated or substituted. In fact, the question really is, can Sky survive without rugby? The top 30 Sky programmes in 2018 for the all Will there be a consumer important 25-54 demo are mostly Super Rugby with a few cricket and Warriors games to make up the numbers. uprising against data So the crucial contract for Sky is the Sanzaar rights that collection and targeted expire in 202o and covers Super Rugby and The Rugby Championship. This deal is much more important than the advertising and a plateauing of Rugby World Cup rights. Regular, ongoing competitions like Super Rugby and digital media? Or is it just too NRL are the backbone of Sky’s offering. Sky needs a strong Super Rugby competition which in recent years convenient and ubiquitous? has lost some appeal with the expansion to new teams It’s fair to say that digital media is facing some significant (from Argentina and Japan). It is only held up by the New teenage angst at the moment. However, most of the Zealand teams performing exceptionally (aside from the current issues are growing pains for a relatively immature Blues) and great local derbies. The Super Rugby format industry. As these issues are addressed, we will see is weird with a month-long break before the semi-finals renewed momentum with a better, more transparent when the All Blacks play a touring side. And now there’s model for both consumers and advertisers. talk about South African sides potentially leaving Super We all have a right to know how our personal data Rugby to play in a European competition. Super Rugby is being used and clearly the global digital players have has a few problems. overstepped the mark in areas here. The new GDPR So sport is less substitutable than other content. An All regulations in Europe have started to address the Blacks fan needs to see them live and won’t get the same data issue and will over time begin to rebuild trust for buzz watching a different sport instead. However, a person consumers. If we understand how our personal data is that likes HBO drama Westworld could probably live being collected, how it’s being used and can see value in without it and watch a plethora of other great dramas or return then we can move forward with confidence. find a way to watch it illegally. Non-live sports content is Digital media continues to have the ability to strip away just not as sticky, and without a monopoly on key sports, audience wastage and provide advertisers with the right Sky ends up competing on general programming where audiences more accurately and cost-efficiently than ever Netflix and Amazon offer consumers amazing value. before. Consequently, the foundations remain strong and Sky profits remain strong and they are effectively the it will continue to grow as the dominant channel for both only local broadcaster making significant money out of TV. consumers and advertisers. However, the latest results were on the back of cost control rather than subscriber revenue growth, and the trend is more people moving to online subscription services, primarily Netflix. There’s tough times ahead and sports rights remain the profit engine for now.

The Agency Issue 2018 | STOPPRESS.CO.NZ | 5 Shorts

communications done enough to ensure we really, truly NICKY GREVILLE understand the new digital world? Have we been through a GENERAL MANAGER massive unlearn; the process whereby we forget everything we Y&R ENGAGE thought we knew to take on a new way of looking at the world? Do we understand the language, the technology, the systematic ways of operating and thinking? And are those of us that are privileged enough to be in What’s keeping you up at night? leadership positions, ensuring that this new way of operating is The massive unlearn. being taught from the ground up; are our universities and schools I’m sure we’ve all seen the alarming stats about automation and on board? Will the pipeline of people coming to our industries job loss, the numerous articles that outline which demographics continue as almost anything becomes accessible to digital natives? will suffer the most and those that will become indispensable to I’ve always loved that our roles in media involve rethinking businesses of the future. Coupled with ongoing global discourse every communications option on a daily basis and I know that around transparency, brand safety, GDPR and more, what keeps the majority of the broader industry agree. However, I wonder if me up is the question; are we unlearning quickly enough? each and every one of us is aware of just how much we need to do By this I mean has our wider industry of marketing and differently to tackle our digital futures.

RICHARD LAST STUART RUTHERFORD DIRECTOR OF SPORT MANAGING DIRECTOR SKY ZENITH NEW ZEALAND Will live gaming become a Could concerns over too much major sporting event - both in tech see advertisers move their real life and as broadcasts - in spend back to print? the next ﬁve years? Despite some growing industry speculation about a slowing of digital advertising budgets, I see no evidence Yes, I believe so. that advertisers are shifting budgets away from online. By About a year ago, I started to read the Bleacher Report contrast, its share of global advertising expenditure continues articles around eSports. It was obviously growing, had a to rapidly rise, forecasted to hit 44.6 percent of global ad huge audience and big money was starting to flow in terms spend by 2020. The concerns we have seen from large FMCG of sponsorship and live events. multinationals and others relating to brand safety and Many of the opportunities offered by eSports are online corporate responsibility are valid and yet they simply will and international in their scope. However, as the number not stop the tech and digital juggernaut, and we certainly of people enjoying gaming continues to grow, it is starting will not see them shifting large spend back into traditional to pull in a more mainstream audience. With local content print channels. Advertisers’ progressive use of data, tech being produced for Sky by Let’s Play Live here in New and digital insight within the consumer journey has been Zealand and our international partners such as FIFA and proven to link brand experience with brand growth. And yet F1 running their own eSports competitions, the sport will while tech and digital players continue to provide more data only continue to grow online and on Sky Sport. and audience targeting than we know what to with, a trend At the end of the day, Kiwis still like to watch over the last couple of years has seen brands use digital in themselves compete no matter what the activity – rugby, a more traditional balanced manner, e.g. a shift within the dancing, cooking and now… eSports. likes of Facebook to reach and frequency to gain broad reach alongside highly targeted buying.

6 | STOPPRESS.CO.NZ | The Media Issue 2018 FLEUR SKINNER GENERAL MANAGER MKTG Inﬂuencers. Are they all they’re cracked up to be? And what needs to happen for them to become more legit?

Personally, I believe the hype. The influencer marketplace is growing exponentially in New Zealand and around the world; Analysys International has projected the Chinese influencer economy alone will be worth over $15.5 billion this year. In terms of legitimacy, I think great strides have been made. Helpfully, the Advertising Standards Authority has made it very clear that paid endorsement requires disclosure. What we’ll see next is influencers looking to maintain their own brand value by selling ‘access’ less frequently; they will look for natural affiliations and long-term partnerships. And they will start making and marketing their own products.

SAMANTHA OSBORNE MANAGING DIRECTOR MINDSHARE How will voice technology change the way information is served up? And how will advertisers use it? Will this trend render display advertising obsolete and make it even harder for media to make money?

We stand on the cusp of a fundamental shift in how we relate to A key challenge in a world intermediated by voice computers. Over the past 50 years, we have been on a journey assistants will be ensuring your brand or content is that has simplified our modes of interaction, from punch chosen by the assistant. Algorithm optimisation will cards to keyboard, mouse and then touch. Each step has made become the new SEO engagement with technology simpler and more natural, leading As voice capabilities spread to new contexts, brands us to perhaps the simplest and most natural interaction mode of should consider adding voice interactivity to their all—voice. touchpoints Voice has been given further impetus by the ambitions of Brands that develop truly useful content have a great GAFA (Google, Amazon, Facebook, Apple) to control their opportunity to engage in direct communication with own consumer platforms. Just as Google bought Android their consumers so it would have some control of mobile as a platform, so Speaking directly to a brand appears to strengthen Amazon developed Echo and Alexa to retain influence over the emotional relationships. Brands have a great development of voice and its impact on search and shopping. opportunity to define their own voice It seems unlikely that the interruptive model of paid advertising will translate easily to voice. Since a primary Although we are moving to more human interactions with expectation for using voice is a more streamlined experience, technology, voice vs the physical click, the role of display the insertion of paid-for ads directly into a conversation with an advertising is still important in the ecosystem of a brand – assistant will jar. visual recognition of a brand or message is still one of the key benefits we have as humans. What will become apparent very With the interruptive ad model in question, brands should quickly is how brands (and therefore their advisors) work consider the following opportunities if they want a share in the with the technology players to develop natural integration, and significant forecast of sales (predicted) to be driven by digital therefore show their worth. assistants:

The Media Issue 2018 | STOPPRESS.CO.NZ | 7 Shorts By the STOPPRESS COMMENTS STOPPRESS numbers The best of Top five stories in April – May $2.561 billion the bunch The Hot List 2018: Vote for the media of advertising revenue was 1 generated across all main In May, McDonald’s took industry’s best thinkers, creators and products media in 2017. on one of the challenges of today’s connected world, with TWG and OMG: The Warehouse Group 2 a touching spot by DDB about appoints Omnicom Media Group as its 21 pencils a grandfather spending time single media agency with his grandchildren. The is the number of pencils brand campaign followed DDB picks up Warehouse Stationery account picked up by New Zealand 2017’s ‘Middle Seat’ and 3 agencies at D&AD 2018, StopPress readers were quick including two yellow. to share praise and some Radio results: The Edge bounces back, The constructive criticism. 4 Breeze blows up and Newstalk ZB refuses to 3 million “That’s the spirit guys. Just be knocked down keep pandering. Pat each other New Zealanders tuned on the back, tell the client you Josh Moore to step down as CEO/CCO in to watch TVNZ’s really helped bring a tired old 5 Commonwealth Games brand into lives of real people in of Y&R coverage. an authentic and relevant way. A way which likens the brand to the good old simple values of DATA DUMP $244.5 million the kiwi way of life. Then watch of revenue from as we all forget it. Because, You’re serving up ads but do people want to see them and are they interactive advertising while the spot is certainly paying attention? TVNZ’s latest Forecast Study examines how watchable, it is entirely open audiences are to watching ads on diferent platforms. was reached in the first forgettable. Technology is evil. quarter of 2018. Outdoors are good. Burgers and Very open Quite open Not very open Not open at all fries are wholesome.” 100% - 12 57 564432 31 26 20 80 percent % % % % 22 % 16 % A REAL PERSON 27 25 % % % of New Zealanders listen % 45 to commercial radio “Give up the evils of technology. % 80% according to GfK’s first Try some fast food.” 32 % - 40 survey of 2018. % GOOD POINT 43 45 % % 60% “What a great observation of 63,714 modern culture and our kids’ New Zealanders’ data infatuation with phones and 48 was potentially exposed screens and social media. % 40% 33 in the Cambridge But they manage to get the % Analytica scandal. message across with charm 34 % rather than a pointed finger. 27 Really nice ad, better than the 20% 23 % girl in the backseat because it % $5.7 million has a proper point of view.” 10 was MediaWorks’ net loss - % after tax according to its RESPECT 0% financial results for 2017. Broadcast TVNZ Recorded Paid TV / YouTube TV OnDemand TV Video content

8 | STOPPRESS.CO.NZ | The Media Issue 2018 Source: TVNZ’s Forecast Study in partnership with Colmar Brunton

On how Spark sees itself SARAH: The way I see it is we are not just a provider of broadband, landline and mobile services anymore. That’s our foundation and we will absolutely continue to do that as well, but we also want to be in a position where we can provide great entertainment and services over the connectivity we provide, and both of those examples are extensions of that.

On its investment in music SARAH: The investment in music is a big focus for Spark and something we know our customers really love and value – it’s really central to emotional moments of connection that we share with loved ones. Bringing Spark mobile and Spotify together fuses music and technology, which is really important as technology is SARAH WILLIAMS our core offering. We focus on using technology to bring customers closer to amazing music experiences. We also work really closely with Live Nation and some Spark of the labels to deliver exclusive customer opportunities and they come in the form of meet and greets, private In the wake of Spark securing the rights concerts and live streaming of events. to bring New Zealanders the Rugby World I think the reason we do this is we believe we really Cup 2019 with TVNZ, head of brand, need to earn the privilege of being in a space like music communications and experience Sarah that our customers really care about. That means you can’t just benefit from the music industry, you’ve also got Williams fills us in how the telco has to be very much in there and supporting it as well. evolved into more than a broadband, landline and mobile services provider On creating Spark Arena through its investments in music, SARAH: It was an interesting one for us. As an iconic Kiwi brand, we were really excited to partner with what we saw entertainment, video and customer as being an iconic Kiwi music venue – it’s a great way for experiences. us to show our commitment to the music industry. We’re really proud to have our name on the side of that venue but also our technology inside it, starting with the free WiFi for all visitors. We are looking to do even more in that space with the launch of things like the customer space that Spark customers can get access to.

On winning the Rugby World Cup rights with TVNZ SARAH: Winning the Rugby World Cup rights is definitely an extension of our goal to provide New Zealanders with the best entertainment - we know how much Kiwis love 10 | STOPPRESS.CO.NZ | The Media Issue 2018 their sport so it’s very much a natural expansion for us. Spark is going to be offering New Zealanders a choice On standing out in the market about which games they watch, how they watch them, SARAH: Differentiation is great, that’s what we seek to and where or when they watch them. get. You can start to see other traditional telcos and Options will include everything from full tournament media companies are looking to change things as well as passes and passes for individual games, and there will be in other sectors, like energy. packages we will find out about in due time. You start to see a lot more the line between how a You won’t have to be a Spark customer to watch the traditional media company is being eroded in all kinds of World Cup, we will be streaming games over an app which directions and I guess an example is Facebook – is it a will be available to all New Zealanders and compatible channel or a media company? I’m not sure we can make with a range of devices. those clear distinctions any more. What it allows us to provide is a lot more flexibility in For me it makes it more critical to be a liked and terms of people being able to turn up and watch what trusted brand so you have more chance of being accepted they want and when they want to watch it, as opposed to with these new offerings. falling in line with one person’s idea of programming. Watch this space for more to come. On translating the journey in its marketing SARAH: We have a three layered approach to what we do On ofering both Netflix and Lightbox which all springboards off our ‘Little Can Be Huge’ brand SARAH: We see the two services as very much platform. complimentary in that both offer exclusive content. The first layer of what we do is around storytelling I think the days are long gone where we can chose one around emotional moments, while the second layer is way to watch content or even one platform to watch it on. around creating amazing brand experiences through These days many people subscribe to a real range of technology, and the third and final layer is around winning different entertainment services and I think the reality is the battle ground - which is where our core offering really that no one content provider can capture all the content comes into play. available today. What you can see from our partnership and By bringing Netflix and Lightbox under the same roof, entertainment activity is that our marketing extends we are trying to make it easier for our customers to across all three of those layers. For example, for access the content that they really want to watch and emotional storytelling the ‘Little Can Be Huge’ campaign when they want to watch it. sees an older couple dancing to the Spotify music and taking themselves back in time, and when you move into On partnering up brand experience it’s things like the arena. More recently SARAH: When any company wants to extend into new we were doing a disco light up dance floor with Spotify at areas of business they have the choice to build, buy or the Bright Nights Festival. partner. In our case, we are moving away from being a Then you get into the third layer, which is what we call traditional provider of telephone lines and broadband ‘winning the battleground’. It’s where it all comes together connection alone to becoming a business that brings new in terms of comms that give you the reason to be with Zealanders the best content in the world and as a result, Spark - with Netflix, Spotify and our other partners. we’ve decided to partner with some of the best entertainment brands in the world. On its audience It’s a real win-win for us and the partner. We get to SARAH: We certainly are a big company with a diverse have a much deeper relationship with our customers and range of offerings right through, from our landline the partner also gets to have a deeper relationship with customers to the very early adopters who are picking up the local New Zealand market, especially when you are all of our new partnerships. We have to reflect what New partnering with these bigger offshore brands – Spotify is Zealand is because that’s the brand we are. a really good example of this. On listening to that audience On making the commitment SARAH: It’s hugely important. Nothing that we do is for SARAH: I don’t know plain sailing ever exists in the Spark alone, it’s got to be for a customer outcome so you world we live in. I think when you go into partnership with have to go into these things knowing ideally what it is these other brands you have to go in knowing that there customers are looking for. are always going to be bumps in the road and there are You monitor in many ways – whether that’s through always going to be points of negotiation, but you go into it research, through connections or who is signing up for as a partner. these things – and that gives you a fairly good indication If you are committed to a long-term partnership, then of whether you are hitting the right marks or not. We are you find your way around these things and I think we’ve in constant contact with our customers and we are been really successful in that we’ve committed to some constantly looking to improve so we bring them into our really big and some long-term partnerships which are conversation regularly and as early as we can. really paying off for Spark customers. The Media Issue 2018 | STOPPRESS.CO.NZ | 11 Bragging isn’t a Kiwi Cultural Code. So here are some okay-ish ads.

Over 10 years ago, give or take a chat or two, we came up with the original ‘New Zealand Cultural Codes’- a set of values that help define our Kiwi identity. Understand the Codes and you understand how to connect with a nation. While we’d love to take all the credit, the Codes were developed with help from internationally-renowned cultural anthropologists. Since then they’ve been repeatedly tested and evolved by FCB. Critically, we’ve refined our theory through the constant practise that comes with creating New Zealand’s most popular advertising. Okay, cards on the table, a lot of agencies are banging on about culture these days. We welcome them to the party. We already know that the real power of the Codes comes from understanding the changing tensions behind them. Kiwis’ deepest feelings of identity are the result of a constant battle between cultural myths and ever-changing reality. FCB has used this insight to help create advertising and brands that resonate with Kiwis, and to become New Zealand’s most effective advertising agency*. From social media campaigns to online video and television advertising, understanding the New Zealand Cultural Codes continues to give our clients an unfair advantage. Sorry, we’re getting a bit braggy again. For a formal apology, and to find out more from the Cultural Code experts, contact our Chief Brand Officer, David Thomason at [email protected].

*Agency of the Year at the 2017 NZ Ei e Awards FCB2252/NZMM

Opinion

many technologies are simply flashes in the innovation pan so to speak (like the THE SWEET SPOT ones mentioned above, although truth verification sounds like it may have caught on if it was launched now) and a BETWEEN IDIOT good few other technologies are constant presences in the Hype Cycle because their mainstream adoption continues to get AND EXPERT…. further into the future each year rather than closer e.g. quantum computing and brain/machine interfaces. We’ve all read various articles and heard chatter about the Obviously the world of marketing movement of agency services going ‘in-house’, moving into and advertising is becoming increasingly more technology based. If all the experts a consulting ﬁrm and/or being automated. Some of these at Gartner keep making considerable changes are obviously justiﬁed but there’s some evidence errors in their predictions about that companies that move agency functions out of agencies technology and its uptake, what hope may well end up producing worse work rather than better does our industry have with a lot less technological expertise at our fingertips? work. According to Simon Bird, it suggests there’s a sweet Well, it turns out that there is good spot somewhere between idiot and global expert where reason to be hopeful; sometimes knowing open mindedness and curiosity is maximised. less than the leading experts can actually be a good thing, as long as it’s not too much less. This sweet spot of knowledge creates just the right amount of doubt You may be familiar with the Gartner over the years that there have been in a point of view, which in turn helps Hype Cycle, if only for the humorously more than a few technologies that turned create more open-mindedness to cynical and philosophical names of out to be far more hype than help and possible future outcomes and thereby the various stages, such as “the peak ended up slipping right off the cycle - results in better predictions than the of inflated expectations”, “the trough truth verification (2004), 3D TV (2010), aforementioned experts. of disillusionment”, and “the slope of social TV (from 2011), Volumetric and It’s based on the Dunning-Kruger enlightenment”, names that sound holographic displays (2012), to name Effect, which is more commonly used to more like chapters in a new Tony but a few. explain why people with limited talent Robbins book than those of a technology As Michael Mullany says in his article manage to be so overconfident i.e. people classification chart. about this subject from December 2016, at Karaoke who think they can sing The Hype Cycle is now over 20 years the tech industry (like most industries) like rock stars but sound tone deaf. It’s old. Given this time frame largely covers is not very good at making predictions essentially an ignorance bias whereby the entire rise of digital marketing, taking and also not good at looking backwards people with limited knowledge don’t a little wander down innovation history after the fact to see what it got right and know enough to know what they don’t lane is rather informative. It turns out not what it didn’t. know. It’s commonly represented by the so many technologies have progressed This is no slight against the tech neighbouring graph. smoothly along the adoption journey. industry, almost all industries fall into Apart from the initial burst of Aside from some now outdated this type of thinking - something Nasim confidence from the ignorant, which language, the first Hype Cycle from Taleb pointed out some years ago in his notably is at a level even an expert fails 1995 actually looks like a pretty good book The Black Swan. For reasons of to ever attain, the chart makes intuitive prediction of tech adoption. Emergent cognitive efficiency humans are rather sense, as we learn more we become less Computation is, apparently, a forefather lazy thinkers, so we tend to remember confident (know what we don’t know) to neural network-based machine the easy to recall successful predictions until we approach expert level and learning, so whilst the terminology might and conveniently, mostly subconsciously, become increasingly confident (know seem unfamiliar, the technology is still we forget the hard to recall failures. This, that we know). very relevant in 2018 in areas such as of course, creates a terribly inaccurate However, whilst confidence amongst machine learning. feedback loop. experts is clearly more desirable than But looking a little more closely at the Mullany also goes on to mention a confidence amongst idiots, it still many Hype Cycles since 1995, it’s clear couple of other reasons why there are remains problematic, an area Berkeley so few technologies that flow nicely psychologist Philip Tetlock studied 14 | STOPPRESS.CO.NZ | The Media Iss ue 2018 through the technology adoption cycle; extensively in the early 2000s. FIRST HYPE CYCLE FOR EMERGING TECHNOLOGIES, 1995 Source: Gartner (2005)

FLATED IN E F X O P K E A C T Visibility E Intelligent A P T

Agents I O

Information S Superhighway

T VITY U OF PRODUCTI R A R Virtual Reality LATE E O P G T U N G E I G ENM R HT Wireless H NLIG Knowledge-based T E O F Y E O Systems G Communication F OP SL O Video D Speech L I T O S EN Recognition Conferencing M N I L SION H LU C Object-oriented E T Programming Emergent Handwriting Recognition Computation Recommended adoption Type A Type B Type C time frame*

* The recommended adoption time frame may be swayed in either direction for a technology with a particularly high or low level of potential Time impact within an organisation. For example, a Type B company may wait until the Plateau of Productivity to invest in a technology that will result in only marginal eciency improvements. On the other hand, a Type C company may be prepared to weather some of the learning experiences of the Slope of Enlightment for a technology that will have a major impact on its core business processes.

DUNNING-KRUGER EFFECTS

Source: Unskilled and unaware of it:

100% how diculties in recognizing one's own incompetence lead to inﬂated self- assessments. Kruger, J. & Dunning, D. (1991) 0%

None Experience Expert Opinion

He recruited 284 people who made our clients’ businesses. We know less the developments of the past few years their living providing expert predictions about each individual area than a single as having occurred in 'computational in the areas of politics and economics, i.e. discipline expert or global authority statistics' rather than in AI” - Patrick human behavior, and had them answer but our ‘expertise’ is in blending our Winston, professor of AI and computer various questions along the lines of ‘Will working knowledge of each area together. science at MIT. Canada break up?’ or ‘Will the US go to In today’s world this positioning is "Neural nets are just thoughtless war in the Persian Gulf?’ etc. In all, he invaluable and not one easily copied by a fuzzy pattern recognisers, and as useful collected over 82,000 expert predictions. tech firm, a consulting firm or by clients as fuzzy pattern recognisers can be” - His results are in some respects the themselves – they’re all deep experts in Geoffrey Hinton, cognitive psychologist inverse shape of the Dunning-Kruger their own fields making them less open- and computer scientist Google / chart. Knowing something about a minded toward non-typical outcomes or University of Toronto. subject definitely improves the reliability new ideas and innovations. “The claims that we will go from of a prediction, however, beyond a certain However, this is perhaps a position one million grounds and maintenance point knowing more seems to make we have not always employed as well workers in the U.S. to only 50,000 in 10 predictions less reliable. as we could. Whilst Gartner has clearly to 20 years, because robots will take over To quote Tetlock himself “we reach the over-hyped more than a few technologies, those jobs are ludicrous. point of diminishing marginal predictive the world of marketing and advertising "How many robots are currently returns for knowledge disconcertingly has also been responsible for a number operational in those jobs? Zero. quickly, in this age of hyperspecialisation of unnecessary websites, (my personal How many realistic demonstrations there is no reason for supposing that favourite is still bidforsurgery.com) apps have there been of robots working in contributors to top academic journals and VR/AR games. this arena? Zero.” - Rodney Brooks – distinguished political scientists, That isn’t to say there haven’t been Australian roboticist, Fellow of the area study specialists, economists and some fantastic applications of these Australian Academy of Science and so on – are any better than journalists technologies, more that we haven’t former Panasonic Professor of Robotics or attentive readers of respected always responsibly applied our at MIT. publications, such as the New York ‘reasonably knowledgeable’ positioning. None of this is to suggest that we Times, in ‘reading’ emerging situations”. This sweet spot of open-mindedness and should stop using AI or employing the He also concluded that in many knowledge should allow us to be better at latest technologies, just that to exploit the situations, the more famous or expert the putting new technology into context than ‘reasonably knowledgeable’ position we person doing the predicting was, the less tech companies whose experts typically must be balanced in our assessment of accurate the prediction. place too much importance on their own new innovations. The key issue being the expert’s area of specialty. But to maximise our The open-mindedness and objectivity knowledge and expertise combined position we need to stop using technology of sitting in the middle of the idiots and with their high level of confidence because it’s new or because it makes us experts is a place that is only becoming prevents them from entertaining less appear innovative. ever more valuable as the world gets likely but still highly possible outcomes. Our most current industry obsession more complex and filled with more Their expertise leads them to become seems to be AI, which incidentally brilliant, but close minded, experts. The somewhat close-minded; they drink Gartner currently has at the top of the great thing for us is that it’s not a position their own Kool Aid so to speak. Whereas peak of inflated expectation. Many of that is easily copied and if we exploit it the merely knowledgeable, who are the headlines talk about AI taking jobs, well it should help us compete against less confident in themselves and their killing brands, taking over marketing, consulting firms, client ‘in-housing’ and predictions, are far more likely to making ads and getting smarter than us some areas of automation. assess alternative outcomes, thus and becoming existentially dangerous. And at the very least it should making their view points and predictions To be fair, it is doing some amazing help us avoid sounding ludicrous, more accurate. things both in terms of marketing and something that is going to be rather This position of knowing a reasonable other areas of life, real-time language tricky when we start talking about amount is the natural place for agencies. translation and cancer spotting to name smart dust, the most recent entrant in Our ‘expertise’ is more an accumulation just two (it’s also obviously worthwhile the latest Gartner Hype Cycle. of many areas, none of which we are thinking about avoiding being wiped out specifically expert in. We know a fair bit by our own inventions). However, about human behaviour, a fair bit about to avoid misapplying new technology marketing, a fair bit about technology, in some of the ways we have in the past a fair bit about media channels and we must balance the above headlines popular culture and a fair bit about with some less dramatic points of view such as; Simon Bird is PHD’s strategy director. 16 | STOPPRESS.CO.NZ | The Media Issue 2018 “It would be more helpful to describe New Zealand, Monday, June 25, 2018. No 1, Vol 1. Price $12 FOLLOW P17. Bad news P18. Build a wall and make THE MONEY them pay for it P18. Selling the sausage, not the sizzle P19. Domination stations P20. Sponsors - a moral dilemma P21. Get up, stand up P22. Merger she wrote P23. Filling the gap P24. New revenue P24. Combine and conquer P24. he new newsrooms

P18. Pulling down the wall P20. Journalism has a PR problem P23. The $15 million question

Follow the money. It’s an axiom that the accuracy, fairness and truth of journalism is is under more stress than ever? Looking at journalists have believed in for years and in even higher demand at the moment as some some of the employment numbers, it’s clear: a guiding light when it comes to holding of those in power pull at the strings of what according to census data, 1,170 New Zealanders the powerful to account. But that phrase seems to be an increasingly fragile democracy. worked in print, radio and television journalism is increasingly pertinent to those who run TVNZ head of news and current affairs in 2013, down from 2,214 in 2006. media businesses. As advertising money John Gillespie says more so than ever, anyone And while most understand the need flows away from traditional channels towards can assume the mantle of a journalist, but for journalism, the problem is that no-one’s large tech firms, the old business model of making sure the writing is truthful, correct and entirely sure where the money is coming selling space around the news is creaking. fair is a skill that tends to go by the wayside from to fund it. And that has led to a range of experiments from individuals who are not professionals. from publishers and broadcasters hoping Some comfort, however, can be found in to keep the lights on – and to keep shining News Works’ Trust in Media research with those lights into dark places. Erin McKenzie Colmar Brunton. The 2017 study examined dives into the local news media feed and how consumer trust in media has evolved with finds plenty of experiments, but no simple the digital media landscape and news media answer to the funding conundrum. came out on top. When 600 respondents BAD NEWS were asked to indicate how much they trust Earlier this year, Standard Media Index (SMI) We live in an information-rich society. At the the news and information from digital media released the 2017 agency ad spend in New press of a button, a click of the mouse or the channels, news media websites/apps got 84 Zealand showing positive growth totaling flick of a page comes a wealth of local and percent followed by Google’s 81 percent. a record $1.04 billion was spent on major international news and current affairs. On the TV website/TV apps got 77 percent while media across the country. flip side, as we’ve seen with recent political Facebook was just 38 percent. Unfortunately for newspapers, they did events, we also live in a misinformation-rich Looking at traditional media, newspaper not see that growth as agency advertising society. Who is regulating the content? Who and radio both received 87 percent and TV spend on the channel was down 6.9 percent is telling the truth? And what are the agendas 86 percent. to $56.7 million. Newspapers and magazines behind the information? This tension means So why is it that Gillespie says journalism (down 14.3 percent) were the only two media page 18 New Zealand, Monday, June 25, 2018.

