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Your Native Ad Could Cost You. Steve Smith's Eye on Innovation

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Your Native Ad Could Cost You. Steve Smith's Eye on Innovation June 15, 2015 Media Industry Newsletter Vol. 68 No. 24 New York, N.Y. www.minonline.com SEE YOU IN COURT? YOUR NATIVE AD COULD COST YOU. As many publishers pursue new revenue streams by adding “content studio” and “market- ing services” models to their businesses, they may also be incurring some of the same potential liabilities as traditional advertisers and agencies. In one of the sternest warnings to date concerning the ethical and legal implications of so-called “native” advertising and content marketing, the Federal Trade Commission’s associate director of Ad Practices, Mary Engle told an AdExchanger conference that publishers now could be held accountable for deceptive advertising on their sites. (continued on page 6) Steve Smith's Eye on Innovation: APPLE TO MEDIA: OKAY, Let’S TRY THAT AGAIN. There are a few top line pieces of good news for magazines from the June 8 Apple an- nouncement at the WWDC. Foremost, after several years of underperformance, the News- stand model in iOS was dropped as the well-intentioned misfire that it was. By aggre- gating branded media tablet editions in one place, Apple thought it was highlighting subscription-based high-value content when really it was segregating and hiding it. At minimum, eliminating the Newsstand folder brings magazine apps closer to the sur- face but also forces them to think and act less like tablet editions and more like dynamic apps. But the more important development was the addition of an Apple-led News app that will aggregate and personalize content from a range of sources. The good news for magazine media is that Apple continues to hold your brand in the highest regard. In fact, the wall of partner brands on display at WWDC was overwhelmingly dominated by magazine publishers—Condé Nast, Hearst and Time Inc. titles were all in included, among others. (continued on page 4) THE "FAST COMPANY" OUTSOURCING COVER THAT WAS 11 YEARS AHEAD OF ITS "TIME." According to the Time Inc. chapter of The News Guild of New York, the company has subcon- tracted 16 union jobs (and many more nonunion jobs, says News Guild local representative Anthony Napoli) thus far in 2015. The January replacement of six Sports Illustrated staff photographers by freelancers received the most attention, but Napoli also reported the outsourcing of the six-person People iPad design and production staff to Malaysia, eight jobs from People's Premedia unit to the Philippines and the four individuals convert- ing Time Inc. content to eMags were shipped to Bangalore–which is the center of India's technology industry. Bangalore is a familiar refrain for outsourced U.S. tech jobs, and the widespread activity in 2004 led former Fast Company editor-in-chief John Byrne to show casualties in the piercing Look Into Their Eyes cover story that April. He told min at that time (continued, with Fast Company cover, on page 5) • VANITY FAIR JENNER COVER "BROKE" IN PEOPLE; STOCK WATCH....... Page 2 • A NEARLY CLEAN SLATE FOR ITS NEW APP ......................... Page 3 • MAGAZINE EMPLOYEES & UNIONS; DUFRY WORLD FOR RICH BRAZILIANS.. Page 5 • BUYING LONG-FORM VIDEO ONLINE; GH'S GREEN SEAL ............... Page 7 • PARADE & AMERICAN PROFILE; BILL PHILLIPS' BETTER MAN PROJECT.. Page 8 www.minonline.com © 2015 Access Intelligence, LLC. Federal copyright law prohibits unauthorized reproduction by any means and imposes fines of up to $100,000 for violations. PAGE 2 MIN 6/15/2015 "PEOPLE" WAS THE FIRST MAG. TO SHOW THE "VANITY FAIR" CAITLYN JENNER COVER. This sounds oxymoron-ish, but Vanity Fair's decision to keep the exclusive Bruce-Jenner-to Caitlyn-Jenner conversion digital-only for 10 days before the July issue's June 11 release resulted in Call Me Caitlyn's newsstand debut as an inset on the June 15 People that went on sale June 5. Early indicators are that the VF strategy worked brilliantly, with minon- line reporting stratospheric engagement increases on all forms of social me- dia during the week of June 1. By mid-summer, we should know if this digital rising tide will lift the newsstand boat in a month that is typically among VF's weakest. This digital blitz is new for VF, as past blockbusters had always accom- panied the issues' release. In a June 10 Mr. Magazine interview with Univer- sity of Mississippi journalism professor Samir Husni, VF VP and publisher Chris Mitchell claimed victory by stating "if you harness it correctly, digital media only enhances the power of print media because it gives you so many