Russel Howcroft: Sales department giving up the front pages of newspapers to journalists ‘laid the cultural seeds for their decline’
Gruen panelist and Network Ten’s Melbourne boss Russel Howcroft has said newspapers laid the foundation for their own demise by giving more power to journalists than the sales team.
In his new book When It’s Right To Be Wrong Howcroft describes himself as “one of the last mad men” while mounting a defence of the power of TV, saying marketers have broken the contract with consumers with digital ads by failing to entertain while they are interrupting their experience.
Among other topics covered in the wide-ranging book are criticism of government over-regulation, the claim some businesses are slashing marketing spend and managing themselves out of business and the assertion Coke Zero is “this century’s best idea”.
Howcroft joined Mumbrella editor Alex Hayes for a live video hangout at 2pm AEST today to discuss his book.
In a section on the fall of newspapers Howcroft points to his time working for the Melbourne Times in his early career, saying it made him a keen observer of the industry.
But the former head of George Patterson Y&R in Australia has strong words for the changes in the business, writing:
Journalists need to remember that when newspapers started the ads were on the front page. The ads not only provided a commercial service but a social one as well. The front-page ads let you know which services were growing. Entrepreneurs, business leaders and want-makers could buy the front page.
“Journalists later won the fight for the front page and in doing so laid the cultural seeds for their decline.
“If ads remained on the front page the cultural North Star for papers would be the provision, first and foremost, of a social commercial platform.”
He adds by giving up the front page managers “changed the power structure that ultimately led to an ill-defined business model”, pointing out businesses like Google and REA are thriving “because they provide and incredible commercial machine”.
However, in a later chapter he talks about the importance of trust in the media, criticising the lack of regulation of new media operators compared to legacy companies like News Corp, Fairfax and Ten.
He writes: “Trust is a contract with the audience, and high consumption is tangible evidence of trustworthiness.”
Howcroft, also says the government needs to spend more on advertising as it “subsidises democracy”.
Governments want to cut ad budgets – which are a drop in the federal budget ocean anyway – because they think it plays well in the media. They cut the spend even though it contributes to the media’s decline and because they believe we are all glued to the news and the government’s Twitter feeds to find out the latest from the capital.
Governments should advertise, day in, day out. It’s the best way to keep citizens engaged.”
Howcroft (l) with Gruen host Wil Anderson (c) and fellow panelist Todd Sampson (r)
Howcroft, a regular panelist on ABC’s Gruen series for the last eight years alongside Todd Sampson, also mounts a stern defence of TV, debunking the idea it is a medium in decline pointing to his own experiences on both Gruen and Recipe to Riches.
Using the example of FMCG brands which he says “exist to advertise” he claims many will cease to be as ubiquitous as they are if they continue “down the digital path”.
He adds: “Digital marketing is important, is powerful.
“But I question its ability to create famous, powerful, loved and highly demanded brands.”
He advocates for good design, good writing and a return of craft in advertising and champions the return to great ideas that “make your balls tingle”, but calls for more recognition for the buyers or “sponsors” of those ideas.
Alex Hayes
The hangout with Russel Howcroft will take place at 2pm AEST today on this page. Leave your questions using the comment box below or on Twitter using the hashtag #askhowcroft.
Sales guy says that everyone should advertise more. Hardly groundbreaking.
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Are there a free set of steak knifes with this book?
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Woe! If only newspapers had more advertising, that was displayed more prominently, then this whole Internet thing might never have happened!
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“Digital marketing is important, is powerful. But I question its ability to create famous, powerful, loved and highly demanded brands.”
Exactly.
See also https://mumbrella.com.au/digital-advertising-where-did-it-all-go-wrong-317267
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When newspapers started out Tophats were all the rage as well, there was no radio, TV, Cinema (a little outdoor – well done), interweb or recorded music. We didn’t have thousands of ads in our face every day.
Note – Hipsters, you haven’t defiled tophats yet, make that your next stop, I wanna see how stupid this can really get.
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“But I question its ability to create famous, powerful, loved and highly demanded brands.”
I question that Brands are ‘loved’. Working in Advertising may have jaded me though. Putting that aside, as a consumer, even brands that I use regularly (I should be on the board of ikea Aus for example) I still don’t ‘love’ them. In fact it’s more of a ‘What is love? Baby, don’t hurt me no more’ relationship.
I suggest Russell is saying the marketing is loved rather than the actual brand. Because mostly the ad is like a promise of Disneyland, but the actual experience with the brand is more like a wet morning at Wobbies World. (insert bad theme park reference as required.)
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Reality check time for Russell. No one buys newspapers for the ads; no one watches TV for the ads; no one listens to radio for the ads.
It’s content first, ads second, I’m afraid.
Give the reins to the sales department and it’s all over.
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Russel knows that no-one buys newspapers for the ads (except for the very small number that DO, obviously). While he was at GPY&R, the Melbourne and Brisbane offices sent us quite a lot of “advertorial” creative i.e. ads that are specifically designed to fool the reader into thinking that they are editorial content produced by the publisher.
Perhaps he would like to comment on that, in the context of his remarks on sales v. editorial, and audience “trust”?
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When I did a newspaper round in the early 1970s the Dundee Courier still had a front page of ads. I think the times had stopped that a while earlier.
So as long as you think the decline started 40 years ago, I guess he could be right?
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Me on TV: TV good. Me in advertising: advertising good. He’s like the cookie monster for attention and money. Arghomnomnomnom.
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Teehee.
“Trust is a contract with the audience” lolz Then goes on to talk about News Ltd!
Any trust they had has been collapsing inward for 15 years, they’ve sold their souls to governments and advertisers, and no one under 30 (unless they are in advertising) reads them or gives them any credence.
Last of the “mad men” may be more accurate than he thinks 🙂
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>>“But I question its ability to create famous, powerful, loved and highly demanded brands.”<<
You mean like Facebook, Google, Amazon and Youtube ?
Personally, I don't believe in Australia you can afford to narrowcast, the concept of tailoring marketing to individuals (what I call the "Reader's Digest" model). You really need to broadcast advertising to all the viewers of a particular medium.
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the world wouldn’t stop if advertising stopped, there would be a lot of unemployed people though, but they would eventually find a job creating more digital apps
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@ John,
I don’t think people love Facebook, Google, Amazon and YouTube. They love the service they provide but they aren’t in love with the brands.
“I love Facebook – their privacy settings and ability to sell my data is so refreshing.” “Tell me about it, and the way Amazon demands sweat from their employees to fulfil my book order has me tingling.”
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I think Russell has a very good point
The media , old and new , have done themselves a huge disservice in breaking the trust.
Facebook. google Amazon and Youtube are the medium or alternative media.
So are the Telegragh, SMH, The Age and the Financial Review
Levis, Jeep , RM Williams and Coke are the brands Russell talks about as brands that built their name and trust that people can relate to and love as something they value.
Do you actually trust facebook and Google or The Telegraph for that matter?
I dont.
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Im with you on this Russell
Most using digital that I speak to use it as its cheap and gets clicks that can be measured.
Its a trap
Because its cheap the advertising dosnt get the budget that drives the creative it deserves and the people managing the campaign are also cheap.
You end up with cheap and nasty marketing through digital with no strategic thinking behind it.
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Leave Russell alone. He is doing Gods work.
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Yes but Russel
You could say George W Bush was successful for some and I never trusted him
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