channels to fall. Shortly after, the Advertising Standards Authority (ASA) released its 2017 report on New Zealand’s advertising revenue and, again, newspapers were on a downward trajectory. Revenue in 2015 was $474 million, in 2016 $417 million and in 2017 $353 million. Where there was positive growth for newspapers was the “newspaper digital” category, which has been on the up since 2015 when it sat at $41 million, to sit at $82 million in 2017. In both the SMI and ASA reports, digital was on the rise. And TV was holding While many media companies are looking possible – a hard goal to achieve when firm, with the 6pm news still bringing in towards reader revenue, Uniltered has you’re a newcomer behind a paywall. some of the biggest audiences. However, gone against the low by removing its “Going into the US where it’s so signs are emerging that digital’s shiny-new paywall and giving audiences a free all- large and there’s so much competition, appeal could be wearing off. In 2017, P&G access pass to its library of video content it’s very hard when you’re turning up cut $200 million from its digital spend that shares advice from some of the most in a market like that and no one really due to bot and brand safety concerns and celebrated business minds in the world. knows who you are and from day one reinvested in channels with bigger reach Co-founder Jake Millar told StopPress you want people’s credit card details.” including television, audio and ecommerce. the decision is in line with its core belief hose numbers will help it as works And earlier this year, Unilever threatened to that every aspiring business leader in to grow the content it co-creates with pull advertising from online platforms that the world should have access to the best commercial partners. allowed "toxic content". advice and knowledge. Alongside that, it plans to scale its So could the concerns over tech see local It’s also a move that he says will help Uniltered Live events and is building advertisers move their spend in a similar Uniltered’s expansion into the US, for a new enterprise platform for rapidly direction? When Stuart Rutherford, managing which it has put a focus on its audience scaling companies with a focus on the director of Zenith New Zealand was asked the and getting as many people watching as executives. It will be sold as a B2B model. question by NZ Marketing, he said he sees no evidence that advertisers are shifting budgets away from online. By contrast, he said, its share to have digital subscriptions in place by the harder to sustain this still largely ad-funded of global advertising expenditure continues end of the year. The announcement came business model. to rise rapidly and is forecasted to hit 44.6 at a similar time as the release of its 2017 That reader revenue is sure to rise with percent of global ad spend by 2020. financial results, which basically showed digital subscriptions. And, to get there, NZME “The concerns we have seen from large what they’ve been showing for years: in 2017, managing editor Shayne Currie says it will FMCG multi-nationals and others relating its print advertising revenue was down nine focus on improving premium journalism and to brand safety and corporate responsibility percent, reaching $121 million, down from nurturing audiences online. are valid and yet they simply will not stop the $132.7 million in 2016. Its circulation revenue “We have a project team looking really tech and digital juggernaut, and we certainly was also down three percent, reaching $83.3 closely at what we can offer in terms of premium will not see them shifting large spend back million from 2016’s $86.1 million. journalism, what people are prepared to pay into traditional print channels.” Meanwhile, its digital performance for, and how we present that generally.” Most agree that advertising is not the He adds, NZME doesn’t refer to it as answer if media companies hope to fund news a “paywall” anymore because it sees it as and current affairs content. So what is it? I THINK IN THE having negative connotations. Instead, it’s CASE OF OUR called a “digital subscription tool” or a NEWSPAPE RS “pay gate”. Many other publications call it WE HAVE SEEN a membership, often offering tiered options PEO PLE ARE and various benefits. PREPARED TO PAY “I think in the case of our newspapers FOR JOURNALISM we have seen people are prepared to pay BUILD A WALL AND MAKE AND WE BELIEVE for journalism and we believe it’s high time THEM PAY FOR IT IT’S HIGH TIME that with the right journalism and premium Look around the news media industry and THAT WITH content people will be prepared to pay for you’ll see walls are going up. Newspaper THE RIGHT that in a digital sense,” says Currie. brands like The Washington Post, Financial JOURNALISM Times, Wall Street Journal, and The New AND PREMIUM York Times all have one. Conde Nast brands CONTENT The New Yorker, Vanity Fair and Wired have PEOPLE WILL BE launched ‘soft’ paywalls, in the belief that PREPARED TO PAY having paying readers rather than relying on FOR THAT IN A DIGITAL SENSE. SELLING THE SAUSAGE, advertising just makes them better. Adweek – has also recently launched a paywall. And, in A NOT THE SIZZLE many cases, they’re proving to be worthwhile. SH YNE CURRIE But what is premium content? Currie admits The New York Times now has over 2.2 million it’s quite subjective but says “it’s the strong paying readers according to Recode and the work that reporters are doing each day, with business has grown 30 percent each year since showed healthy growth, outperforming the the big in-depth investigations that you won’t it started in 2011. Finally, consumers seem market with digital revenue growth of 18 find anywhere else”. happy to pay for access to good content and, percent. But it’s still relatively small. And, One news organisation with a paywall at a time when Donald Trump has attempted given it, and all other media companies already in place is Newsroom. Founded by to destabilise democracy through constant making expensive-to-produce news content, Tim Murphy and Mark Jennings in early attacks on the media, many have seen the is competing for eyeballs with other digital 2017, the site appears in two forms, one a need to support the journalistic institutions behemoths (as well as smaller, very popular free newsfeed and another called Newsroom that hold power to account. and non-journalistic domestic sites like Pro. The latter publishes news, commentary Closer to home, NZME announced plans MetService and Trade Me) it’s getting and information for paying subscribers, which No 1, Vol 1. Price $12 page 19

includes corporations, government agencies, Austin and UC Berkley, as well as working many supporting journalism and continuing local councils, NGOs, and individuals. as a media researcher. to do so. However, Murphy says both Newsroom and In 2015, he was conferred the Master He says while it’s easy for monthly donators Newsroom Pro report on the things that of Advanced Technology Enterprise having to cancel, the cancel rates are lower than those matter to New Zealanders. graduated with distinction for his thesis compared to paywalls, with 85 percent of those Looking at how the paid subscription evaluating consumers’ willingness to pay who signed up still contributing each month. model is performing, Murphy says they’re for journalism under different funding “It’s incredible – unexpected in terms of “more than happy with where it’s at” and, models. In it, he asked 416 respondents value. It’s exceeded research that I’d done.” while he wouldn’t discuss specifics, he says which model they would be prepared to they’re on track and believes reader revenue pay for when presented with 10 funding will continue to grow. strategies and had interviews with news IF YOU LOOK AT Right now, he says 35 percent of its media organisations including The New ARTICLES THAT income comes from subscribers and that will York Times, The Economist, MediaWorks HAVE THE MOST be above 50 percent by the end of year three. and Fairfax. CLICKS ON THE In four- to five-years, he sees subscribers Of those surveyed, 1.4 percent said DONATE BUTTON, being its biggest form of income. “definitely” to making a voluntary monthly IT'S A BETTER But while the paywall appears to be on a contribution to their favourite news website or METRIC FOR QUALITY positive trajectory for Newsroom, questions blogger, with $11 being the average amount. THAN PA GE VIEWS OR have been raised about the effectiveness of 11.1 percent said “probably” to contributing. TIME SPENT READIN G. a paid subscriber model. According to Rob While not high, the finding was – Howard, author of Hiatus, paywalls conflict significantly higher than the 0.24 percent ALEX CLARK with the internet age, because they charge who said they would “definitely” pay for readers when there is limitless free content. a subscription to a website with content He says for media companies to charge restrictions such as a paywall. 2.6 percent It’s also benefitting the news media readers money, they have to ensure the offering said “probably” to the idea of subscribing. organisations as a way of revealing what is something worth paying for. “More respondents were willing to their readers care about. This is seen in “The reality is that 80 percent of current- make voluntary contributions than pay for the influx of donations they will receive events news is interchangeable, regardless paywalls,” says Clark. following hard-hitting investigations. And of your source. If you’re looking for today’s Armed with that knowledge, Clark while clicks have long been a measure of top stories, you can pick from a limitless list created PressPatron. It allows news media success, PressPatron has introduced a new of vendors and walk away with a very similar organisations to crowdsource with supporters click to measure—the donation button. body of knowledge,” wrote Howard in a piece of journalism who make monthly or one-off “If you look at articles that have the most published on Quartz, Atlantic Media’s very contributions to their favourite media sites. clicks on the donate button, it’s a better metric successful – and free – business publication. Clark too has been on the frontline of for quality than page views or time spent Another point of conflict he points out the print advertising freeze. He was editor of reading,” Clark explains. “That’s because is with the primary role of journalism, which Tearaway magazine from 2007-2009, through when you measure clicks you are measuring is to educate and inform the public about the GFC, and he experienced first-hand the curiosity, not what they care about.” important issues. How can publishers decide trouble news media organisation are going And that change of focus can only what is free and what is paid-for in a way that through. Clark watched the magazine drop be beneficial to the quality of journalism doesn’t undermine their other content? When from 64 pages a month to 28 and within a produced, he says. nzherald.co.nz was redesigned it featured a couple of years after he left, it went out of “A lot of sites have pursued the mass section called premium and in-depth, which print. It does, however, remain online. audience strategy because they are only many felt was an admission that all the other While Tearaway is not using PressPatron, pursuing advertising revenue and it’s distorted content on the site didn’t fit into that category. over 18 local media websites are and it’s internally what they are focused on. They are “When the papers say, ‘this is so working to expand across the US and prioritising clicks and shares on Facebook. important that we’re making it free,’ they’re Australia. From those using it, Clark says And while it makes sense if they are only simultaneously saying that all the other its performance exceeded his research, with relying on advertising revenue, it’s nice there stuﬀ they publish doesn’t really matter, so they’ll charge you for it. It’s hard to imagine a business philosophy that’s more upside- down,” said Howard.

DONATION STATIONS One funding model that doesn’t differentiate between content is voluntary donations, something most famously employed by The Guardian, which asks readers to support its mission in exchange for making content freely available to anyone who wants to see it. PressPatron is one service allowing donations to be made to news media organisations and founder Alex Clark says for too long publishers have been making the assumption that they need to replicate the newspaper strategy online and force audiences into a fixed price. But that’s not how he thinks they should approach it. His knowledge comes from study in digital media, entrepreneurship and internet law at Victoria University of Wellington, UT page 20 New Zealand, Monday, June 25, 2018.

is another model that can help to refocus on the core mission of what media is all about.” But that’s not to say media outlets can’t still have ads. Because there’s no paywall, there’s no expectation that ads will be filtered out, which means PressPatron can be used to complement existing revenue streams. Newsroom is one of those and it sees over 500 fans donate every month alongside its Newsroom Pro subscribers. Murphy says those donations include $10, $20 and up to $100 per month, which to him shows supporters have faith in it to “keep going hard”. The Spinof is also using PressPatron to One of the concerns around the dropping in 2006, there were 2,247 public relations fund investigative long-form pieces and while ad revenue is the quality of journalism and professionals and 2,214 journalists. the donations have seen it fund its own writers NBR publisher Todd Scott sees the stress “here is disproportionately far too Alex Casey and Noelle McCarthy’s ‘In plain on journalists being a great opportunity few journalists and far too many spin sight: behind the pages of Pavement magazine’ for PR practitioners. doctors in New Zealand,” Scott says. investigation, partnerships editor Simon Day Around the discounted ads, he Not helping the situation is the points out PressPatron is encouraging for says space is increasingly being illed number of journalists moving into individual journalists. by content supplied by PR, and that’s corporates' PR divisions and Scott believes “As a freelancer, it can be really diﬃcult not news. the money is a massive drawcard. to fund your ability to do the much harder “News is what no one else wants us “I imagine for a lot of the journalists stories because you have to do a whole lot to write about their company, everything they went to the dark side to get paid of leg work that’s unpaid before you get else is advertising.” more money, which I understand. I doubt to a point where you are able to pitch an His concern is “sometimes you can’t there are many journalists in Auckland investigation,” he explains. “It can keep some tell it’s PR luf ” and it’s not the audience’s that own a house, I bet there are more freelance journalists aﬂoat.” job to be discerning. PR people that own houses in Auckland PressPatron is also keeping afloat “On the odd occasion we get than there are journalists.” not-for-profit platforms, such as Crux and approached by a PR company to provide According to the Ministry of Business The Scoop Foundation. The former is owned a copy of an article we wrote so they can Innovation and Employment, print and and published by the not-for-profit Southern share it on their website, that to me says radio journalists can receive $30,000- Community Media Trust, which provides we failed our readers.” $80,000 a year, depending on the size of issues and action focused public interest And while Scott admits he puts the organisation and television journalists journalism to the Southern Lakes District, pressure on his editorial team to deal can start on $30,000 to $45,000 a year, while The Scoop Foundation for Public with fewer PR people and deal directly and those with experience can earn more Interest Journalism is a not-for-profit charitable with CEOs and CFOs, the challenge to do than $80,000 a year. trust with an aim of making information so becomes clear when considering the Meanwhile, according to the 2016 freely available to New Zealanders. ratio of journalists to PR practitioners. Research First PRINZ Survey Q3 report, According to 2013 census data, in 2016 the median income for PR 3,510 New Zealanders worked as public professionals was estimated to be around relations professionals compared to the $85,000-$99,000. In their irst ive years 1,170 who worked in print, radio and of work, PR professionals should expect television journalism. to earn $35,000-$65,000. SPONSORS – A MORAL And that gap is only getting bigger: DILEMMA? Like Newsroom and many other websites, and think about where the dollars are going, attractive to brands and have that strong including ICG Media brands StopPress, and what they’re fueling,” Greive said. relationship with our audience. There have Idealog and The Register, The Spinoff’s Sounds like a win-win for both parties. been times in the past where we have turned PressPatron donations are supported by But that win-win does raise the eyebrows of down deals because we didn’t feel confident another revenue stream: sponsorships. some because they believe brands funding that we wanted to be putting out that content.” Whether it’s one-off pieces or journalism throws up an ethical dilemma. For TVNZ, every partnership is entered sponsorships of entire sections, Day says Do they influence editorial decisions? into with great consideration because Gillespie they are brands interested in facilitating Day says: “We’ve never had a story says selling sponsorships is more than just interesting and modern conversation around jeopardised, or put back in the draw, or a financial transaction. the world and they include Spark, Kiwibank manipulated for the benefit of one of our “The biggest thing we have to sell is and founding sponsor Lightbox. sponsors.” out credibility,” he explains, “and if audiences For Spark, its sponsorship is seen Evidence of the point can be seen in think that’s been affected by a sponsorship in The Spinoff’s music section and that’s The Spinoff Bulletin, a curation of stories or a logo that’s involved in bringing the representative of its desire to foster and from around New Zealand media delivered news and current affairs then we are killing encourage great music experiences – a goal to inboxes with the help of its sponsor Vector. the goose that lays the golden eggs.” linked to its sponsorship of the Spark Arena Day says earlier this year when Vector Looking at TVNZ’s offering as a whole, and partnership with Spotify and Auckland was under fire for its post-Auckland storm not news alone, according to its 2018 interim City Limits. response, The Spinoff included stories about report, TVNZ enjoyed growth in TV and Meanwhile, when The Spinoff teamed it in The Bulletin. online advertising income, which contributed up with Kiwibank in 2016, managing editor Vice is another news media company to total revenue of $170.4 million, up $1.6 Duncan Greive wrote about the partnership, with sponsors in its funding mix, and like million (or one percent year-on-year). explaining the topics it will be covering about Day, editor Frances Morton is adamant they Newsroom also relies on sponsors the economy are critically important to our don’t interfere with editorial decisions. When and Murphy joins the chorus in saying society, so it has attempted to fill them with entering into a partnership, she says they will those sponsors do not interfere. He says the chaos and humour the site is known for. always ask themselves “will we be making the repercussions of interference are not “…I hope they travel a long way. this content anyway?” and put the interest positive for either party. Kiwibank’s aim and ours is to get our audience of the audience first. “Everyone is very mature and to be more conscious in their consumption “I think that’s one of the reasons we are commercially aware: If you are getting into No 1, Vol 1. Price $12 page 21

that zone of influencing content it’s not considers himself a passionate advocate good for you.” and supporter of journalists and doesn’t Most say there is no interference see corporate sponsors as the way to go. from sponsors with this funding model “I’ve got some real concerns over the and most sponsors understand that their number of, particularly new media, that are connection doesn’t guarantee positive relying on sponsorship or corporate welfare coverage. But many believe it’s more subtle to fund their newsrooms.” than that. It’s often about the stories that might Despite the reassurances that are given not be written when others are. Commercial in contracts, Scott says we have to accept the and editorial departments were originally only reasons corporates offer the funding is set up to be like church and state. And they because they believe they will get something were set up like that for a reason. favourable in return. As Chris Keall wrote on NBR: “It could be all above board but as long “Corporate sponsorships always come as that type of funding exists, there’s implicit with subtle and not-so-subtle pressure, Down expectation that you’d never hang a sponsor particularly as renewal approaches. And with out to dry.” in my immediate experience, even when And sponsors aren’t the only funding a company has mature leadership, there’s corporates, model Scott has called into question. Earlier often at least one manager who thinks they we want this year, NBR publicly stated it would not can leverage the situation for influence.” pay any media agency commission, saying But as Newsroom’s Murphy replied subscribers the "gravy train reign is over”. in the comments: “Your argument is Scott took to Twitter to report agencies NBR’s Todd Scott took to Twitter completely disproven by the fact that we boycotting NBR, with phone lines going dead to share his thoughts on commercial did an uncomfortable story involving one agendas and make his commitment and email bookings and enquiries stopping. of our foundation supporters and treated to subscribers be heard. However, it didn’t seem to concern him as them exactly the same as any other he said clients’ needs always come first and organisation or newsmaker. Fullstop. “agencies are not the client”. We ran what they decided they would say Another tweet said: “Focus on the in response to detailed questions we put mission not the commission” and, for Scott, to them.” that mission is increasing subscribers, Another issue is that sponsors have a which he sees as the only way to ethically habit of leaving as new marketers arrive, fund journalism. new strategies are implemented or goals “There are no conflicts of interest if aren’t reached. When a sponsor is integral what you are doing is delivering a service to the creation of new sections, it becomes to member subscribers or readers that pay even harder. for content. They don’t control how you write it, they simply want to support ethical, intelligent, unbiased journalism.” Right now, NBR has over 5,000 individual online subscribers committing $35 a month to its offering and 181 subscribers paying varying amounts for company-wide GET UP, STAND UP 9:02 AM - 10 Feb 2018 access via their IP addresses, but he hopes If 2017’s EY Business Journalism Awards are Note to the nbr.co.nz newsroom, to reach a short-term goal of 10,000 monthly anything to go by, not all brands appreciate the drop the satire and cartoons and paid online subscribers. From there, it will need to step aside. New Zealand journalists focus on business news you can set its sights on 30,000 and then, as he told proved their integrity last year when many use. Mainstream media deliver RNZ’s Colin Peacock, 100,000. boycotted the awards after a badly handled entertainment, let's stick to the He says there is too much free content conflict of interest. out there and the reason it’s free is because It disqualified an NBR series that serious stuf. advertisers, corporates and PR companies was critical of Fuji Xerox New Zealand, 10:49 AM - 28 Feb 2018 all have a hand in it. which was one of EY's audit clients. With NBR no longer offers ad “If Donald Trump has proved anything NZ Listener journalist and judge Rebecca in America, it’s that you need to be cognisant Macfie's suggestion that the two EY judges agency commissions. As a of who you are relying on for your media. simply remove themselves from the judging result, agencies are boycotting Who do you trust? Who do you rely on? ignored, she was prompted to resign. @TheNBR. Subscription Absolutely there are 10,000 subscribers NBR showed solidarity with its journalist revenue is the most ethical out there.” by withdrawing all entries from the awards and reliable way to fund a To get the numbers up, Scott says NBR and it was followed by others, including newsroom. It's time for the plans to broaden its content outside the NZME, Fairfax and RNZ. agencies to wake up. Your gravy silo of business news and get involved in When editor Duncan Bridgeman train reign is over. the business of science and the business shared the news of the conflict of interest of medicine. and NBR’s decision to withdraw its entries, 10:18 AM - 3 Mar 2018 “What’s exciting about it is when we get he said: “Journalism is meant to act as a Update to newsroom: Member to 10,000 monthly online paid subscribers, public watchdog and does so without fear or Subscribers trust & respect the we will be even less reliant on advertising favour. If corporate sponsors can’t accept integrity of @eNBR it's you support and that money we generate from that, and instead do the exact opposite, they trust to cut through the paid subscriptions will be reinvested so that what business do they have running these PR crap, misinformation and we can broaden the overall appeal of our awards?” out and out lies in search of offering,” he explains. He isn’t the only one at NBR raising the truth. Let's not aford that “NBR in the future—they won’t know questions about the involvement of corporate responsibility or privilege to that it stood for National Business Review. sponsors as a means of supporting journalism. lobbyists with paid commercial People will know it stands for exclusive, Publisher Todd Scott, who was NBR’s chief agendas. intelligent content that’s not freely available executive and sales chief before buying out and you have to subscribe to.” long-time publisher Barry Colman in 2012, Looking beyond its content offer, NBR is page 22 New Zealand, Monday, June 25, 2018.

investing in technology to keep up with how its current and potential future subscribers want to read, watch, listen and engage with it. The first will be a new website in July that’s seen half a million dollars of investment before a mobile app launches later in the year involving additional investment. Died, Across New Zealand ON THE YEAR 2018

Wairarapa News Invercargill Eye he Tribune Queenstown Mirror Waiheke Marketplace NewsLink Rotorua Review Auto Xtra NBR IN THE Ruapehu Press Admire Nelson FUTURE–THEY Christchurch Mail Admire Marlborough WON'T KNOW Napier Mail NZ Farmer THAT IT STOOD Hastings Mail NZ Dairy Farmer FOR NATIONAL North Waikato News Waikato Farmer BUSINESS REVIEW. Discovery magazine Central District Farmer PEOPLE WILL South Canterbury Herald Canterbury Farmer KNOW IT STANDS Waitaki Herald Otago Southland Farmer FOR EXCLUSIVE, Selwyn and Ashburton Outlook INTELLIGENT CONTENT THAT'S NOT FREELY AVILABLE. EPITAPH. – TODD SCOTT “This outcome isn’t what we all would have ideally wanted, and once again I really MERGER SHE WROTE want to thank those affected for all their BR’s plan is well underway, and, given hard work over many years.” the pressure on its previously lucrative print product, it needs to move fast. The same goes Sinead Boucher, chief executive of Stuf. for NZME and Stuff, but their hope to face the changes and move forward together as one has not gone quite to plan. In 2016, the two sought approval for a Commerce Commission process around results released in March showed print merger in response to their business models losing the plurality of voices and the irony is advertising revenue fell by 14.9 percent and being undermined by the international giant, if we are not there we will be losing plurality audience subscription dropped by 4.3 percent. aka Facebook and Google. The merger of voices.” And according to the New Zealand proposed to bring the two newspaper During one of the hearings conducted in Herald, as of 22 April, half of Stuff’s revenue networks and corresponding online news sites the lead up to the decision, Fairfax Media chief comes from its top five mastheads, including under common ownership. The Commerce executive Greg Hywood stated emphatically The Dominion Post, The Press and the Commission’s preliminary view was that that preventing newspaper publishers from Sunday Star-Times, while non-print revenue the merger would be likely to substantially making necessary commercial decisions accounted for 17 percent, up from five percent lessen competition in advertising and reader would spell an “end-game” for the business. just four years ago. markets – specifically Sunday newspapers, “We believe that the NZCC has failed Since the announcement to sell or close online news and community newspapers in New Zealand in blocking two local media mastheads, there have been three rounds of 10 regions. companies from gaining the scale and closures, amounting to 25 closed titles, one It also indicated that the merger would resources necessary to aggressively compete sold title (Avenues magazine) and two under not be of such a benefit to the public that it now and into the future.” review (Clutha Leader and Kaikoura Star). should be allowed. The decision was later Hywood also did not shy away from Stuff was unable to find buyers for the upheld by the High Court and that ruling is explaining what this would mean for the closed mastheads and, as a result, 38 jobs being appealed in the Court of Appeal. Should local business. have been lost. that be successful, the two companies will “In light of the NZCC decision, an When 15 of the closures were announced renegotiate the commercial terms of the deal. even greater focus on cost efficiency will in May, chief executive Sinead Boucher said: Reflecting on the last two years, NZME’s be necessary,” he said. “Moving to the “This outcome isn’t what we all would have Currie says early on there was uncertainty next stage of our New Zealand publishing ideally wanted, and once again I really want about what the merger would mean for model will involve reshaping how we deliver to thank those affected for all their hard work journalists, but as the legal process has our journalism to local communities. over many years.” been drawn out, that has settled. Now, the Further publishing frequency changes and Stevens says the step away from those attitude he sees is heads down, business as consolidation of titles i s an inevitability.” mastheads is not an exit from content, usual to do the best job they can. That statement has since become a audiences or the readership in those areas. Similarly, Stuff editorial director Mark reality, as it announced in February that 28 And he points to Stuff.co.nz and Neighbourly Stevens says since the “no” came out, it’s mastheads would be sold or closed. This as modern versions of the same service. cracked on and run its own race and points followed Fairfax Media reporting its net “We have hundreds of thousands of out “the amazing work that’s come out from profit, after tax, for the six months to end members on [Neighbourly] and it makes both companies, journalism is strong and of December reached $38.5 million, a 54 absolute sense that we use that to showcase healthy at the moment”. percent drop on the prior corresponding our local and regional journalism wherever However, Stevens does add there was period. we can.” some irony in the decision to deny the merger. For the local arm of the company, now Meanwhile, Stuff’s remaining Monday to “There was a lot of concern during the rebranded as Stuff, the six-month interim Friday metropolitan and regional newspapers No 1, Vol 1. Price $12 page 23

One beacon of light held up this “it’s fairly tough for commercial current afairs John Gillespie by them will then be shared with year has been the government’s operators”. does not see it as a threat to over 700 media organisations recent investment in New “I think there will be quite TVNZ’s ofering, and says that are part of the scheme. Zealand programming and a lot of consolidation across the question should be: What In the announcement journalism. Labour allocated those entities and I think media does that mean for the wider on the BBC, controller of $15 million in Budget 2018 and organisations that continue market? BBC English regions David the wait is now on to see how it to rely on advertising as their “It’s about all the players Holdsworth said: “his is a major is allocated between RNZ and main source of income will ind and if you pour a whole lot of advance in the partnership NZ On Air. it very challenging.” money over there, which I’m which will signiicantly improve While it’s not quite the $38 One of those is TVNZ, a not saying they will or won’t, the reporting on councils and million outlined in Labour’s pre- media company with a form that will make a diference to public institutions, leading to election policy, which featured of media bipolar disorder: it’s the overall market.” greater public accountability a plan to strengthen the public almost entirely commercially That difference is for our local politicians.” broadcaster’s multimedia ofer focused, yet its only shareholder something Gillespie says the Closer to home, NZME with RNZ +, Radio New Zealand is the New Zealand Government. media funding commission managing editor Shayne chief executive Paul hompson Earlier this year, Hal is going to have to get its head Currie believes there are great says it’s still a significant Crawford, MediaWorks chief around. opportunities for NZME to be investment – “even if we only news ocer, shared his views Stuf editorial director able to get a slice of the funding, get a share of it”. on the state of the local media Mark Stevens says he struggles be it from NZ On Air or any of “More important are the landscape and said having a with the “thinking and the other funding coming from strong signals that this is just government-owned commercial reasoning” behind sharing the government. year one and that increased TV company in New Zealand the additional funding between Already it’s received NZ investment for RNZ and the is a big distortion in a small RNZ and NZ On Air. On Air funding for video and sector will be available from market. “If you look around the radio projects – including 'he next year on.” “To say that the TV ad country, RNZ’s not really in the Road to Rhythm – 15 years “I think what you will see market is a level playing ield regions. It’s not creating local of Rhythm and Vines, Kiwi within a 10-year timespan is is like denying the incline of journalism in the regions or Women who Changed the politicians and ocials thinking Ruapehu,” he said in a piece certainly not at the level that World' and ZM’s 'Sealed Section' about what they can do to on he Spino. companies like ours have been 2018 – but, like Stuf, Currie encourage diversity of news He went on to explain that for many years.” gives its regional reporting as and information. It’s so vital TVNZ’s model, alongside RNZ’s, Similar concerns have another possible incentive for to any functioning democracy, means the broadcasting scene been seen in the UK with some it to receive funding. it’s as vital as air and water to in New Zealand is poorly set up saying the government funding “here’s no reason NZME how we operate as a society.” to serve the audience. for the BBC is putting local can’t have a share,” he says. For RNZ, proving “There is no public democracy reporting at risk. “We are a media business and that function comes with broadcaster in New Zealand Stevens says the solution in we are investing a lot of time the inancial support of the making digital, radio and true the UK was the establishment and money and resource into government and a charter TV content – no single source of a Local News Partnerships regional journalism, into our outlining its role to provide for all platforms.” scheme, which sees the BBC metropolitan newsrooms and comprehensive, independent, His suggestion was to make funding 58 news organisations we have regional newsrooms accurate, impartial, and TVNZ1 that public broadcaster in England, Scotland and Wales and they are each telling stories balanced regional, national, – rather than the “awkward to cover the employment costs from those areas.” and international news and work-around” of pushing RNZ of democracy reporters. When RNZ’s hompson says current afairs. into TV. announced in December 2017, growing its regional coverage hompson says it’s very Regardless of whether or there were contracts to employ is one of the plans it has in fortunate and privileged to have not RNZ does move into the TV 143 full-time and two part-time place, but what this looks like public funding and is aware that space, TVNZ head of news and reporters and the stories written it is still unclear.

have been reimagined, going from broadsheet FILLING THE GAP Andrew Board is managing director of to compact format. With Stuff shedding many of its regional the app, as well as the independently owned Again, Stevens does not see this as an journalists on the ground, opportunities Nelson Weekly, and he told RNZ, because of exit from its content and audiences, saying have opened for local players to swoop in the app he’s increased his team of journalists there’s been investment in quality content with the development of local apps. Wanaka, by 70 hours a week. and journalism going out in them. Wellington, Southland and Nelson are among More recently, The Southland App eight provincial apps that are part of the was launched by Advocate South and in Independent App Network of New Zealand. the announcement, general manager David One of those, the Nelson App, found Pickett said: “We ultimately want to be the a gap to fill when Stuff culled its regional definitive place to find accurate and timely sports journalists and found it was in a good Southland news, weather and road conditions, position to take over that role so a sports sports draws and results, death notices and reporter was hired. acknowledgements, business directories and page 24 New Zealand, Monday, June 25, 2018.

much more, with the convenience of being Once upon a time, exclusivity was to Stuff for 'The Valley' and also for the always at your fingertips." something used to gain a competitive investigation 'Last of A Few', a short series "Kind of like the newspaper of old, but advantage but now the value of combining focused on three Air Force war veterans in a format for today." talent, resources and audiences has been representing the last of their era. Funding for the apps comes from realised. They are just two of a number of localised, directory-style advertising and For Stuff that’s demonstrated in its work journalism projects funded by NZ On Air, Wanaka App developer Tony O’Regan with Māori Television, RNZ, TVNZ, and including 'The Silence Project' for nzherald. told RNZ the news apps are providing a Newshub. The latter partnership resulted in co.nz, 'Hijacked' for The Wireless, 'Frame' sustainable advertising revenue stream, A Tale of Two Cities, an investigative piece for The Spinoff and 'Great South Stories' unlike news websites. examining the gaps in prosperity across for Newsroom. Auckland. While this type of funding can’t sustain Stevens says we will see more and more a commercial media business, these digital of these relationships and collaborations in the journalism projects are helping to push future as a way of securing the sustainability journalists in new storytelling directions of journalism in New Zealand. and for Stevens, all it takes is a look around RNZ’s chief executive Paul Thompson the Stuff newsroom to see how the skillsets N EW REVENUE agrees, saying it now understands if more of journalists have changed since the days Looking at the digital revenue figures of resources, like two newsrooms, are thrown at when writing was the key skill. media companies makes for harrowing a story, the impact of the journalism increases. “When I started you needed to be able to reading in comparison to what they were He gives the example of the Panama Papers write, now we have journalists creating audio making in print. It’s simply not enough to investigation when it teamed up with TVNZ for podcast, fronting videos and shooting sustain these expensive newsrooms, which is and Nicky Hager. videos, taking stills, analysing data for why media companies are diversifying their They were brought together by the data journalism pieces, creating interactives revenue streams. Media companies have International Consortium of Investigative and visualisations of that data and writing long attempted to sell things, and very few Journalists and journalists spent a week and stories.” of them have done it successfully, but over a half trawling through the local aspects of With such variety, it’s undoubtedly an the last couple of years Stuff has added a the funds incorporated in 21 tax havens. The exciting time to be a journalist. But it’s also number of new, non-news related products findings were rolled out on RNZ and 1News. a scary time. Editorial budgets have been to sell to its significant audience. continually cut as companies look for cost It’s launched pay-per-view streaming savings and, with the appeal of big salaries service Suff Pix, created Stuff Fibre with in PR and comms roles, many journalists New Zealand Fibre Communications Limited, have left of their own volition. MediaWorks’ launched a digital energy business called chief news officer Hal Crawford sees some Energyclubnz and partnered up with NIB hurt and anger among some journalists who to create health insurance provider Done. THE NEW NEWSROOMS are resistant to the changes being forced When Stuff Fibre launched, Simon more recent partnership of local media upon them. Tong (Fairfax managing director at the time) outlets saw Stuff and MediaWorks collaborate “People take justified pride in skills explained the move was a means by which in a documentary series called 'The Valley'. they have maintained over years and it is to keep its news offering going. It investigates the New Zealand Defence very alarming for individuals to find that “We’re really proud of the fact that Force’s 2012 battle in Baghak – a valley in those skills are no longer valid or they no we’ve kept so many journalists in their roles Afghanistan – that resulted in the deaths of longer add value in different environments.” around the regions, and we really want to two New Zealand soldiers. The Stuff Circuit He says being resistant to the change maintain that because that’s what makes us team behind the series (Paula Penfold, Toby and unwilling to move beyond a fixed skillset different,” he said. “The question isn’t ‘how Longbottom, Eugene Bingham and Phil is not a good mindset anymore. On the flip many journalists do we have’, but rather ‘how Johnson) won Best Team Investigation at side, those who are willing to keep learning do we pay for the level of journalism we’ve the 2018 Voyager Media Awards. will find themselves in a better space to get got today in the future.’” But not only is it a showcase of quality better results as a journalist. NZME, which has a wider range of journalism, it demonstrates the new look “That attitude is the key to riding out assets at its disposal through radio brands of journalism. It’s made up of a six-part the anxiety.” and ecommerce engine GrabOne, has also online documentary, prime-time broadcast However, it doesn’t all have to change. recently added new recruitment, automotive and documentary, a long-form read, an interactive As the fake news saga has brought to light, property platforms to its list of digital assets. website and a virtual reality experience. the importance of journalism and the Called YUDU, Driven and OneRoof, That evolution in storytelling was fundamentals of its practice remain the same. they extend on classified listings that have also realised in the addition of digital and “So much has changed but those long been included in newspapers – and multimedia categories in the 2018 Voyager fundamental pillars of journalism haven’t and more recently have moved across to online Media Awards. Best Innovation in Digital can’t and won’t change – fairness, accuracy, marketplaces like Trade Me, Seek or Storytelling went to RNZ for its 'NZ Wars: The balance and that term ‘keeping the bastards Realestate.co.nz – as they offer recruitment, Stories of Ruapekapeka' web-documentary, honest,” says Stevens. vehicle and real-estate listings respectively. Best Team News Video was won by 1News Gillespie agrees, and when reflecting on Currie says it absolutely sees them as huge Now’s 'Edgecumbe’s poor flood defences', the pace of reporting on digital he says “if opportunities for revenue. And like Stuff, he and Best Team Feature Video was awarded you are first and wrong, you are still wrong, does not signal a move away from its papers. to New Zealand Herald’s 'Under the Bridge' you are not really first”. “The newspapers are still vitally series. But it’s probably RNZ’s Thompson, a important, and our print subscribers are This kind of journalism doesn’t come man at the helm of a media company that very loyal,” says Currie. cheap, it takes a long time to create, and it is likely to receive additional government isn’t often that appealing to advertisers who funding and is in what many now see as a tend to shy away from controversy. So stepping luxurious position as a totally non-commercial in to provide some support has been NZ On broadcaster, who best sums up the future of Air, which, according to its Annual Report journalism when he compares cockroaches to 2017 had an expenditure totalling $130.8 journalism: “We may get bombed occasionally million in the 2016/17 year. 60.5 percent of but we do survive.” COMBINE AND CONQUER that went to national TV, three percent to Despite the numerous commercial Beyond new revenue sources, other digital media, 0.9 percent to regional media pressures and existential angst in the news opportunities for news media organisations and 24.9 percent to public radio. media business, everyone is hoping that the have opened up in the form of partnerships. Within that almost half a million went truth will continue to set them free.

