USAT | Ex-AOL executive named general manager; challenges include flagging advertising, circulation

USA Today disclosed today that it hired a former AOL Huffington Post Media Group executive, Derek Murphy, as general manager in charge of day-to-day operations. Murphy, who was GM of multicultural media at AOL, replaces Susie Ellwood, who resigned three months ago to become publisher of Cox Media's Austin American-Statesman.

Murphy

Murphy reports to Larry Kramer, who has been publisher of Gannett's best-known brand since May. USAT did not provide his age in its announcement or in a story on its website about his appointment.

USAT was vague about Murphy's specific responsibilities. Kramer was quoted as saying that his "role will be to manage the transition of USA Today to a digital-first enterprise. He will lead a dynamic senior leadership team to grow the USA Today brand."

Even before Kramer's arrival, however, several of USAT's traditional key functions were spun off to other Gannett executives or divisions -- including advertising sales and marketing, which are managed by Chief Marketing Officer Maryam Banikarim's office, and production and circulation, which are now part of Gannett Publishing Services. That leaves a relatively diminished portfolio anchored by editorial for Murphy and Kramer to manage in the struggling paper's current turnaround.

Advertising, circulation fall
USAT faces challenges on several fronts, starting with advertising revenue. Gannett's national advertising sales, which are a proxy for USAT's financial health, continue to decline, albeit at a smaller rate. In the fourth quarter, national ad revenue fell 6.4%, GCI disclosed last week. While that includes the entire company, USAT accounts for a disproportionate share.

The trend is improving. National fell 7.6% in the third quarter; 18.2% in the second quarter, as Kramer was coming on, and 14.5% in the first quarter.

Circulation is another weak spot. USAT's circulation fell 3.9% to 1.7 million during the six months ended Sept. 30, a period when its two national rivals reported gains. The New York Times' soared 40%, to 1.6 million, on the strength of digital subscriptions instituted with a paywall. The Wall Street Journal's jumped 9.4% to 2.3 million, also due to digital subscriptions.

Lone among Gannett's dailies, USAT does not charge for digital access, and it has not publicly disclosed any plans to do so. In September, the paper redesigned its website, digital and print editions.

A top minority exec
Murphy's educational background is unusual for a publishing executive, especially in newspapering: He holds a bachelor of science degree in engineering and management from Tufts University, according to today's announcement. It's unclear which type of engineering Murphy studied, however.

Murphy is African-American, and his appointment immediately makes him one of Gannett's highest-level minority executives when the company's management ranks have been growing less diverse at the most senior levels. Historically, GCI has led the newspaper industry in workforce diversity efforts.

At AOL, he led the "overall strategy, audience development, operational and business performance for the launch and management of several new multicultural websites and related content and advertising partnerships," today's announcement says. "Murphy joined Huffington Post in 2009 as senior vice president, business development, where he was responsible for structuring strategic partnerships to scale the business and deliver material growth in content offerings, brand presence, audience engagement and revenues."

Before that, he was vice president, business development and operations for CNN News Group, where he developed strategic content syndication, marketing and distribution partnerships for CNN digital and select CNN television network properties.