NZME
While NZME certainly isn’t floating down the rivers of gold that print advertising and classifieds used to create, the company is still profitable. It's not the same company that proposed a merger with Stuff in 2016, having most recently introduced digital brands YUDU, Oneroof and Driven to sit alongside its print and radio brands. Chief executive Michael Boggs talks us through the evolution.
In 2017, New Zealand print advertising revenue was expected to drop by 12 percent, adding to the constant decline the channel is facing. It’s a tough game to be in. But NZME is fighting the tide to keep printing newspapers with aims of returning to total growth. Although its print ad revenue dropped in 2017, it was down 10 percent—not the industry norm of 12—and the company launched new advertising initiatives YUDU, Oneroof and Driven. NZME CEO Michael Boggs says the company is constantly growing and evolving in the ever-changing media landscape. Innovation is integral to NZME’S sustainability, he says, and the company has groups dedicated to new projects as well as those focused on maintaining and developing existing services. Boggs says he is especially proud of the progress the company has made with auto-focused publication Driven, dedicated employment platform YUDU, and real estate website Oneroof, and adds all are growing in listings and audience each day. “We are really excited about these new brands that leverage our leading audience, brands and deep-rooted industry relationships. We have created marketleading platforms and consumer experiences in each of the three verticals.” He says each site gives users more than existing online offers and each aims to evolve market and consumer behaviour. Through Oneroof, house-hunters can access the latest property insights and valuations, and can search based on their specific needs such as school zoning and transportation options, making the search process easier and more informed, he says. Curbing the steep drop-off in print advertising is credit to NZME’S teams who work on its print titles, the brand strength and the company’s ability to offer integrated, multi-platform campaigns through radio, print, online and video, Boggs says. “We continue to provide interesting and investigative content, which is resonating with the readers. “Advertisers recognise this, and continue to value New Zealand Herald, our various newspaper inserted magazines and regional papers as valuable channels for engaging with their customers.” Appealing to readers across the country in an integrated way is vital, he says. NZME has local radio shows dedicated to regional journalists and integrated newsrooms across the country where print, radio and commercial teams work together. “We take a strong interest in the communities in which we operate, and are constantly working to provide news, sport and entertainment content that those audiences are asking for. “The Country, for example, is a platform we have invested in because we recognise there is a whole demographic that has a vested interest in rural-focused content.” Content is produced in the most appropriate format for the targeted audience, whether that be print, radio or digital and with the past year seeing audience growth across print, radio and digital channels, Boggs says there’s no prioritising one over the other. “We transformed our content teams to be audience first – they are our focus, and the mix of platforms will very much depend on who we are trying to speak to.” He says the biggest challenge has been balancing investment in people and capital to maintain current business momentum, whilst investing in new initiatives to grow new revenue streams. But he says it is a daily feat NZME has managed really well thanks to the engagement and hard work of staff. One plan being implemented in the near future is putting up a paywall around premium journalism on its website. User registration would be the first step and payment the last, the New Zealand Herald reported earlier this year. Boggs says one of NZME’S main priorities continues to be returning total advertising revenue to growth. This will be done by retaining print revenues, driving digital revenue growth and capitalizing on radio coverage, content and talent enhancements, he says. “Delivering on this, with our focus on growing new revenue streams, managing our costs and capital effectively, and working towards our new initiatives contributing to NZME’S overall performance, will support our objective of becoming a growth business in the medium-term.”