1. MAGAZINE 2. EDITOR 3. PUBLISHER 4. RADIO BRAND 5. RADIO SHOW 6. TV CHANNEL 7. DRAMA SHOW 8. FACTUAL SHOW 9. COMEDY SHOW 10. SVOD SHOW 11. REALITY SHOW 12. NEWS AND CURRENT AFFAIRS SHOW 13. TV HOST 14. FILM / TV PRODUCTION COMPANY 15. DIGITAL PRODUCTION COMPANY Back for another year, NZ Marketing has selected 16. CONTENT MARKETER the best of the bunch in the media business. While 17. MEDIA PRODUCT the editorial team put their 18. START UP heads together to ﬁgure out who and what came 19. CREATORS out on top for the judges' 20. BIGGEST MOVE choice, our avid StopPress readers with their ﬁngers 21. MEDIA COMPANY on the pulse cast 11,293 22. MOST INFLUENTIAL votes to decide the People's Choice winners. 23. VISIONARY Magazine / Editor People’s choice: Mindfood

HOMESTYLE

As media organisations harness new initiatives to attract both readers and sponsors, Homestyle represents the epitome of a modern-day magazine making things happen. Donned this year's Hottest Magazine, we sat down with general manager at Homestyle Nicholas Burrowes to discuss its finely executed offerings.

After 13 years in business, Homestyle has MPA member’s publications, according to generated a readership of 90,000 and Magazine 360, with 47,200 followers. That's circulation of 13,310 (according to Magazine since grown to 49,300 and Burrowes says 360's June data) One of Homestyle's biggest it's been conscious of harnessing social Nominees: tricks is its ability to integrate branded media platforms to garner engagement and content. An example being the, ‘Style your interaction. Nadia Space’, campaign for Citta, which took out Another invaluable move for Homestyle Mindfood the top Content Marketing Award at the has been its recent rebrand, which Together Journal Magazine Media Awards. Designed to give according to Burrowes, better aligns to its customers the opportunity to curate their audience, editorial and business directions. Denizen own interior space, the three-year interactive He credits art director Juliette Wanty with Dish campaign ran a mixture of workshops, the task of crafting a masthead that would editorial spreads and online competitions. translate equally well as a standalone brand It fostered high levels of engagement and outside of the print product. who are in their 30s and 40s, affluent stemmed further branded content, such as “At the pace media moves we don’t see a and are highly active. He points towards its slick work with Fisher & Paykel. lot of value in the retrospective heritage of its commercial offerings, which extend Burrowes says it only produces and most magazine brands, so we were looking beyond the magazine and into the greater publishes branded content that is unique, ahead with a circuit breaker. There was a home category, showcased in its content and a perfect fit, look and feel for its short-term risk of brand confusion, but the marketing, photoshoots, interior styling channels. "We’ve found every piece of work new look created a retail uplift of 25 percent and the occasional work in a consultant we put into the market lives far longer than uplift in the first week on sale – it spoke a capacity. the immediate campaign, and adds to our lot to being bold rather than safe.” Asked how Homestyle juggles its multiple client’s content strategies. We’ve seen Alongside stiff competition embracing offerings, Burrowes says: “Print remains our content we produced two years ago being our national property obsession and DIY core medium and we only focus on digital republished in other publications now.” boom, Homestyle has managed to hold its channels that have the right fit and values Further success has been met on its use point of distinction with integrity. for our brand. Being a small team everyone of social platforms. In January, Homestyle Burrowes says Homestyle manages to is across the activity in each platform, so it’s had the top Instagram following of all attract a new wave of modern home lovers, more of a fine balance than a juggling act.”

TOBY MANHIRE Nominees: Frances Morton (Vice) Elly Strang (Idealog) Ask Toby Manhire about those choosing journalism and he’ll Amanda Linnell (Viva) tell you they may be “a little bit deranged”, but there he is. Sally-Ann Mullin (Miss FQ) Rebekah White (New Zealand And it seems he’s in it for the long haul after There’s been the “incredible training Geographic) recently claiming the editor’s chair at news ground” of Wellington’s now defunct City and pop culture site The Spinoﬀ – more Voice, books, numerous columns and the than twenty years after starting his editing “great privilege” of a long career at The Manhire’s been there for the changes, he career at Salient. Guardian editing the opinion pages. knows the struggle, but he says through it

28 | STOPPRESS.CO.NZ | The Media Issue 2018 People’s choice: Toby Manhire, The Spinoff Publisher

curation of top stories from across the The key, at the heart of everything is country. The aim is to fill that void that had “really smart and imaginative and funny been contracted out to social media. writing", which he’s “massively proud of”. He says although that works to some He admits it sounds trite but says the degree, there’s also “an awful lot of bullshit essence of the site’s success rests totally on and vitriol you have to wade through” to the group of people behind it. get there". “Across the board it's staggering the level “Meanwhile the front pages of some of creativity and empathy and wit.” of our biggest news sites, the Herald Funding the storytelling is a sponsorship and Stuff, are full of some extraordinarily model and while Manhire’s embraced it, good journalism by extraordinarily he says it’s no silver bullet in terms of a good journalists.” business model for journalism, and the fact The Bulletin is just one branch of what that everyone is trying everything is the right is “permanent revolution” at The Spinoff, approach. Manhire says, with a TV show, new sections Looking forward, Manhire says the and “all sorts of things on the boil”. He says beauty being in this “weird media startup replacing founding editor Duncan Greive hybrid” is that it can just embrace the idea all, quality journalism is still all around us. was less of a coup d’etat than a continuation that what it will look like in a year’s time will “Sometimes it’s easy to fall into a trap on in the same direction, with Greive now be very different. where we spend most of our time whinging focusing on business development. Some ideas will prosper, some won’t, and and complaining, or calling out the bad stuff, “The thing that’s really exciting about although he’s wary of the terms “nimble” but there’s so much good stuff that needs to The Spinoff is that it’s still in a kind of fast and “agile”, he admits the business – from be championed.” changing state, a little bit amorphous and top to bottom – has a fleetness of foot and Something he’s proud of is The Spinoff’s we’re developing all sorts of sprout limbs will keep using that to say: “Oh hey, that recent launch of The Bulletin, a daily at random.” looks cool let's go and do that.”

will be eager to see how The Spinoﬀ takes THE SPINOFF on this next move.

An entertaining and informative source of commentary on everything from pop culture to politics, The Spinoff is slowly building a small-ish media empire as it takes on more staff and new challenges.

While big media players consider mergers did take home six awards, including Best and adapt their offers, The Spinoff proves Artwork/Graphics (Toby Morris); Feature there’s still a slice of the audience to go Writing - Arts, Entertainment and Lifestyle around if the (editorial and sponsored) (Simon Wilson) and Feature Writing - Best Nominees: content is good, and some money available First-Person Essay or Features (Peter Wells). Newsroom from brands who want to bask in its reflected It’s been growing from strength to glow by funding its various sections. strength since its launch in 2014, with a Kowhai Media Cool, funny and fearless, The Spinoff recent addition being Ātea, a dedicated Unfiltered keeps its audience up to date with Māori perspectives section at the heart of McHugh Media everything from the power rankings of the website, and the announcement of Uno reality TV stars to politics and investigations, The Spinoff TV coming to Three at the end into where World’s clothes are really made, of the month. Stone Soup Syndicate and what the Auckland International Film Moving to TV is the next obvious step as Tourism Ticker Festival really is. evidenced by similar international outfits, OhBaby! And while it didn’t quite win everything at ViceLand and Young Turks, who opened their the 2018 Voyager Awards Media Awards - as offerings from print and radio respectively. ICG Media its follow-up headline suggested - its writers Kiwi audiences, and the media community,

People’s choice: The Spinoff The Media Issue 2018 | STOPPRESS.CO.NZ | 29 Radio Brand People’s choice: RNZ

RNZ

Once seen as something of journalistic backwater, RNZ's getting trendier, more innovative, more Nominees: progressive and, in times of strife, its non-commercial The Breeze approach appeals. Mai FM George FM Talking to head of digital Glen Scanlon, “We are New Zealand’s public broadcaster The Edge RNZ's evolution into a mulit-platform and te reo is an important part of our Radio Sport broadcaster is no overnight response to culture,” explains Scanlon. “We should digital disruption. As he explains it’s long definitely be encouraging people to know been trying to do new things. more about it and sharing what we can.” He goes back to 2013 when The Wireless However, while many listeners responded And beyond other media companies, it’s launched before fast-forwarding to the rollout positively, RNZ did receive criticism teamed up with Te Papa to create the Ours: of its VoxPop app last year that enables for pronunciation and some expressed Treasures from Te Papa podcast showcasing radio networks to quickly and easily collect, frustration in not being able to understand. national treasures. package and play the voices of its people to For Scanlon, this push back is the result of Scanlon adds that partnering up will its audiences. It’s generated international people not understanding the language and support the eco system of journalism in New attention and is being trialled by a US show. opens an opportunity for RNZ to become Zealand which it doesn’t want to disappear. Meanwhile, work to improve its website an educator, something it’s doing with Looking at its own work, Scanlon says and app continues. translations on its website. RNZ “wants to be where New Zealanders are “We haven’t got it perfect and things will Its use of te reo is in keeping with its and reflect the experiences they are having” always move and shift,” he says pointing out duty to “reflect New Zealand’s cultural so it’s looking to do more regional coverage the rise of voice activated technology. identity, including Māori language” as and in-depth pieces as well as Pacifica and With voice being an essential part of RNZ's outlined in the charter, as well as its purpose Māori coverage. offer, Scanlon says it’s a great space for it to of being a public radio company serving the This coverage sits alongside breaking news, be playing in and it’s already making the most public interest. and Scanlon says it takes its role very seriously of Amazon Alexa. For those with the RNZ Flash Scanlon says it also has an obligation in news events and times of trouble like the Briefing installed, asking Alexa, “what’s the to reach as many New Zealanders as it can Kaikoura earthquake, during which people look latest news?” or “what’s my flash briefing?” with its stories and helping it to fulfil this are to RNZ for information. will deliver an up-to-date news briefing. partnerships with 24 organisations including Those plans to expand the remit of its “It’s exciting, the growth and use of Stuff, MSN, TVNZ, Bauer and The Spinoff. content are just a few it has in the pipeline devices like these overseas, and they will “Once upon a time, media companies to improve its offer, and some of them were soon appear in all places and parts of life.” didn’t speak to each other and now they are. already on the cards before the government It’s resulting in better content.” announced its $15 million injection into The voice of New Zealand He gives the example of the Black Sheep public broadcasting, says Scanlon. The importance of voice to RNZ is reflected podcast series created with Stuff and the The wait is now on to see how that funding in its staff being encouraged to use te reo in Panama Papers investigation which saw will be allocated and what the government’s their broadcasts. RNZ team up with TVNZ and Nicky Hager. RNZ+ looks like.

30 | STOPPRESS.CO.NZ | The Media Issue 2018 People’s choice: Bhuja Radio Show

RADIO HAURAKI’S BHUJA

Having provided years of well garnished banter and hot-headed interviews, the team at Bhuja have taken Nominees: out this year’s Hottest Radio Radio New Zealand: Morning Report Show. We touch base with The Edge: Jono, Ben & Sharyn the dynamic duo, Leigh Hart More FM: Jase & Jay-Jay and Jason Hoyt, to see what Newstalk ZB: The Mike Hosking Breakfast makes Bhuja such a tasty George FM: George Breakfast mix on the radio.

How long has Bhuja been going for? good thing is being ‘used' for our pure talent How do fellow shows such as In its current form, Bhuja has probably as opposed to 'our looks’ which is why Jas The Late Night Big Breakfast, been going for a couple of years, but many and I both have incredibly successful TV Screaming Reels, and the Alternative say the original Bhuja show was broadcast careers. Also, the satisfaction you get when Cricket Commentary, work hand in from Stonehenge over 5,000 years ago, and you hear a listener received a prize just 18 hand with Bhuja? that's probably why they never finished that months after having won it, that gives you a They all work very well together, which monument. warm feeling inside. is either a testament to our incredible organisational skills and our ability to What makes Bhuja tasty? Favourite moments on Bhuja? compartmentalise, or it means it's the same Bhuja radio much like its name-sake Bhuja There have been so many favourite content re-hashed into a different format. I snack mix, by its very nature it's a variety of moments. Interviewing big names like would like to think it’s a little of both! flavours, aromas and food groups, meaning Neil Finn and Brandon Flowers can be there is something in there for everybody pretty awesome. The Neil Finn experience, Speaking of hand in hand, Jason most of the time. This also means that there however, has been tarnished by the fact that Hoyt, Leigh Hart, you’ve become are elements that people hate; I am talking he no longer talks to us after I accidentally somewhat of an iconic duo, how is the of course about the raisins in Bhuja mix. broke one of his guitars and Jas destroyed relationship coping after such a long two and half years of demo recordings. period of sustained success? Who is your audience? But the real highlight is getting to talk to Like any top iconic duo (think Lennon/ Rather than target an audience directly everyday Kiwis on a regular basis. McCartney, Simon/Garfunkel, Hall/Oates) we prefer to have them come to us which Jas and I have our ups and downs. But we means we have a wide variety of listeners, Known to provoke a few of your are professionals, so we have learnt to deal young, old, male, female, sane and insane. interviewees, Neil Finn and Ray with my ups and Jas’ downs! (I suspect if In general, I would say the listeners are of Meagher (Alf Stewart) to name a few, Jas was writing this he would agree but may above average intelligence and don’t take have any interviews turned sour? focus more on my downs and his ups!) The everything too seriously. Also, we have a lot See above question. Most interviews have trick is to pay someone a compliment before of listeners called Andy for some reason. gone extremely well which is a testament you tear their work to shreds and belittle to the preparation we put into each one but them. We leave any issues at the door and What is the best thing about radio? on occasion they have gone sour. I would come back the next day determined to make The best thing would be touching people say only around 40 percent have gone sour, a great show for the Kiwis out there who whether it be through the air-waves or and many of these have involved people are relying on us to get them through the literally when we go on tour. I am talking that were deceased at the time but Jas was drudgery of their everyday lives! (That might about good touching of course. The other unaware of that fact. be slightly over-stating it).

The Media Issue 2018 | STOPPRESS.CO.NZ | 31 TV channel People’s choice: TVNZ 1

Nominees: ThreeLife Sky Sport Soho Viceland TVNZ 1

TVNZ 1 is known for its pulling power It’s been a big year for TVNZ 1, with the Commonwealth Games to the older generation, has its audience evolved over the years? action, an election coverage boost, some major personnel changes TVNZ 1 is the most watched channel in New to flagship shows and acquiring of big sports rights. TVNZ content Zealand – it draws audiences from every director Cate Slater updates us on how the channel is tracking and stage of life and we’re really proud of that. TVNZ 1’s built this huge momentum off the why it deserves the Hottest Channel crown. back of the Commonwealth Games in its 25- 54 target demo. People probably don’t know What have been some of the News anchors TVNZ 1 – it starts and this about 1 but it’s the number one channel highlights/success stories for TVNZ 1 finishes the day. New Zealand’s best known in 25-54 in 2018 to date. over the last year? What are some of faces are from our newsroom and there’s its new programmes in the past year? a lot of trust placed in the work they do. How does TVNZ’s OnDemand platform 1 brings us together. Seven Sharp’s Hilary Our Election 2017 coverage again brought support its linear broadcast content? Barry and Jeremy Wells, The Caskeeter’s viewers to 1 in huge numbers. When big We complement 1’s local content offering Frances and Kaiora, Jools and Lynda Topp, events happen, the country turns to us – with the best in international content from the farms of Country Calendar – it’s New and we know that’s a special privilege and around the world. We’re making premium Zealand’s characters, places and stories that responsibility. content available to audiences with online are the life force of the channel. first premieres. We’re using the platform to TVNZ 1 is a powerhouse brand. It’s the What have been some of the drive word of mouth among early adopters home of local content and New Zealand’s challenges? to increase sampling of tentpole TVNZ 1 most watched channel. We’re proud more We do a really good job of holding our content. Killing Eve has gone off on TVNZ than half of our line up consists of local audience’s attention across our nightly news OnDemand – that’s coming to 1 soon. shows and talent. This gives 1 a distinct and current affairs offering. And it’s a line We’re all about giving viewer’s choice and point of difference in the TV landscape. up that offers viewers something to watch control. We’re less concerned these days 1’s Sunday Theatre season is the gold together with their family, flatmates and about whether viewers watch our content on standard of premium New Zealand drama. friends. Later on, we know viewers seek broadcast TV or online – what matters is that Loved by viewers, this season’s always out individual viewing experiences – that they watch with TVNZ. got more power than the Manapouri shows up post 8.30pm where audiences are hydro station. Last year we brought the fragmenting across various viewing options. What is the focus for TVNZ 1 heading unforgettable story of Chris Crean’s bravery The challenge is to retain these audiences in into the future? in Resolve, which was a massive hit. This our TVNZ family, whether that’s transitioning Local is hardwired into 1’s DNA. That’s not year, I’m picking In Dark Places as the one them on to TVNZ OnDemand, or switching changing anytime soon. Looking to the future, to watch. It’s the story of Teina Pora and his them to something on DUKE or 2. Our focus we’ll continue to offer viewers a varied slate main supporter Tim McKinnel. Pora is played is all about offering viewers a great range of New Zealand best news and entertainment by Richard McDonald, a young Wellington and choice of compelling content to keep stories. And there’s an increasing role for big actor straight out of Toi Whakaari, and he them watching with us. event sport in our local line up. gives an electrifying performance. We want all eyes on us and the stories The Commonwealth Games was a major What’s New Zealand’s favourite we tell. Expect bold and brave programming event for us. We set out to create a shared programme on the channel? choices from TVNZ. We’re focused on national viewing experience and we reached New Zealand’s a nation of news junkies and remaining the most-watched - and to do that over 3 million New Zealanders with our wannabe farmers! 1 News at 6pm is New we need to keep in step with our audiences, to coverage. Sport is playing an increasing Zealand’s top rating show, closely followed be relevant and a big part of their daily lives. role on 1 – with Rugby World Cup and by Hyundai Country Calendar – 52 years America’s Cup sailing to look forward to. young and still a huge drawcard.

32 | STOPPRESS.CO.NZ | The Media Issue 2018 People’s choice: Westside Drama Show/ Factual Show

THE NEW LEGENDS OF MONKEY

A delight for supernatural fans, The New Legends of Monkey series follows a young monk Tripitaka, and a trio of Gods as they seek to end demonic rule.

While originally a Japanese 80s show, based on a Chinese novel, there’s a definite Kiwi bend to the remake with it being filmed in Auckland, directed by New Zealander Gerard Johnstone (Housebound/ Terry Teo), staring Kiwis Josh Thomson (The Project/Terry Teo) as Pigsy and Luciane Buchanan as Tripitaka, and remade by TVNZ alongside Nominees: Netflix and ABC. Shortland Street Fun and slick, the humour is similar to Hercules and Xena, keeping Westside the series family-friendly. While there has been concern from viewers AFK over the lack of Asian actors, the contemporary remake has worked on its gender diversity, switching up characters from the original series.

STAN

An emotional and inspiring documentary, Stan follows Kiwi musician Stan Walker as he undergoes a life-changing journey: the discovery of a hereditary cancer-causing gene and the subsequent removal of his stomach.

Walker is known in Aotearoa for his Australian Idol win in 2009, his pop/R&B style music, numerous New Zealand music awards, and Nominees: recently an appearance in Taika Waititi’s Hunt for the Wilderpeople, but Mind Over Money regardless of this celebrity status, the one-oﬀ documentary Stan drew in an impressive audience. Coast New Zealand When it aired on Three in March, the feature-length documentary Country Calendar earned a rating of 8.6 to become the most watched doco of 2018 and Lost & Found the second-highest rating programme for 2018 to date. Artefact It was hotly anticipated as Walker had refused to reveal in the months leading up to the doco the reasons for his substantial weight loss and Rachel Hunter’s Tour of Beauty health issues. The Casketeers Walker showed strength and courage in the face of a battle that has Topp Country claimed members of his extended family, and Stan deﬁnitely resonated Attitude with New Zealanders – fans of Walker or not - up and down the country.

People’s choice: Country Calendar The Media Issue 2018 | STOPPRESS.CO.NZ | 33 Comedy / SVOD People’s choice: Screaming Reels

SUBJECT: DAD

It’s a simple and great concept - Josh Thomson and fellow comedians (Dai Henwood, Urzila Carlson, Jeremy Corbett etc) get together and read the regular emails sent by Thomson’s father, David. This is his way of checking in with his kids and letting them know he’s ok after the death of Thomson’s mother.

Subject: Dad humorous but heart-warming, personal but relatable. While Nominees: the situations are speciﬁc to Thomson’s dad and the family farm in Timaru, we’ve all had messages from parents that have left us scratching All Star Family Feud our heads or roaring with laughter. Each section is seven minutes long Anika Moa Unleashed which is the perfect amount of time to dissect one funny email. Alice Snedden's Bad News And adding drama to the humour, the show also features re- enactments, with Thomson taking crew to the farm to ﬁlm his dad Funny Girls acting out the emails. 7 Days With Thomson no longer a full-time host on The Project, this outlandish Fail Army production gives him a space to use his comedic and acting chops. Screaming Reels Buoyed along by David’s enthusiasm (and genius), and the banter between Thomson and his comedic pals, this charming show is not to be missed.

WESTWORLD

Not since Lost have TV viewers been transported from one ‘literally’ dead end to another, while waiting in vain for mysteries to be explained and truths to be revealed.

In the 2001 movie A.I. Artificial Intelligence, a highly advanced robotic boy longs to become "real" so that he can regain the love of his human mother. Seventeen years later with the HBO hit Westworld streaming on Sky’s Neon and playing on Sky's SoHo channel, Nominees: Hollywood’s view of AI has become more dystopian and convoluted, as AI hosts become human and those we thought were human turn Big Little Lies out to be AI. Black Mirror As with The Matrix, Westworld bombards us with esoteric The Handmaid’s Tale symbolism and hidden meanings while taking us on a roller-coaster Stranger Things ride in a cowboy-esque theme-park journey of complex storylines and confusing chronology. 13 Reasons Why Described by Forbes' Dani Di Placido as “intelligent, thought- My Next Guest Needs No provoking science fiction, depicting the terrible repercussions of Introduction supremely selfish decisions by terrible people”, Westworld has become Nailed It compulsive viewing and created much discussion about the potential impact of AI.

©HBO

34 | STOPPRESS.CO.NZ | The Media Issue 2018 People’s choice: The Handmaid’s Tale People’s choice: Dancing with the Stars NZ Reality Show

Nominees: Survivor New Zealand Dancing With The Stars NZ Married at First Sight New Zealand First Dates New Zealand Design Junkies

Māori TV’s Sidewalk Karaoke does just that “It might not change your life but it can SIDEWALK as it transforms streets into a karaoke stage change your night,” says Mackey. for Kiwis to perform on. With hosts Te Hāmua And soon it won’t just be changing the nights Nikora and Luke Bird at the helm, it’s real, funny of talented Kiwis. The format’s caught the interest KARAOKE and occasionally quite emotional. of FremantleMedia (responsible for hits American CEO of Pango Productions and creator Idol and X Factor) which acquired the global TV of Sidewalk Karaoke Bailey Mackey says the rights to the format. Mackey says it’s starting to New Zealand’s reality show was created in an attempt to make a roll out around the world but is unable to confirm cost-effective entertainment format. It’s now the countries as it’s not on air yet. TV line up offers plenty three-seasons in. When the acquisition was announced in of chance to find love— “I actually wanted to set it in a taxi, but after 2016, FremantleMedia executive vice president through First Dates, rehearsing I felt it just lacked energy so we of global acquisitions and development Vasha Married at First Sight literally pulled the karaoke out on the street and Wallace said Sidewalk Karaoke is exactly what set up!” we know broadcasters are looking for. the new Heartbreak Island, Featuring three levels, contestants compete “It’s high volume, cost effective and has but what about a chance to against an app that judges their speed, pitch been amazingly successful with phenomenal win cash for putting your and tone. Each round offers a cash prize, with ratings – tripling the broadcaster’s prime time vocal talent on the line? the final offering $1000 to contestants who sing average. It’s wonderfully warm, a lot of fun to a duet with an audience member. watch and suitable for the whole family.”

The Media Issue 2018 | STOPPRESS.CO.NZ | 35 News and current aairs / TV Host People’s choice: The Project

When it was announced Jeremy Wells would SEVEN be joining new mother of the nation Hilary Barry for the return of Seven Sharp, people wondered if he would be up to the role, SHARP knowing his oft-controversial background as Newsboy, and role in Radio Hauraki and the Alternative Commentary Collective. The With its new line-up, Seven question on everyone’s lips - would the power Sharp of personality overshadow the content? continues to keep However, Wells has proven the doubters audiences engaged in the wrong and the fresh combination of the pair post-newshour slot, with who bounce off each other wins them top of its humour, authenticity the category. Bonus points are given for having Anika Moa flout newsreader conventions and and a dash of cheekiness. bring authentic discussions to the table while helping Barry host while Wells was on holiday. With the shake-up, TVNZ has boldly brought a different feel and appeal to Seven Sharp after Mike Hosking and Toni Street’s four-year reign. Nominees: While perhaps older viewers miss Hosking’s musings, audience loyalty ensures the figures The Project continue to soar above its 7pm rival The Project. The Hui While it has to be said Seven Sharp may Sunday not have the depth of The Nation or The Hui, The Crowd Goes Wild it’s enjoyable to watch as the team continue to tackle issues from New Zealand and around Q+A the world five years after its debut.

Among those in her ﬁring line have been ANIKA MOA Art green and Matilda Rice, Paula Bennett, Helen Clark and Jacinda Ardern, and the results are entertaining and enlightening viewing on TVNZ OnDemand. Anika Moa is back on our While the singer-songwriter will be screens this year and this familiar with being interviewed, she’s also time, she’s probing local no stranger to the other side, having hosted two seasons of All Talk with Anika Moa on celebrities in unfiltered and Māori TV. unadulterated interviews Outside of her own series, Moa ﬁlled in for Anika Moa Unleashed. for Jeremy Wells on Seven Sharp and made the role her own. One stand out moment was when she took on a tattoo troll who Nominees: criticised her for displaying tattoos. Jeremy Wells "I don't wish to be greeted by, or see Jeremy Corbett people such as police displaying tattoos, or see TV presenters displaying tattoos," read a Scotty Morrison letter from Peter to which Moa said: Dai Henwood “I am really proud to have my culture on Laura McGoldrick my skin. There are more important things Scotty Stevenson to talk about: children going to school with no food, young suicide rates, mental health, Amanda Gillies drug and alcohol rehabilitation, prison reform.”

36 | STOPPRESS.CO.NZ | The Media Issue 2018 People’s choice: Jeremy Wells People’s choice: Augusto Film / TV production Company

RUCKUS

Nominees: From TVCs for Kiwibank Motion Sickness to innovative studio-based Fish productions for TVNZ’s Augusto What Next, Ruckus takes Pango Productions the accolade of Hottest Rogue Productions Production Company. Co- Attitude founder Arwen O’Connor Vendetta Productions reflects on the year that was and explains the company’s "secret engine”.

“It’s been a busy week,” Arwen O’Connor and tell them well with integrity and and tries to humanise. says to kick off our conversation. authenticity.” “Mitchell will get this dense intellectual She and the Ruckus team just picked She says this is true whether it’s information that you know is rock solid, then up almost all the New Zealand awards at a documentary on Stan Walker or an I’ll go in – I’m the one that picks it apart, the Doc Edge International Film Festival for advertisement for Kiwibank. And for a and then Nigel puts it into a language that feature documentaries Born This Way: Awa’s relatively new company, they’ve done a people really seem to respond to.” Story and Stan, including Best New Zealand range of jobs. Although very organic, she says the Feature Documentary and Best New Zealand “For us it’s all about the idea, does the process takes a lot of sitting in the office Editing. idea resonate?” she says. and talking things through. Evidently it’s not just the week that’s An example is Ruckus’ work with “We have a flow that happens naturally been busy for the production company Kiwibank for the Mind over Money series, and it’s happened for a long time with founded by O’Connor, Nigel Latta and where O’Connor says the team looked at the us, it’s only since we’ve been at Ruckus Mitchell Hawkes in 2016, but the last bank’s objectives and values and made sure that we’ve said ‘well that’s how it works two years. they aligned with theirs. isn’t it’.” “Yes, it’s been all go from day one,” “They were really great, we didn’t A huge achievement for the team was she says. mention Kiwibank at all and they allowed pulling off the new age and very high-tech And the work hasn’t gone unnoticed, that, they just wanted a series on money.” current affairs Q&A show What Next? with audiences, media companies and Rather than product placement, O’Connor says AR, VR, and 360 video businesses across the country tuning in and O’Connor says the value for brands is are the next big things in content creation getting involved with the team’s innovative having their objectives and goals “baked and the team are keeping their eyes on and engaging storytelling. into” the content. advancements in technology and how to Although Ruckus is still relatively new on Every story that lands on the Ruckus use them. But she says no matter what the scene, Latta, Hawkes and O’Connor are desk, no matter what genre or length, goes tech brings, the team's shared fundamental no strangers, having worked together for through what the team has coined “the values and empathetic storytelling will more than nine years producing shows such secret engine”. always be at the heart of Ruckus. as The Hard Stuff with Nigel Latta and Nigel The engine ensures that whatever’s being “We’ve been blown away by the Latta Blows Stuff Up. worked on has an underlying thread that’s opportunities that have been coming our As passionate storytellers, the aim is to really strong, robust and scientific, before way, and at the moment we just keep going,” make content they truly believe in and that being turned into more humanised relatable she says. people want to watch, O’Connor says. content, O’Connor says. “We’re always looking at new, fresh, “For us it was simple. “Nigel is the relatable one, Mitchell is the exciting and innovative ways to tell stories, “We just want to tell important stories intellectual one, and I’m the one that goes in but it will always come back to the idea.”

The Media Issue 2018 | STOPPRESS.CO.NZ | 37 Digital Production Company (web/VR/AR):

How does Assembly define its work? Craft, with a heavy focus on design. On a practical level, anything that goes on a screen. We have such a broad range of work from creating new technologies to traditional commercial projects and we are very proud of being able to deliver to any brief, but it does make our business a little hard to deﬁne!

What have been your biggest learnings or challenges over the past year? Balancing the peaks and troughs of business in general. Having enough permanent staff to be able to tackle large projects, but keeping enough workflow to survive ASSEMBLY the quiet times. To combat this, we’ve had to find and use specialist freelancers, especially in the area of visual effects.

Assembly has become What’s the best new technology you one of the world’s best guys are using? animation and production We recently installed a SodaStream machine which we are already seeing some instant houses. Its skills extend results with, and Damon has started using from beautiful animation one of those stand up desk things. work, amazing visual effects Aside from that, our 3D dome scanner (that we built in-house) has become and stunning digital and VR invaluable on some projects. It has a experiences, like a series of computer-controlled robot arm, and uses games to promote the film photogrammetry to digitally replicate Kubo and the Two Strings, 3D assets. In particular, assets that are traditionally diﬃcult to model by hand. and engaging websites for Using gaming engines like Unreal global brands like Verizon and Unity have also been an exciting and PwC. Partners Jonny development. We have created a range of Kofoed, Damon Duncan projects from VR to interactive games. It has also become a valuable tool for pre-vis and and Matt von Trott reflect client viewings on challenging projects like on the year that’s been and Vector Bridge Lights - where we recreated what lies ahead. the Auckland Harbour bridge in 3D and presented WIPs in VR. This meant the client could watch the animation from a variety of key viewing angles before the live event. On a smug level, our facility is now solar powered. A good chunk of our image Nominees: processing is powered oﬀ grid!!

Resn What technology is over-hyped? Rush Digital VR is still exciting to us but is yet to reach Gladeye the general consumer, so it's hard Wrestler to justify for most brands right now. Wouldn’t necessarily say it's over-hyped as Conical Studios it's still an impressive technology Translate Digital experience, it just needs more uptake and applications.

38 | STOPPRESS.CO.NZ | The Media Issue 2018 People’s choice: Resn

This year you’ve picked up a Wood Pencil at D&AD and a Webby Award for Heinz ‘Geoff’. How is it seeing New Zealand on the international stage? We’ve had an amazing awards run over the last year, primarily with Heinz 'Geoff’ and Anchor 'Inside-Out'. We kicked off with a Gold Lion at Cannes for Anchor, followed by pretty consistent wins with both projects through LIA, Clio, D&AD, The Webbys and AWARD. Entering awards is a relatively cost effective way of marketing for us. The plan from the outset has been to use them to get some international exposure. We feel really proud to be competing at this level. It’s taken a lot of work, and a lot of trust from our clients.

