Lessons from 2012 for Business & Politics

ap_presidential_debate_romney_obama_pointing_thg_121016_wgThe 2012 election drives home some basic new realities about how we communicate and conduct our business and our daily lives.  The advent of the digital and social world has changed us forever.  In politics as in business we see those who are on the leading edge, and the stragglers.  Many of my clients, and certainly my future clients, have come to this understanding late.

Here are a few thoughts on how this worked out for the latest election cycle.  Everything we saw as business and communications work nearly exactly the same in business as politics.  One side triumphed over the other, and the reasons were more for business practices in the conduct of the marketing for the election, than in purely political leanings.  Just a few thoughts…

 Nate Silver and the Pundits  The biggest winner of the 2012 election cycle was 538 - by Nate Silver.  The success of Nate with his ‘system’ that followed individual polls, weighted the results, and then posits results by election area, became a new standard for tracking forecasts.  The single poll as a key talking point will recede as conglomerated results become the new norm.  This will also impact the role of the pundit who is basing their forecasts on feelings and not empirical data.  Pundits were especially routed in this election cycle when their results did not match the data on the ground, and the final results.  They are now relegated to mere ‘talking heads’ and all of their wishing on hoping are just that.  Show me the data is what we now expect.

The Role of Social Media  The biggest change in this campaign from 2008 to 2012 was the role of social media.  2008 was the digital campaign yea . 2012 became the social campaign, all of the benefits of the digital conduit for communications, along with tailored messaging, and listening, with their targeted audiences.  Obama’s team built a large social-digital staff that literally drove the campaign.  Nothing did more for the Obama campaign, and this will set the standard for all future campaigns.  Little time here for the details, and I will go into more detail in future posts, but for now, we must see that a return to more traditional messaging will not work in future campaigns.  The die is cast.

The Power of Print Media  Print media still lives, and will still have a key role in future campaigns, just as they do for day to day business, but it will play a lesser role in the future.  The power of the press, and especially of the official endorsements no longer drives the electorate.  Day by day, their hold on the public is loosened.  The results of who endorsed each of the candidates had a low correlation to the final outcome.  We now want newspapers to tell us what is going on, but not who to vote for…we’ll get that from our friends on social media or general social contacts, if we need those at all to make up our minds.

The major dollars spent at the end of the campaign by the Romney campaign in print and television did very little to move the needle.  By the time they ran, minds had already been made up.  Words and print images are simply not as powerful and recent and visual images on the web or on television.

The Party Vs. The Campaign  In this election cycle we were treated again to the real power of incumbency.  Though many thought Obama carried a lot of negative baggage, and that incumbency in a poor economic climate would act as a drag, it did not turn out that way.  As the incumbent, he was able to rebuild his election team from 2008, and take advantage of all of their previous experiences to come up with an even stronger campaign organization.

Romney was perceived to have been a great organizer, but it didn’t work out that way in this campaign.  With a long primary, his team was late coming up to speed, and messaging and marketing continually ran behind.  They also gave up the advantage when the Obama campaign was able to define them before they could build their own image.

Campaign Timing  In past campaigns both sides usually started at roughly the same time, the incumbent having an advantage.  In the current election cycle, the challengers were exceptionally late due to a long and contentious primary campaign.  The party used to play a larger role in the overall campaign, but in recent campaigns it is the candidate who basically runs the entire show.  Funding still comes from the party, but direct campaign funds and the direction of the campaign really are driven by the candidate.

I first saw this with Richard Nixon, who had the California campaign staff taking the lead and driving the campaign.  This worked for most campaigns from Carter, the Bushes and Bill Clinton, but in this last cycle we saw the Chicago group take out the Boston group who struggled to mount the right campaign.  They went to battle ill prepared for what was ahead, and the experienced crew out managed them.  Future campaigns should take heed from this.  Next time there will be no incumbent, but the team with the best plan, crew, message, and funding sources will likely win – all other politics aside.  The same goes in business.  Thinking you have the best ‘product’ will not trump the best marketing campaign, especially in a short ‘campaign’ with a finite deadline on election day.

