Confronting the mayhem in Media and Marketing

Author Archives: Ryan McAbee

Career: Would you do it all over again? Part 1

There was recently a post on the Print Industry Networking Group message board on LinkedIn that asked the question, “If you could start over would you still choose a printing related field?” I’m not sure if it is the overall struggling U.S. economy or just the challenges facing the printing industry, but I have also been thinking a lot about this exact question. Over the past six years I have worked for one print industry supplier in two different capacities,  first as a trainer for the vendor’s production workflow now as a presales product demonstrator. The constant technological evolution within the industry and the knowledge base of my peers have, by far, been the highlights during this time.

The industry, as a whole, continues to struggle with shedding the bounds of its craftsman past to move forward into a manufacturing future. There are many issues that are causing this identity crisis. One of the more severe problems is with recruitment and retention of personnel, in all functional areas of printing, that will lead the industry into a brighter future. Print must reverse the stigma of being out of touch, out of date, and out of favor, as compared with other industries that capture the attention of the new workforce. This task is enormous and enormously important.

I gained an education in printing from one of a handful of four year universities that even offer such a degree. Six years later, half of my friends that graduated from the same program have gone on to other pursuits. Outside of the handful of higher educational institutions (Clemson University, RIT, etc.), most of the industry training is sponsored by the equipment manufacturers and software vendors. The homegrown apprentice programs of the past have been put to rest due to the associative time and costs of the programs. Since the burden of training has shifted to the industry suppliers, the training is narrowly focused on singular tasks – how to print the job, how to prep files for proof/plates, etc. The general knowledge base for printing has therefore become highly segmented and specialized.

These young, eager graduates face an ever changing industry after graduation. I have observed a steady trend of consolidation and downsizing during my career in printing. The U.S. Bureau of Labor Statistics, who maintains a healthy repository of all measurable industry demographics, shows that the total employment for the printing industry declined over 20% from 2000 to 2006. The BLS also projects a further decline near 12% by 2016. Some of this attrition has been caused by gains in technology and automation, but more job losses have stemmed from industry output declines and industry consolidations. Considering such a bleak outlook on overall employment, printing firms must use creative solutions to recruit and retain the now graduating labor pool.

Recruiting a younger workforce is a paramount requirement for the long term health of the industry. From my experience, the industry consists of an aging labor pool with an average age above 35. After six years with my company, I am still one of the youngest technical employees. In the vacuum left by the apprenticeship programs, the workforce aged and the knowledge transfer from the older to the younger generation stopped. Although the overall employment numbers are in decline, an infusion of younger employees is still needed, otherwise the industry labor pool can not be sustainable.

In an effort to attract new talent to print, we as an industry must examine the hiring procedures of other industries that are competing in the same marketplace. The total benefits package including salary must be competitive with other popular industries. Printing companies could add more flexible working conditions to bolster their overall position such as flex time or telecommuting, if possible. Companies could also re-examine restrictive HR policies. Generation X&Y are technology enthusiasts who meld the line between work and personal time. Instead of perceiving this as a threat to productivity, consider the overall availability and responsiveness that is given during off work hours. A Gen Y can be a valuable contributor to the organization when armed with a smartphone and a laptop when considering their propensity to using social media to work more efficiently.

Will Commercial Printers repeat Newspaper’s History?

Last week the Rocky Mountain News stopped the presses and circulation after 150 years of service to the communities of Denver, Colorado. The residents of Denver are not alone in the struggle to maintain existing newspaper service as other papers around the country struggle to transform their failing ad driven revenue business models. While skimming my local  Atlanta Journal-Constitution this past Sunday, I noticed a special message to the readers from W. Michael Clay, the Senior Vice President. The short letter to the readers focused mainly on the company’s restructuring efforts to offer a combined solution for print and digital advertising along with one point of sale to all potential advertisers. W. Michael Clay, like most other media coverage to date on the declining newspaper business, has focused almost solely on declining advertisement revenue which account for 75% of the revenue at the AJC.

The newspaper woes are highly self inflicted due to a singular reliance upon advertising revenue, especially since most advertisers are further segmenting their budgets for more targeted online distribution. Advertising dollars are not so much shrinking as they are moving to non-traditional media from websites, to blogs, to email marketing. Traditional print media must find a solution to capitalize on the growing segments of the business and create synergies between online and print for their existing customer base. As the table below shows, any economic slowdown immediately has a negative impact on advertising revenues. More importantly the data shows no significant rebounds after the 2001 recession, however online advertising dollars gained roughly 32% in 2006 and 19% in 2007.

U.S. newspapers suffered their worst drop in print advertising sales since industry record-keeping began 57 years ago…Revenue plunged 9.4 percent to $42.2 billion[2008], from $46.6 billion in 2006 – Tim Mullaney @ Bloomberg News

As if there isn’t enough bad news, 2008 has turned out to be the worst year in decades for magazines, as measured by total ad pages. Through the middle of December, consumer magazines are down 9.4% from last year, according to MIN Online – Erik Sass @ MediaPostNews

The AJC is making changes in a few areas in an attempt to reverse the downward slide. The paper has started by streamlining the once disconnected and independent departments of print, digital, and direct mail, into the newly branded AJC Media Solutions. Similarly, the sales executives can now sell advertising across all platforms offering a single point of contact for their customers. The paper is also trying to instance itself from the stigma of traditional printed newspapers by touting partnerships with Yahoo! and highlighting a high market share of Atlanta’s online users. The paper, itself, will see a new redesign which will include more full color printing and “innovative advertising capabilities.”

The AJC seems to be undertaking the initial steps to ensure a more long term survival that is not so highly dependent upon print advertising. Commercial printers should also be formulating a game plan to diversify their revenue streams or face the same deteriorating position as the newspaper business.

Twitter Universe – Ever Expanding and Wicked Fast

CNN and other media outlets were caught off guard last week after Twitter was the first to post first hand, eye witness reports of the Turkish Airlines crash near Schiphol airport outside of Amsterdam. Within minutes, passersby were taking snapshots of the downed aircraft and posting supporting comments on Twitter. This left traditional media outlets playing catchup. This often leaves traditional media outlets in a bit of a conundrum – be the first to break the news or take the time to verify the accuracy of the post. Imagine the tarnish to CNN’s reputation if they had broken this headline only to learn that it was completely fabricated (not to mention morally unsound) by the anonymous tweeter.

This proves that social networking sites can be a real asset in covering breaking news and gathering eyewitness accounts but the web should always be treated with extreme caution. – Errol Barnett @ CNN International

Television news outlets have always enjoyed the upper hand in the ‘just breaking news’ arena over printed newspapers, but now it appears that the same transition is continuing with social media networks like Twitter. The very organic nature of social networking services like Twitter also seems to be their greatest strength. A single user who writes a message is then sent to his or her 25 subscribers that in turn goes to their subscribers, and their subscribers, ad naseum. Picture it as an ever expanding universe of knowledge that moves at lightning speed. This ebb and flow of information is just starting to be unleashed by news media and marketers. Will social media be the last word in print publishing or will the industry also be able to leverage this technology?

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