What will a production company of the future look like? Very similar to now, but producers will be armed with tasers. The challenge with budgets, particularly in New Zealand, is it doesn’t feel like it’s going anywhere. Everyone will continually have to adjust their mindsets and the way that technology can create eﬃciencies within production. The talent pool in production companies is also evolving. There is still no substitute for talented visual artists but developers that have a real creative mindset are also becoming a vital part of the team. With so many platforms to deliver to, this mix of technology and creativity is where the truly ground-breaking work will come from.

The Media Issue 2018 | STOPPRESS.CO.NZ | 39 Content Marketer People’s choice: Tourism New Zealand

from a production perspective for the last few years. Its background is in TV production HEIHEI so they’re very nimble and can come up with solutions for most of our content needs. We then work with FCB who plan and buy our media strategy to support the content. All of New kid on the media this is co-ordinated and managed through our block HeiHei, is the result in-house content marketing manager. of a partnership between

How have those videos evolved over NZ On Air and TVNZ, as the years? well as $1.5 million to build We started with our Easy As “how to” series the site and app, and $12 which has the core focus on DIY and helping million to produce shows Kiwis do it themselves. We then moved into MITRE 10 our Dream Zone videos which were more and games. Cate Slater, inspirational focused and showed people how TVNZ’s content director, to create specific looks and how to use Mitre tells us what it’s all about. 10 product to create these looks. From there Mitre 10 has put itself in we launched On Demand and our episodic the home-improvement entertainment-based layer of content. We also recently introduced our Easy As Garden media space with its own series focused on providing an extensive on demand platform. We range of gardening tips, advice and ‘how tos’. talk to general manager of If we can inspire our customers into projects, get them the right tools and show them how marketing Jules Lloyd-Jones to get it done, we feel like we’ve done our job. about the strategy behind it. Who is the audience? When and why did Mitre 10 start We have a really broad audience. From making videos? flatties who are looking for affordable storage We started creating our own content in 2012 solutions, to homeowners wanting to do a full What is HeiHei? with our most popular series, Easy As. There house renovation, to our very keen gardeners. HeiHei is all about engaging our youngest was clear evidence that Kiwi’s DIY skills were viewers with content that inspires them, in decline and as a home improvement retailer, What has Mitre 10 learnt over the makes them laugh, and broadens their we wanted to help Kiwis stick with their DIY years? horizons. The majority of programmes roots and see Mitre 10 as their DIY partner. Always start content development from the on the platform are local (38 out of the The videos are all housed on our YouTube customer's perspective. Our customers want 50 shows available at launch), including channel and are supported in-store with practical advice and knowledge from us so standouts like Fanimals, Māia The Brave, dedicated screens and DIY project pamphlets. we have now steered away from creating Kai Five, What Now, Darwin and Newts content that purely serves to inspire. Our and The Barefoot Bandits. HeiHei is very Who does it work with to produce them? heartland and what our customers want much an opportunity for Kiwi kids to see We’ve been working exclusively with Augusto from Mitre 10, is help and confidence in themselves reflected on screen. bringing their ideas to life. They want to know how to get it done, what tradies they Why was HeiHei created? Nominees: might need to use and basically how they Kiwi kids have been missing out on local Spark can do it themselves. programming. We know children are Resene watching more content than ever; it’s just What’s your advice to other brands not always local content that speaks to Air New Zealand looking to make their own content? their own unique stories. Over 90 percent Kiwibank Customer research is key, so having great of New Zealand children spend an hour in Supreme insights into what people expect and want front of a screen each day. Parents have Allbirds from your brand, what they enjoy watching told us that they’re worried about the lack and making sure the content is the right fit of local content available for their kids, Hell Pizza for the brand and the channels you plan to especially across various digital platforms. Tourism New Zealand promote it on. We agree with them and HeiHei has been developed to meet this need.

40 | STOPPRESS.CO.NZ | The Media Issue 2018 People’s choice: The Spinoff Bulletin Media Product / Start up

Who are the partners involved in financial transactions are driven by people’s creating it? PressPatron values, rather than the cold-hearted rationality HeiHei was kicked off by NZ On Air. They that forms the baseline assumption of so much did a lot of research into what kids were old-school economic theory. In the context watching and how they were watching. This of journalism, you don’t need to force people in turn sparked a huge commitment from After experiencing the decline to pay. Publishers need to create powerful them to develop and fund an online home in print revenue as editor journalism that fulfils its democratic mission to better serve this special audience. We’re of Tearaway magazine and of informing society, holding the powerful to thrilled that TVNZ was selected as the account, exploring new ideas and basically just partner to make this platform happen. evaluating revenue strategies helping us to understand each other so that The New Zealand production community while working towards we can become a better society. has also been vital in helping us get this the Master of Advanced Another advantage of PressPatron is it project off the ground. HeiHei is an amazing Technology Enterprise, Alex allows publishers to achieve the holy grail of reflection of the breadth and depth of talent pricing: dynamic pricing that matches the in this community. The content they have Clark founded PressPatron in budget of every reader. By trusting readers to created for the platform is fun, diverse, 2014. He talks us through why reward quality journalism with a fair price, you exciting and informative. the donation model works. can generate higher revenue than a fixed-price paywall model. A publisher might charge $10 In the announcement of its launch, per month for their paywall subscription. NZ On Air chief executive, Jane By contrast, a PressPatron publisher might Wrightson said “Tamariki are an receive $50 per month from a wealthy reader important audience for NZ On Air – and $5 per month from a reader with less they need stimulating and engaging disposable income. Both scenarios represent media in a safe environment”. What significant income that is completely lost was unsafe about the existing media under the fixed-price paywall model. environment to children? The average recurring contribution is HeiHei offers an environment where $11.40 per month, The average one-time children can safely explore and consume contribution is more than $49, with 44 quality, age-appropriate content. There is no percent of supporters giving $50 or higher risk of viewing mature material. Everything photo credit: Victoria University of Wellington and 14 percent donating $100 or higher. on the site is just for kids, and that gives parents piece of mind. We know that there What was the motivation behind Where to next for PressPatron? has to be special care around children and PressPatron? I’ve recently been on a trip across the USA advertising. It’s something we plan with My thesis evaluated a range of revenue meeting with dozens of publishers, who consideration on our linear channels. HeiHei strategies for online journalism. After are now evaluating PressPatron with their is an ad-free platform. completing initial market research, I found teams or preparing for launch later in the donations were more popular with survey year. To fuel our growth even further, we’re respondents than paywall subscriptions. raising investment to boost our team and For my enterprise project, I decided development capacity. to build a funding platform that would We also have some exciting new features allow publishers to easily adopt the most that are currently in the pipeline, as well as Nominees: promising business models. Our original some ambitious long-term goals. 90 Seconds of Stuff platform had a different name and focus, but eventually evolved into the PressPatron The PwC Herald Talks Nominees: platform that is being used today. The Boy and the Lemon Wipster Idealog + Blunt + Generator Why does a donation model work Contento Umbrella Experiment compared to a paywall model? The Social [and] What’s been the response from Battle to the Beehive those using it? One Room The Valley Donations and memberships build a stronger Parrot Analytics The Spinoff Bulletin relationship of goodwill between publishers ReoBot Vodafone TV and their audience. I think this is the key Zavy reason why donations can be more successful Sky Go than paywalls. We are seeing the emergence Lumo of a new ‘economics of generosity’ where

People’s choice: PressPatron Creator

VIVA LA DIRT LEAGUE

Can you explain Viva La Dirt League? channel and our content to showcase. Viva La Dirt League, by Adam King, Rowan When watching people Bettjeman and Alan Morrison, is a New Zealand What’s been the biggest challenge you’ve play video games has skit comedy YouTube channel. We make funny had to overcome? become just as popular as online videos about video games, movies and It's very hard to get noticed online. We do a lot of playing video games, it’s TV shows. Currently we do three videos per trial and testing with the content of our videos, week. On Mondays we make Epic NPC Man, and how we put them out into the online space. hard to deny Viva La Dirt about a self-aware computer character living We have a lot of failures, but we are lucky that League the win for its in a fantasy video game. Wednesdays is PUBG with three videos every week we can learn from gaming-related content. Logic, where we make fun of the game logic of those mistakes and make the next video better. the hottest battle royal game PUBG. Then on Across this time, we've had a lot of videos go Friday we have Bored, a crazy sitcom web series 'viral' - but in truth there is no exact formula. It about four people working in a tech store and really is up to how the people on the internet the crazy hijinks they get up to. are feeling on a particular day when you release something. It could go wildly successful when you When/how did it start? didn't think it would - or completely tank when you It started over five years ago when a bunch thought you'd done everything right. of mates realised that they have two things in common: a love for video games, and a love for Who watches it? making films. Initially we did parody music videos For the most part, our audience are nerds. We about just one video game: 'Starcraft'. They were have a large skew towards men aged 18-35, but made on and off over a few years. It wasn't until also a loyal following of women too. They are two years ago when we made a commitment to nerds through and through. Loving video games, making three videos per week that the popularity manga, cosplay, memes, tech, board games, TV of the channel started to explode. shows and movies. The internet is the perfect place for our content and an awesome place to Did you expect it to be what it is today? grow such a cool community. Obviously there was always the hope that we Nominees: would be able to grow the channel to something What’s your advice for others with ideas Tom Sainsbury as successful as it is now - but they were always for video series? Jordan Watson dreams. It is so heart-warming to see the amount The advice we give is always about audience. Tim Batt of people who absolutely love our content, and Think long and hard about them. Know your Toby Morris enjoy being part of our community of like-minded audience, know where your audience is, know Alex Casey nerds. Even if we had thought we'd get mega how your audience consumes content online. Madeleine Sami & Jackie van Beek famous - I don't think we would have ever realised Then think about how your content is going Roseanne Liang that we would have this much fun doing it, and to appeal to them. Online is all about niche The Alternative Commentary that we would have such a cool community. Our audiences - mainstream doesn't exist. Everyone Collective ethos is 'empowering the nerd' so we've recently is served up content on every platform based on William ‘Waiirua’ Cribb come up with a new slogan which is 'Nerds keywords of interest. If you can't describe your Gerard Johnstone United'. We think it encapsulates the channel content using interesting keywords - then it's really well, and it is something we want our never going to find its audience online.

42 | STOPPRESS.CO.NZ | The Media Issue 2018 People’s choice: Alternative Commentary Collective

The Media Issue 2018 | STOPPRESS.CO.NZ | 43 Biggest Move People’s choice: Spark + TVNZ + RWC rights

service Lightbox and has established a number of content deals with big tech platforms like Netflix and Spotify, largely as a marketing exercise to incentivise broadband and mobile uptake. Sky’s retiring CEO John Fellet has often said that it’s easy to buy content, but it’s very difficult to make money out of it. Spark’s model is different than Sky’s, however. While it will obviously be getting revenue from those paying to watch the tournament, it will also presumably be using access to it as a carrot to attract new customers. TVNZ, which has focused more heavily on free-to-air sports rights in recent years with the likes of America’s Cup and The Commonwealth Games on TVNZ 1 and a range of US sports on Duke, will screen seven matches live – including the opening match Some games will to be screened on free-to-air, and the final – and it will also air a number RWC RIGHTS and all games streamed live via an app for of delayed games. While the broadcasters anyone willing to fork out an estimated $100. and delivery system are different, it’s similar And while streaming content has become to 2015, when all games were screened on the norm for many New Zealanders, live paid-for Sky and some live games, delayed Sky has long been one of the sports streaming in New Zealand has had a games and highlights packages screened on country’s most successful and chequered history, with the likes of Premier its free-to-air channel Prime. profitable media companies League Pass struggling to make headway with TVNZ faced some criticism for the ads football and Sky’s platform SkyGo regularly that ran during the Commonwealth Games and a lot of that has stemmed failing during peak times (it has recently been recently, so it has pre-empted concerns about from its hold on sports rights updated to include on-demand TV and given that and said ads won’t run during live game – and particularly rugby. But an overhaul to ensure it can handle the jandal time. Some existing Sky customers aren’t keen when it comes to live sports). Overseas, live on the additional cost they’ll have to foot and that dominance is starting streaming of sports is common, with leagues those in the rural regions with limited access to be tested, as telcos and like NFL, NBA and NFL offering games direct to speedy internet – or the technologically tech platforms vie for sports to consumers for a fee (typically outside of the incompetent – feel they might miss out. broadcast rights. And in what US market where broadcasters still hold the For Sky, this isn’t a fatal blow, but it’s rights). And the improving technology and the certainly a significant flesh wound. And is seen by many as a shot widespread adoption of fibre has given Spark the fight seems to be getting bloodier, with across the bow of Sky and a the confidence to deliver a quality viewing Amazon, which just released an in-depth sign of things to come, Spark experience for this tournament, as well as the documentary about the All Blacks, sniffing and TVNZ snatched the 2019 2021 Women's World Cup, the 2018 World around global sports rights. Sky contends Cup Sevens and 2018 and '19 World Rugby there is always plenty of interest in these Rugby World Cup rights away. U20 Championships that were part of the deal rights and this is just one tournament over with World Rugby. The pressure will certainly three weeks that it has lost (plus, of course, be on Spark to make sure the tech all works the other tournaments across different years). smoothly given New Zealand’s enduring For it, the important thing is that it still has Nominees: passion for rugby – or, more specifically, the ongoing rights to screen Super Rugby games Amazon Prime All Blacks – and, as its recent issues after and other test matches. The current SANZAR John Fellet departing Sky a Lightbox upgrade show, that’s not always deal comes to an end in 2020 and negotiations guaranteed. for the next five year round are set to start The Spinoff TV No-one has confirmed the amount soon, which is apparently earlier than normal RNZ+ involved in the deal, but Sky pulled out of to allow new bidders to get their house in Cuisine’s ownership moving the negotiations and said Spark “paid a lot order. It will be interesting to see who’s willing Stuff selling mastheads of money”. But it’s on strategy for Spark and to pay more for them – and what that means is the latest move in its efforts to become for Sky’s golden goose, NZ Rugby’s coffers and ThinkTV more than just a series of ‘dump pipes’. It has the overall viewing experience. Welcome to the already invested heavily in its own streaming future of sport.

44 | STOPPRESS.CO.NZ | The Media Issue 2018 People’s choice: NZME Media Company

In 2017, New Zealand print advertising with their customers.” NZME revenue was expected to drop by 12 Appealing to readers across the country percent, adding to the constant decline the in an integrated way is vital, he says. channel is facing. NZME has local radio shows dedicated It’s a tough game to be in. to regional journalists and integrated While NZME certainly But NZME is fighting the tide to keep newsrooms across the country where print, isn’t floating down the printing newspapers with aims of returning radio and commercial teams work together. rivers of gold that print to total growth. Although its print ad “We take a strong interest in the revenue dropped in 2017, it was down communities in which we operate, and are advertising and classifieds 10 percent—not the industry norm of constantly working to provide news, sport used to create, the company 12—and the company launched new and entertainment content that those is still profitable. It's not advertising initiatives YUDU, OneRoof audiences are asking for. the same company that and Driven. “The Country, for example, is a NZME CEO Michael Boggs says the platform we have invested in because proposed a merger with company is constantly growing and we recognise there is a whole demographic Stuff in 2016, having most evolving in the ever-changing media that has a vested interest in rural-focused recently introduced digital landscape. Innovation is integral to NZME’s content.” brands YUDU, OneRoof sustainability, he says, and the company Content is produced in the most has groups dedicated to new projects as appropriate format for the targeted and Driven to sit alongside well as those focused on maintaining and audience, whether that be print, radio its print and radio brands. developing existing services. or digital and with the past year seeing Chief executive Michael Boggs says he is especially proud of audience growth across print, radio and the progress the company has made with digital channels, Boggs says there’s no Boggs talks us through the auto-focused publication Driven, dedicated prioritising one over the other. evolution. employment platform YUDU, and real estate “We transformed our content teams to be website OneRoof, and adds all are growing audience first – they are our focus, and the in listings and audience each day. mix of platforms will very much depend on “We are really excited about these who we are trying to speak to.” new brands that leverage our leading He says the biggest challenge has been audience, brands and deep-rooted industry balancing investment in people and capital relationships. We have created market- to maintain current business momentum, leading platforms and consumer experiences whilst investing in new initiatives to grow in each of the three verticals.” new revenue streams. He says each site gives users more than But he says it is a daily feat NZME existing online offers and each aims to has managed really well thanks to the evolve market and consumer behaviour. engagement and hard work of staff. One Through OneRoof, house-hunters can plan being implemented in the near future access the latest property insights and is putting up a paywall around premium valuations, and can search based on journalism on its website. User registration their specific needs such as school zoning would be the first step and payment the and transportation options, making the last, the New Zealand Herald reported search process easier and more informed, earlier this year. he says. Boggs says one of NZME’s main priorities Curbing the steep drop-off in print continues to be returning total advertising advertising is credit to NZME’s teams who revenue to growth. This will be done by work on its print titles, the brand strength retaining print revenues, driving digital and the company’s ability to offer integrated, revenue growth and capitalizing on radio Nominees: multi-platform campaigns through radio, coverage, content and talent enhancements, TVNZ print, online and video, Boggs says. he says. “We continue to provide interesting and “Delivering on this, with our focus on Bauer investigative content, which is resonating growing new revenue streams, managing our RNZ with the readers. costs and capital effectively, and working MediaWorks “Advertisers recognise this, and continue towards our new initiatives contributing to to value New Zealand Herald, our various NZME’s overall performance, will support Vice New Zealand newspaper inserted magazines and regional our objective of becoming a growth business papers as valuable channels for engaging in the medium-term.”

The Media Issue 2018 | STOPPRESS.CO.NZ | 45 Most Inﬂuential in Media

You know anything with ‘mania’ added on to it is big news in the media. Far bigger than ‘-gate’, and far more sustained than ‘-fever’, anyway. And when Jacindamania took hold in JACINDA ARDERN the build-up to last year’s election after she was thrust into the leadership position with just a few weeks to campaign, it showed It’s not just that she gets attention. how the media can be used to ascend the political ranks (or, in the case of Donald It’s what the attention she’s getting is Trump, how the media can be abused to doing to the way women are perceived ascend the political ranks). and showing what they can achieve The media’s main role is to reﬂect society. And Ardern’s appeal with the people that makes Jacinda Ardern our most translated into appeal with the media. influential person in media for 2017/2018. Like a bus crash or a shark attack, she has the ability to grab attention, and that’s a currency the media understands. But the media – and those who feature prominently

46 | STOPPRESS.CO.NZ | The Media Issue 2018 People’s choice: Jacinda Ardern

like Vogue and Time and a host of positive question in 2017. coverage following her trip to meet fellow Aside from her obvious appeal as a leaders at the Commonwealth Heads of subject of the media, she is also influencing Government Meeting, she has become the media industry. While Clare Curran legitimately world famous, something very holds the portfolio as broadcasting, few other New Zealanders can claim. communications and digital media minister, As media sage Tom Goodwin wrote in Ardern, as the head of the Labour Party, GQ last year, if you’re an influencer, you’re is a believer in the importance of publicly probably not influential. And while Ardern funded journalism and the role the media has fewer Twitter followers than any of the plays in telling our stories and reflecting our Kardashians, she has far more substance changing national identity. and has already had a major impact. In the One of the government’s major eyes of many young girls, Ardern is living announcements during the election proof of what women can achieve – and campaign was a proposed $38 million evidence of the changing times we’re living funding boost to RNZ and NZ on Air. The through. As Oprah said when accepting the recent budget gave a reduced figure of $15 Cecil B. de Mille award at the Oscars, seeing million to that cause. And while it has yet to someone that looks like you on screen, or in be allocated, for RNZ, which had its funding print, or on the radio, makes you believe you frozen for almost a decade between 2007 can do it too. And as Sheryl Sandberg wrote and 2017 before the National government in her piece celebrating Ardern’s place in upped the budget by $11 million, this Time’s 100 Most Influential People of 2018: additional money and the mandate to evolve “She’s not just leading a country. She’s into a truly multi-media national broadcaster changing the game. And women and girls could be transformational – and, for other around the world will be the better for it.” commercial media companies, including Being only the second woman to TVNZ, problematic. Add to that the ability be pregnant while in office (and out of for film and TV producers and smaller wedlock, too, much to the chagrin of the media companies to access more NZ On Air traditionalists), and with her partner Clarke funding (an increasing amount of it aimed Gayford set to stay at home to look after at creating digital content) will give those in the baby, they have fought against well- the media industry some much-needed help engrained gender roles in this country. The in what is a difficult time. media – and, by extension, the masses – are In 2017 and 2018, no-one else in the increasingly discussing these issues, and country has influenced the media’s editorial Ardern has been the catalyst for those decisions, no New Zealander has had conversations. as much coverage across all forms of Likeability is often a key to influence. media – both here and around the world New Zealand has always excelled when – and no-one has used their position and in it, either as workers or subjects – can also it comes to soft power; the ability to use profile to change the culture more than change society. The leader of the nation will diplomacy and charm to try and get our way. Jacinda Ardern. always have eyes trained upon them. Ardern exhibits many of those skills and But the meteoric rise of Ardern – young, she is definitely more carrot than stick (her female, progressive, approachable, self-deprecating approach goes down well Nominees: empathetic, witty, attractive and pregnant with New Zealanders and she showed that – was not just a story of popularity. It was a she can laugh at herself in a recent cameo Clare Curran story of how the media has helped to bring alongside Rhys Darby in a Tourism New Simon Moutter about cultural change. Zealand ad that went viral). But that doesn’t Hosking/Hawkesby family For many, she perfectly embodied our mean she doesn’t occasionally wield a stick modern nation – and how we wanted our when required. Soon after she was named Colin Peacock modern nation to be seen on the world prime minister, she responded to a question Shayne Currie stage. And her story was not just appealing from Mark Richardson about whether she High Court in her homeland. The international media would let the country know if she was also got a bad case of Jacindamania. planning on having children while in office David Walsh With profiles in all the major international by saying it was “totally unacceptable” Guyon Espiner newspapers after she was elected prime (and, based on the human rights act of Jeff Bezos minister, fawning stories in magazines 1993, illegal) for any employer to ask that

The Media Issue 2018 | STOPPRESS.CO.NZ | 47 Media Visionary

where billionaires who own NFL and NBA teams have started to buy gaming teams and professional players are getting rich. It could be a huge driver for economic growth, as seen most in the Chinese market, where eSports is expected to generate $3 billion yuan (US $462 million) of revenue and attract 140 million users this year. Additionally, eSports revenue is experiencing 40 percent year-on-year growth globally, and a global viewing audience of around 385 million. While eSports is still fledgling in New Zealand, there is significant interest, and McRae is ensuring that Kiwis aren’t left behind in the red-hot sector. “eSports has been around at a grassroots level for a long time in New Zealand, our job was to provide a platform and give eSports access into a mainstream audience, there is no reason why it can’t be as big as it is overseas and continue to grow here in New Zealand.” While the thought of video gaming replacing traditional sports like rugby and netball is giving sporting purists indigestion, millennials are flocking to eSports and presenting a real opportunity for brands. There are 1 million gaming participants in New Zealand, while rugby union comparably has 155,000 participants (but larger viewing figures). With numbers like this, McRae says: JOHN MCRAE “If you don’t know about eSports and you own a business and your customer base are millennials, you should probably find another job”. There is no shortage of talent carving out new digs in our media “Companies who support eSports are landscape. From talented humans such as Dr Mark Sagar from getting a great affinity with what kids are Soul Machines, to Sir Richard Taylor from Weta Workshop, passionate about, we are seeing globally how brands have harnessed the opportunity forward thinkers are shifting the industry with new realities really effectively, from Coca-Cola, to and shiny new platforms. While our list of finalists boasts a insurance companies like Gecko, and Star discerning bunch, a real cherry is John McRae, the man driving Insurance Specialists here in New Zealand New Zealand’s eSports bus up and down the country. who are aligned with one of our latest events Project Cars, there are also restaurants, schools and many others jumping on board.” Previously part of Duco events, McRae helped to implement a governing body for He adds large brands like Mercedes Benz has been making waves in the burgeoning eSports named the eSports Federation, are investing in eSports with a long-term competitive video gaming market. McRae which has been established to represent strategy, because although the audience is the managing director of Let’s Play and develop what is considered the fastest may not be buying a new Mercedes Benz Live, New Zealand’s largest eSports growing entertainment sector globally. now, these are the kids that will be buying entertainment and broadcasting company, While it still sounds strange to many electric cars, and are likely to purchase their and sees eSports as the next big thing in non-gamers, eSports is starting to boom products down the line. broadcasting and wants to educate brands as a viewing and event experience and To further incubate young talent, McRae about the opportunities. McRae has also is drawing massive crowds, to the point launched the first New Zealand High School

48 | STOPPRESS.CO.NZ | The Media Issue 2018 People’s choice: Lisa Taouma

eSports League in 2017. The national It could present a new direction for Sky programme is free for schools to submit after getting rattled with the loss of the teams, and involves one hundred teams Rugby World Cup rights, and shunted by Special Hotness playing up and down the country. The league cheaper alternatives Netflix and Lightbox. has a mixture of public and private schools Furthermore, McRae says eSports is on There is too much hot so we made up some other catagories. playing, female, male and mixed gender the road to becoming an Olympic sport, teams, who are all playing competitively and while it has already been cemented in Hottest Twitter account: against each other. McRae shares an the Asian Games, he predicts eSports will Art Parallels official high school photo of an established feature at the 2022 Olympics. eSports team, and adds that there are digital “It’s one of the things we really want Hottest editorial series: prefects popping up as a result. to see is for eSports to be recognised as Break the Silence “It has been one of the most rewarding a formal sport, so New Zealand’s young Digital obsession: aspects for me, to create a platform for kids eSports players have the same accessibility metservice.co.nz to stand up and be proud, and because it is to facilities, just like rugby or football, team-based, if they are not already involved because we are competing on a world Best Instagram presence: in a team-based sport, it gives them an stage, and it is just another category New Taika Waititi opportunity to participate.” Zealand can compete for a gold alongside McRae says many elements from 27 countries who now recognise eSports as Hottest Collab: traditional sports are transferable to an official sport.” Allbirds + Cocos Cantina eSports, from management and production, When asked what the future holds for Hottest chatbot: to sporting attributes such as coordination, eSports in New Zealand, he says while he Re:scam sportsmanship, and teamwork. It’s an doesn’t have a crystal ball, he sees major offering to kids who are disinterested with leagues being run in New Zealand with big Media stunt: traditional team sports to participate in, eSports franchises owning their own teams Rocketlab’s Humanity Star and he adds that eSports is a proven bridge as well as privately-owned teams. They will Constant controversy: to participate in active sports, in particular compete in big national leagues with high Mark Richardson team sports. stadium attendances. It could also be a bona fide full-time “All the infrastructure is there, the fibre is Hottest App: job for up and coming talent as McRae there, it is just a matter of time.” ThinkLadder. says most professional players are getting paid similar incomes to a new law graduate, Best spoof: and internationally recognised players Screaming Reels are on million-dollar salaries. And if you Nominees: Hottest Influencer: add on the opportunities for a secondary Richard Taylor Jacinda Ardern for Allbirds income, such as appearances and influencer programmes, and streaming, it can be Dr Mark Sagar Best Music Video: extremely lucrative. An example being a Lisa Taouma Leisure Got it Bad, Joel Kefali player named Ninja, a Fortnite streamer, Tony O’Regan Hottest digital tool: who through his paid Twitch subscribers is Sinead Boucher Thieve.co turning over $US500,000 a month. ESports also presents a huge opportunity Aleisha Staples Ones to watch: for local broadcasters. In 2017, McRae Amie Mills Hďhepa Tuahine and Kristin Ross—their penned a partnership with media Quinton Hita MÃori speaking Pipi MÃ dolls hit the big broadcasters Sky TV and NZME to live screen this year Ian Taylor stream eSports events on Sky Sport. He’s Rhonda Kite Best Movie: since held multiple events from the Let’s The Breaker Upperers Play Live studio space tucked inside the Robett Hollis SkyCity Sky Tower, which have been aired Laura Maxwell Best Celebrity Book: on Sky Sport across the country. Parris Goebell Young Queen “We have been incredibly lucky to have Duncan Greive Sky TV as a partner through our growth Bailey Mackey Best Actual Book: 200 Women period, they do get a lot of stick but niche Jon Bridges sports wouldn’t exist without them, it was Richard Poole Best Podcast: the same for boxing, snooker, darts, and Black Sheep, RNZ now eSports, they are a great partner to Todd Scott work with.”

The Media Issue 2018 | STOPPRESS.CO.NZ | 49

NZ MARKETING Adestra

NB: Nobody wants more email. They want better email – messages that reflect their needs Rob Hollier, and interests and deliver value every time. from Adestra, You have the email address. talks to us Now what? about using email and Why is onboarding new subscribers so marketing important? Throwing new subscribers into the middle automation of your messaging stream, can turn them to acquire, off quickly. convert, Use the “honeymoon” phase to send a series and keep of emails that warm up your subscribers, train customers. them to look for your messages and remind them about the benefits of signing up.

Your onboarding programme has three goals:

1. Welcome subscribers EASY AS ONE, 2. Begin collecting data that you can use 3. Guide customers to their ﬁrst TWO, THREE….. conversions What kind of data can you collect besides name and email address? Step One: Possibilities are endless but even your most 1. On product pages and landing enthusiastic subscribers are going to back ACQUISITION pages tied to your search marketing off if you don’t go about it the right way.

