SPRING 2018 BONUS 2600 GAME OVER SPRING 2018 06 11 26 43 51 TABLE OF CONTENTS 04 Editor’s Note 29 Jon Slade Feels Optimistic About Publishing’s Future HOT TAKES 31 Q&A With Turner’s John Martin 33 Media’s Master Mechanics 05 How Publishers Beg for Direct 37 Shadow Organizations Force Change Connections Media and Marketing Translator What’s In & Out for 2018 MARKETING 06 How Paywall Publishers Stop Churn AI by the Numbers 39 Q&A With e.l.f. Beauty’s Tarang Amin Influencer Dictionary 41 CVS’ Norman de Greve Rethinks Transparency 07 Facebook Irks Media 43 Consulting Firms Threaten Ad Agencies and Marketing Companies TheThe intersection modernization of finance, of money money 45 Richemont Explores E-Commerce and commerce 09 Blockchain’s Media and in China and technology Marketing Applications 47 How Brands Use WeChat 49 Alibaba Counters Counterfeits MEDIA 51 Ad Schools Evolve 53 Russell Westbrook’s Fashion Influence 11 Issues Shaping the New World 55 Amazon’s Private-Label Anatomy of a Brand Failure 12 Business Grows 13 Oral History of Facebook Beacon 15 Q&A With BuzzFeed’s Jonah Peretti ETC. 17 Media Pushes Back Against the Duopoly 19 The Rise of Athlete-Driven Media 57 Office Hours WithJulie Alvin 21 Q&A With Hearst Magazines’ Joanna Coles 59 Jeff Staple’s Guide to Tokyo 23 Quartz Expands Into India 61 A Day in the Life of Fashion Stylist 26 GDPR Misconceptions Micaela Erlanger 27 Q&A With NBCUniversal’s 65 Final Word tearsheet.co Linda Yaccarino TABLE OF CONTENTS | DIGIDAY 02 FOUNDER AND CEO NICK FRIESE EDITORIAL TEARSHEET CLIENT CUSTOM PRESIDENT AND EDITOR ENGAGEMENT HEAD OF CUSTOM EDITOR’S NOTE EDITOR-IN-CHIEF BY LUCIA MOSES TANAYA MACHEEL SVP CLIENT ENGAGEMENT MATT GODDARD BRIAN MORRISSEY DREW SCHUTTE REPORTER DIRECTOR OF STRATEGY AND EXECUTIVE EDITORS SUMAN BHATTACHARYYA CLIENT ENGAGEMENT DIRECTORS SPECIAL PROJECTS LUCIA MOSES DAVID AMRANI SHAMBRY MCGEE, The media world, seemingly perpetually once Facebook’s biggest booster, pleading JAMES PALMA, MANAGING DIRECTOR, MANAGERS in flux, is in the midst of what appears publicly for more money for publishers from GLOSSY NEIL STROW EDITORIAL PRODUCTS STEPHANIE ROGERS, to be a more significant period of the sprawling platform. Peretti and other EDITOR-IN-CHIEF SHAREEN PATHAK COMMERCIAL DIRECTOR, EUROPE CHEN SHAO, upheaval, with tech giants sucking up the media executives are finding their voices in JILL MANOFF THOM PICKERING ADONIS VASQUEZ UK EDITOR majority of ad dollars, digital advertising vocally opposing platforms like Facebook, SENIOR REPORTER JESSICA DAVIES CLIENT ENGAGEMENT MANAGER COPYWRITERS plagued by a lack of transparency and a turnabout from their recent acquiescence HILARY MILNES BRIANNA WINBUSH SAMANTHA DUPLER, controversial content, companies taking to the whims of Facebook. (See video, pivot UK BRANDS EDITOR REPORTERS DAVID TEICH a hard look at their role when it comes to to.) Joanna Coles, head of content at Hearst CLIENT ENGAGEMENT ASSISTANT SEB JOSEPH JESSICA SCHIFFER, Magazines, takes the long view, telling us COORDINATOR workplace fairness and cultural impact, BETHANY BIRON VERONICA ZEGARRA SENIOR REPORTERS LUCIA MORRIS and the need to stake out a global claim the recent travails of fake news only prove SAHIL PATEL, CLIENT SERVICES DIRECTOR taking on new urgency. the necessity and power of editing. TIM PETERSON, PRODUCT JONATHAN MESSINA Fixing massive industries isn’t as We also profile the unsung heroes of LUCINDA SOUTHERN FINANCE simple as hitting a button and starting the the modernization of the media, from the CHIEF PRODUCT OFFICER UK SENIOR MANAGER, CLIENT SERVICES/AUDIENCE REPORTERS CFO game over. But as we show in our ninth newsletter editor to the subscription czar to PETER SURRENA DEVELOPMENT MAX WILLENS, JOHN SOL issue, media and marketing are in ways the head of data protection. DESIGN DIRECTOR DANIEL MORRIS ILYSE LIFFREING FINANCE MANAGER large and starting anew from an era where But for change to happen, it must SCOTT ROSSER CLIENT SERVICES COORDINATOR scale trumped loyalty, reach obscured follow the money, and in media, that NEWS EDITOR MARY ANN BOYD SENIOR AD OPERATIONS EAMON MCCUE JUJU KIM impact and the short term dominated means the marketers. Shareen Pathak MANAGER SENIOR FINANCE ANALYST the long term. We see the media and spent time with Norman de Greve of CVS MULTIMEDIA PRODUCER MEAGHAN CURRAN ABUL HASAN marketing world becoming less reliant on Health, who is at the forefront of the trend ADITI SANGAL BRAND SENIOR DESIGNER Facebook, more transparent, increasingly of chief marketer as politician, intent on SENIOR MANAGER, IVY LIU DEVELOPMENT globalized, and belatedly more inclusive making purpose-driven marketing not just a OPERATIONS AUDIENCE DEVELOPMENT EVP GLOBAL BRAND and representative. These themes run gimmick. Change will also come externally, UI/UX DESIGNER VP HR/OFFICE OPERATIONS AARON GOTTLIEB DEVELOPMENT throughout the issue, with a “Master as detailed in the shadowy pressure groups JULIA CHOI ANDREA SONTZ NANCY PICKER BUSINESS DEVELOPMENT Mechanics” section highlighting those in the springing up to force marketers to clean up ASSISTANT