Digital Donations  The Romney strategy was based on large donations and the use of PACs to drive their message, and they did exceptionally well in this area, both in the primary and election campaigns.  The money was flowing, but the results did not match the massive amounts spent, much of it too late to change minds already set by the other side.

The very large PAC infusion of money, much of it from just a small group of very wealthy donors did not accomplish the goal of total domination.  In the end, the other guys had some strong PACs as well, but even more they discovered the power of small digital donations via text or emails.  The power of small donations by the many, repeated several times by strong messaging did the trick.  The key fact is that the masses that donated also took the time to vote in large numbers.  The ‘engaged’ donor became the very engaged voter.  For me that was the big win that I did not see coming, especially the size of total donations via this methodology.

Audiences and Precise Targeting  In the world of direct mail the Republicans set the standard, and their lists were gold to the party.  Election cycle after election cycle they yielded fantastic results.  I’m sure they performed well this cycle as well, however, the Obama team who switched the ball game to heavy digital marketing outperformed them.  Appeals went out on a nearly daily cycle; immediacy trumped the heavy mail package.

What we found out later is, that in this new 2012 cycle, the digital team advanced the art and science well beyond their initial efforts in the past cycle.  Offers were tested, run, revamped – all within the span of a few hours, something impossible in direct mail.  The single most interesting fact that I found out later were that nearly all of the appeals tested worked…they all worked.  Message may be the key, but in this case it was more likely that methodology triumphed.  For business, resisting digital and social marketing is at your peril.  They must be a part of your mix in the future if you want to win the business in your daily marketing cycles.

Generations & Ethnicity…and Single Women  Perhaps nothing explains the results of the 2012 election than the results shown by generations and ethnicity.  They certainly skewed in both directions.  But the bigger question is what this means to our electoral and business future.  Targeted messaging is critical to identifying and supplying messaging to each audience.  The days of mass marketing producing and mass result in the general marketplace are fast fading.

In future any marketer must target and message for their audiences, each with their own concerns and issues.  Not only is the messaging variable, so is the media.  Fewer of us subscribe to a daily paper.  Confession here, as an old direct marketer and newspaper advertising executive, I used to subscribe to all the local papers on a daily basis.  Now I have just one paper on Sunday, and the other for 4 days a week.  All the rest of my news comes from the Internet via computer, iPad and iPhone.  I also consume at least 3 times more total information as a result.  For me, less is truly better.

For many, the iPhone, and other fully featured phones are now their prime communication vehicle and news source.  Any business, or candidate, who does not take this into account, will not survive the next election cycle if they need that audience to win.  As we saw the older audience does not use these tools as much now, but that audience is literally dying out.  Not good ways to run a campaign in the future, if you want to have a future.

Single women also went heavily for Obama, married women more Romney.  Messaging alone wouldn’t change the results here.  It becomes a platform issue of what each party stands for.  Is a party platform a key component of the message and do they need to be in synch.  Much was made of the distinction in this case and through the Republicans courted single women, their overall message that was ‘heard’ was negative.  Now we need to heed and message to gender, age, marital status, ethnicity and generational location as key factor in future campaigns.  This is a very tough challenge for any marketer in business or politics and will determine the results of most future elections here.

Unforeseen Events  Unforeseen events, like ‘Sandy’ will not be unforeseen in the future. What?  I expect that future elections will forecast for every possible event and preparations will be at hand.  Kind of like packing for a trip to Hawaii, but bring your snow skis anyway.  With the outcome resting on any unforeseen event, they simply have to be built into our future radar.  There is not time to regroup and react – bring the kitchen sink with you, we may need it will be the new motto.

Closing thoughts…  Future elections, and future business will never be the same.  Our digital and social tools have changed everything.  I also expect this trend to continue as newer processes replace the old.  Keepup, use the tools, or lose it all.  No looking back now.

The Care and Feeding for The Orange County Register

OC Register Masthead from Peak Year 2005

OC Register Masthead from Peak Year 2005

Recently I wrote on the future of newspapers, something many of us with roots in the industry do as a daily pastime. In all of my research, I still think the models of the future that Alan Mutter of Newsosaur postulated for newspapers recently best portray a reasonable future as indicated by the paths many current papers are taking.  Briefly they are:

Farm itThe Buffett Model.  Buy and hold…and hope!