2. On your Facebook, Instagram, Twitter 1. Don’t ask for too much data too early. What is acquisition in email marketing? and other social media homepages Can’t you just email anybody? Income, home address and other In email marketing, “acquisition” means 3. On transaction conﬁrmation pages information might be crucial for your adding a person’s email address to your business, but you could scare customers customer database in order to send 4. In transactional emails away if you ask for too much too soon. messages. Implicit in that acquisition is permission – your subscriber or customer 5. In your mobile app 2. Always explain why you need the data. gives you that address in exchange for receiving email messages. 6. On print materials, such as in-store Frame your explanations around how it You can’t simply grab a list of email signs, bags and bag stuﬀers benefits the customer. addresses and start emailing as a) it’s illegal in almost every country in the world, and 7. In print ads 3. Use the data. b) you need high-quality addresses to run a successful email programme. 8. On emailed receipts Customers pay attention - if you ask for a birthday send a birthday greeting, if you ask Most websites have an email sign-up 9. In conversations with customer- for location be sure your emails reflect it. form. Where else can an organisation support people look to gain new subscribers? 4. Explain clearly how you will use Having a highly visible opt-in form on the 10. On product packaging and protect the customers’ data – homepage is the bare minimum. You need and then protect it! to do more to collect as many high-quality Each link or field should lead to an opt-in email addresses as possible. landing page where you can show customers Phrase your explanation in plain language Here’s a list of 10 locations where you should what they’ll get for opting in and start post your subscription invitation: collecting more data besides the email address. The Media Issue 2018 | STOPPRESS.CO.NZ | 51 NZ MARKETING Adestra

luck than skill. By using data to create and put it in your email too. Don’t drop as possible to one-to-one messaging at scale. content that reflects your customer’s customers onto your privacy policy page That’s the heart of First Person Marketing! preferences and behaviour, your messages and hope for the best. become more relevant and valuable, and you encourage customers towards that How can you collect more data? conversion – much the same as a retail Data collection begins at the point of opt-in Step Two: assistant presenting you with an outfit that with the email address and continues is your favourite colour, the right size, and through the whole customer relationship CONVERSION in the right price range… there is a good with your brand. chance that you would buy it! You can collect two kinds of data – directly from your customers and We hear a lot about how well email First-Person Marketing, indirectly by observing their behaviour on can generate conversions, but what, segmentation, automation… aren’t your emails and your site. exactly, is a conversion in email? these dicult to implement? The more data, the richer your customer Essentially, a conversion happens when Research states that marketers typically records. That helps you personalise and someone does something you want them to use 20% or less of an email and marketing target your emails better, letting customers do. In its purest form, an email marketing automation platform’s features because know you recognise them as individuals. conversion is either an open or a click. they simply don’t know how to use the However, marketers typically extend the more advanced offerings. If you fall into You have three main sources for collecting data definition of conversion to include any that category, then either find a new directly from customers: consumer action that has been influenced provider or get them to help you out! by an email. The initial click then becomes Strategically, these are not difficult 1. Surveys a micro conversion that leads to a macro concepts to grasp or implement. You conversion elsewhere. don’t need a complex set of data on each These can be as simple as asking a one- or Rather than simply measuring opens subscriber in your database to begin two-question pop quiz in a special email. and clicks – which are vital, but somewhat creating subsections of your database Some brands add a fun quiz to each meaningless to an organisation’s profit that share one or more characteristics message and use the responses to segment and loss statement – a conversion could (gender, location, previous purchase, etc.). and target messages. be a purchase, a subscription, an event In fact, you can start if all you have are registration, a download, or a preference an email address and the date it entered 2. Preference centre centre update, among others. Now we’re your database: Create a segment with new talking real dollars, real consumer subscribers and send a special onboarding A preference centre is a webpage linked engagement, and real data… giving you email (see previous page). to the subscriber’s account listing the real results such as revenue, audience, and Most email marketing platforms offer subscriber’s preferences for all the options insights to do better marketing. some level of marketing automation these you provide, from content interests to Email is consistently ranked as a days. If yours doesn’t, then find a new frequency and email streams. top-performing marketing channel, but provider. If yours does, then give it a go. Use an onboarding email to invite new its results remain all smoke and mirrors However you may find that the problem customers to fill out their preferences. for many organisations. If you can start isn’t that the feature itself is not available, Explain why this can improve their email reporting that “our latest campaign but instead lies around lack of data experience with your brand. Then, be sure returned $15,000 in sales”, instead of “our integrations to drive the relevant triggers – your emails reflect those preferences. last email saw a 55% open rate”, then you this simply needs to be scoped out, or lack can expect your budget to grow. of service and support to help turn your 3. Progressive proﬁling ideas into actual implementations – this How can email help a marketer to comes down to your vendor. Progressive profiling gathers data increase conversions? through a drawn-out series of questions By moving away from broadcast email – the What can marketers do right now to sent via email. Instead of asking 10 “batch and blast” model – and replacing improve their conversion rates and questions at once, begin with one or two, it with “1:1” emails. This is the essence generate higher ROI? then a couple more that build on the of First-Person Marketing, which uses The most important thing is to understand answers from those first questions. This customer data to create highly personalised that you can’t do it all right away – you can’t way, you build up a reservoir of data over content relevant to each customer, whether jump from broadcast email to triggered time without overwhelming or scaring off to a segment or in a triggered message, and and targeted messaging, using dynamic your customers. using marketing automation to do it at scale. content and creating 1:1 experiences for every When you combine this self-reported data When you send a single eDM to your subscriber. That shift can take years ago to with what you observe from their behaviour, entire audience, you connect with only accomplish. Besides, you still need to get you can create messages that come as close a small percentage of customers, and it’s your campaigns out the door. It’s like living completely at random. The conversions in a house while you renovate every room 52 | STOPPRESS.CO.NZ | The Media Issue 2018 your email generates are due to more all at the same time. It’s also hard to know where to start if you don’t know what to fix First, you need to replace the people choose to unsubscribe by sending them to a first. Instead of trying to launch a full-blown you lose. Then, you must acquire new preference page that gives them the option program, which could take more than a year, subscribers beyond just replacing your to modify their subscriptions or opt out take it one step at a time. list-leavers. altogether. First, find something you could change The most basic opt-down list gives in your next campaign – a new trigger, a So, attrition is a bad thing, right? your subscribers the option to change new call to action, anything that doesn’t Not always. Despite what your execs might their email frequency. If you send multiple call for major upheaval. Make the change believe, database size isn’t everything. You emails daily, offer them the option to and measure your results. Then, next could have a million email addresses, but receive email once a week or once a month. week, change something else. Now you’re only a few thousand ever open your emails, Once a subscriber chooses a new frequency, trying two new things. The week after and only a few hundred click. That’s pretty you need to determine which emails from that, add another change to the two you’ve dismal, and it can generate side effects that your entire email program will be sent to implemented already. hurt your ability to reach the inbox. each frequency segment. Build on your incremental innovations People who unsubscribe are sending you every week if you can. Before too long, you’ll a message. You need to figure out what that Let subscribers choose the campaigns look up and see how far you’ve come. message is, whether it’s general discontent, Consider giving subscribers the option to a disconnect with your audience’s needs receive only certain types of campaigns. or inserts, or something that’s tied to your B2C marketers who sell several product customer or product lifecycle. categories could let subscribers choose the Step Three: The unsubscribe rate (the percentage departments that interest them most, such of customers who unsubscribe when you as women’s or children’s clothing, sporting SUBSCRIBER ATTRITION send a campaign) can tell you a lot. Track goods, or household appliances. it to discover trends and spikes and see if it Financial-services companies could corresponds to time of year, to the content offer choices among mortgage rates, What is email attrition? you’re sending or some other factor. bank promotions, investments, or The dictionary defines “attrition” as “a everyday accounts. reduction or decrease in numbers, size, or What tactics can email marketers use B2B companies can get quite specific, strength.” In email, attrition represents to reduce attrition? separating product updates from company the customers who have left your list. Most First, remember that some attrition is news, white papers, and case studies. attention focuses on people who left by normal. As I said previously, subscribers What’s important is to think about the unsubscribing, but many marketers also can age out of your email program – main verticals within your business and count spam reporters and bouncing email parents who subscribe for offers on baby the types of products or categories you addresses, both of which must be removed clothes probably won’t need those emails offer. Put those the options on the opt- from your list to avoid penalties from ISPs once their kids head off to university. down page. Be realistic, however, and make that could harm delivery. People move away or change their minds sure those are categories that you can use or even find someone whose products to create segments in your email program. Why should attrition matter to email they like better. marketers? Focus instead on the issues that you Wrapping up It matters because you have lost the can control – the content you send, the The caveat with opt-down, whether opportunity to market to those subscribers. length, tone and design of your emails, you tie it to frequency or interests, is You did something to make them unsubscribe, even the frequency and cadence at which that you will need to invest time and and you need to understand why. you send messages. effort to create a page that offers those Maybe your content doesn’t talk about options. If you’re serious about trying to things your customers care about. Or, it Opting down to reduce attrition retain more subscribers, it will be worth doesn’t reflect their behaviour. Maybe you Getting emails too often always ranks the investment. didn’t explain what your emails were all high among consumers’ reasons for about, or your content didn’t live up to their unsubscribing or even clicking the expectations. They might not even have spam button. signed up for your messages, if you use We’re seeing more marketers – pre-checked permission boxes or require particularly retail marketers – take an them to receive email as a condition of “opt-down” approach to give subscribers Contact: doing business with you. an alternative to opting out. This means Rob Hollier, Sometimes, it’s not even about you. Your you give your subscribers more choices National Sales customers could have outgrown you, or beyond opting out of your email program Manager, changed their interests, or moved on from altogether, such as reducing frequency. Adestra, the products or services you offer. The opt-down approach to unsubscribe 022 600 7377 High attrition puts an extra burden on requests gives you an opportunity to retain www.adestra.com your email acquisition program because those subscribers, and on their terms. You you have to work twice as hard to grow. can offer this option to customers who Th Media Issue 2018 | STOPPRESS.CO.NZ | 53

TV Digital Magazine p. 56 p. 60 p. 62

Newspaper Radio Direct p. 66 p. 68 p. 72

Unaddressed Out of Cinema Mail Home p. 77 p. 73 p. 74

Experiential p. 78 TV who’s watching it, which A CHANGING CHANNEL platforms it’s being watched on and what devices people are using to watch it, among other Despite digital ad spend continuing its lead over television, the insights. An annual ‘fact pack’ on medium is still very eﬀective when used well. Think TV’s website (using data from Nielsen), purports that in a The first ever television ad cost a week New Zealanders (five-plus) whopping $9. It was for Bulova spend an average of five hours watches and was broadcast in 1942 HOW MANY NEW ZEALANDERS EXPERIENCE and 44 minutes watching TV/ during a baseball game between BROADCAST TV? video content online across all Philadelphia and Brooklyn. devices, compared to 18 hours And no doubt, return on and 12 minutes of traditional investment at an event of that 57% of the population, daily broadcast TV. scale wasn’t too shabby either. It also states 2.5 million Now, the cost of a television New Zealanders (five-plus) 77% of the population, weekly ad is generally in the thousands, watch broadcast TV per day, given the production costs which amounts to 57 percent of involved. the population. And while at one time, this So, it’s fair to say there’s still expenditure was more than an enormous amount of New 87% of the population, monthly justified considering TV had most Zealanders watching television. households’ undivided attention, viewers have since dwindled The simpler the better as audiences have scattered MediaWorks chief customer their attention over different officer and ThinkTV chairperson entertainment platforms. Glen Kyne says the benefit of So, naturally advertisers having this research in the local have responded to this, shifting market is that it is helping to much of their ad spend over to educate and inform advertisers. digital platforms. “Before ThinkTV was in But, that’s not to say TV existence, we were exposed should be discounted. Despite to the self-serving messaging the dominance of digital over provided by the digital TV in terms of ad spend, TV Source: Nielsen Television Audience disrupters and there is no still makes up a large slice of the Measurement (Base: All People 5+, question there was a large advertising revenue pie. Jan-Dec 2017, All Day) investment into digital and this According to the Advertising came at the expense of many Standards Authority’s (ASA) extensions of other media (like reach to build brands and the platforms including television,” 2017 New Zealand Ad Revenue radio, newspapers, TV), digital equal importance of brand safety.” he says. Report, broadcast television reached a record $923 million in But he says broadcasters are brought in $566 million, with an revenue, up from $891 million in Stronger together now in a position to counter additional $25 million from digital the previous results. In response to the swift rise this. “[And] to ensure that TV, TV revenue (including online TVNZ commercial director in digital, New Zealand TV across its many distribution streaming platforms). Paul Maher says smart broadcasters have been working points, including digital, This means broadcast TV marketers understand TV’s together to champion the continues to deliver unparalleled revenue has risen from the 2015- power and are moving spend industry and show advertisers effectiveness for advertisers, and 2016 results, where it brought in back to television. that there are still plenty of continues to grow its share of $580 million (including digital TV “Some lost their way for a reasons to invest in television. advertising revenues.” revenue). And while the growth while but we’re seeing them This is best exemplified with Maher agrees, saying too isn’t huge, it’s still significant in a return to the fold. Global the launch of ThinkTV by TVNZ, many advertisers are unaware of fierce and cluttered media climate. marketing leaders Procter & MediaWorks and Sky TV, who are the performance facts around TV. To compare with its main Gamble and Unilever over the using it as a collective voice for “Too often the weight of competitor, digital, digital-only past 12 to 18 months have moved the industry to celebrate the scale market messaging sits around channels brought in $785 money back to TV, recognising and effectiveness of the medium. the death of TV, the facts are million, but including digital the importance of scale and mass ThinkTV’s website works that TV is still unmatched in as its hub, featuring a range of terms of reach, unmatched 56 | STOPPRESS.CO.NZ | The Media Issue 2018 insights about TV including in terms of efficiency and empirical evidence supports the fact that terms of viewing, but is not in terms of million different ways but people aren’t TV remains unmatched in delivering recall advertising. looking at the product.” and sales returns.” “For us, and for other New Zealand He says the reason he thinks Lotto ads Think TV has invested in research publishers, the key competition at a cut through, is that they’re a fair trade off to validate its claims, and Kyne says platform level is YouTube and Facebook.” for the consumers’ time. studies conducted by marketing analytics He says this is why it’s important for “If you see a few thousand messages per researcher Ebiquity, TV delivers the the major local players to come together to day they won’t watch it just because it’s there. greatest return. ensure that facts of TV’s efficacy, brand safety you have to make things people are going to “Ebiquity worked with real advertisers and viewability are promoted in the market. connect with. Whether that’s through TV or across differing categories, sales data and “TV’s performance in these areas is other channels, that’s irrelevant.” media plans to prove that for every $1 spent significantly greater than YouTube and Hunch managing partner Michael on media, TV delivers the greatest return.” Facebook. We’re able to work closely with Goldthorpe agrees with Stapleton, in that local advertisers to create opportunities the return to storytelling through TVCs is Streaming tears that tell their stories that hit the mark hard to measure. It’d be impossible to write about television with viewers.” “It's hard to quantify in an industry without mentioning the elephant in the awash with opinions and conflicting room, you guessed it, SVODs. You can’t beat a good story metrics. But that’s certainly my perception Nielsen’s most recent Connected On this note of stories, there’s been talk in – and my hope. Advertising is about Consumer Report tells us 1.2 million the industry that brands are returning to cementing messages into memory to drive New Zealanders have access to a Netflix great storytelling through TVCs. brand preference and ultimately sales. subscription, equating to approximately Lotto is one brand that has focussed Nothing cements memories like a good 434,000 households across the country. storytelling in its ads for a while now, a story, well told.” This is significant, as after its launch stand-out example of this is its long-running Rufus Chuter, former managing director in December 2015 only 684,000 New ‘Imagine’ campaign, including ads like ‘Pop’s of FCB Media, says media channel selection Zealanders had the service, so it’s almost Gift’ and ‘Mum’s Wish’ by DDB and The should always be based on the specific doubled its reach. Sweet Shop, and most recently ‘Armoured audience and business objectives. It’s biggest subscription SVOD competitor, Truck’, a story about friendship by DDB. “It isn’t a case of having ‘first choice’ Lightbox now reaches 810,000 New Lotto’s chief marketing officer Guy media,” he says. “What’s clear is that TV Zealanders, according to its annual report. Cousins told StopPress he believes its remains a hugely valuable platform for But, the major broadcasters in New brand objective will be achieved by telling delivering emotive content with the scale, Zealand also have their own online streaming stories that viewers love. impact and effective frequency required to platforms. TVNZ OnDemand has 1.8 million “We’ve told some great stories in the create meaningful business impact.” subscribers, and Sky TV has around 824,782 past…and it was clear that we had to go While television audiences have according to its 2017 annual report (though back to great storytelling. It’s too easy to dropped off, there’s still a huge amount of down 27,897 from the year previous). bombard people with messaging, but these New Zealanders watching TV each day and And though no subscriber numbers days people have the option to just screen it remains an effective medium for visual were available for ThreeNow, Kyne says it's out. So it’s actually more incumbent on us storytelling. experienced strong growth. to tell fantastic stories.” Its positioning is summed up quite well “18-24 months ago, across ThreeNow we DDB chief creative officer Damon in a quote from Steve Jobs from the early experienced strong audience growth and Stapleton says the idea brands are returning 2000s, who said: we had about five percent of our audience to TVCs depends on who you ask. “The most corrosive piece of technology live-streaming our content across a myriad of “I would say that there there’s a lot that I’ve ever seen is called television – devices,” he says. “Fast-forward to today and of people that are too worried about the but then, again, television, at its best, is that number has grown to roughly 30 percent picture frames instead of the picture,” he magnificent.” of our audience live streaming.” says. “What everbody is obsessed about Maher says Netflix is a competitor in is being everywhere and connecting in a The Media Issue 2018 | STOPPRESS.CO.NZ | 57 NZ MARKETING TVNZ

ALL EYES ON ME?

How much do we really watch – or not watch – advertising?

In 2018, the number of available options for consumers to THE RESEARCH watch video content is truly staggering. We looked at four platforms – broadcast TV, recorded TV (eg Long gone are the days when the whole family simply through a set-top box), our own TVNZ OnDemand platform crowded around the television in the living room to watch and YouTube. whatever the national networks chose to broadcast. We Participants in three households were given ‘spy glasses’, are still watching broadcast TV, but we’re also consuming which recorded what they were watching, so we could later video on our phones, our tablets, our laptops – and in review their viewing habits across the four platforms. We also many cases, on two or three of these screens at once. asked them to complete questions through the week about Of course, wherever there is a new kind of screen to what they’d watched and assessed their behaviour, as well as watch video content, you can be sure advertising is going intuitive and emotional responses. to be there as well. Finally, we reviewed all the recorded moments and But is there any difference in how – or where – we see behaviours to understand their context and emotions and an ad? followed up with in-depth one-on-one interviews. Here at TVNZ, we were curious about how viewers Alongside this, we surveyed a group of 599 people aged respond to ads on different platforms. We especially between 18 and 64, showing them an unfamiliar ad for UK wanted some hard evidence that showed us how a supermarket, Sainsbury’s, in simulated environments on the particular viewing platform impacts a viewer’s level of four platforms and recorded their responses. engagement and attentiveness when watching an ad. To ensure we had a full data set of emotional responses to So, in partnership with Colmar Brunton, we compare all four platforms, in the simulated environments of undertook what was perhaps the most experimental – yet recorded TV and YouTube where participants could choose to robust – piece of research ever attempted in New Zealand skip the ad entirely, we also got them to watch the ad a second to learn what was really going on in the heads of Kiwi time and didn’t allow them to skip it. consumers when they watched ads on these different Finally, we recorded their attention and reactions using a platforms. program which deciphered the participants’ facial codes, and What we learned was enlightening, to say the least. surveyed them with a comprehensive questionnaire. From this mix we drew a robust set of behavioural, neuroscientific and quantitative data that we hoped would 58 | STOPPRESS.CO.NZ | The Media Issue 2018 answer some basic questions … Would they watch the ad or not? For how long? How would they with four percent on YouTube. Nigel Latta react emotionally? Would it differ across presented Together this has a dramatic effect on platforms? ‘The Value brand impact. With just three percent of Exchange’ to It’s fair to say we uncovered some really an audience YouTube viewers correctly recalling the valuable insights. in early May ad compared with 72 percent for Recorded 2018 TV, there are clearly limits to advertising’s THE RESULTS ability to impact behaviour and attitudes The first thing we learned was not entirely towards a brand on the platform. To get the surprising – that is, broadcast TV and best results, it’s vital to customise creative YouTube are the most watched video for the platform you’re using: for YouTube, platforms. However, while the latter has ads should be adapted to fully utilise the only been around since 2005, broadcast six seconds available to convey a message. TV has been around for over six decades, so Findings like these should give pause as viewers we have got used to relating to its to any marketers and agencies thinking content in particular ways – especially ads. about where to invest their brand’s For example, the survey found that advertising budget. consumers are much more receptive to seeing advertising on broadcast TV (57 percent open or REFLECTIONS quite open) compared to all other platforms (32 Perhaps the most startling realisation percent for OnDemand, 31 percent for YouTube, to come out of this research for us was 26 percent for recorded TV). This suggests we how the preconditioning for how viewers are so used to seeing ads on TV that we come to react to ads on a certain platform is more accept them as part of that experience, and so are more likely to watch them. significant than we thought. However, when it comes to YouTube or other online content ads, viewers Broadcast TV and OnDemand clearly switched off – or even more notably for advertisers, they got annoyed (79 percent command more attention because we of people in our survey felt this way.) Although 50 percent of participants said accept a value exchange of advertising they didn’t mind watching short ads on YouTube (around six seconds worth), for free programme content. Viewers are when paying for content, 88 percent said they don’t expect or want to see ads. more receptive to ads on these platforms, Interestingly, the research found that younger viewers are generally more as opposed to actively avoiding them on open to ads on Broadcast TV – in fact, 65 percent of 18-34-year olds were open to YouTube or Recorded TV. seeing ads, compared with 47 percent on YouTube. For OnDemand, 65 percent These results also validate the finding (who agreed strongly or slightly) liked only being shown a couple of ads at a time. from last year’s TVNZ multi-screening What we are seeing here is a clear value exchange taking place, based on study, which showed that when viewers pre-set conditioning around these platforms. There are clear expectations and have a device in their hand while watching attitudes towards advertising when it is experienced on a particular viewing Broadcast TV, active ad avoidance tactics platform, and both a viewer’s attentiveness and receptiveness to advertising tend to disappear completely. varies depending on this experience. All things considered, it remains The thought process that the research revealed was this: “If I expect to see that great creative is always going to an ad, I’m more likely to accept it, view it and respond to it positively.” This was generate ‘look up’ moments on TV – while clearly seen in our participants’ responses to Broadcast TV and OnDemand great use of audio and visual elements where they understood that the free content meant they were going to be within creative will get active participation exposed to some ads. On the other hand, if a learned experience is to avoid or from viewers. skip an ad on a particular platform, the viewer is more likely to have negative As Karen Nelson-Field, Professor feelings about it. of Media Innovation at the University of Adelaide says, “The platform that The statistics cast this value exchange in stark relief: commands the greatest active attention gets the sale.” • 100 percent of participants watched the Sainsbury’s ad on It may be time to rethink where broadcast TV and OnDemand. consumers’ eyeballs are really looking and how your brand can get in front of them. • 76 percent watched the ad on recorded TV.

• Only six percent of participants watched the whole ad on YouTube.

Broadcast TV, OnDemand and Recorded TV in most parts got a similar reaction to advertising on their platforms. Engagement was higher, enjoyment was For further information, visit tvnzsales.co.nz or higher, and recognition to the brand was far higher than YouTube. In fact, contact your TVNZ business manager statistics showed for Broadcast TV and OnDemand, 31 percent and 32 percent of participants respectively enjoyed the ad either ‘a lot’ or ‘quite a lot’, compared The Media Issue 2018 | STOPPRESS.CO.NZ | 59 DIGITAL there’s no doubt there have been transparency issues with digital ads, there is the same issue in traditional media. Arguably no longer a distinct channel, the network of digital marketing “You can’t help but notice the awesome hypocrisy by ignoring is evolving rapidly. the measurability and viewability flaws of other, more well-known, Digital is a tough channel to sum up these days when it’s seemingly It’s now this latticework of expensive channels such as TV, everywhere and cross-stitched into platfoms that we now refer connected moments and there outdoor or print,” he says. “Just to as ‘traditional’ media. Every article in a paper has its online are some brands doing it really because it can be measured, equivalent; every radio show can be streamed at leisure and even well here in New Zealand.” it seems to go under the television itself is technically digital. microscope when the other big Colenso BBDO head of innovation and ventures Gavin Becker A question of eyeballs boys at the back of the bus have says we’re getting to a point now where digital is starting to Digital isn’t the easiest channel gotten off scot-free.” eclipse traditional channels. to measure and the accuracy for “I think we are seeing brands using [digital] more effectively. ad viewability numbers on web Back to basics Not seeing it through one channel but seeing ways to look across pages has long been an issue. Hunch managing partner Michael the ecosystems or the connected systems of digital,” he says. Some New Zealand companies Goldthorpe says the fundamentals Looking at it this way, the word ‘digital’ seems a little have made moves to increase of marketing strategy haven’t outmoded, considering how embedded it is with traditional transparency - like MediaWorks changed much at all. media and our daily lives, but Becker says for convenience’s sake, announcing back in 2016 that “Go back to basics. Don’t think the term ‘digital’ still has its uses. its ads would be 100 percent digital, think people. Who am I “Within an industry that is helping brands capitalise on viewable with the use of Google’s talking to? What’s the one thing consumer attention, it’s a helpful term to delineate between the DoubleClick product. I want them to think, feel or do? physical and analogue world. Will there be a time when it goes IABNZ also announced Why will they believe me or care? away? Yes, I think it’s coming but I think we are still straddling earlier this year it’s been working Once those are nailed, digital two worlds.” with publishers, agencies and comes into play in distribution, And as digital creeps up on traditional channels, ad spend tech vendors to implement reach and conversion. But too certainly reflects this. According to IABNZ’s Q4 Ad Spend ads.txt, a global IAB initiative many people start with the latter, Report, interactive ad spend was at $923 million (including digital designed to eliminate counterfeit digital litterbugs.” offshoots of traditional channels). inventory in the programmatic He says bad digital marketing IABNZ has made changes to collection and formatting advertising ecosystem. is everything that’s bad about methodologies (meaning it can’t reflect ad spend year-on year ANZA chief executive marketing in general. “[And] variances at a granular level), but asked contributors to submit Lindsay Mouat says traditional made worse by our passion their 2016 totals using the new format, which brought 2016’s ad viewability standards are poor for ‘click’ metrics rather than spend to $860 million, showing a seven percent increase for 2017. and current standards hamper the brand monitors or long-term effectiveness of digital advertising. sales results.” Measuring up “Global viewability levels Marketers have quickly One of the alluring aspects of digital for marketers is its ability associated with the Media rallied to throw their money for quick data collection and measurability, and therefore more Ratings Council’s (MRC) behind digital, and rightly so, attuned targeting and a fast response if their approach doesn’t definition are not advancing says Goldthorpe. seem to be working. particularly fast.” “There’s always a prize But, responding promptly and appropriately seems to be easier He says recent global for first past the post and said than done, and is something that hasn’t yet been perfected by viewability benchmarks from the digital is a preferred sales and marketers. Many of us still have ads we don’t want to see following World Federation of Advertisers communication channel for many us across our devices. shows the global display market people. But I do think there is “It’s funny to see how [digital] has evolved since the early has edged upwards to a figure of an over-investment in ‘digital days. Banners really are the equivalent of analog outdoor or 47.5 percent and that video has how’ tools, like infrastructure, billboards. The behaviours that have come along with that are old fared better, with increases of CRM systems and media and not fashioned,” Becker says. viewability levels for all but a few enough investment in ‘what’,” he “It’s not enough to put something out in the world and walk markets, taking the global level of says. away and hope it performs.” in-view impressions to 60 percent. Marketers need to refocus Becker says though there is a lot of bashing of digital, there are “However we expect this on the value they bring to the plenty of marketers doing it well and the scope of digital is much to change as more global relationship with their customers, larger than display ads. marketers prescribe a higher says Gladeye’s Graham. “It’s not just one-size-fits-all on the serving of advertising. basic viewability threshold.” “That means getting out of Gladeye chief executive the board room and getting on 60 | STOPPRESS.CO.NZ | The Me Issue 2018 Tarver Graham says though the bus more often to listen, to NEW ZEALAND ADVERTISING INDUSTRY REVENUE REPORT 2017 ($M) Source: Advertising Standards Authority (2017)

Digital Only, $785

Addressed Mail, $54

Out of Home, $140 Unaddressed Mail, $53

Cinema, $11

Magazines Digital, $25

Magazines, $184

Radio Digital, $6

Radio, $277

Television, $566 Newspapers Digital, $82

Television Digital, $25

Newspapers, $353

observe and to understand the banking industry leads the way That’s territory we are working “Industries that make people’s real value gaps that your brand for digital experiences after more in.” lives easier through digital are might be able to fill. Knowing polling 2,131 New Zealanders Another brand in New winning. I love my Air NZ app. I where to find underpriced on their digital experiences. Zealand using digital in creative like having access to the world’s attention areas to tell your story The insurance and air travel ways is Spark, with its launch biggest library through Amazon. and communicate your value industries also scored well. of ‘The Boroughs’ in Auckland, And I’m happy to pay a monthly will become clear.” ASB created hype back five basketball courts hooked fee to watch what I like, when I in 2016 with the launch of its up to Spark WIFI connecting like through Netflix.” Customer is key anticipated Clever Kash, a ballers across the city. Digital is evolving at a One of the key tenets of great digitalised, anthropomorphic Air New Zealand is also rapid rate. And with measures marketing is a brand’s ability money box, incentivising kids pushing the envelope in digital to increase transparency to serve the customer (or to save and learn the value of to please customers, recently issues in digital marketing, ‘add value’ if you want to talk money. dabbling in artificial intelligence and considering all the marketing lingo). And marketers Becker says products and in the form of Sophie (above), a advancements in this sphere, it’s are seeing the massive potential services like Clever Kash are an 'digital human' created by Soul an exciting time for advertisers digital has to offer over a variety aspect of digital that brands are Machines to answer questions and consumers alike. The of touch points. starting to wake up to. about New Zealand as a tourist industry has merely dipped its One sector that is doing this “If you think of the notion destination and the airline’s toe into the pool of digital and particularly well and really of products and services, they products and services. the potential of this channel (if thinking outside the box is the can be put out in the world very Goldthorpe says digital it indeed remains a channel) banking sector. quickly and optimised and made technologies can be brilliant at will continue to be explored in Software firm SAP’s annual better seemingly overnight as we making efficient connections. exciting and innovative ways. New Zealand Digital Experience learn about people’s behaviours Report for 2017 shows the and what they love or don’t love. The Media Issue 2018 | STOPPRESS.CO.NZ | 61 MAGAZINES

With circulation ﬁgures down, it’s easy to be pessimistic about magazines, but maybe we’re missing the bigger picture.

In 2007, English publisher Felix Dennis remarked, “It’s a long, slow sunset for ink-on-paper magazines, but sunsets can produce vast sums of money”. While these sums might not be as vast as they were in 2007, people are still buying magazines despite fierce competition from multiple online threats. But, magazines aren’t just spilling ink on paper, they’re spilling digital ink too and extending their brands in creative ways across a variety of platforms. The scale of this increasingly fragmented audience can finally be gleaned through Magazine 360, an online measurement metric launched by the Magazine Publisher’s Association (MPA) in 2017. The tool captures magazine audiences more holistically over all of their touch points to give a clearer picture of performance to advertisers, for better or for worse. These touch points include: print, social, digital assets (digital editions, websites and email newsletters) and events. Previously brands relied on three separate sources of information: ABC for circulation data, Nielsen for readership and various sources for online and web traffic. The new 360 metric is self-regulated by the publishing industry, meaning publishers need to provide much of their own data and adhere to a code of conduct, authorising the MPA to check it at anytime. While its self-regulatory nature has been met with some trepidation regarding accuracy of data, it at least provides a general idea of how the industry, specific titles and their respective platforms are performing.