COORDINATOR BRAND DEVELOPMENT DIRECTOR trenches mastering the tactical expertises their acts. For agencies, change is always JESSICA O'TOOLE SAM REED EVENTS GERRY HOUSER that will define what comes next. afoot, with the current disruptors coming in GENERAL MANAGER BRAND DEVELOPMENT In media, our focus is on how the guise of the big consulting firms. EVENTS CONTENT EDITOR MEGAN KNAPP MANAGER publishers are attempting to cobble For our part, at Digiday, we’re ANGELA BARNETT MANAGERS SARA CEBALLOS together a sustainable, independent embracing change by building out our EVENTS PROGRAMMERS TARA HUTTON, future, free, as much as possible, from premium membership program, Digiday+, KERAN BOYD, GRACE KIM, the whims of the duopoly. As the recent which includes exclusive benefits like this HOPE REICHARD VANA KOUYOUMJI MARKETING demise of LittleThings shows, very little magazine, research, Slack town halls and KELSEY LUNDSTROM MARKETING DIRECTOR in digital media has proved lasting. One live events. We hope they’re informing, DIGIDAY+ COORDINATOR MIKE MADARASZ day, LittleThings was boasting how it inspiring and delighting you. As always, let MANAGING DIRECTOR IRENE ENTRINGER shot to 50 million users; months later, it us know what you like, dislike and want that MANAGERS JACK MARSHALL was winding down operations. Nothing you’re not already getting. We appreciate all CAROLINE BOTTGER, speaks to this more than Jonah Peretti, the feedback. D RESEARCHER ERICA TAYLOR MARK WEISS COORDINATORS BUSINESS DEVELOPMENT MELISSA HAYES, MANAGER DANIELLE SORENSEN For all inquiries, please email BRIANNE KENNEDY ASSISTANT [email protected] EMMA PAUL 03 DIGIDAY EDITOR'S NOTE | DIGIDAY 04 ALL THE WAYS PUBLISHERS WHAT'S IN/OUT FOR 2018 HOW PAYWALL PUBLISHERS INFLUENCER BEG FOR DIRECT KEEP YOU FROM UNSUBSCRIBING IN OUT Replacing subscribers is expensive. Here are some of the ways publishers keep DICTIONARY CONNECTIONS people from churning. Here are tricks they use to capture email addresses, Pivot to voice Pivot to video #AD The Federal Trade Commission’s preferred hashtag app users and registered readers. for disclosing material connections with advertisers, like Apple News Facebook news feed receiving money for promoting a product on social media. PRICE CUTS Appeal to people’s wallets. In January, Los Angeles AUTHENTICITY A sought-after quality in influencer Bragging about email subscribers Bragging about Facebook followers Times subscribers that called to cancel were offered marketing that suggests an influencer has a real REFER A FRIEND another year for just $1.04. LA Times parent Tronc has connection to a product they are endorsing. Why do audience development when your existing fans can Paid amplification Organic reach offered similar deals at other titles. Those deals account do it for you? Email-focused publishers including The Hustle, for less than 5 percent of Tronc’s subscriber base, says BOT PROVIDER A service that Instagram influencers Mark Campbell, svp of digital marketing, but they also Morning Brew and theSkimm use referral programs to rope Surfaces Verticals use to generate likes, comments and followers in an help ensure a steady subscriber base. automated way based on certain rules. in new subscribers, offering swag like coffee mugs and Commerce editors Copy editors T-shirts and private access to Facebook groups as incentives. BRAND AMBASSADOR PROGRAM ADDED BENEFITS An arrangement in which an advertiser books an Abandoning SXSW Abandoning Cannes SWEEPSTAKES Publishers are constantly adding coverage and influencer for an extended time period, like back-to- An email address is an email address, right? Publishers benefits to keep subscribers engaged. Tech school or prom season including Refinery29 and Domino still dangle winnings to Google as benevolent dictator Google as tyrant publication The Information, for example, recently Collaboration between an hoover up new email subscribers. added the ability for subscribers to follow certain CO-CREATION advertiser and an influencer to make a co-branded Newsletter teams Distributed media teams topics and companies that it covers. product such as a clothing line. ONE-CLICK MOBILE SIGN-UPS Emboldened CMOs Meek marketers It helps to make it easy. Publishers are using technology that ENGAGEMENT CUSTOMER SERVICE lets mobile visitors sign up for newsletters with a couple A like or comment on a social platform. Trump churn Trump bump taps of a finger. To keep subscribers, it helps having people give prompt, personal responses when questions or FTC ACT Law that prohibits deceptive advertising and Brand safety Cheap reach problems arise. The Atlantic is growing the number requires disclosure of material relationships between FISH WHERE THE FISH ARE of people on staff who deal explicitly with customer advertisers and endorsers. service and experience for its paid products this year, Right after Facebook announced it would deprioritize news Adam Mosseri Campbell Brown in its news feed, BuzzFeed launched an ad campaign on the including digital access to the magazine and The FTC ENDORSEMENT GUIDES Masthead, its membership program.