Obama, dogma and the demise of UK Internet Advertising

*We welcome Richard Tyrie as our first Guest Author for quite a while for this post*

Councils told not to use websites to compete with local media

Secretary for Children, Schools and Families, Ed Balls, has told councils not to undermine local media outlets by trying to compete for readers and advertising revenue with their own websites and publications.

So here we are, still basking in the immediate after-glow of the rousing Obama inauguration speech last week.  We heard about his plans for a new era of openness, transparency and trust in government (US government, anyway); a sole focus on policies that were beneficial to the electorate, and the scrapping of policies that were dogmatic and ineffective.  Fantastic stuff.  Whatever your position on OB, you can’t deny that his inspirational leadership style, and the spirit and substance of his plans (not to mention his oratory skills) will bring about significant change to the nature of government in the US.

And then we have our own government.   .

In the last fortnight alone, we’ve had the Heathrow third runway debacle;  the attempted draft bill to exempt MP’s expenses from Freedom of Information Act legislation, ergo: “we don’t want to tell you taxpayers what your £87.6 million pa is being spent on”, which, incidentally, our Gordon did a sharp U-turn on, following a *significant*  backlash by the internet ‘massive’ (way to go tweeps and facebookers..).  Now government has come over all ‘traditionalist’ with the announcement of the latest initiative from Ed Balls’ office telling councils “not to undermine local newspapers by competing for readers [with their own websites]”

WTF?  Do what?  Are you serious?

Err hold on a minute…   Last time I heard, the careers section of a local authority website was reported as being the most heavily trafficked section of all LG websites; in fact SOCITM (the society of IT Managers) reckon that the jobs section of a .gov.uk website is likely to serve four times more page impressions than the next most trafficked section of a local gov site (which, incidentally is the rather fascinating ‘planning application’ bit…)

 Speak to any local authority hiring manager that actually measures where their response comes from (there are a few out there - not many mind…) and they’ll tell you how little response they get from ‘trad med’.   What little response they do still get is precisely what they don’t want:  the same types they’ve always attracted (pale, male and stale are, I believe, the descriptors du jour amongst local government officers). 

The fact of the matter is, the local press just isn’t a practical, cost-effective solution any more,  nor does local press advertising generate even vaguely diverse shortlists. Local Governments historic use of press as a primary attraction method (and the subsequent nature of the local government workforce) amply bears this out:

1) The private sector (proportionally) hires three times more young people than local government  (Only 6% of a workforce of 2.2 million is under 25)

2.)Only 9 authorities (out of 336) have a workforce that reflects their communities in terms of ethnicity

3.) They largely attract ‘more seasoned’ applicants;  in fact 31% of the workforce is going to retire in the next decade (see point 1)

Oh dear.

So employers… no young people? Just loads of err ‘experienced’ people? Not enough applications from black and minority ethnic communities?  You betcha!

 Funny that, but then that’s the profile of local press readership..but then if you do what you’ve always done….

On the flip side,  we have the web, which is now making the majority of hires out there (London borough of Newham make 86% of all hires online now). Its proving to generate   a *massively* more diverse candidate pool – indeed, one LA reported over 1000% more interest from BAME’s (black and minority ethnic applicants) per pound spent compared to ‘traditional’ press advertising..

That’s a compelling business case for the web – non?

Local press is dying.  Its Darwinian; survival of the fittest; natural selection.  The truth is, inefficient, structurally weak, strategically adrift businesses die over time – and so they should.  Frankly, if they don’t move with the times, they should be left to wither..  trying to prop them up is analogous with US congress bailing out Ford or GM.  Utter madness. 

So when the Newspaper Society bleats on about how important local press is, in “ahem, providing a voice for local communities”, I suggest you get with the program Mr Balls, and see what’s really occurring out there.  Speak to local authorities.  See what’s happening.  We know it would be nice to keep the local press happy, but hey, this is about getting the right people to provide public services, not just currying favour with publishers with ever decreasing influence by ensuring them a few quid in advertising revs.

Do the right thing, and ditch the dogmatic stuff that isn’t in our interests any more..  Failure to do that, could mean you find yourself withering too, and probably quicker than you imagine.

 Richard Tyrie

Founder, Jobsgopublic

Comments

[Luke Collier]

In the early days at Fish4 they were told not to chase Local Government recruitment contracts because it would damage the local paper revenue ( Fish4 owners obviously had a vested interest)
All that directive did was to put Fish4's progress back years. Just because Fish4 didn't chase it that didn't stop Monster/Total etc.
The migration is inevitable and if they haven't cottoned on to this yet then they are further out of touch than I had realised.
Crazy

[Andy Headworth]

Excellent post Richard, and you have highlighted just one area where our council are completely out of touch, and there are many more!!!