The big picture MPA executive director Pip Elliott says the industry is seeing growth in audience numbers as the power and combination of print, digital and social work together. “Magazines have been masters at storytelling through our craft in journalism, design and photography. These skills are translating over our many content platforms as demonstrated when you look at Magazine 360,” she says. And while circulation figures in the industry are down, the tool has highlighted some interesting insights. For example, in September last year, New Zealand Geographic’s readership was 330,000 while its Facebook reach in New Zealand was 336,827. Bauer Media commercial director Kaylene Hurley says Magazine 360 plays a role in showing the breadth and depth of Bauer’s audience. A matter of trust “It’s highlighting that our brands aren’t just a singular print product, One thing magazines have going we’ve got numerous audience touchpoints,” she says. for them is a level of trust and “Like a lot of media companies, we’ve been much more than just a loyalty from their audiences. singular offering for several years now. We’ve had to innovate, diversify Lifestyle magazine brands and engage with our audiences where they’re consuming their content.” in particular, like Vogue, have She says digital is now ubiquitous in those consumption habits. “So long been trusted sources of it’s a primary channel for us to further engage with our audiences.” taste and style as well as being harbingers of new trends. Hurley says this is one of the 62 | STOPPRESS.CO.NZ | The Media Issue 2018 reasons brands should continue TOTAL MAGAZINE 360 APRIL 2018 VS APRIL 2017* *Titles have been added and deleted over the period so a direct comparison is not truly accurate

Facebook Reach (NZ only) - 15% Instagram Followers +12% 16,000k +11% Twitter Followers -1% Pinterest Followers 12,800k +110% +17% LinkedIn Followers +17% -68% 9,600k YouTube Reach (NZ only) +430% Digital Edition 6,400k +554% +37% Website Unique Users (NZ only) +54% 3,200k Email Newsletter Reach -2% One Shots 0 April 2018 Readership Circulation Print 360 Total 360 -12% April 2017 Events +142% Source: Magazine 360 0 475k 950k 1,425k 1,900k 2,375k 2,850k 3,300k 3,775k to advertise in magazines. “Trust. Whether at 55 minutes. of connecting New Zealanders to marine it’s NZ Listener, Nadia, Next, Your Home While digital-native titles are clambering environments by uploading VR and and Garden, both advertisers and readers for subscriptions, magazines have had a 360-video to its website. can rely on the content and environment loyal and commercial relationship with Elliott says she’s seen huge innovation in being trustworthy.” readers for a long time, says Burrowes. the magazine industry including the launch She says because of the enormous amount “And Nielsen survey data tells us high of new print titles like Nadia, winning of content online, time-poor consumers want percentages of readers buy multiple issues Magazine of the Year at the MPA Magazine a trusted, reliable source and there’s a great of their favourite titles each year.” Media Awards last year. need for quality-curated content. Wired magazine’s Tim Wu says people There’s also been success in custom “Another major advantage of our print today often pay for content with attention publishing, she says. “Habitat, Kia Ora and assets is that our audience is so highly and time, often without consent, finding Living Well further highlight the industry’s engaged,” she says. “They’ve paid for the ourselves forced to watch or read content we willingness to collaborate with advertisers.” content so they want to maximise their don’t care about. She also points out the launch of digital enjoyment of the investment.” “There’s a big difference between leafing hubs like Bauer’s Food to Love, Homes She says readers pore over pages, and through a magazine, reading articles and to Love, Now to Love, Noted and Stuff’s consumer attention is particularly important advertising by choice, and being blasted at Homed site. when consumer attention is so fragmented. by a screen when you have no place to go. Established magazine brands’ long Homestyle magazine general manager Indeed, consent is the usual way access to histories with their readers also bodes well Nick Burrowes agrees, saying advertisers the body is conditioned.” for advertising, says Burrowes, who saw enjoy greater audience trust and brand safety. success with Homestyle’s award-winning, “And a very targeted reader that chooses A fresh approach three-year campaign called ‘Style your to spend money on the medium, treat it as Magazine brands have been increasingly Space', with client Citta Design. time out and sink themselves into an issue creative in the way they work with “No media matches their content for an hour or more.” other brands. While once innovation in with their audience as strongly as magazines,” And this is backed up from research magazines might have been rubbing a says Burrowes. “Magazine teams also have from Nielsen’s Consumer and Media page to smell a perfume, or finding a free a deep category knowledge that clients can Insights (Q3 2016 – Q2 2017) over the last product sample stuck to an advert (though leverage or glean market information from.” five years, showing there has been an arguably still effective), today magazines He says in Homestyle’s case, it has increase in time spent reading. are doing so much more. decades of combined intel from the home In its top ten titles for total minutes For example, Idealog magazine by ICG design, product and retail sector. “We read, the clear leader was the Christian Media (previously Tangible Media) worked have a solid grasp of the market, and what title The Word for Today with 192 minutes, with digital solutions agency One Fat Sheep works for advertisers in the category.” followed by Word for You Today with 183 with the support of Chorus to turn its cover So, while this long, slow sunset of ink- minutes, and Lucky Break at 91 minutes. into an interactive contents page using AR. It on-paper magazines might be unavoidable, This was followed by more in-depth brought the main sections and stories to life, magazines certainly still have a few selling journalist titles such as NZ Listener with blending print with digital. points. And if magazines do go out of print, 75 minutes, Readers Digest with 72 And last year NZ Geographic launched maybe they’ll see their sunrise in digital yet. minutes, lifestyle titles NZ Gardener at 64 NZ-VR (with Sir Peter Blake Trust and minutes, Simply You at 57 minutes and Good The Pew Charitable Trusts), with an aim The Media Issue 2018 | STOPPRESS.CO.NZ | 63 NZ MARKETING Bauer Media

Julie Bramley

the sentiment is not related to age or technology ability as one might assume. The findings show little difference across generations and THE INFLUENCE OF THE while females feel slightly more affected by the pace of change, they don’t differ too far from how ‘AGE OF ACCELERATION’ everyone else feels. 58 percent of all New Zealanders say they don’t know Media typically aims to reflect reality. and how this is impacting society who or what to trust these But it can also influence it. In the overall, how they’re adapting to days and driving the feelings new technology, the importance of mistrust are social media, interests of better understanding the of community, changes in politicians, fake news and issues supernova of technological change and business and the workplace, and with big data. As one male globalisation, Bauer’s research division their feelings towards the future. respondent so succinctly said: Insights IQ, has been examining how “I only trust my own family.” TAKING A CLOSER LOOK With issues around big data and New Zealanders are responding to this It all started last year when the pace of change it’s also not unprecedented pace of change – and Julie Bramley, lead at Bauer’s surprising that 57 percent are as Erin McKenzie finds, it appears research division Insights IQ, yearning for a simpler life, kiwis are feeling pretty overwhelmed. read Thank You for Being Late: An which is also fairly consistent Optimist’s Guide to Thriving in the across all generations. And Age of Accelerations by Thomas as another male respondent Take a second to think about the gap that exists between L Friedman. It gave her context commented: “It just makes you your childhood and the human adaptability and and perspective about the impact wish for perhaps a simpler time technology that was part of technology advancement of the fast-paced world we live with less devices or screens in your everyday life. Now fast- – we feel out of control because in, while also giving her details my life, and not having to worry forward to today. How have we can’t adapt to the world as about the technology tsunami about not being on Facebook things changed? fast as it’s changing. we are experiencing and a for a few days or getting asked If you’re thinking a lot, Wanting to explore how new-found confidence around “why didn’t you respond to my you’re not alone. Ray Kurzweil, New Zealanders feel about technology. FB/Whatsapp/Snapchat within director of engineering at these changes, Bauer’s Insights “It has inspired and propelled three minutes.” Google, summed it up when he IQ team tapped into the minds me to get out of my comfort zone This notion that New said “because of the explosive of 1,600 Kiwis, generating and start talking about how to Zealanders are after a simpler power of exponential growth, nearly 500 hours of research navigate the pace of change with life was supported by Barnes, the twenty-first century will be data to support their Thriving our clients,” she says, adding Catmur & Friends Dentsu equivalent to 20,000 in the Age of Acceleration the most surprising find from founder and partner Daniel years of progress at today’s project. It’s a significant piece of its research was learning that Barnes. As part of the research, rate of change”. research in which respondents 78 percent of New Zealanders Bauer collaborated with key It’s an exciting time, but were asked to share their believed that we are living in a agency strategists who shared the current challenge lies in thoughts on the pace of change time of unprecedented change. “I their take on the fast pace of knew we were onto something.” change and, for Barnes, it is 64 | STOPPRESS.CO.NZ | The Media Issue 2018 Also interesting to note is that consistency over time that is a Daniel Barnes CHANGING CONSUMER insight and creative ideas in MINDSETS combination with our editorial The pace of change and the way experts,” “To lead this strategy, audiences are navigating it has we have the Media Collective - resulted in some new consumer our commercial content experts, trends, which Bauer’s research who create amazing integrated identified as ‘the united states campaigns.” of anxiety’, ‘a mindful way of The next project for the life’, ‘female empowerment’, Insights IQ team will be research ‘DNA decode’, ‘borrower’ and on how New Zealanders live, ‘conscious shoppers’. how they eat, work, learn, love, The first two of those trends and play. Each module will be have been explored further insight-led and have an editorial in the research and it found Simon Bird component relevant for brands. 35 percent of New Zealanders “We think it’s vital to know natural hallmark of trust. feeling more stressed than ever to work through, like brands and understand consumers better “Brands that keep trying before – a trend that increased figuring out what they sound than anyone else to help our to move and chase the with the younger generations. like on top of what they look like. consumers all the time are Across all ages, it was Founder of Circularity, Kaylene Hurley actually undermining their own Generation Y (59 percent) and Louise Nash, has a solution foundations … Just because Generation Z (63 percent) that for brands looking for ways to something is widespread and agreed most with the statement incorporate technology into everyone uses it, doesn’t mean ‘I often feel anxious’. their mix without adding to the I trust it. It means it’s easier to One specific cause of anxiety clutter. She thinks the rapid access,” says Barnes. is robots, which pose as both pace of change has opened up On a similar note, NZ Listener an opportunity and a threat. an opportunity for brands to go editor Pamela Stirling points out In the study, 54 percent of New beyond the constraints of the that social media, for example Zealanders agreed that robots product’s package to create a Twitter, has given the likes of will eventually take over most supporting service or offering president Donald Trump the manual jobs. for customers. ability to speak directly to his The second trend, ‘a mindful “If you have a wellness followers. With that in mind, she way of life’ was highlighted product, why don’t you create says its important media remains in the finding that 55 percent yoga classes beside it? Why don’t on his case and keeps guard by of New Zealanders make sure you create a meditation app and advertisers tap into the engaged questioning the government. they find time to be ‘unplugged’ using technology in that way to personal relationship our brands and completely away from capture new occasions, capture have with their audiences,” technology. new consumers?” she says. “This engagement is PHD group strategy director From a consumer’s driven by relevance and trust, and Simon Bird touched on the perspective, having technology in today’s fragmented landscape, overwhelming nature of the that offers a service, rather than these values are important than rise of technology when sharing just another screen in their ever. his thoughts about the pace of lives can help break the anxiety “Each day we strive to change. currently associated with the build trust in our brands, and He says VR and AR have pace of change. Bauer will continue to focus been massively overblown, on building audiences across much like 3D TVs and Google SERVING CLIENTS AND new platforms and driving Glass, because while they’re AUDIENCES engagement through rich technologically interesting “The goal of the Age of content.” they do not solve a problem for Acceleration research is to Pamela Stirling everyday people. build better understanding But what he does see having and anticipate what’s important “People are all over the place on stickability through the change to audiences allowing Bauer to issues now and they really want is voice-driven technology. deliver market-leading solutions To hear more of what Barnes, to make up their own mind on “Voice will because it’s much to clients,” explains Kaylene Stirling and Bird have to say about trusted, credible information,” she more natural for us to talk than it Hurley, commercial director the Age of Acceleration, watch their says, pointing out how the likes is to type. 100 percent that will be at Bauer. full interviews here: of NZ Listener, which has been the biggest deal in the next while.” “Our focus in 2018 is to https://youtu.be/gjpPao5i2-s around since 1939, has had years But before it gets there, Bird provide end to end content to prove its integrity. points out there are things solutions, backed by the best The Media Issue 2018 | STOPPRESS.CO.NZ | 65 , The BuzzFeed BuzzFeed Mashable , both

recently missed recently Vice “Stuff is focused on building“Stuff NZME publisher Competing Stuff has made some of of some has made Stuff all of its switched it Further, officer revenue chief Stuff standardises “The move was the change he says But, a focus has also thrown Stuff Washington Post Washington digital-first news sites are sites news digital-first to According suffering. and And targets. revenue in valued new businesses so that we can we businesses so that new local quality to fund high continue a wide journalism and develop revenue and new of diverse range says. Hutchinson streams,” on its has focussed strongly Playing catch up catch Playing have Zealand in New Publishers all with been experimenting for up to make kinds of tactics revenue. the losses in print of these changes, the biggest of announcing the closure 35 (making up 28 mastheads publications) print of its percent to pour in order this year earlier and its digital more money into other business ventures. metropolitan to Friday Monday from and regional newspapers format, to compact broadsheet papers. Sunday as two as well the says Hutchinson Robert was compact to go decision and both advertisers with made in mind. readers therefore saving advertising time and effort with customers he says. resizing and booking,” are newspapers all know “We so this challenged financially and is, a big change.” was, change “The physical necessary. opportunity us a fantastic gave up to enhance and sharpen based on was It our products. and to our readers listening they want.” them what delivering Fibre, Stuff Pix and EnergyclubNZ. Stuff Fibre, on new business ventures to grow to grow business ventures on new Stuff Neighbourly, like revenue its March 2016 at around $250 2016 at March sold for less million, recently than $50 million. saw saw 's had 1.38 million. 1.38 million.had NZ Herald NZ Herald 's and NZ Herald NZ Herald But, despite this growth this growth despite But, even Internationally, Stuff To compare, in January 2016 in January compare, To in newspapers’ digital assets, assets, digital in newspapers’ is falling faster revenue print is climbing revenue than digital difficult to see how and it’s their can grow publishers fast to enough channels digital offset the loss. shows newspapers brought in brought newspapers shows their while $353 million in 2017, in properties brought digital a big quite was $82 million. This from $417 drop for newspapers, digital However, million in 2016. properties did increase from $61 million for 2016. are both popular in websites among the sitting Zealand, New popular websites top 10 most drew Stuff both grown. and have Zealanders in 2.2 million New while April, last 1.9 million visit. million 1.9 million visitors, 1.6 had Stuff while The both lost both lost managed to managed The Waikato The Waikato seeing the biggest seeing the biggest seeing the largest seeing the largest The Press The Press , which has seen its , which ODT and This drop in circulation is drop in circulation This The Dominion Post and the Dominion Post The figures are down Circulation The most-read daily most-read The

reflected in the most recent ASA ASA recent in the most reflected report, which revenue ad annual Dominion Post end of the from 52,115dip, at to the same period to 46,719 2016, percent). in 2017 (10.35 Otago Daily Times Daily Otago though titles, for all of the above with marginally, only readership dip a little from the dip a little readership to from 423,000 previous, year 415,000. slightly their readership grow the (with while growth), Times losing the the latter with readers, significantly quite slipping most, to 44,000. from 63,000 last year’s 3.68 million. million. 3.68 year’s last is newspaper metropolitan NZ Herald Issue 2018 Issue

The Media The

| about the the about With the life expectancy of print newspapers dwindling, dwindling, of print newspapers life expectancy the With digital. into push their publishers are hastening STOPPRESS.CO.NZ STOPPRESS.CO.NZ Citizen Kane Citizen

| National average issue issue average National And, like Kane, they’ve they’ve Kane, And, like Then, of course, digital digital of course, Then, Once, in the not-too-distant in the not-too-distant Once, 66 million (15-plus) compared to to compared million (15-plus) readership for 2017 sits at 3.77 3.77 at for 2017 sits readership only marginally. only in New Zealand has grown, but but has grown, Zealand in New of people reading newspapers newspapers of people reading data from Nielsen, the number the number from Nielsen, data According to the most recent recent to the most According The Money on page 17). 17). on page Money The Crunching the numbers thought impossible (see Follow Follow (see impossible thought would have previously been been previously have would banded together in ways that that in ways together banded competing publishers have have publishers competing business ventures and and business ventures paywalls, new and unexpected and unexpected new paywalls, attempted mergers, talk of talk of mergers, attempted can think of. There have been been have There can think of. been trying everything they they been trying everything digital world. world. digital evolving to an ever-advancing to an ever-advancing evolving to keep newspapers alive while while alive newspapers to keep heads, having to rethink how to rethink how having heads, publishers were turned on their turned on their were publishers handsomely to do so. so. to do handsomely came along and disruption in them. And pay quite quite in them. And pay of businesses would advertise advertise of businesses would and therefore, a large number number a large and therefore, people bought and read papers papers and read people bought century. A large number of of number A large century. quite nicely for well over a a over for well nicely quite that had been ticking along along been ticking had that was a straightforward process process a straightforward was successful advertising model model advertising successful past, running a paper with a a with running a paper past, try everything I can think of.” try everything newspaper, Mr. Thatcher; I just I just Thatcher; Mr. newspaper, “I don't know how to run a how know “I don't his angered former guardian: former guardian: his angered Kane flippantly remarks to to remarks flippantly Kane magnate Charles Foster Kane, Kane, Foster Charles magnate film rise and fall of newspaper NEWSPAPER Welles Orson the 1941, In digital assets, which can be seen discourse seems to be located consistently, and drew attention in its launch of video news show AVERAGE ISSUE around the centre already, and for a campaign last year when it NZ Herald Focus and sponsored READERSHIP news comes from so many other teamed up with FCB and NZME to content series The Economy sources. I think the risk of them tackle the issue of gender equality Hub, in 2016. disappearing altogether would in business leadership roles. It also announced in February have a much greater impact on Westpac brand and that it plans to put up a paywall DAILY NEWSPAPER New Zealand’s media landscape sponsorship director Graham (Metropolitan) on its premium content, which and wider society.” Wright says Westpac continues NZME chief executive Michael to advertise in newspapers Boggs says is supposed to launch The A trusting audience as it’s a channel where there by the end of this year. New Zealand One thing newspapers still have is an audience who tend to “The implementation of The Herald going for them is a trusting, have longer dwell times where Washington Post’s arc content 415k Q1 - Q4 2017 loyal audience. Westpac can communicate 423k Q1 - Q4 2016 management platform as part of A News Works study released targeted and relevant messages. the nzherald.co.nz relaunch last by Colmar Brunton late last “Print plays a pivotal role year provides enhanced data and year found only 38 percent of for Westpac New Zealand to audience analytics which will Waikato Times consumers trust Facebook. This still reach and communicate enable us to curate and charge 44k Q1 - Q4 2017 figure dropped further to 24 depending on the customer for the premium and in-depth 63k Q1 - Q4 2016 percent when respondents were insight and strategy we are content that is unique to NZME.” asked whether they trusted delivering to.” However, Boggs says NZME advertising on the channel. Wright says one pro of will continue to focus on its print The Dominion Trust was comparatively newspapers is it’s an established products, which contribute over Post higher in traditional media, with channel. “[And] you can target 50 percent of NZME’s overall 161k Q1 - Q4 2017 87 percent of respondents trusting to quite a granular level the type revenue streams. 159k Q1 - Q4 2016 print newspapers and radio. of content you communicate.” NZME and Stuff have also Boggs says NZ Herald provides However he says there are also announced their intention a safe place for advertisers to reach a few cons. “It can take longer to to appeal the High Court's The Press their audience. understand the impact and value, declining of a merger between 156k Q1 - Q4 2017 “A lot of advertisers are [it] tends to be more expensive the two companies, with the 157k Q1 - Q4 2016 rightly very concerned about to create and deliver content publishers hoping to pull their how uncontrolled digital and more difficult to ascertain resources together to better distribution of their brand performance and optimise.” compete against media giants Otago Daily Times through some of the leading Despite this, Wright says he’s like Facebook and Google. 9.2k Q1 - Q4 2017 global social platforms could seen first-hand newspapers Boggs says he believes the 8.8k Q1 - Q4 2016 lead to brand damage.” deliver strong brand and merger will improve the New Hutchinson agrees, saying communication results. “Success Zealand publishing industry’s relevance and trust are built up has been measured looking at ability to compete with other WEEKLY NEWSPAPERS through years of local content awareness, engagement and channels and also extend the and delivery. sales metrics attributed to a longevity of the print industry. Sunday News “Because our brands have specific piece of newspaper “We need to be able to improve heritage, they’ve earned the communications.” 9.4k Q1 - Q4 2017 our cost structure to meet the 10.7k Q1 - Q4 2016 respect of our readers and Though readership and competition from other channels. therefore our readers trust them,” circulation figures have been We will need to find a way to do he says. “When an advertiser’s dropping for years now, it’s this with or without the merger.” Sunday Star brand is aligned with our papers, surprising and encouraging to Richard Pook, general Times consumers are more likely to see a slight growth in overall manager of Amplifi at Dentsu trust what you’re saying.” readership in 2017 and circulation 24.8k Q1 - Q4 2017 Aegis Network told StopPress 27.5k Q1 - Q4 2016 relatively stable among the bigger his concerns with New What’s the appeal? metropolitan titles. Zealand’s media landscape lie in While some brands have But, with a swift decline in the lack of scale to support two Herald on Sunday shifted their ad spend away print revenue, will publishers large ad-funded news websites. from newspapers (Countdown, be able to make up for the 32.6k Q1 - Q4 2017 “As an outsider who moved 32k Q1 - Q4 2016 for example) others maintain shortfall? Though our biggest to New Zealand in February its appeal and relevance as an publishers have planted seeds in last year, I don’t think that advertising medium. digital and other ventures, time the merger would have had a Westpac is one brand that will only tell if the fruits of their huge impact on the diversity of Nielsen National Readership advertises in newspapers labour prove bountiful. Survey Newspaper Toplines comment and thought,” he said. “Most of the political The Media Issue 2018 | STOPPRESS.CO.NZ | 67 RADIO when you want to click off from the world or listen to your favourite artist, but when you want to tune in, that’s when The death knell for radio was heard decades ago, yet radio you look at mediums like radio continues to not only survive, but thrive. to reconnect with the news or people and what they’re talking about and to feel part of a Radio was first heard through community.” the airwaves in December At the moment, Spotify is the 1901 when Guglielmo HOW MANY NEW ZEALANDERS EXPERIENCE world’s most popular streaming Marconi successfully sent RADIO? service and has 170 million a radio message across the monthly active users, including Atlantic Ocean from England over 75 million paid subscribers, to Newfoundland. Radio didn’t 85% of the population aged 10+ across 65 markets. tune in to radio each week have a voice then, its output was Slowly gaining on it is Apple a buzzing sound created by a Music with around 36 million spark gap transmitter sending a 80% of the population aged 10+ tune in paying subscribers, according to signal using Morse Code. to commercial radio each week The Verge. Google and Amazon I bet Marconi probably are also investing billions into 60% people 10+ listen to commercial never envisioned the place radio during BREAKFAST their own streaming platforms. radio would hold in the hearts But, (albeit on a, much of its listeners once it came of 61% people 10+ listen to commercial smaller scale) radio brands in age. And, despite it being over radio during WORKDAY New Zealand have their own one hundred years old, it’s still 64% people 10+ listen to streaming services and have going strong surviving all of its commercial radio during experimented with a variety of supposed threats. WEEKENDS platforms. Media measurement company NZME has seen its streaming GfK releases New Zealand radio platform iHeartRadio grow On average listeners tune in for listenership results four times a 24 percent year-on-year with year, and the latest (the first of 17 09 over 749,000 registered users. this year released 3 May) shows It also has an average of 2.7 radio listenership is holding hours minutes million listening hours each steady. month, up 27 percent year- of commercial radio each week According to the results, 3.39 on-year. Its mobile downloads million New Zealanders (10-plus) are also increasing and are listen to commercial radio per Source: Gfk New Zealand Commercial now over 398,000, which is week, equivalent to 80 percent TOTAL NEW ZEALAND Survey (2018) year-on-year growth of 118 of New Zealanders (10-plus). percent. Looking outside of Including RNZ’s non-commercial New Zealanders (10-plus) tuned “Radio’s enemy was always New Zealand, iHeartMedia share of listenership, 3.63 million, into commercial radio, with a time. There was never enough filed for bankruptcy earlier or 85 percent of Kiwis (10-plus) total listenership of 3.57 million, to do everything you wanted to this year with debt worth $20 tune into radio each week. including RNZ’s listener share. do on-air. Now, you can layer billion. However, according to And breaking that down for the radio experience by putting Engadget, it is restructuring the commercial broadcasters, Moving with the times stuff online, time shifting the balance sheets and won't be 2.4 million tune into a Like other media, radio hasn’t content, adding extra bits and shutting down. MediaWorks station while 1.9 just sat idle. It’s a matter of incorporating video, pictures MediaWorks’ equivalent, million tune into one of NZME’s ‘adapt or die’ in today’s digital and text.” Rova, has tripled its downloads to offerings. And, on average, 80 climate and radio has embraced Radio has also managed 300,000 since May 2017 with 14.9 percent of listeners (10-plus) the future with open arms. to survive the birth (thus far) million streams served. In 2014, tune in for 17 hours and nine AUT radio curriculum leader of streaming juggernauts like the company also launched The minutes of commercial radio Matt Mollgaard says while Spotify and Apple Music, Edge TV to replace long-running each week. once television and the internet despite their popularity. C4, successfully pushing radio The results show an increase seemed like threats, now they’re MediaWorks group content into television. in listenership compared to the an extension of radio’s ability to director Leon Wratt says RNZ has also taken big steps results released late last year. The give audiences unique, timely streaming platforms like Spotify to expand from traditional radio. last results revealed 3.32 million and targeted content. are merely a replacement for the It’s teamed up with the likes of Te download or the physical. Papa and NZ on Air for podcast 68 | STOPPRESS.CO.NZ | The Media Issue 2018 “I have that same moment series, and regularly posts its own video online for shows like 6 DDB chief creative officer Checkpoint with John Campbell. BY THE Mai FM Damon Stapleton agrees that In 2016, the broadcaster NUMBERS 438.9k weekly reach radio has strong reach, but says also teamed up with Stuff and advertising on it could be better. other publishers, signing a deal 7 “What I think is amazing allowing them to publish its The Rock about radio is that it’s theatre of audio and video. And in regard WEEKLY CUMULATIVE the mind. TV can cost thousands AUDIENCES 428.9k weekly reach to streaming, according to its of dollars but if I make a radio ad website, in February this year PEOPLE 10-17 8 and I want to make it sound like RNZ had 1,478,941 unique audio I’m on the moon, all I have to do downloads, up 21 percent on 73% The Hits is change my breathing and I’m February 2017. 423.6k weekly reach an astronaut.” PEOPLE 18-34 He says when he started out 9 Charisma is key 80% in advertising there were pre- Of course, radio wouldn’t be the The Sound production meetings for radio. same without its personalities, PEOPLE 25-44 380.8k weekly reach “That’s because people used whether you love them or hate 84% to allow effort and time into them (or love to hate them). 10 making a radio spot. I think Wratt says MediaWorks a lot of it [now] is shouting at PEOPLE 25-54 Coast tries to make sure it has brands 375.7k weekly reach people, and no one remembers and personalities people love to 85% that. But if you do it well, it’ll listen to. 1 The number of diferent stand out because the landscape “You might hate them, love PEOPLE 45-64 listeners reached by is not very good." them, cry, whatever. We try to each commercial station You can let people imagine 84% Mon-Sun 12mn -12mn evoke some kind of emotional things, he says. “Which is far reaction.” PEOPLE 55-74 more powerful than visual.” There are many personalities Converting ears to cash in New Zealand radio that have 79% With a high listenership The crystal ball been around for a number of and ability to reach ears and Radio might be looking good years. What happens to listeners GROCERY BUYERS eyes in a number of places, now, but what about the future? when these personalities hang 82% radio has remained attractive to With increasing listenership up their headphones? advertisers, often SMEs. and if radio brands keep Wratt says all media needs According to the Advertising evolving with the times, it to continue to look over their Standards Authority’s looks like radio won’t be going shoulder for the next star. “If COMMERCIAL RADIO Advertising Revenue Reports, anywhere anytime soon. TOP 10 you compare music a year ago both radio’s revenue and digital Plus, according to Mollgaard, from today, all the artists have 1 platforms’ revenue are growing. most New Zealand broadcasters changed. The real challenge is Between 2016 and 2017, are signed up to their frequency to keep bringing new people The Edge radio increased its revenue leases until around 2030, and through that the audience, 639.8k weekly reach1 by $6 million to reach $277 have the right to renew. especially the younger audience, million, while radio digital’s “The ease with which you can 2 can relate to.” revenue increased $2 million transmit radio on AM and FM This is something NZME Breeze to reach $6 million. compared to other technologies Radio Hauraki content director 580.7k weekly reach The Radio Bureau general like WIFI – which is too low power Mike McClung agrees with, manager Peter Richardson says and very costly to run – means saying it’s a priority to make 3 a benefit of radio advertising is predicting the end of broadcast sure audiences don’t dwindle More FM that it can reach further than radio is a mug’s game.” due to a lack of talent. 543.4k weekly reach the intended audience. The longevity of radio is “We’re constantly developing “If you have a product and perhaps best summed up by and introducing new talent. 4 want to reach a particular a nickname bestowed to it by The majority of shows on our ZM demographic you might know MediaWorks’ Leon Wratt, who music stations are still very new where to find it down to a affectionately refers to radio as 502.7k weekly reach in terms of their lifecycle, so couple of stations,” he says. the “cockroach” of all media. we don’t envisage issues in the 5 “It's good in terms of finding And it seems like the years ahead,” he says. that niche, but you won’t just cockroach will continue to “My feeling is New Zealand Newstalk ZB get them, you'll get that wider scuttle on, no matter how many radio content and presenters are 488.9k weekly reach audience as well.” people try to step on it. right up there with some of the world’s best.” The Media Issue 2018 | STOPPRESS.CO.NZ | 69 NZ MARKETING The Radio Bureau

crisis, and it certainly made us aware of the role we had to play.” Sometimes the crisis is of a more personal nature. Long time Newstalk ZB host, Leighton Smith recalls one not so normal morning a decade ago when the voice of his producer Caroline IT’S PERSONAL demanded through his headphones: “Take this call now!” The name on the screen read ‘Claire’. And in that moment, everything changed. In the face of stiﬀ competition from digital “For the next 20 minutes, it was all about Claire,” recites media, radio has stood the test of time, Smith. “And why she was killing herself! “It wasn’t about doing good radio – it was about keeping but sometimes it takes a crisis to make us her on the line, trying to discover where she was, what she had realise its true value to the community. taken, and saving her life. It seemed we had half of Auckland out looking for her, including the crew from Shortland Street.” As Smith continued to talk, Claire gradually gave up more Radio is a highly engaging medium and is one of the few details, and a lady parked up at Whenuipai airbase, listening traditional media channels that like social media, offers a in on her car radio, realised Claire was only a few metres away, two-way communication channel. This aspect becomes hugely lying on the backseat of her car. The listener grabbed her fire relevant when disaster strikes. extinguisher and with the help of someone else, smashed the “The seriousness of the Christchurch earthquake was very car window, and then the police arrived. A life was saved. apparent to us from the opening seconds, when we ran from Leighton Smith our old building in Victoria Street, Christchurch,” remembers Gary McCormick who moments earlier was sitting in the More FM studio.

Gary McCormick There’s no question as to the value of radio. You just cannot do without it in a crisis. “It was the most rewarding programme I have done,” recounts Smith. Usually the circumstances of a personal connection with a radio host are not of a dramatic nature but more a “The road was heaving up and down and the buildings were personal circumstance where a lonely individual is in need of falling down. A number of people were killed and it was a company at a time when a sense of loneliness may be a little serious matter. It soon became apparent that radio was going to overwhelming. be extremely important. One such time happened on a New Year’s Eve when popular “We moved into temporary premises, and in fact we Suzy & Friends star Suzy Cato was broadcasting alone in a broadcast from a caravan for a short time, but the amount of quiet studio. information coming in from the authorities, police emergency “A young man tuned in while I was on air,” is how she starts services, and the council, which had to be relayed, was her story. “I was the only person in the studio and chatting to considerable – and likewise, people’s stories. the listener on the other end of the phone, it was as if we were “I think this was best summed up on a particular day. together. After all we were both alone on New Year’s Eve, and We were talking to a young child, 14 years of age, who had a potentially there were many other people who were just the younger brother and sister at home. They were waiting to go to same. At the end of the evening I wished all those lonely people school and the parents had already gone to work.” a great night and a happy New Year. The radio hosts did their best to calm the children down and A few years later Cato bumped into a young man, who came reassure them: “Can I just say to you, you are a very strong, up to her and said, “I recognise that voice. I was home alone, brave girl….” my first New Year’s Eve on my own, no party to go to, so I “There is no question, the value of community radio is beyond tuned into the radio – it made such a difference.” reproach,” says McCormick. “You just cannot do without it in a For Cato, that one experience made her realise that radio connected in a way it should – reaching out, making friends. 70 | STOPPRESS.CO.NZ | The Media Issue 2018 The need for a sense of belonging is no more acute than for Suzy Cato Jay-Jay Feeney

an immigrant, torn from their roots. Neha Bhatia, now a radio a way which social media does not. “Radio’s number one host at Radio Tarana, New Zealand’s number one Hindi Radio advantage is that it has always been engaging as a one-to-one, Station, was born in Libya, grew up in India and moved to New more personal medium,” says Leon Wratt, group content Zealand as a teenager. Being partially blind, radio has provided director at MediaWorks. “Social media, instead of competing her with the means to be connected to the community she with radio, in fact extends the opportunity to communicate serves and to her culture. with the listeners’ favourite radio hosts. It is a real engagement, one which is very natural. It allows a good debate, held in a Neha Bhatia respectful manner. It’s a real advantage to be able to continue the conversation on social media.” Every day, listening to the radio becomes a habit. Listening to a favourite show has a familiarity. The voices are instantly recognisable even if the faces are not. Radio award winning broadcaster Martin Devlin, who recently shifted from his popular DRS morning show on Newstalk ZB, to front a new sports show as part of a big overhaul of the station’s weekend afternoon line-up, tells a story, of a chance meeting.

