BBC DG Mark Thompson

Convergence.  This was one of the keywords that came of out of this year’s 2011 Financial Times Digital Media & Broadcast Conference.  It’s taking me some time to pen this, but I wanted to share some of the key points that were discussed.

Last year the conference coincided with the BBC unveiling the results of it’s Strategy Review.  This year gathering started on the same time as Apple unveiled its much-anticipated iPad 2, Facebook announced the rollout of its Comments plug-in and the all-important decision from the Department for Culture Media and Sport Minister Jeremy Hunt MP to allow News International’s full take-over of BSkyB.

Chief executives and senior board members gathered in London to outline their thoughts on an industry that is changing at breakneck speed.  It’s an industry that is no longer operating by itself, but a sector that is being driven by the technology that their own consumers are engaging with.  And the speed of adoption is forcing many boards to re-evaluate how they engage with their audiences.

Mobile and social networking are the two platforms, the two elephants in the room, that media and broadcast organisations are still struggling to grapple with.  They are also the platforms that public relations professionals must fully grasp for themselves and their clients.

BBC Director General Mark Thompson highlighted this year how ‘new media’ and the consumer have shaped how it offers content.  The corporation accepted that consumers want the BBC’s content on every platform.  Its iPlayer is today available on the iPhone and iPad, with Thompson confirming that people even watch BBC content on their mobiles in bed.

Thompson understands simplicity and highlighted that the iPlayer works because it is straightforward.  In January of this year 162 million downloads were made through the iPlayer, this in a country of 25 million households.

Thompson confirmed that 2011 is the year of convergence, stating that strength is with those that have a strong presence online and understand the value of simplicity.

One of the areas that the BBC Director General is looking at is the power and influence of social recommendations and how this will shape how we all watch television.  Indeed Thompson confirmed that the BBC and Facebook are having conversations.

Speaking at the conference Facebook’s EMEA Managing Director Joanna Shield confirmed that the company now has 30 million active users in the UK, accounting for 1 in 2 of the population.  Talking about how it ‘supports‘ UK media Shields highlighted that 10% of the Daily Mail’s web traffic now comes from Facebook and that the sites plugins have helped The Independent gain up to a 700% increase in traffic.

Talking of Facebook, Sales and Marketing Director for mobile provider 3 Marc Allera in a separate session said that a staggering 75% of their data traffic is directed to Facebook – an incredible statistic.  Allera also said that 90% of 3’s sales are Smartphone’s.

Facebook is the platform of choice for the consumer.  For business it is the ‘frenemy’, a business that delivers eyeballs to those with an online presence, but a business that can quickly cannibalise those that work with it.  Take Groupon and Livingsocial for example.  Both living in the hype, but both under the knife of Facebook, who a few days ago announced ‘a new service that will sell discounts deals to consumers.’ Sound familiar?

So, Facebook is becoming an entity in itself.  The stats show it, but for the time being, it is a fact that business needs to learn to live with it.  Equally, it needs to retain control of the data that makes it’s business a business.

I was going to ask, remember when clients used to ask about needing a Facebook Strategy?  Something that made PRs and Strategists cringe?  Well, there is a need to have a Facebook Strategy, but a strategy to manage them and avoid each business being cannibalised by this growing entity.  The data that companies share with the social giant make the same businesses vulnerable.

Convergence and Facebook, and of course all the other offerings.  The tables have turned and consumers are showing businesses how and where they want their content.

Senior media and communications executives met in London this week for the 2010 FT Digital Media and Broadcast conference (#ftmedia10).  At the heart of the debate were the questions of how the sectors were emerging from the global recession and the impact of online and social media on the creative industry and its revenues.

WPP Group Chief Executive Sir Martin Sorrell launched the opening salvo by questioning companies that, from an advertising perspective, were being over-optimistic about social media.  Sir Martin described social media as a phenomenon that was “personal” and therefore “not suited to being invaded by adverts.”  He was right.  This phenomenon is personal and it works because it’s based on conversational marketing that’s more suited to public relations than advertising.

