USA Today's contribution to Gannett's still-weakening top line is national advertising, far and away the bulk of its ad sales and of those Gannett-wide. The paper, GCI's leading brand, has been going through a series of reorganizations since summer 2010 that haven't arrested its ad sales problems.
National advertising plunged 13.3% in the first quarter vs. last year -- the second-biggest quarterly drop in the past two years, Corporate disclosed in yesterday's first-quarter earnings report. The biggest decline: 15.4%, in the third quarter.
The report said: "At USAT, increases in the technology and advocacy categories were more than offset by declines in several categories including entertainment, telecommunications, automotive and financial."
That prompted CEO Gracia Martore to include the following unusually long discussion about the paper's future in her conference call with Wall Street stock analysts after the report was published. This is according to financial site Seeking Alpha's transcript:
"The ongoing volatility and softness in the national advertising environment was most notable at USA Today. USA Today is an iconic brand with tremendous value and visibility. But that volatility has impacted its performance. We know we can do better in growing the business to match the scale and power of the brand.
"To remind you, USA Today has historically made up less than 10% of our revenues and continues to be a small contributor to overall cash flow results as it has historically been. That fact actually says a lot about the strength and diversity in our business and about the significant upside opportunity in USA Today in a more digital era. We are working to more fully realize its potential as we approach the brand's 30th anniversary in September.
"Our priority right now is to recruit a top-notch publisher to advance the promising initiatives already underway and grow the business by spearheading USA Today's continuing evolution into a leading multiplatform media brand."
That prompted CEO Gracia Martore to include the following unusually long discussion about the paper's future in her conference call with Wall Street stock analysts after the report was published. This is according to financial site Seeking Alpha's transcript:
"The ongoing volatility and softness in the national advertising environment was most notable at USA Today. USA Today is an iconic brand with tremendous value and visibility. But that volatility has impacted its performance. We know we can do better in growing the business to match the scale and power of the brand.
"To remind you, USA Today has historically made up less than 10% of our revenues and continues to be a small contributor to overall cash flow results as it has historically been. That fact actually says a lot about the strength and diversity in our business and about the significant upside opportunity in USA Today in a more digital era. We are working to more fully realize its potential as we approach the brand's 30th anniversary in September.
"Our priority right now is to recruit a top-notch publisher to advance the promising initiatives already underway and grow the business by spearheading USA Today's continuing evolution into a leading multiplatform media brand."
Here's an idea:
ReplyDeleteSTOP reorganizing! Pick a plan and stay with it for longer than 3 months. PLEASE.
The knife is coming out really soon. she knows no other way.
ReplyDeleteAmen 11:57
ReplyDelete"We know we can do better?!" What the motherfuck? Speak for yourself, Gracia. Some of us still give our all every day, or night, or weekend, or holiday. Because it's in our DNA.
ReplyDeleteGood luck recruiting top-notch anything after self-destructing in the last few years. USAT is no longer considered an attractive place to work, especially for anyone looking for long-term stability. Loyalty is non-existent at USAT. Not a good reputation in the journalism world, either. The layoffs of the last few years combined with the shabby treatment of most existing employees makes USAT a less-than-desirable place to work for anyone other than hatchet men/women looking to make a quick buck. Recruiting has to be getting tougher. Only so many naive people in the hiring pool.
ReplyDelete1:58,
ReplyDeleteAnd to support your point, look at the people USAT has hired in senior management roles. All cast-offs from other companies. None were at the top of their game when they were hired. Rather they were dumped by their previously employer. And now they're here helping to run this once proud brand into oblivion.
Cast-offs aren't necessarily a bad thing. We just hire the wrong cast-offs.
ReplyDeleteShe said "brand" four times in that excerpt alone.
ReplyDeleteHere's a concept: Stop calling it a BRAND and start focusing on content.
Oh. Wait. I'm about 10 years too late.
Even Susan Weiss has thrown in the towel.
ReplyDeleteIconic.
ReplyDeleteWhy would anyone but a fool come to USA Today? The inbred management is way too much to overcome. none of these people, save a few, are worth a lick. How many would have similar roles at rival media companies?
ReplyDeleteHunke could have done a lot better. I guess that's why he has a shiny new title and six months to screw off.
ReplyDeleteWho hired Hunke? Who hired Banikarim? Who fell all over herself with Davis, Beusse, Micek, Frank, Weiss, Ellwood, Jones and the rest of this ship of fools? Why it's Captain Martore.
ReplyDeleteLet's face it, a "top notch" Publisher is going to want control over all of USAT's assets - so sales, marketing, digital, circulation - in order to make real improvements to the brand. Hunke and Ellwood don't oversee any of these departments anymore. I see a major power struggle ahead or Martore will hire another useless figurehead to run USAT. Either scenario doesn't look good for the future of USAT or the employees still left here.
ReplyDelete8:19 Makes an excellent point.
ReplyDeleteBut maybe Martore and Banikarim have a very different idea for what the next USAT publisher should be.
Banikarim now controls the paper's advertising sales through her recently hired lieutenant, Mary Murcko. It'll be interesting to see how much influence those two have over the hiring of the next top editor, replacing John Hillkirk.
Top notch Publisher, give me a break, it is going to be a women with no clue how to run a newspaper. Period, that has been the trend, and you all know I am right
ReplyDeleteFace it...USAToday is DEAD. National news is a commodity and if you don't invest in the "brand" and sustain it, you might as well give up.
ReplyDeleteHiring a top notch "anything" will not make a difference unless they have total control over everything from brand to distribution.
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ReplyDelete"We know we can do better."
ReplyDeleteOK, so why didn't you do better?