Martin Devlin

“Radio has been a key factor in making me the confident person I have become. Through interaction with my audience I found my true Indian culture. I feel lucky to have the power to express so many opinions and ideas. I cannot imagine myself in any other job.” For Ex-Edge breakfast host Jay-Jay Feeney, who is now hosting More FM’s Drive show, marrying four sets of strangers is an absolute standout – four couples who are all still happily married and all have children together. When strangers Zane Nicholl and Paula Stockwell exchanged vows as part of a controversial win-a-wife competition run by The Edge, it was so controversial; they had Starting with the throwaway line of having the proverbial to fight a lot of negativity and pessimism. ‘face for radio’, Devlin tells of a time he was shopping at Dress “But they have proven all the haters wrong,” says Feeney. Smart when a man makes eye contact and says, “Ah, you’re that “To know I had a major role in bringing together these two guy!” Before Devlin can respond the man continues, “That’s strangers, who were clearly meant for each other, is one of my right! Didn’t you fix our air-conditioning a few years ago?” proudest achievements. “We became really good friends, to the point where Zane even offered to be a sperm donor for me and my husband Dom when Contact: we were looking for one. I know I personally affected their lives in Peter Richardson, general manager, [email protected] a positive way, and obviously we will never forget each other!” As an audience, the familiarity of voices connects us in The Media Issue 2018 | STOPPRESS.CO.NZ | 71 DIRECT remains a strong delivery channel for real brand interaction, and this may be increasing in the world of fast All marketing channels target the individual, but perhaps none as forwarding ads, fakes news on social media, and high content well as direct marketing. saturation, he says. “It is highly engaging, when Although the landscape has done right. A DM piece is like a changed, direct mail is still an conversation between a brand effective and engaging way to to its target audience and should connect brands with customers, feel like a true demonstration of especially if customers are the brand tone of voice and look properly understood, Track and feel.” managing director Andy Bell says. An example of this was “Ultimately the point is not Chemistry Interaction’s recent just to reach people, it’s to make a campaign for PlaceMakers to connection, to elicit some form of move customers to a new loyalty response, in the moment. rewards programme. “To do that we have to get Silk says connecting to tradies alongside the customer in the offline when they were taking a moments that matter.” break from their busy lives was Track, which took away 13 important. awards at last year’s New Zealand “We wanted to be in the home Direct Marketing awards, uses when they had a chance to take ‘contextual creativity’, using insight our message in properly, rather and creativity to make meaningful than receive an email and end up human connections, Bell says. in the bottom of their inbox.” “In old-school mass advertising Using tailored and we’d hit everyone, customers and used direct communications to Increasingly businesses multi-segmented direct mail, prospects, with the same message guide members through their first are becoming interested in PlaceMakers retained 100 and no consideration of where they forays into unfamiliar Airpoints data management platforms percent of its high-value loyalty were in the customer journey.” territory. in a media sense, which create customers, 50 percent of eligible With increasing data The judges commented opportunities for increased customers signed up to the availability, it’s now about the campaign was "a rare effectiveness, Bell says. programme and active customers reaching people with messages standout", and Air New Zealand “Combining media behavioural increased by over 26 percent. relevant to where they are on had persuaded hundreds of insight with first-party transactional Although 95 percent of their journey. thousands of Kiwis to change data via the data management the agency's campaigns are “Two people visiting the same their loyalty habits, saying “the platform gives you a much richer multi-channel, Silk says direct NZ Herald online page might see strength of the entry is in the over picture of the customer and mail is very much a part of the two completely different Westpac arching strategy; it’s a big thought enables you to do so much more." marketing mix. No matter the ads based on where they are in that has produced big results”. Joseph Silk of Chemistry channel, he says an effective the customer journey – and the Bell says the reason direct mail Interaction, which celebrated campaign is a simple formula message will likely be different can sound old-school is because nine wins at the Direct Marketing – “right offer or message to the when they next return.” it’s a single channel among many Awards, also sees the trend of right people at the right time, The biggest win of the night that allow us to deliver moments businesses focusing on data to delivered in a way that grabs for Track was the Grand Prix of personal connection en masse. improve targeted results. their attention and provides award it shared with Air New Arguably, he says, we’re in "the He says cheaper database them with a clear and simple Zealand for the Airpoints second golden age of CRM", where tools, more data analytics way to respond". campaign, which disestablished we can address people individually companies and better and Looking forward, Silk hopes Air New Zealand’s partnership through an incredible range of cheaper data capture through direct mail delivered through the with Fly Buys and took the two channels – like digital display. online tools, apps, social media, mail becomes interactive in its programmes head-to-head in “What we’re really talking about POS technology are aiding this. own right, using technology like customer loyalty. is marketing one-on-one, data- “Better data means more AR and VR. Once they’d overcome the driven marketing that allows us to knowledge about what people “Forgive me if this is before hurdle of getting Airpoints cards to identify, target, reach and connect want and when, and hence better your time but I reckon Star Wars 1.8 million members, the campaign with individuals.” targeting and improved results. had it right when Princess Leia It’s a virtuous circle." delivered a message to Obi Wan 72 | STOPPRESS.CO.NZ | The Media Issue 2018 Direct mail marketing through R2-D2.” UNADDRESSED MAIL consumer’s senses.” She says the challenge for the sector is ensuring the investment remains, with Whether it’s cushions at The Warehouse, netballs at Rebel Sport cost-cutting and procurement mindsets challenging true or Easter eggs at the supermarket, catalogues tell us what’s on marketing solutions. oﬀer in the stores. “It is an interesting time for marketers, they have a lot of Despite a universal switch to channels to choose from and screens, catalogues remain a each channel has its strengths reliable part of the marketing mix and weaknesses. and countless purchase decisions “Marketers need to build are made because of them. those strengths and connect them Unaddressed mail retains a together for optimal results.” high readership at 92 percent, For Countdown supermarkets, with catalogues staying in mailer marketing still plays the home for around 38 days, a very important role in the Australasia Catalogue Association marketing mix, with a large CEO Kellie Northwood says. They number of customers making allow brands a way to show purchase decisions based on the their product range without mailers each week, Countdown’s distraction, and are key for head of production, planning and awareness and influencing the promotion Anna Romano says. path to purchase. This is particularly true of key “Research is finding that digital product lines such as nappies, promotions are often not seen household staples, fresh fruit and as credible, however, the printed vegetables and meat, she says. piece is something physical “Our mailer design and consumers can rely on and often production process hasn’t take into store,” Northwood says. changed dramatically within She says this creates a strong the last 10 years, although we’ve emotional brand connection to absolutely evolved to match an printed catalogues, which have increasing awareness of our been innovating over time. environmental footprint.” “Technology and innovation Romano says the mailers are aren’t exclusive to digital, now printed on matte paper and the innovation in catalogue can be recycled through kerbside marketing is the data analytics recycling, and they have also that we now know. developed an online mailer. “We know what products Countdown has taken advantage should be on what page, we know of digital channels and provides which pages sell more, we know personalised offers to customers, where to distribute catalogues to using email in conjunction with deliver optimal results.” and to know when to pair with unaddressed mail. Brands, online printed catalogues. Northwood says advances in other channels to increase recall and physical, build brand equity “Traditional printer mailers customisation of catalogues, like and purchase. By using digital using catalogues as a foundation provide a great way to talk to pagination and demographical alongside catalogues, research piece and Northwood says customers on a wider range of and geographical product shows there can be a 49 percent magalogues are increasingly topics than just price.” incentives, has led to increased uplift in sales. being produced by brands to The combination of the two return on investments, and “We know for online retailers, communicate brand values, channels allows the supermarket the understanding of sales the physical catalogue provides positioning and range. to catch a wide audience, but data paired with production a tangible anchor and credibility “From photography to paper also tailor to individual tastes, and distribution are key to the that digital-only can lack.” selection, the finer details when showing the value in teaming the strong uplift across a number of In the 2017 Toluna survey, building the catalogue from old with the new. market segments. 54 percent of New Zealanders concept to production are added She says it’s critical for brands reported they consume brand touchpoints using all the to use data to trigger the path to information from printed purchase journey with catalogues, leaflets, catalogues and other The Media Issue 2018 | STOPPRESS.CO.NZ | 73

Radford says that although New New although that says Radford director Hamish trading OMD group of consecutive years the five says He of head Adshel’s Elaine Gibbons, the technology and develop creative that that creative and develop the technology a to create with can engage consumers interaction.” two-way behind other countries lags Zealand he measurement, of audience issues with out of home campaigns will expects digital and AI will as a medium to grow continue and target to tailor campaigns be integrated consumers. key audience addressing agrees Roderick has to be the priority issues measurement to support for out of home in order and ensure delivery campaign automated the sector is future-focused. expenditure in the channel’s growth the inception of has coincided with infrastructure development outdoor digital has seen 500 digital which Zealand, in New assets installed. NZ, also puts and partnerships marketing to advances down in the industry growth

All Blacks, with the with For Jockey, it’s all about visual visual all about it’s Jockey, For with message impact a high have “We provides out of home medium The “For example, last year we live broadcast broadcast live we year last example, “For to utilise intend we year “Later this “When our billboards go up people talk people talk up our billboards go “When parts Out of home pulls constituent dominance, marketing manager Will Will manager marketing dominance, says. Radford in profile athletes high some of the most in their Jockeys.” looking great Zealand New which saw toned torsos in tight underwear underwear toned torsos in tight saw which the country. malls across beamed through of campaigns together and is also and is also together of campaigns campaigns, to purchase on path important says. Radford onto event catwalk Week our NZ Fashion Zealand, New panels in malls across digital on Facebook live as broadcasting as well guys. the ZM radio with when we have eye-catching campaigns campaigns eye-catching have we when work Jockey’s like the dominance and generates ‘chat’ as well, as well, ‘chat’ and generates the dominance he says. them.” about positively ews 2017 was another record year for advertising for of all spend, and year record another 2017 was growth largest the saw of home marketing channels, out the – up 18 percent. inexpenditure And why would we want to leave to leave want we would And why We no longer have to travel to New to New to travel have no longer We The basics haven’t changed – an – an changed basics haven’t The mall is around the corner. holiday updates. holiday or a bus stop when Square Times York's information, and fun facts or seasonal and and fun facts or seasonal and information, transit updates, weather, sport and n weather, updates, transit doing just that through utility content like like content utility through that just doing take their messages further, and some are and some are further, their messages take in content means marketers are able to to are able means marketers in content increasing digitisation and innovation and innovation increasing digitisation or transit stations, 24 hours a day. The The hours a day. 24 stations, or transit be run on highways or city streets, malls malls streets, or city be run on highways screens mean interactive campaigns can can campaigns screens mean interactive public space, but now IP-enabled digital digital IP-enabled but now space, public eye-catching presence in a location-driven presence in a location-driven eye-catching been brought into the future. into been brought 'Yeah Right' campaign of yesteryear have have of yesteryear campaign Right' 'Yeah help of technology, billboards like Tui’s Tui’s billboards like help of technology, media consumption habits. And with the the And with habits. media consumption journeys and catching them no matter their them no matter and catching journeys kiosks, intercepting people on their daily people on their daily intercepting kiosks, anything from billboards to bus wraps to from billboards to bus wraps anything OUT OF HOME covering channel Out of home is an adaptive in technology and the growing digital and prioritise them in the creative process, “This is the reason that out of homers footprint of out of home vendors. ensuring campaigns are deeply engaging in are so evangelistic about the medium. We She says digital now accounts for 50 the out of home environment. see the potential in every campaign brief – percent of all out of home revenue and she “A good example that we all know and no campaign is the same, which means new expects that growth to continue. remember fondly is the Tui Billboards, a and different challenges every day.” As audiences have fragmented and simple execution but with a commitment to Vile says, like most things, New Zealand declined across traditional media channels, ensure the out of home creative was effective always seems to punch above its weight in out of home has benefited as a constant and long term.” terms of creative conceptualisation in out unavoidable presence. Adshel, which was They developed a deep understanding of home, however he does see us lagging in awarded the media sales team of the year of what does and doesn’t work, versus audience measurement and effectiveness. at the 2018 Beacon Awards, is performing the alternative approach which is to take He says there have been recent case ahead of market and has experienced a magazine ad, stick it on a billboard and studies out of North America and Europe increasing demand for street furniture and hope it works, Vile says. in relation to audience attribution that other products, Gibbons says. “It’s a simple philosophy but one that is show the sophistication in how mobile and Last year the agency turned a bus even more relevant now with the onset of out of home are being used in conjunction shelter seat into a giant, squishy loaf of digital out of home.” with each other. bread for Nature’s Fresh and brought live He says clients who focus on what is Specifically, the use of geolocation data scoring of a Black Caps campaign to the good execution in the digital out of home and audience profiling. He says a static streets through the Adshel Live network environment and use flexibility attributes, audience is matched to a mobile ad ID, for Ford. Constantly innovating and being create relevance with their target audience. creating an opportunity for advertisers involved in media planning are the keys to Research by Adshel shows campaigns that to focus their campaign on locations that successful campaigns, Gibbon says, use ‘creative relevance’ are 19 percent more over index to their target audience. They along with advertisers having a clear role effective. can then assess consumer behaviour after for Adshel in their campaigns that leverage The diversity of the channel means exposure to the specific ad. the best results. different mediums can cater to different “It’s a common concept in the digital “Many advertisers are now using the communication solutions required to meet world, but one that mobile is now enabling creative flexibility that out of home has to advertiser’s business objectives, and that is in the out of home environment.” offer, with specific messages to time of day, resulting in out of home becoming a lead With increasing focus on addressing weather, occasions or events.” medium, he says. Even sectors that haven’t audience measurement and the Chair of the Outdoor Media Association traditionally used out of home, such as retail, proliferation of digital assets across the New Zealand and general manager of are being lured over, Vile says. country, it’s hard to argue against 2018 Adshel New Zealand Nick Vile says there “It can cover proximity targeting, path- being the year of out of home marketing. have always been standout advertisers to-purchase objectives, audience targeting that focus on the attributes of the medium and mass broadcast reach. The Media Issue 2018 | STOPPRESS.CO.NZ | 75 Digital Out of Home: What’s Next? M Adshel’s digital and technology sales was picked up at Les Mills at into OOH for their broadcast manager, Rick Goodwin, talks about the 1pm, an Indoor Cricket court on messaging and mobile for a Wednesday evening, and Eden narrowcast retargeted message, powerful combination of out of home media Park on Saturday night – we can transferring messaging and the beneﬁts of digital capabilities, almost certainly profile them as seamlessly from the oldest one- and how it is creating opportunities for an ‘avid sportsperson’. to-many medium to one of the advertisers to pinpoint the right message to The same philosophy can be newest one-to-one mediums. the right audience at the right time. used to understand purchase A recent US study from intent. Identifying when a Nielsen found that OOH is the person is actually ‘in-market’ – most effective offline medium to There’s never been a more continued rollout of digital based on stores they’ve visited, drive online activation (4x more electrifying time for the out- OOH assets in New Zealand and the frequency of these visits. online activity per ad dollar of-home media industry as has us approaching a point With New Zealanders spent than TV, radio and print) advances in digital technology of commoditisation. With spending more and more time and New Zealand brands have and capabilities present more advertisers now using the away from home, and 92 percent picked up on this. opportunities than ever before. medium to its fullest, our of purchases still occurring MOOHbile doesn’t come The launch of digital OOH next focus is around product within brick and mortar without it challenges, however. has boosted what is already a development and innovation, locations - impacting consumers And with mOObile in its infancy, very effective channel in the which will be key to OOH’s whilst OOH, or on their path to protect our advertising New Zealand media landscape, evolution and where audience to purchase, is imperative. partners, we need to continue to providing more opportunity location data will come to the fore. Audience Location Data will challenge our mobile partners; for advertisers as it attracts enable advertisers to optimize do we have a scalable source of a greater number of eyeballs OOH + MOBILE = MOOHBILE their OOH planning to fulfill this. data? Is the data verified? Is the through the brightness Mobile devices are a proxy for us We are having more and more data privacy compliant? The and movement of what was as humans - wherever they are, of these types of discussions accuracy of this mobile location previously a static medium. we are. Drawing anonymous, with advertisers, furthermore, data is extremely important and I’ve seen how digital has aggregated data through around the combination of overcoming these challenges will really turned OOH on its head, these devices, we can begin to OOH and mobile geo-fencing be paramount to success. transforming the creative understand movement patterns (or ‘mOOHbile’). We provide The movement toward a more capabilities in a real-world of audiences as they go about the latitude and longitudes of fluid delivery of digital OOH environment. Digital gives OOH their day. our Adshels, and advertisers creative messaging, one from the ability to react in real-time and A person’s geo-location, can draw imaginary geo-fences ‘asset’ to ‘audience’, and the adjust creative messaging on the plus added context through over these locations and target attribution and accountability street, with seldomly discussed time-stamping of the data, can people on their mobile devices it brings with it, is becoming a dynamic messaging now becoming provide a well-rounded insight when they are in vicinity of the reality and we feel confident we more and more commonplace. to their Behavioural Profile. bus shelter, or thereafter (if the will be ready for it. The current scale and For example, if a mobile device person has passed through the geo-fence). Contact: Advertisers are tapping [email protected] CINEMA results. “The challenge for advertisers is to find a way to connect with audiences in a way If there’s one thing we can rely on in the ever-changing media that makes sense.” The campaign will roll out landscape – it’s trailers before a movie. with the 90-second version for cinema before being broadened drama that leaves audience out on television, social video members wanting more. and a 360-degree experience on Cinema was the most Facebook and Snapchat. compelling way to capture that 2degrees is also bringing undivided attention, he says. campaigns to the big screen, “There’s the perception we capturing an audience that’s should be making shorter and “there, ready, engaged and shorter videos, aiming for six captive”, 2degrees chief seconds to cater to fractured marketing officer Roy Ong says. attention. “They’re there for a total “But my argument is we experience and appreciate good should make quality and people story-telling and cinematic will watch it.” elements. Visually cinema has all the “Our creative, with its high bells and whistles, and while production values, is a good fit so much is now designed to for that.” be viewed on mobile, “for a 2degrees’ 'Second Nature' brand to be perceived as quality, campaign is driven by the execution is as important as insight that communication is content,” Stapleton says. second nature, and your telco “The idea for Sky TV is shouldn’t get in the way of what they have premium drama, comes naturally. the best drama in the world, Ong says the company makes and this campaign is sending sure integrated campaigns such the message to people on the big as this one work incredibly screen that everything is very hard, and each channel has a well made.” clear purpose. The best lighting and “We know from the insights screens, surround sound, and we get from Ikon, our buyer, people's undivided attention that cinema offers a quality Whether you’re settling into a player Sky TV taking audiences were the reasons the medium audience which is important, plush seat with popcorn or a to the theatre with its dramatic was used, and although it and pleasingly the numbers are leather couch with a wine in 'Poisoned Chalice' campaign might not have the frequency bucking the trend of decline and hand, going to the movies has by DDB. of other channels, the impact seem to be on the up.” been a treat for generations of It watches as a husband is extremely powerful, He says so far the results Kiwis seeking a couple of hours (Hacksaw Ridge’s Tyler Coppin) Stapleton says. have been really positive and distraction free immersed in a slips his wedding ring back on Sky TV director of marketing the team is “delighted with the surround sound story. as he returns home, while his Michael Watson says 'Poisoned anecdotal feedback”, but it’s still And that high-quality wife (Top of the Lakes’ Alison Chalice' makes sense for Sky early days so it will be a while environment hasn’t gone Bruce), who is watching from TV, and the company thought before they know exact trends unnoticed by marketers with the kitchen, spikes his wine the cinema audience would and impacts per channel. cinema advertising spend in with poison. While the drama have a real affinity with the “With 'Second Nature' we New Zealand up 9.2 percent last unfolds, the husband breaks premium drama message being have a platform with which year to over $7.7 million. the fourth wall by dissecting the showcased. to deliver an emotional and In the UK, luxury retailer perfect drama. “There’s still a very strong consistent story for 2degrees – Selfridges is launching its first DDB chief creative officer market for quality storytelling in a way that makes Kiwis sit up cinematic ad campaign in four Damon Stapleton says premium and escapism and the and listen,” says Ong—and with decades, 'Radical Luxury', and it's talent was enlisted, seen in both resurgence in cinema is evident no distraction, cinema is the the biggest advertising campaign the actors and the director— by increasingly strong box office ideal place for this behaviour. Selfridges has ever done. Academy Award nominee Derin At home, we have big media Seale—to create the captivating The Media Issue 2018 | STOPPRESS.CO.NZ | 77 EXPERIENTIAL and is also more easily shared to go viral via social media.” Megan Clark, who founded the agency Copper in 2004, says In a cluttered and oversaturated media market, being heard is a although the industry has grown significantly over the last 14 constant challenge. years, the growth in the last 18 months has been phenomenal. campaigns, and coupled with “Marketers are wanting, and brand and internal development needing, to find better ways to Spark is able to create and stand reach their target audiences, and by authentic projects. experts to deliver this,” she says. Mark Pickering, Brand In the 2016 Experiential Spanking director and creative Marketing Content Report, 98 strategist, agrees data insight and percent of consumers said they technology, including AR and created digital or social content VR, are the way of the future in at an event, and all of those who experiential, and all marketing, did shared it via social media. but the key element will always However, only 35 percent of be human. brands surveyed said that they He says trust in big tech is always created content from their shaky, but the basic human experiential programmes. interaction of being in a She says this shows the massive Cutting through and creating concert-goers, Walker says. shop or sharing events with opportunity for brands in creating memorable experiences and “We recognise the value of people creates lasting bonds authentic, live-experience content connecting with people in experiential, we wouldn’t do it with products and services, that is highly shareable, and helps authentic ways is something if we weren’t getting value out. especially with society’s slow with purchase intent in the short brands strive to do. Key to It’s giving us the right outcomes loss of human community, and long term. this is experiential marketing, and brand metrics are moving belonging and connection. A recent “epic multi-layered, Spark brand, experience and in the right direction.” “I expect a huge trend fully integrated” campaign for partnerships manager Sarah Spark is implementing its towards more human-facing Samsung stretched over summer Walker says. strategy by redirecting resources, brand campaigns in the future through to the launch the new Be it sampling at the with budgets flat to down, Walker and almost a push back against GS9 mobile device. supermarket, a media stunt, says. This poses some issue with digital, using it more as a tool to Clark says it created a mirrored a sponsorship activity at an resourcing, but she says it’s all enhance real human interaction.” cube pop-up gallery which event or a pop-up, experiential about getting creative and creating A recent award-winning toured around beaches and to marketing gets customers to partnerships with industry experts, campaign for BCITO which music festivals. People could actively engage with a product. an example being Spark Lab – a involved building apprentices create content using the camera After splitting with Telecom, thought leadership programme constructing 'Not Your Average and super slo-mo features and Walker says Spark had to helping small businesses achieve Shed' in a busy Auckland carpark then view their content in the connect with customers in a more with technology. stood out not just for its results, gallery.” new way and was open to trying The aim of Spark’s marketing but also its challenges, Pickering The content was then pushed new approaches. The company is to leave customers with the says. out through social media, PR doubled down on music, thought “that Spark gets me”, “Experiential marketing and digital. partnering with Spotify, investing Lydia Tebbut of Spark says. campaigns are a huge challenge As an agency, Copper is fully in the Spark Arena and hosting “Experiential marketing with so many balls to juggle at one project-based and Clark says music events like Auckland gives us the chance to connect time, along with always having to transparency and a high level City Limits, and it’s reaping the with New Zealanders on a rely on the human factor as the of detail are key to building rewards of its targeted approach. deeper, more emotional level. key element that can fail.” long-term relationships based on At Auckland City Limits, “In our brand campaigns we But when everything does trust, such as the ones it has with concert-goers were able to get a focus on powerful storytelling that come together, the effect is Coca-Cola and Samsung. bracelet with their mobile number shows the experiences, connection not only a highly memorable As brands recognise the attached to pay for drinks and and moments that technology can event that created a lasting opportunities that come with food, and experience VIP activities, deliver for people.” impression, but also highly experiential marketing, Clark tailoring their experience and She says the increasing shareable content. says it will increasingly become creating smooth interactions. It availability of data insights “User generated content is part of campaigns, and she was a big success for Spark and the has enabled more tailored particularly successful as this expects content development, is considered more ‘real’ by social, influencers and PR to all 78 | STOPPRESS.CO.NZ | The Media Issue 2018 consumers on other networks grow in prominence.

Feature BIG, BEAUTIFUL BRANDING: IS THE HIGH-END TVC A RELIC OF THE PAST?

Ask any industry know-it-all and they’ll tell you: In 2018 marketing is all about activating brands online. With beneﬁts like pinpoint audience targeting, utterly transparent reporting and real McCoy ROIs, digital is where it’s at and the big, beautiful brand-building productions of yesterday are well and truly becoming a thing of the past. But is that actually the case? Have marketers really turned their backs on the big budget mainstream campaigns of old? Is there still a place in the market for the cinematic TVC? And are brands still willing to play the long-game of identity building?

80 | STOPPRESS.CO.NZ | The Media Issue 2018 It’s not quite that simple slight lag.” “But it’s fair to say that the battle to Going by the stats, one could argue If that global trend is anything to go remain competitive has grown.” that the death of big, glamorous brand- by, the writing is on the wall. Globally, There’s still something about the building content has been somewhat internet advertising already generates offline format that has prestige and exaggerated. more revenue than TV advertising. motivates brand-builders to engage According to Standard Media “That lead, thanks to the rapid with those mediums. After all, Index, agencies spent a billion dollars growth of mobile ad revenues in each channel has its strengths and on major media across New Zealand particular, is set to increase significantly weaknesses and mainstream broadcast last year, and leading the way in that in the next five years,” says PwC. remains the best way to create and lot was TV—stubbornly holding out So that’s the stats. The TVC is dead maintain a presence in mass audiences against the digital onslaught - with a not and we have killed it. —targeting be damned. insignificant $389.6 million overall haul. “I see it as we're now in a kind of That’s not to say digital is Right? middle ground,” says Angela Bird, insignificant in the scheme of things managing partner at The Workshop. of course: to the contrary, digital “The pendulum has indeed swung advertising is hot on the heels of TV, at from big brand TV production through $338.9 million for 2017 - more than seven to online content and digital production, percent growth on 2016. (Outdoor is The pendulum and I think we are now somewhere in still the outlier, at $136.3 million, but up, has indeed swung the middle. Brands see the value in good nevertheless, a whopping 18.4 percent TV production, as well as the necessity in 2017). from big brand of being on digital channels.” Simply put, TV still reigns, but only “Offline campaigns, and in just, and the chaotic figures indicate TV production particular, TV, drive reach,” says an industry well and truly in a state of through to online Patrick McAteer, executive producer at disruption. Nimble Productions, “whereas a digital That’s a fact not lost on the industry content and digital approach allows us to win with a ‘share’ itself. PwC’s Global Entertainment audience.” and Media Outlook 2017 – 2021 asked production, and I Case in point: Nike with ‘Nothing entertainment and media CEOs about think we are now Beats a Londoner’ and Speights’ such issues: According to the report, two-minute film ‘The Dance’, the latter 56 percent said they are expecting somewhere in the created by DDB NZ. technology to “reshape the industry” “They both had amazing cut-through over the next five years. middle. and showcase great entertaining films,” So let’s call it as we see it: Kiwi – Angela Bird says McAteer. “When they are on TV, advertising dollars will continue to shift they can only be consumed by whoever online. PwC says as much, predicting is watching it, but when they have a that online advertising will grow to $1.4 digital aspect too they can be easily billion in 2021, overtaking TV as soon as ‘liked’ and ‘shared’.” next year. But wait, there’s more “What is worrying traditional media Sure, those stats don’t look good for Fast, cheap and good. Pick two. is that advertiser spending on the digital the long-term survival of the TVC, but As the technical and cost barriers to side flows disproportionately to a few there’s a world of difference between film have fallen, new suppliers have hit large platforms like Facebook and numbers on the page and the experience the market, increasing competition and Google,” says Greg Doone, PwC director of the boots on the ground. In fact lowering margins. Few would argue of digital strategy. some in the industry say that higher that, in 2018, fast and cheap are no The reason for the shift? Those pesky end branding content may, in fact, longer optional extras, even for high-end millennials. actually be enjoying something of a productions. Rather, that’s often where “The influence of millennials renaissance. negotiations start from. and younger generations on the “Digital has not killed it dead,” says “It’s fair to say that is a trend, consumption of digital media is being Declan Cahill, owner and executive particularly with your bread-and- widely felt,” says Doone. “They seek producer of Exit Films. butter retail commercials,” says Steve free media, to stream music, watch “The market still produces brand Finnigan, managing partner and head of videos on YouTube and consume free work and, in fact, arguably there is a sound at Images & Sound. news. And as they become the dominant little more now than there was a few “A few years ago when we were doing demographic, these habits look set to years ago. It’s hard to quantify this, a lot more TV commercial work we’d stay with them.” but it does feel as though brands are be helping clients on the side with a “The trends and consumer behaviour recognising that they still need to ‘C’mon, it’s only for the web version.” we see unfolding in New Zealand are market to both an online and broadcast largely in line with global trends, with a mainstream media audience.” ... continued on page 84 | 81 NZ MARKETING The Workshop

THE WORKSHOP Where production is constantly changing

When it comes to TVCs, which are the ones The Workshop is 99’s “There is always an element straight-to-production offer, of speed to what we do, not in that you remember most? The ones that you giving clients direct access to compromising the quality of felt a connection with, stayed in your mind their in-house TV, content, work that we output,” adds or that spurred you on to share with others? social, digital, photography and Bird. “Because we don’t have to That’s exactly what The Workshop does. audio teams so they can benefit work with third parties, we’re from a leaner, faster and more not constantly having to try cost-effective production work. and schedule our work in with The specialist team creates beautiful, memorable content for Managing partner of The [others].” 99’s clients such as New World and Mazda and their direct Workshop Angela Bird, clients Farmers and G.J.Gardner. But The Workshop also who now juggles two roles CREATIVE CLIENTS does everything else from social to images to radio, in-house after recently becoming 99’s At The Workshop, clients are and with enviable turn-around times, which is why it holds a director of delivery, says having seen firstly as creative partners, unique position within New Zealand’s advertising world. everything in-house is what sets although they can also take them apart and enables them to a less-involved approach UNDER ONE ROOF deliver high-quality content in if they prefer. The agency The Workshop gives its clients an immersive, hands-on a short space of time. And the recognises their clients’ strong experience in the journey to create an engaging and memorable amount of content is growing. understanding of their target end product that connects with their intended audience. If a “The quality of output audience and what they want to client were to sum up this content creation and production that we have is really quite achieve creatively and put their company in a few words, I imagine they might choose efficient, unprecedented for the amount expertise to good use, forming a inclusive, fun and talented. of people that we have working transparent, collaborative way of The Grey Lynn-based specialist team of 20 includes DOPs, here,” she says, explaining the working. producers, editors, motion graphic artists and colourists average campaign from initial “Clients are always in here applying their talents across a variety of different mediums. concept to delivery can span reviewing work or having between just days to a few discussions about the creative 82 | STOPPRESS.CO.NZ | The Media Issue 2018 months. idea and they see everybody working on it, no one’s hiding,” says Bird. “They sit in the sound studio, they sit within the edit suites…they feel part of the team and that’s something we all feel very strongly that we want to cultivate with our clients.” Clients are involved in every step towards the finished product, even during filming, an approach Bird says their clients love and has worked very well for the company, ensuring there are no surprises by post-production. “For me as an ex-producer,” Bird says, having spent 12 years of her career as a digital producer, “that’s a very strong position for us to be in. Our clients get to work with the people who produce their work…that allows us to work in a very agile and more stream-lined way.”