Answering a question that I put to him about if he agreed with Facebook’s CEO Mark Zuckerberg’s comment that privacy was no longer a ‘social norm,’ Sir Martin said that “privacy was still the norm” and that this was one point with which he disagreed with Mark on.  “People are still concerned by it and the invasion of it,” Sir Martin added.  We should remember that privacy is individuality.

This opening day coincided with one of the speakers’ key policy announcements.  Mark Thompson, the BBC’s Director General, had been forced to bring forward by a week the results of the much-anticipated strategic review into the corporation.  Thompson outlined to the conference the plans that he was putting forward for consultation.

I was thankful that while we were in a panel discussion on ‘The Future Of News,’ before Thompson arrived, friends at the BBC tweeted me to let me know that Mark was first on Five Live and then on the BBC News Channel.  I also received a link to the following blog by Pete Ashton, which in my view nailed it with regards to what Thompson is aiming for.

While Strategic Review is aiming to slim down the BBC, detractors will keep giving it flak to avoid commentators questioning why their own companies are not performing as well as they should be.  A contact at the BBC tweeted me a private message that stated the obvious, “Part of the fun is that the BBC will always get flak for whatever it does from someone.“ Pete Ashton’s blog post said it well by highlighting how the “BBC spent a decade or more figuring it out and, surprise, they’ve kinda successful at this digital / internet game.”  And that is why I applaud the BBC.

So the Auntie is going on a self-imposed diet and will be focusing on: 1) best journalism in the world, 2) Inspiring content that brings knowledge, music and culture to life, 3) Ambitious UK drama and comedy, 4) Outstanding children’s content, and 5) Events that bring communities and the nation together.  These sound like the corporation’s key strengths, but will the cutbacks satisfy its critics?  Will it hell.  But here is the problem, apart from the reaction to the BBC’s own 6 Music DAB station – which is wrong (#saveBBC6music), a slimmed down Auntie will emerge stronger, tougher and more focused on delivering great content.

In fact, in his speech, Thompson stated without any ambiguity, “one day, the web may be the principle platform for all the BBC’s services.”  Ten years ago the BBC went online.  Today, commercial news outlets are still trying to see how to make online work for an audience that is reluctant to pay.

Before Mark Thompson’s arrival New York Times Chairman and Publisher Arthur Sulzberger Jr, Financial Times CEO John Ridding and Google’s MD Matt Brittin had been discussing the future of news.  All the talk in the lead up to the conference had been about paywalls, would they or wouldn’t they work?

Ridding confirmed that readers were willing to pay for content by stating that the FT had “40 per cent year on year growth” with regards to subscriptions, while Brittin said that “British content [journalism] had a reputation for quality.”  But of course Brittin represented the outcast of the industry after Rupert Murdoch threatened to pull News International content out of Google’s News and it’s search.  Of course Brittin was well armed and highlighted that the search mammoth “send over 4 billion hits a month to publishers websites,” a fact that news publishers cannot ignore.

The Apple iPad was also talked about with comments from the panel about it’s potential for generating revenue.  The FT’s Ridding noted a word of caution by highlighting the risks of subscription fatigue amongst readers.

At this point you start to see what I’d noted for some time, how the media landscape was changing and how the various communications sectors were battling for survival.  Convergence is the word that sprang to mind.

For production companies it is about maximising revenues that can be reinvested elsewhere.  Yes, broadcasters are shop window from which historically they have made money, but with this stream’s drying up forcing many producers to become creative and look to use social media and other networking tools to make money.

Producers such as Endemol know that in today’s multi-platform world the audience is no longer just on television, and they are not just a viewer.  Thanks to user-generated-content and the various online tools people today are producers, promoters and marketers.  A point that is also relevant to the audiences that PRs and journalists are working to engage and influence.

The conference set out a world that is very different to that of a few back.  Consumers are more demanding and want content on the go.  They also want to be able to communicate and share, both opinion and content.  Social media is having a profound effect on how companies interact with consumers, how newspapers and media outlets get stories and how the customer is served.

Today, we live in a world where the audience wants ‘quality’ content that is either “free or cheap” and, as VivaKi’s Rishad Tobaccowala said, “the half life of data is minutes” as everything becomes “real-time”.

So there, go figure how to crack this one and bring the audience onside.  What I do know is that as a PR we need to learn quickly how to navigate this changing media landscape.