Media: Not Your Grandad's Capitalist Tool, a raft of changes at FORBES
The past two months have been a whirlwind of change for Forbes. The 100-year-old business magazine reduced its number of print issues from 14 to 10, the New York Post reported, and it let go 20 staffers. Longtime chief product officer Lewis D’Vorkin left the company and CEO Mike Perlis left his position, replaced by editor Randall Lane and president and COO Mike Federle, respectively.
The head count will stay near its current level of 430, Forbes CRO Mark Howard said, but the company is shifting resources from print to digital products, native advertising and live events to diversify its business. (Most of those laid off were focused on print duties like sales and photo editing, according to two sources familiar with the matter.) A company spokesperson, who wouldn’t share raw numbers, said Forbes’ native ads and events businesses each grew about 30 percent year over year. Forbes hosted 17 paid events this year, up from 11 last year. In 2018, it will add at least another five events.
“I would categorize Forbes’ issues as symptomatic of an industry in change,” said an ad buyer, speaking anonymously to prevent damaging business relationships with the publisher. “Their business model is under duress, and they are trying to pivot, adjust and survive like so many other publishers.”
Some of Forbes’ problems were distinct, though. The growth-hacking tactics Forbes embraced that helped digital media businesses five years ago have gone out of style. Forbes used a contributor network to forge a cheap path to scale, its site hitting 59 million unique visitors in November, according to comScore.
About 80 percent of Forbes’ revenue comes from digital, compared to four years ago when its print and digital revenue were about even. But it drove digital revenue by littering its site with intrusive takeover, interstitial and autoplay ads while paginating its articles, which led it to become the publisher poster child of putting monetizationahead ofuser experience.
“The Forbes brand still has a sense of prestige. But the decisions they have made regarding their user experience, particularly putting an ad in front of the homepage, have really been a dark mark on the brand,” said Adam Kleinberg, CEO of ad agency Traction, citing research that brand marketers are becoming more criticalabout user experience. “It isn’t too late for them to change, but they need to be committed to it.”