SPECIALIST TEAM The Workshop can have 10-20 projects happening at any one time, from smaller addictive she laughs, “…just knowing that are still quite comprehensive and our clients social content through to an expansive you produce good work all the time and all come to us with a need for TVC work.” brand ad, yet their speedy turn-around actually build really great relationships Bird says social is becoming one of their times are maintained thanks to their in- with your clients means that it’s hard not bigger channels and believes there is a clear house and specialised team combo. to be part of that process, that environment delineation between content and social. “Our clients are having to be more and and that team. Social is consumed faster, she explains, so more reactive to the marketplace and being “I really feel that The Workshop team production of it needs to be considered in able to produce work more cost-effectively is really one of the strongest production a lighter, stripped back way. She also and faster definitely has its benefits,” teams I’ve ever worked with.” sees VR and AR playing an increasingly says Bird. important role. Key time-saving parts of their process CONSTANT EVOLUTION “It’s a whole different way of engaging involve directors coming on-board early on, A few noticeable trends that make an and it’s a very exciting way of engaging bringing an idea to life quickly and avoiding advertisement highly effective in today’s and it opens up a whole different channel a lengthy brief. Strong relationships with market are emotional engagement, a clever and means that the work that we do for talent agencies also cuts time. idea or something visually compelling, film will have to work within that space as Because of their specialisms in different notes Bird. well,” she explains. areas, The Workshop team can cater for a “Ads work in different ways. I think “I think it’s our responsibility to make wide range of clients who challenge them very sales-focused ones need to get across sure that we’re able to not only keep up with a diverse set of briefs, which price and product and make sure that the with how the industry is evolving, but also is something the team thrives on. consumer understands the message so that be at the forefront of that – we should be “We don’t have a one-size-fits-all definitely has its place,” she says. “Whereas causing the industry to change,” she says. approach or tone of the output that we some ads need a storyline…it needs to be a “I feel personally, very strongly, that the have,” explains Bird. “Nothing that we strong narrative with a strong message.” more traditional way of producing certainly produce is formulaic – there’s a real She describes one example of a visually film content, in all of its different levels, diversity in the work that we do and that commanding, beautiful brand ad The needs to change; we can’t rely on massive keeps it really interesting.” Workshop created for GJ Gardner, where budgets, we can’t rely on having a cast of The work may be fast-paced and the team produced six TVCs of the thousands working on things, we can’t rely stressful at times but it’s always company’s different franchisees around on keeping clients at arm’s length. That worthwhile and rewarding, says Bird. New Zealand. It also turned out to be one model is changing and I strongly feel that “We’re really fortunate to have the clients of their most challenging shoots because The Workshop is at the forefront of that.” who want to push themselves creatively of the 21 day schedule it involved filming in and us creatively and that really allows us locations across the country. to stretch our muscles,” she says. “You can’t Although digital/online is an Contact: help but feel proud of what the team has unstoppable force, TVC still has its place, Angela Bird, managing partner, produced because it’s very much a team says Bird, especially within the NZ market, [email protected] effort, that pride is shared by everyone.” which doesn’t seem to be depleting year-on- www.theworkshopnz.co.nz Bird’s passion for her work is year like in the UK. unmissable. The production process is “The budgets that we have for TVC work The Media Issue 2018 | STOPPRESS.CO.NZ | 83 “Now of course that's the norm and I think people have initially struggled to monetise that.” And if it’s not about talking tough on price, it’s at least about getting the maximum bang for the buck - and that option means top-tier content at a lower price point. “We are expected to do a lot for a production cost,” says Cahill. “That does not seem to have changed much over the last 10 years, but the ideas are more challenging for the budgets available.” “It has reached the point that schedules are usually at the minimum required to produce the project. There is no fat or time margin for finessing now, generally speaking.” “This is not desirable for creative, logistical and financial reasons. There is an old saying that of ‘fast, good and cheap’ you can have any two, but you cannot have all three. Not without risk anyway.” Now, more than ever, (quality) content are constructed with a very nimble is king. With audiences, even the very approach, assembling the right freelance Give the director their due young, growing ever more sophisticated, team for each project, using ‘predators’ So what do these new expectations mean it seems there is expectation—and (producer/director/editors) through to for production companies tasked with necessity—for tight scripts and slick full-scale production teams.” bringing these campaigns to life? In a production values, regardless of budget. That produces a better outcome for world of lowered margins is there still Even online projects still strive for the clients he says, as a single media/agency a premium on specialist skills in the cinematic look and feel of traditional combo can manage all of a client’s brand YouTube/GoPro age? campaigns at times, and that is still well messaging internally, only enlisting “Specialist skills are in demand more and truly the domain of the specialist. external creative resources when than ever, but that doesn’t mean you “We say there are no shortcuts [to actually required. need to charge a premium for it,” says engaging audiences] and that means “It’s also a smart alternative to Michelle Walshe, CEO of Augusto. getting the right specialists on board building your own production teams “We have a shed full of creative and to ensure your ‘film’ will get the best inside your company, which can be an production specialists here, but that’s impact,” says McAteer. “Everyone is expensive exercise,” he says. “Over the how we create efficiencies: By being able a ‘prosumer’—both a producer and past five years, the capability, approach to make better unified decisions on each consumer of content—so it’s still vital to and quality of what is produced by in- and every brief. This ultimately saves exceed expectations.” house production teams has increased.” our clients time and money, and creates “This has been bolstered by the better work from the collaboration of Appetite for consolidation availability of freelance directors, ideas between thinkers and makers.” With cost pressures front-of-mind, and bolder clients prepared to see the Walshe points to Augusto's recent there’s an opportunity for in-house benefits of using this creative service.” work for Tourism New Zealand featuring studios from media owners to come Rhys Darby and Jacinda Ardern as an in and do it cheaper—sometimes with Made in New Zealand example of this unified approach. production thrown in during the media One thing that does need to be “Reacting to a topical issue in sales process. Increasing integration mentioned here (as if it’s not mentioned market, we were able to pull a team sees places like TVNZ’s Blacksand doing enough everywhere else) is hobbits. together that turned both the concept production work for clients while Bauer With exports like Peter Jackson and shoot around in a matter of days APN and Stuff have in-house studios. and Taika Waititi enjoying success with no compromise to the quality of McAteer, executive producer with overseas—and even James Cameron storytelling.” “talent aggregator” Nimble says these getting involved in the local scene—New “This wouldn’t have been possible sorts of in-house scenarios have their Zealand productions really are gaining with a traditional approach, or without benefits—including better creative a degree of prestige in the global specialists.” consistency and fewer personel required marketplace, especially in the visual to deliver production. effects milieu. A recent New Zealand 84 | STOPPRESS.CO.NZ | The Media Issue 2018 “The new in-house production teams Advertising Producers Group survey Mixed media So sure, there are unique pressures facing production houses, but there’s still an appetite for top-tier work, both in terms of cinematic-style and the platform perhaps best suited to it, television. “Clients still see TV advertising as the crown jewels because TV is still better than the rest at engaging consumers,” says King. “The moving image on a large screen, high-quality video and audio, the ability to stimulate emotion and engagement – it’s hard to beat. Amid a constant barrage of advertising messages, TV still offers a brand a way to stand out; an exclusive spot in the middle of a TV programme that draws Fiona King millions of relaxed viewers waiting to be entertained.” “Beautiful brand advertising just works best on a TV platform,” says Bird. “You look at some of the archetypal placed annual advertising industry adverts—the John Lewis Christmas turnover at about 50 percent from local advertising, for example, the ‘Holy Grail’ sources and 50 percent from offshore. of advertising in the UK—that would “We’re an incredibly strong and only work as well as it does on a TV vibrant filmmaking nation and one of platform. Those grand narratives just the best in terms of talent and crew,” work really well on television.” says Fiona King, managing director of “It’s just that clients have become The Sweetshop New Zealand. savvy to the fact that they don't need to “Growing up in the industry, nearly spend extortionate amounts of money to all directors have developed and directed get very good quality TV ads produced.” a short film or a feature. The stories are And maybe it’s the case that there unique with no comparison to what will always be a place for those big, anyone else is doing in the world. We do beautiful brand campaigns to coexist our own thing in New Zealand and don’t with the new aesthetics, formats and compare ourselves.” opportunities presented by other Steve Finnigan And being so far away from the rest platforms—whatever they ultimately of the world might just be one of the keys end up being. to our growing success, says King. “We live in an always-on world “As one of our directors tells me, ‘We where our stories must now take many still climb trees in New Zealand’, meaning forms and exist on many channels,” we know how to work from the ground up says Walshe. “In marketing terms, a and be a super strength at the top.” big brand TVC would be just one of the And hey, we’re the guys that made things our audience would come across King Kong. That’s gotta count for on a customer journey.” something. “Marketers gravitate towards video “For sure,” says McAteer, “We are because it's still the richest and most known for high-end VFX and amazing engaging medium through which to locations and crews, and generally being tell a story,” she says, “regardless of film-friendly.” whether that story is five minutes or five “The flip side is that South America frames in a GIF. It can take people on an and other countries are also offering emotive journey.” similar options, so competition for “Content marketing and brand shooting your oversees campaign is marketing are not mutually exclusive, Patrick McAteer growing, [but] we still win outright rather they are colliding in beautiful with our VFX, great crews, and pro-film ways that would be impossible to approach.” achieve without digital.” The Media Issue 2018 | STOPPRESS.CO.NZ | 85 NZ MARKETING Motion Sickness

Behind the Photography from scenes on Motion a China-based Sickness video and shoot for Les Mills photography shoot. International. THE SEVEN RULES OF GREAT CONTENT

Creative agency Motion Sickness is shaking up the industry with more than At Motion Sickness, we’ve been producing content for this just pretty pictures. ‘new age’ for over five years now. Not only do we produce video and photography, we have the unique pleasure of being a part of the process, from start to finish. From conceptualisation and Thriving at the intersection of production and creative strategy, through to execution and delivery of campaigns, we strategy, its showreel from the past year includes the likes get to see what comes before and what comes after production. of Les Mills, Icebreaker, Scapegrace (previously known as We’ve learnt a few things along the way, so we thought we’d Rogue Society) and NZ Avocado. Sam Stuchbury, founder share them with you. Whether you’re a marketer, small business and creative director at Motion Sickness and 2018 Forbes owner, designer, or budding videographer, we hope that it might Asia 30 under 30 list-maker, shares his thoughts on get you thinking. We’ve also put it in a list, because just like producing quality content in today’s digital landscape. videos, people like lists.

These days it feels like we are completely immersed in video. SEVEN THINGS WE’VE LEARNT PRODUCING CONTENT From TV screens to Netflix, digital billboards to Instagram stories (nevermind Youtube and the Facebook feed) the 1. It’s all about the idea ubiquitous video ‘content’ is all around us (I can feel my eyeballs burning just writing about it). I think there’s a reason this is Number one on the list for a reason. A top spec camera and a 30 the case. No other tool available to advertisers allows us to tell person production crew aren’t going to save a mediocre concept. stories, stir emotion, communicate information, and connect The fact of the matter is, a flawed idea is going to leave you with on a human level in quite the same way. And with all this video, a less-than-perfect result. It’s like when you forget to cut the tag the line has never been more blurred between advertising off a new pair of undies – something’s just not going to feel quite and entertainment. With brands publishing short films, films right at the end of the day, and you’ll be left pulling a 40 percent flogging products, and every man and his dog able to shoot video off sticker out your crack. Before you do anything else, make from their smart phone, how do you stand out from the rest? sure your idea is solid.

86 | STOPPRESS.CO.NZ | The Media Issue 2018 Scapegrace ad Also, think about how you can make what with ‘The Breaker you produce stretch a bit further, or speak Upperers’ movie, shot and edited in to more than one audience (for example, a day. Taika Waititi consumers and trade). You’d be surprised at shared the video on his Instagram. how useful your content can be if you just tweak the concept slightly.

6. Don’t let your brand get in the way

Whilst a brand identity is important, sometimes it can be restricting. If you keep presenting everything in exactly the same Shooting a way even the coolest brand will start to feel… commercial brand video at vanilla. Don’t get me wrong, your brand Karekare Beach should remain front of mind. But brands should live in the real world. A brand can 2. No one cares as much as you do have facets, different sides to a singular personality. Don’t let the ‘cookie-cutter’ of Let’s get this one out of the way too. No one cares as much about your brand as you brand guidelines smother you creatively do. If you’re like most marketing managers or business owners I know, you live and (especially if they were created without video breathe your brand and product. If you’re lucky, you’ll have some serious brand in mind). Instead, ask “will the people who loyalists who watch your every move. But more than likely, you are speaking to an love my brand love this?”. There’s something audience who care more about what they’re going to have for lunch than they do to be said for adapting to the language and about what you’re trying to sell them. When conceptualising your content, consider style of the platform, or of what you’re trying the natural skepticism and divided attention of your future audience. to create (for example, a documentary piece vs an instagram clip). Being able to move 3. Your opinion isn’t the only one that counts and fit stylistically within these spaces will help your content land. There’s no point in With video production, a lot of the finer details come down to subjectivity and creating content that’s 100 percent ‘on-brand’ opinion. A film can win best picture at the Oscars and someone’s uncle is still if no one’s going to watch it. But that’s just my going to say it was rubbish. Stand your ground on opinions you feel strongly two cents, take it or leave it. about, but if you’re unsure, ask a bunch of people what they think. Also, don’t forget that you’ve hired your production company for a reason. If they’ve made 7. Don’t forget the magic a creative call chances are they’ve done it with purpose – ask them what that is. And again, the most important thing is to put yourself in your intended This is the secret sauce, the je ne sais quoi, audience’s shoes. the x-factor – and sorry folks, it’s pretty hard to put a finger on. Good video work 4. Don’t overcook it connects with the person on the other end of it, whether it’s a tug of the heart strings, We’ve been in many a meeting where a chat about a brand video descends into two a good old fashioned laugh, or a changed dozen strategic points to hit. Yes, it’s important that what you’re producing ticks perspective. Everything else aside, if a viewer the boxes, but don’t lose sight of the wood for the trees. It’s like Gordon Ramsay on thinks “well fuck me, that was cool”, or the Kitchen Nightmares, their first problem is they have about 100 things on the menu. hairs on the back of their neck are standing Is it better for someone to know your product does x, y, and z as well as a, up (or watches it, laughs, and a little bit of b and c, or is it better that your content actually makes them want to find out more wee comes out) you’re onto a winner. It’s of their own volition? That it represents what you stand for, gets them thinking, or what makes someone come back to watch it changes how they feel? If you fill your content with too many strategic points and again, and what inspires Tuesday morning don’t leave room to breathe, it can start to feel a little too much like propaganda – watercooler chat. It’s the reason a music which can make what you say next seem disingenuous. video can change the fate of a record. If you have a good idea, and good strategy, creating 5. Make the most of it something visually beautiful or interesting will be the cherry on top. For production to Let’s be honest, creating good content isn’t cheap. There are a lot of hard costs and get to the magic, it’s about focusing more on then there’s the production team’s time – and there’s also the time committed by the art than the science. It’s that magic that your own team to get it right. For this reason it’s always worth putting equal thought will see you right in the long run. into how you’re actually going to get what you make in front of people, which will then lead to ROI. This often means money. Yip, cold hard cash (some people believe Sam Stuchbury, www.motionsickness.co.nz there’s a set formula for how much you should spend on production vs media, but I think it all depends on who you’re trying to reach and what you’re trying to achieve). The Media Issue 2018 | STOPPRESS.CO.NZ | 87 THE

CONFERENCE

AN ALL NEW 1 DAY CUSTOMER EXPERIENCE CONFERENCE!

WEDNESDAY 8 AUG 18

CROWNE PLAZA AUCKLAND

Early Bird tickets available at marketing.org.nz/CX2018

88 www.marketing.org.nz Championing the practice of professional marketing

CAN YOU IMPROVE CUSTOMER EXPERIENCE BY SIMPLY BEING MORE HUMAN? Brands that can empathise and be more human are able to provide beter customer experience and build stronger relationships. So how do you get your brand or business to be more human or empathetic?

Customer experience starts with your deal with this was provided on Jeff Bezo’s company’s employees. ALL your employees. empty chair approach (Amazon CEO). Jeff Tony Mitchell Why? Well, people are emotionally driven has an empty chair in every meeting that CEO, Marketing Association creatures and respond emotionally, so we represents the most important person in the of New Zealand need to engage our people in understanding room - the customer. It helps remind everyone the customer and customer experience. Too to think like the customer! Chatbots and beginning to play a key role oten employees are just expected to act Technology has a vital role to play in for brands in this area and are becoming on brand orders or guidelines. This means customer experience for brands too by more cost atainable for all brands to now organisations need to spend as much time helping them be more human and empathetic. use. Ironically, through chatbots and voice on their staff, helping them to understand How can technology do this? Voice and facial recognition, technology could allow humans what being human in the customers’ eyes is, recognition combined with machine learning to get back to being more human also, by so they can beter understand the customers (algorithms), means that brands digitally allowing us to lit our heads up from our and adapt. engaging with their customers can see, devices and engage visually and verbally with So how do you do this when your customer hear, analyse and respond to customers in a our surroundings. isn’t in your office or siting around the fraction of a second. They can personalise the The Marketing Association is gearing up meeting table using their voice to help you engagement and remove bias human emotion for its inaugural CX Conference on the 8th make decisions? A great example of how to out of the analysis and response. August. See you there.

CUSTOMER EXPERIENCE: THE NEVERENDING STORY

a remarkable anomaly. In a touchpoints weren’t broken— are infinite. survey across four industries, but the onboarding process as a This is transformative. McKinsey discovered that even whole was.” When we re-imagine customer if each touchpoint recorded high The McKinsey study reminds experience as a never-ending customer satisfaction, the entire me of a talk by Simon Sinek, the journey we give ourselves customer journey could score a “What, How, Why” guy from TED permission to think holistically poor rating. Talks. He says we’re talking about and break the rules (because For example, they studied business all wrong. We compare there were none to begin an internet provider who would it to sport with words like winning with). We empower our teams “onboard” a customer over three and competing. Now, sport is to escape the confines (and months. “The journey involved finite: it has agreed rules, a set excuses) of silos. And we an average of nine phone calls, number of players and a winner. free ourselves to aim for the We’re thinking about customer a home visit from a technician, But business is infinite – there’s long haul. experience all wrong. and numerous web and mail no set rules or moves and it never Customer experience, like We oten think of customer interactions. At each touchpoint, ends. There is no win or lose, just the guru says, is a journey not a experience as a series of the interaction had at least a 90 an ongoing challenge for more, destination. touchpoints: a visit to a store or percent chance of going well. But beter, faster. a call to a helpdesk and so on. average customer satisfaction In McKinsey’s study we see Vincent Heeringa is executive director at Anthem, an integrated communications But a new study by business fell almost 40 percent over the that customer touchpoints are agency consultants McKinsey found course of the entire journey. The finite. But customer journeys USE BETTER DATA BETTER

centered design to get the full picture of your customer, leading to a richer relationship with each segment. Use big data to understand I recently came across this Twier post that customers based on the your customer segments, encapsulates some of the key struggles of insight that you ﬁnd. When quantify them and build a marketing today: you test it, understand what hypothesis about them, and you are testing and deﬁne what human centred design to success looks like before you unlock how you can innovate 1 Understanding the How can we tackle these start the test. your product or service to best customer need at the problems? respond to their latent needs. right time. Just because we can - doesn’t Don’t base customer loyalty on mean we should. Take a look at your marketing one data point. At the recent Smarter Data and see if you can use beter 2 Knowing if and when The more you understand event, Dion Betjeman of data beter – and if there is to use customer data. your customers, the beter you Mindhive talked about his work room to improve, start making can position your product in in the USA and how taking this changes to avoid frustrating their mind. approach keeps him ahead of your customers and becoming a 3 Not understanding any privacy concerns. toilet joke on Twiter our product’s connection Iterate, test and learn Create hypotheses about your Combine big data and human Dan Hamilton , Head of Customer Insight, with the end customer. Loyalty NZ CUSTOMER EXPERIENCE

I refer to anything associated customer obsessed’ companies believe’ you are almost talking to with shaping positive do it so well that it is either a mix the Cooking Queen herself. experiences for our customers of automation and a real’ person However, what you are actually as the human to human or they make the automation experiencing is their brand. Their business’. It doesn’t mater how so personalised you actually brand has been assimilated much we cling to technology, feel’ (and yes it is a feeling) that into every touch point – that bots, or mobiles most people you are experiencing a human healthy dose of Kiwi goodness is still want to deal with people at intervention’. As an example, My present at each tap, slide or click. some stage of the experience’. Food Bag does this very well. Companies oten forget this when and impressions, be driven by who This is oten forgoten when When you phone their 0800 pursuing improved productivity you are as a company, your brand automation and digital solutions number you are greeted by Nadia’s – and we unfortunately default values and personality so they are driven through organisations bubbly voice talking you through to customer mapping with a Siri engage…. forever to return! in the name of cost savings. the phone options. All their texts or Alexa-like mentality. Instead Don’t get me wrong, striving and communications have this let your customer experiences, Rosina Webb, founder and owner of the Energise Marketing Agency and Deputy for eﬃciency is not bad but same positive tone so that you including those ﬁrst moments Chairperson of the Marketing Association

90 www.marketing.org.nz DATA-DRIVEN MARKETING IN DATA-CHALLENGED TIMES

2018 has certainly shone a light Build trust through transparency. on data use and privacy. I doubt Being transparent about how you use there’s anyone who hasn’t come data, and ensuring you oﬀer an improved customer experience because of it, is across – and holds an opinion key to building trust. There’s no point in on - the GDPR, the Cambridge collecting data just for the sake of it, and Analytica ‘scandal’, and as a result be sure to set clear expectations about Know and Engage. what Facebook should be doing how you’ll use it. Once you have customer data, make sure to ensure their user’s privacy. you’re using it in a way that resonates with Use analytics to your advantage. them. Data helps you know and engage with Consumers are increasingly skeptical of Ultimately the data that will be most useful is your customer in relevant and useful ways – giving up their data, and less trusting of that which you collect about your customers’ so don’t throw this opportunity away. an organisations ability to keep it safe. behavior throughout their lifecycle. Marketers are wondering how they can keep Engagement data, purchase history, device Despite everything that’s going on, data is collecting and using data when consumers use or the channels through which they still a powerful tool for marketers. We just are hesitant or wary of giving it away. Ater connect with your brand are much more need to make sure we’re using it in ways that all, data is the key to delivering the kinds of powerful ways of understanding more delivers a superior customer experience and marketing experiences that consumers now about your customer. Marketing analytics aligns with their expectations. expect. So how can we reconcile these two can then help uncover these more advanced disparate sentiments? customer insights. Nathalie Morris, CEO, Qrious

6 ESSENTIALS FOR VOICE OF CUSTOMER SUCCESS

The customer relationship determines long business already should have the answer to. term profitability and should be the apex of your CX monitoring. Customer journeys contribute to the relationship and are the place to look for process improvements. Individual customer touchpoints provide Watch out for unintended employee operational focus but need to be seen in a behaviours. broader context. Ever been asked to rate a customer service rep a 10? Incentivising frontline staff based on CX metrics can be counter-productive 3 and cascading metrics only down to team manager level may be a beter option. Ensure KPIs are relevant to your business. 1 There is no single customer metric that is right for every business. Try several and 6 Start with executive level sponsorship to weed out those that do not help predict your lead customer centricity. desired business outcomes (e.g. profits, Use an integrated soware platform to Improving the customer experience (CX) cuts loyalty, new business). streamline the process. across many business silos and someone Even a moderate sized business will have at the top needs to have an intense interest many information flows to integrate into a in CX improvement and the power to make 4 voice of customer programme. Specialist change happen. sotware platforms have evolved to capture Respect your customers’ time. customer information across all business Don’t let surveying of customers become a units, summarise results in dashboards and 2 negative customer experience. Implement route feedback for follow up - all in real time. a judicious combination of short surveys,

Measure the relationship, customer low survey frequency and fair incentives for Nigel Green, Executive Director – Customer Experience, journey and touchpoints. participation. Stop asking questions your Kantar TNS THE THREE P’S OF SUCCESSFUL CX TRANSFORMATIONS

Marketers who want to improve across all channels. So many to get it. If you try to promote their organisation's customer things need to be planned out. your ideas before you can show experience face the challenge of The question is "when you're tangible results, you won't be deciding where to start. embarking on CX transformation, taken seriously, and could even If you are the type of person which approach is right?" be shut down. who likes to muck in and get things The answer is neither and done, there's a temptation to grab both. The right approach is a P1 Find something you can P3 Performance, well the first thing you see and make mixture of the two - a focus do that's going to impact the promoted, wins permission to it beter. Maybe the catalogues on geting quick results that organisation in a measurable keep going. Once you've found are well out of date and missing build towards a bigger picture way. Do it well and do it quickly. the leader or leaders who are products, the email newsleter is experience goal. Perform. like your results, give them a boring or the case study section Enter the three P's of CX vision of what you can do next of the website still says 'coming transformation projects - perform, P2 Show your results to and ask for their support. soon'. So many things need doing. then promote, to get permission. the right people. Show your Or if you're the big picture The order of the three P's manager first to allow them to Chris Macdonald , Head Of Strategy and Transformation, Five by Five Limited, thinker, the temptation is to start is important. If you try to seek get on board, but if you've got Member of the MA Digital Special Interest by stepping back and building permission first, with a detailed good results, don't be afraid to Group commiee a plan for the entire experience business case, you're unlikely go well above them. Promote. A CITY WITHOUT WASTE? IT’S POSSIBLE

red-lidded wheelie bin. Meeting the customer hub with an engaging customer journey. service delivery schedule was a large scale and • A team of community engagement complex operational exercise in itself, without ambassadors interacted directly with upping the stakes by adding a challenging customers in their local spaces, events, behaviour change - how to motivate every parks, community centres and homes. home to switch from throwing out unlimited • A dedicated 24-hour free Community black plastic bags each week to fiting their Helpline was launched to give advice to family’s rubbish into a standard 120L bin? anyone struggling with too much rubbish Enter the single-minded proposition: Let’s and to report illegal dumping. Bin the Bag’. Let’s Bin the Bag’ gave everyone an And the results? Auckland Council has an ambitious goal: opportunity to change the way they think engage every Aucklander to help our city about their rubbish. Executed as a three- Research showed 76 percent of respondents become zero-waste by 2040. phase creative and visual communications had seen the Let’s Bin the Bag’ campaign, Working to become a city without waste campaign translated into six languages with 94 percent knowing exactly what was isn’t easy and involves many moving parts. across digital, social, print and broadcast changing and 88 percent knowing what they Everyone has to do their bit to reduce their channels, it had to help a large and diverse needed to do. impact on our environment and to protect cultural community clearly understand what In the first few weeks of the new wheelie and enhance our beautiful natural assets for was changing. bin service, more than 100,000 homes put future generations. their new wheelie bin out on the kerb and only One important step is phasing out plastic Supporting the new customer experience five percent of rubbish was in plastic bags. rubbish bags in favour of wheelie bins across through advice and support via digital and Manukau ward Councillor Alf Filipaina Auckland, to empower Aucklanders to reduce community engagement was at the heart of acknowledged the important environmental their household waste. Sound like an easy the campaign. In particular: and safety benefits, Rubbish bins are the switch? Not for everyone. So we decided to beter environmental choice, they keep our tackle our largest community first. • Marketing communications focused streets cleaner and safer for everyone”. In 2017, more than 110,000 homes across everyone on Make the Most of Waste’, a south and east Auckland received a new customer-centric one-stop information Marketing and Publicity team, Auckland Council

92 www.marketing.org.nz BRAND PERCEPTION AND RE-ENGAGING YOUR AUDIENCE

The message I’m seeing over and over this consumers in a more direct way than ever year, in particular, is a drive to tell your brand’s before – listening to the average Joe’ story and increase customer engagement– drinker and involving them in the process. and this is surely reflected in the shit to It was great to get the 'behind the scenes' customer experience roles we’re seeing view of the myriad of layers there were to across the board, and in the way our clients this rebranding process, and the ownership are adapting to these new challenges. all the parties took collaborating in this epic at a grassroots level – telling the brand At the Marketing Association’s Brainy re-imagining of an iconic product. story, highlighting that our (generally Breakfast event earlier in the year, the topic was Following the tragic Christchurch likable) farmers are in fact the stakeholders a twist on that theme with Challenging brand earthquakes on such an unprecedented and driving a concerted effort to not be perceptions to (re)engage customers’ - in other scale, AMI was in the unenviable position perceived as a business run out of Auckland, words, what happens when your brand has of not being able to deliver their promises far removed from the rural heartland. started losing customers and being perceived to many customers and losing business as Launching a plan to involve the public in negatively in the market? We were lucky to have a result. With many of the staff (including helping to clean our waterways, delivering speakers from three leading NZ brands – Lion the speaker) personally affected by the the 'milk for schools' initiative, being able to Breweries, AMI Insurance and Fonterra. earthquakes they were able to engage share our leading methods of animal care, In the case of (no pun intended) our and reconnect with the community at a technology, and convey stories of the respect national beer’ Steinlager, they experienced grassroots level in an authentic and ethical for our product internationally helped move cratering sales in part to the popular crat manner and as a result strengthened their a sizable 1.5 million NZers to change that beer market (sorry Steinlager, I’m partially to connection with the customers, and net result perception positively. blame here!) and also losing relevance with was turning the brand around significantly The message unified across all speakers the new generation of consumers. The success and regaining customers trust. was: 'trust in your brand takes years to achieve, of the Steinlager Tokyo Dry campaign was Finally, Fonterra as our primary leader seconds to shater and a lifetime to rebuild.' a brave venture embracing a radical shit in dairy production/exports was also from our national flagship lager to more of in a position of having a very low public Brian White, Creative/Digital Recruitment Consultant, Salt an international brand. To do this, they used perception, so a campaign began to change Salt…Not just about creating futures but bringing you the best jobs via the Marketing Association Careers page and extensive collaboration with agencies and the tone and inform the public (literally) perfect coffee at Digital Day Out 2018 www.welovesalt.com 6 THINGS TO CONSIDER WHEN CHANGING CUSTOMER PERCEPTIONS AND REPOSITIONING BRANDS

The younger generation want their own brand, that many organisations are now using co- 1 You need to go deep on research not their parents’ brand, so be prepared to creation for all brand work. To truly make a change with customers’ challenge some sacred cows when it comes perceptions of your brand, you need to go deep to your organisation’s key brands. This might Giving back through engagement with on research with them. That means face to face mean you need to evolve your brand positioning local communities inspires engagement (being in the room) - something into areas that you might not be comfortable Give back through engaging the local that many marketers are doing less and less with initially; it may mean creating a sub- community, but give them the freedom to own of today as they opt to look for signals in data brand like Steinlarger did with Tokyo Dry for the giving back projects and be the face of them. sources via customers’ interaction. their main brand to be relevant for the next generation of consumers. 6 Customers don’t want to hear from you 2 Brand authenticity Customers don't want to hear from the Brand authenticity shines through in all the 4 Co-creation is essential in all aspects company, brand or designated spokesperson. examples as being essential in everything you The magic ingredient for repositioning brands Customers want to hear stories from other do as a brand and organisation. Without this is co-creation with many stakeholders. This customers like them; it’s more authentic and it’s you won’t change perceptions. So, what are the involves the new breed of consumers you are easier for people to identify with. So, get your core elements of brand authenticity and how do trying to engage, creative thinkers, packaging customers to tell stories about other customers you evaluate them? designers, retailers and internal stakeholders to help create empathy and connection. including the CFO and CEO. The outcome of 3 The young generation want their these co-creation journeys has a signiﬁcant Tony Mitchell, CEO, Marketing Association of New Zealand own brand impact on consumers and brand. So signiﬁcant THE IMPACT OF CUSTOMER EXPERIENCE ON STRATEGIC MARKETING

Ian Robertshaw

Can Strategic Marketers learn from design thinking? Marketers could well be missing the design aspect when it comes to customer experience. Whether the start point is an established organisation or a start up with a blank sheet of paper, methodologies like Human Centred Design, Blue Ocean Thinking and Business Model Canvas can be used to uncover breakthroughs. These moments can bring together both let and right brain thinking around customer, marketing, operations and finance. Human-centred design is a design and management framework. It brings creativity into developing solutions by involving the people affected by the challenge. This I’d been asked to write an article on the impact of customer approach has been wielded by global powerhouses like experience on strategic marketing. That was the working Airbnb, Amazon and Google to differentiate their services, title anyway. I paused, and thought about the wave of eroding the competitive position of many product and human centred design practises, wielding their dark art on service organisations. Much of their gains have been unsuspecting yet eager disciples, looking for the next big through cost advantages afforded by the adoption of thing, the nirvana. e-commerce and digitization of inefficient business Have we reached the horizon of marketing products processes. The real point of difference however lies in the and services to people? Should we now focus on what’s let user experience. of the ever stripped marketing budget on building a brand promise or should we stick to the kniting and acquiring So is the three way trade-off between fast, cheap and the customers to meet next quarter’s targets? Or is there quality still relevant – and why can’t we have it all? something missing? Price, quality and speed of service can influence the I decided to do some research, not the desktop kind, the importance consumers place on customer experience. people kind. So several bleary-eyed mornings of coffee and Typically, we get two choices of the three: I am geting a chater later the nuggets of something potentially useful bargain on something I want so I’ll put up with needing to pick emerged. that up”, or it’s fast service and good quality so I’ll pay what they ask”, or it’s good quality and inexpensive – but I’ll have Is CX simply the latest idea du jour? to wait a while”. Once upon a time the low cost stack em high My coffee collaborators and I pondered - is customer and watch em fly’ retailers could trade off price benefits – experience another topic of the moment, a label to define but the threat from online business models that are slick, the next restructure as you relentlessly reposition your anticipate customer needs and deliver next day has altered products or services in the market, atempting to remain that landscape forever. relevant? Or is it a philosophy that underpins the what’ and the how’ of your core purpose? Perhaps a corner of your So what else could hold the key? office might be dedicated to the discipline of customer We all live with the impact of technology on our business experience. Or, is it just a marketing function, a repackaged models and the need for competitive advantage, so what 7 C’s (not 7 P’s) with a new name, infused with the not so new’ else could potentially hold the key to revolutionising your principles of human centred design? customer experience and being more strategic in your Whatever it was or is, it got us thinking about the approach to marketing? relevance of both customer experience and strategic Let’s assume that our people (staff, suppliers, marketing disciplines and how, if we used them together stakeholders) have some role in actually delivering our we might just have the secret sauce (or source) of success. marketing strategy (I’ll row the boat out here and assume Encouraged, we kept asking questions. you have a marketing strategy, but that’s another article).

94 www.marketing.org.nz The essence of that marketing strategy and a great brand is a promise kept." We Not the product. might even include a WHY’ – and we’re have to work every single day to keep not talking a ’let’s increase turnover by those promises for our brands.” Not the service. 20% this quarter and botom line by five percent’ kind of why. What I am talking So where do you start? It’s the people. about is a compelling articulation of Perhaps you’ve segmented your current purpose that excites and energises your and future customers and figured out Be brave and ask your customers people to make a positive difference, the size of that market, what your share what’s stopping you from delivering an even just a small one, FOR YOUR is, which customers are let to chase and amazing customer experience. CUSTOMERS. even the channels to reach them. But According to Coca Cola Chairman, how well does your product or service They’ll tell you. Muhtar Kent: meet their needs? Have you defined No longer is it enough to make a good what a good customer experience looks Your choice is whether you listen. product. You have to make a product that like, feels like, sounds like, and maybe fulfils more than just one expectation even tastes like for your customers? Ian Robertshaw is the Chair of the NZ Marketing Association’s Strategic Marketing Advisory Group, from you as a company. You need to be Do each of your people understand and in his day job leads Business Development and in line with what (your customers) expect how their work makes a difference in Value Creation at Auckland Transport. This article is the opinion of the author and does not necessarily your character to be. So when we can delivering that experience? represent the views of the Marketing Association of actually say we are now returning all NZ or Auckland Transport. the water we use globally, and ahead of What’s most important? our goal' – as we did in Stockholm – that He aha te mea nui o te ao. What is the plays into your consumers' expectations. most important thing in the world? That is critically important as a brand He tangata, he tangata, he tangata. It is business. We say, "A brand is a promise, the people, it is the people, it is the people.

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www.marketing.org.nz 95 Food for thought

As part of our ongoing data journalism project, we IS THIS US? asked Cambridge Analytica to collect some data without consent in an effort to pinpoint New Zealand’s modern identity. Here are some of the rather contradictory findings, in difficult-to-understand venn diagram form.

Are you enjoying Self-doubt Pride your stay?

Boat Beemer Bach

Raw Bluff Oysters Sophisticated

Helen Clark Jacinda Ardern Lorde

Playful Taika Waititi Intellectual

Good at rugby Richie McCaw Unable to express emotions

Clean Dirty Green

Natural beauty Hobbits Cultural wasteland

High-tech Laser Kiwi Third world sticking up for NZ since 1982. Find your own ﬂ ora for the concrete jungle and unleash your creation in our ﬂ oodlit, bespoke Phantom frames nationwide. [email protected] /posterpoem @0800phantom www.0800phantom.co.nz