Feed ItRupert Murdoch Model.  Give the fire some fuel and oxygen and hope that it creates a sustainable blaze.  After having split his media empire into digital and non-digital, this may be a real key for many to follow.  Especially to those public companies that have to report their financials.  Print is no longer a growing methodology, and as such, is dead to public companies as a forward-looking model. Even Harte-Hanks, who pioneered the advertising-only Pennysaver model to millions and millions of circulation, has seen the light and is reported to looking for buyers for their huge franchise.  It can still generate some good cash flow, but looks horrible on quarterly 10K reports.  “Time to set those doggies free” my buddy Bill would say.

Milk ItNewhouse Model.   Why bother to feed the cow, just keep milking it for all you’ve got until it runs dry.  Hope you don’t grab a bull…that could be bad.  This is how those in the industry see most of the changes for newspapers, and what they see in New Orleans is not pleasing to the palate of the N.O. residents and readers.

My Experience there – I during the 90s I was in advertising director at The Orange County register. Those were truly the best of times, when newspapers were at their zenith, and competition kept us strong. It was fun to compete with The Los Angels Times, and to add a number of specialty products to our overall marketing mix. At one time, there were as many as 7 OC Register sales representatives who could be calling on any potential advertiser in Orange County. The favorite expression of senior management was quoted” time to impose our will”.  Sadly, that was what we did with rates, and that was the beginning of a long downward slide for the Orange County Register, and a number of other newspapers that followed the strategy.  Newspapers were still mini-monopolies, and the profits flowed.

Revenues peaked during the early part of the next decade encouraging the family ownership to seek an opportunity to cash out. They did and several of those in the family who took the buyout are still smiling today. Those family members who did not and stayed with freedom communications ultimately lost everything in the recent bankruptcy. In talking with some of the recent employees I hear and almost Universal joy and optimism based on their initial meetings with the new ownership group.

However, most also said it’s too soon to tell how things will actually shake out. They’re also saying that they think there will be a change in the editorial focus of the newspaper, and hoping to see a return to a more centrist albeit still Libertarian viewpoint of the paper.  Over the last several years, under the new ownership and management, the paper had gone strongly to the right and far beyond the historical Libertarian viewpoints of the founding families. This was also not reflected in the larger viewpoint of a changing and dynamic Orange County, which is not the singular conservative bastion from the days of John Wayne.   A strict editorial slant, either left or right is not a positive factor in the newspaper world that is searching for the largest audience possible, even the Hoiles family, had understood that factor and kept their politics in check.

Based on everything I have seen and heard I think it is still too soon to tell exactly which model the OC Register is likely to follow, though I think we can rule out the Newhouse – Milk It model.  New ownership would not have invested to simply let it go without some kind of fight.  New money in, especially from someone outside of the established print community as the new owners as probably signals they want to accomplish something, and also want a return on their investment dollars – something unique in print today.

That leaves Feed It or Farm It!  Based on a strong foothold in Orange County we are still a highly desirable market that will rise again when housing takes off in the future.  For now I’ll go with my heart in hand and say they will “Feed It” and try to do everything they can to build a strong multi-media franchise with the paper as the core product.  This fits the community, and what I think is a great opportunity.  They will not be able to impose their will, or dictate a political bent, but I think they can make small gobs of money, year after year if they play their cards right.  I’m keeping my fingers crossed.

Not Dead Yet! Just a Little Diminished Around the Edges!

I love the scene in Monty Python and the Holy Grail, circa back in my callow youth, where they were collecting bodies from the ‘Black Death’.  If they weren’t dead, a quick bonk to the head speeded up the process.  I think in today’s media world we are seeing this played out over and over again.  I confess I had bought into this talk, but I think there is still some life ‘in the old girl yet.’

What gives me hope is that baby whom cover the industry are starting to see the patterns that are evolving that show some various tracks key newspapers are taking to ensure their survivability. My favorite is from Alan Mutter of Newsosaur who in his recent article “What’s Next for Newspapers”  highlighted three paths that could offer some hope for newspapers and newspaper staffs who are looking for some relief.