different pipes to tell the story." That is the key to Mitchell's conclusion: "Magazines become even more powerful because of their digital counterparts." -------------- STOCK WATCH (June 11, 2015, Wall Street close) COMPANY [SYMBOL] PRICE %/Change COMPANY [SYMBOL] PRICE %/Change 6/11 5 wks# 2015@ 6/11 5 wks# 2015@ APPLE INC. [AAPL] 128.59 2.66 16.50 REED ELSEVIER PLC (ADR) [RUK]## 67.01 2.20 -1.53 CBS CORP. [CBS] 58.77 -4.00 6.20 ROVI CORP. [ROVI] 17.87 1.48 -20.89 CHARTER COMMUNICATIONS [CHTR]@ 173.92 -4.94 4.63 R.R. DONNELLEY & SONS CO. (RRD) 18.93 4.82 12.61 COMCAST CORP. [CMCSA* 58.76 1.45 1.29 SCHOLASTIC INC. [SCHL] 45.09 3.82 23.81 WALT DISNEY CO. [DIS] 110.62 1.24 17.44 SCRIPPS, E.W. & CO. [SSP] 24.42 2.35 9.26 FACEBOOK INC. [FB] 81.83 4.34 4.88 TIME INC. [TIME] 23.54 10.31 -4.35 GANNETT CO. [GCI]** 35.79 3.86 12.09 TIME WARNER CABLE [TWC]* 179.39 15.65 17.97 GOOGLE INC. [GOOG] 534.61 0.74 1.56 TIME WARNER INC. [TWX] 86.59 3.48 1.37 GRAHAM HOLDINGS CO. [GHC] 1,085.00 12.24 25.62 TRIBUNE PUBLISHING [TPUB] 15.35 -4.36 -32.97 INTERPUBLIC GROUP OF COS. [IPG] 20.15 -2.70 -2.99 21ST CENTURY FOX [FOXA] 32.90 0.37 -14.35 LEE ENTERPRISES [LEE] 3.09 -5.50 -16.03 TWITTER INC. [TWTR]; 35.84 -4.96 -0.08 MARTHA STEWART LIVING OMNIMEDIA [MSO] 5.02 -5.28 16.47 VIACOM INC. [VIA] 67.73 1.17 -10.29 McCLATCHY CO. [MNI] 1.28 -0.78 -61.45 WEBMD [WBMD] 45.20 -0.07 14.29 McGRAW-HILL FINANCIAL [MHFI] 104.44 -0.48 17.37 XO GROUP (THE KNOT) [XOXO] 16.24 -0.67 -10.82 MEDIA GENERAL [MEG] 16.34 3.35 -2.33 YAHOO! INC. [YHOO] 40.94 -6.68 -18.95 MEREDITH CORP. [MDP] 16.34 -67.91 -69.92 min MEDIA INDEX 3,226.58 3.68 8.97 MICROSOFT CORP. [MSFT] 46.44 -0.56 -0.02 NEW YORK TIMES CO. [NYT] 13.97 2.05 5.67 NASDAQ COMPOSITE 5,082.51 4.00 7.32 NEWS CORP. [NWSA] 14.58 -2.61 -7.07 DOW JONES INDUSTRIAL AVERAGE 18,039.37 1.55 1.21 # = From May 7, 2015; @ = From December, 31 2014; * = Charter Communications agreed to acquire Time Warner Cable for $55 billion on May 26, 2015; ** = Gannett to spin off broadcast, digital divisions as Tegna on July 1, 2015 Editor-in-Chief: Steven Cohn ([email protected]) 203/899-8437 Digital Media Editor: Steve Smith ([email protected]) 302/691-5331 Senior Editor: Caysey Welton ([email protected]) 203/899-8431 VP: Tony Silber ([email protected]); VP Publisher: Amy Jefferies ([email protected]); Director of Market Development: Laurie M. Hofmann ([email protected]); Analytics Coordinator: Stacy Hill ([email protected]); Marketing Associate: Allie DeNicuolo ([email protected]); Editorial Intern: Jameson Doris ([email protected]) Production Manager: Sophie Chan-Wood ([email protected]); Graphic Designer: Yelena Shamis ([email protected]); Event Content Manager: Kelsey Lundstrom ([email protected]); Senior Account Executive: Tania Babiuk ([email protected]); Boxscores ([email protected]) Access Intelligence, LLC President & Chief Executive Officer: Don Pazour; SVP, Media Group: Diane Schwartz; Chief Operating Officer: Heather Farley; Subscriptions/Client Services: 888-707-5814; List Sales: Statlistics, 203-778-8700; Advertising: 203-899-8498; Reprints: Wright’s Media, 877-652-5295 ([email protected]); Editorial Offices: 10 Norden Place, Norwalk, CT 06855; 40 Wall Street, 50th floor, New York, NY 10005; Faxes: 203-854-6735, 212-621-4879; www.minonline.com Access Intelligence LLC, 4 Choke Cherry Road, 2nd Floor, Rockville, MD 20850; Ph: 301-354-2000 Published 2015 © by Access Intelligence LLC. Distributed via email and online. For email and postal address changes, allow 2 weeks notice. Send to: Client Services or call 888-707-5814. For advertising info contact 301/ 354-1629. Contents may not be reproduced in any form without written permission. Subscription Rate: $1099 MIN 6/15/2015 PAGE 3 Steve Smith's App Review: "Slate’S" MANY DOORS TO CONTENT. Among all the endemic digital publishers, Slate is one of the few to proudly call itself a “magazine”-or at least it doesn’t run from the label. It’s a true polymath publication in the grand tradition of the Saturday Review and The New Republic of old—as comfortable in politics as culture. It likely has many audiences who come to the brand for particu- lar elements but a shared sensibility— perhaps best described as the Ivy League liberal arts major. And so the challenge of a Slate app is containing that massive trove of topics and con- tent, including a portfolio of content franchises (“Dear Prudence”, etc.) and podcasts. The iOS app does this fairly well with the basic interface employing the familiar image-dominant feed, fitting about two and a half stories on an iPhone 6 Plus screen and us- ing a three-tab structure to apply recent, featured and popular filters.
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