We have a Government Minister that has a name that equals his capability - BALLs up!!!

[Jo]

Very interesting - I've just instigated a community site for my town http://olney100.ning.com.

I'm sensitive that we may to be seen to compete with local periodicals - I am looking for an alliance. So just as ordinary websites must stay because they serve a long time cycle, Ning serves a weekly time cycle and Twitter a daily time cycle.

Does this apply in recruitment too?

[Lis]

Thanks Richard - Great research & finally got a new slant when selling into these guys!

The consistent stubbornness of most LA's & public sector orgs, frequently gets my blood boiling!

Their attitude and dismissive behavior to change has lead me on a few occasions to jump up and down and rant "Don’t you know I pay your wages!!" (not a pretty sight)

I have to add that this doesn't mean all public sector orgs are stuck in the dark ages - (calming down) as there are some innovative decision makers. But even when you have them on board, it is still an up hill battle to unite all the hiring departments in any kind of change.

Lis

[keith Robinson]

Richard good to see you yesterday..am going to re post onto RCE but key responses

- So back to a Luddite mentality..lets all go back to spinning wheels.
- A subsidy through the back door?
- Political,so look after the press barons and get better PR..who owns local press? Trinity Mirror-hm, DMGT well labour could do with some brownie points their. Johnstone press and Newsquest..editoril freedom..influence buys votes, NS will do anything to protect their own.
- So what does Balls want to go back to?local press monopolies who charge ever higher rates because they have a monopoloy, which in turn is paid for by tax payers..oh yes us..no thanks.
- So why does he not focus on recruitment consultancies? I was told that a typical County Council spends 1.2 m on media and 40m on 3rd party recons..that all ther London boroughs combined spend 22m on media and 750m on, 750m on 3rd party hiring..as a tax payer wow. So why not go after these guys...NO PR value, NO editorial power to influence voters and SOME are key contibutors to Labour party funds.
So boy this man is dangerous.
Keith Robinso..print,trade and regional press, as agency guy, ex job boarder, and Labour voter,,still..just

[Richard Tyrie]

Hi all, nice to see a few comments (hi Keith)

So, the person leading the "its just not fair" offensive was a certain Lynne Anderson, Comms Director of the Newspaper Society (here's the original moan-fest: http://tinyurl.com/84289p )

Funnily enough, it was Lynne that was feeling rather more bullish about the prospects of local press only a few years ago. To paraphrase:

"We're all growing like topsy. we've bought colour printing presses and everything. People have now got money and they want to spend it. They need to know where to go out, and the local press is where it's at!

Last year we made 2,807 million. This year we're making even more! everyone said the internet would kill us, how wrong they were! Our growth shows no sign of abating, blah, blah, blah"

(Here's the original post, sans tyrie-tweaks ;) http://tinyurl.com/dxswvs )

Oh dear Lynne... My, but you've changed your tune.

This, fundamentally, is about your industry's collective 'canute-esque' mentality. Some media owners simply refused to see that things were changing ("We're invincible!"), wheras some didn't - and got out just in time.

Take Rupert Murdoch for example. He famously said at a Newsint conference that their "Rivers of [classified advertising] gold have dried up". Which is why he then sold his classified ad-dependent titles before they went tits up. (Like for example, the Times Educational Supplement - which went for a cool £240 million)

He then used the cash to buy one of the most trafficked sites on the web, myspace - a snip at $580million). Incidentally, he then quickly sold the ad rights for myspace to Google a few months later for $900 million..

Really Lynne, you should stop the sour grapes. Its just embarrasing. Just because you've all been caught with your pants down, stop bleating and get over yourself.

I dunno, these people milk the taxpayer for nearly a hundred years, and then get all pissy when the party ends. you'd think they'd be a bit more grateful? I mean, £2,807 million pa? Sheesh.

Richard Tyrie,

Co-founder, Jobsgopublic.com

[Alex Hens]

Richard - I think you've found a natural second home here on the Digital Recruiting rant fest :D

Great post.

[andy rehan]

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[Matt]

Generic comment not referencing specifics in post, a tell tale sign of automated comment spam I suspect! Tell me if I'm wrong

[Alex Hens]

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:)