Alan’s three possible paths to the future he labels as: Farm It, Milk It and Feed It.  He has plausible representations for each, and it makes for a great read.  This has been made all the more urgent in trying to move towards a recognizable future for newspapers with the decision of Rupert Murdoch to split his media empire into two segments – print and everything else.  That news was met with a round of – “it’s abut time” and the blessings of the market with an upturn.  If anyone really understands the future of media it is Rupert Murdoch.  Whatever sentiment he had for his holdings was dashed with cold water after the media circus in England that has stained his reputation.  His head is now ruling his heart…and his pocketbook.

In the next post I’ll start reviewing these options, and perhaps have some additional ones to through on the discussion pile.  Back soon…now for a viewing of Monty Python on my iPad ap.  A great bargain for a few bucks, and a few moments with some lively songs and the Knights Who Say Nea always leaving me smiling.

The Origins of Newspapers…and a View to Our Future

From Whence It All Began

As we look at the fall and decline of newspapers as we knew them in the U.S., I came across a recent article in The Telegraph from London.  It highlights the origins of the newspaper in London circa 1700.  The Monitor came alive as laws on libel changed in England and spurred a revolution in how news was spread and shared in the culture that eventually shaped our own.  “Fleet Street: the surprising origins of Britain’s newspaper industry.” By Dr. Matthew Green appeared today and is very enlightening.  I hope you’ll take a moment to read the article; it’s a lively read, and great insights

The Daily Courant was England’s first daily newspaper, and the first daily Fleet Street paper, The Monitor are at the genesis, making Fleet Street synonymous with daily news in Great Britain.  What started with those papers quickly grew to “31 papers – six dailies, 12 tri-weeklies and 13 weeklies – were being hawked on the streets of London, with an average combined weekly circulation of 100,000.”

Dr. Green, the author, points out that the news was always partisan.  Attempts to the contrary to paint it, as ‘vessels of truth and enlightenment’ are just wrong.  We now see that “plagiarism was rife” government scandals ruled the day and writers, well known today like Daniel Defoe, wrote for pay from the highest bidder.

Fleet Street is still the home to the England’s news today, but a lot has changed.  Now all of the papers have digital editions, many of which I read on a regular basis.  They are also heavily in broadcast media – cable in England, and their impact is pervasive.   Recent scandals on their impact and taping of cell phones have lead to the Leveson Inquiry on the link to newspapers and politicians as well.  I guess in many ways little has really changed over 4 centuries.

Like the growth of the internet and later online news version of printed papers, and then wholly digital publications like Huffington Post, the original growth of printed papers from Fleet Street “triggered a new addiction, something the journalist Joseph Addison defined in 1712 as a ‘news frenzy.”

What we see from this profile is that, actually, little has changed.  There is a strong desire to know what’s going on, people will pay, and everyone loves gossip. Four centuries later we still love gossip and salacious news, partisan politics helps to drive the news cycle, and we still pay…though that is probably the crux of where the future of ‘newspapers” lies in the future.

Our daily news cycle still focuses on breaking news, and news of triumph and tragedy, murder and mayhem.  Like the 18th century, we still love a scandal, and the bigger the better.  If its not really that big, the press will make it big.  Scandal is still key, but now we have better flaks and more media to help bury it.  That and the fact that tomorrows news cycle will bring more scandal, so time, now ever fleeting will help to give it a faster death.

The biggest challenge for newspapers is that their business model, how to deliver the news and who pays for it, are changing.  The dynamics of a 24-hr news cycle and free online content, perhaps not free forever, are key challenges for a print cycle that begins at midnight to deliver it to your driveway at 5am, are now stretched to, what many would say (me too!), is its ‘logical end.’

As we move forward it is also ‘logical’ for us to look to Fleet Street to see how the adapt to the digitalization of news, make it financially viable, and lead us to a future where we can still get all of the news…but still recognize that it will be as partisan as it ever was.  ‘Everything old is new again!”