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Declining quality of the media and consequences for companies and business reporting

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Mark Eisenegger
Mark Eisenegger

Presentation by f旦g (Research Institute of the Public Sphere and Society) / University of Zurich Switzerland showing how Media use and Media Concentration change, how the Quality of the Media is decreasing over time and what this all means for Business Reporting, Corporate Reputaton und Companies being covered in the Media.

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www.foeg.uzh.ch Zurich, 29 July 2014 Declining quality of the media and what this means for business reporting The case of Switzerland f旦g / University of Zurich
www.foeg.uzh.chPage 2 1. Media use and quality of the media 2. Media concentration 3. Financial and human resources 4. Quality of the media and corporate reporting 5. To conclude: Some words about social media Overview
www.foeg.uzh.chPage 3 Media use and quality of the media
www.foeg.uzh.ch Development of the use of selected media titles (1) Page 4 Tagesanzeiger Tagesanzeiger.ch NZZ Radio SRF 1 Rendez-Vous nzz.ch High-quality information media (paid-for newspapers, public broadcasters) are continuously losing ground Online information media are gaining
www.foeg.uzh.ch Development of the use of selected media titles (2) Page 5 Blick 20 Minuten Blick.ch 20minuten.ch Lower-quality media titles are recording the highest growth in use (i.e. free commuter newspapers on/offline; online editions of tabloid press) In Switzerland, the free paper 20 Minuten already reaches 1.7 million people daily!
www.foeg.uzh.chPage 6 The boom in free media and online news sites has led to a significant growth of the (red) zone of lower-quality media titles The segment of the high-quality media titles is shrinking Quality dynamics 2001 2013 Indicators used to measure media quality: Hard news (+) vs. soft news and entertainment () Providing background information (+) vs. presenting news without context () Weighing up arguments (+) vs. polemics and emotional appeals () Source transparency (+) vs. lack of transparency as regards the sources used () Etc. Low quality Medium quality High quality 24% 64% 36% population coverage 2001 in % German-speaking Switzerland Low quality Medium quality High quality 38% 49% 27% population coverage 2012 in % German-speaking Switzerland
www.foeg.uzh.chPage 7 Since 2010, there has been a loss of quality almost across the board On- and off-line free press, with the online tabloids trailing behind Media quality of different media types (2010-2013) Publicradio Subscriptionpress Suday/magazine PublicTV Subscriptiononline Privateradio Typemean PrivateTV Tabloidpress Freenewspapers Freeonline Tabloidonline 2,50 3,00 3,50 4,00 4,50 5,00 Pointsscored 5,50 5,49 5,24 5,07 4,86 4,80 4,74 4,76 4,56 4,42 4,10 4,31 4,01 4,07 3,90 3,80 3,50 2,64 3,32 3,07 3,07 3,60 2,94 2,79 2,53
www.foeg.uzh.ch Media use and quality of the media What does this mean for corporate communications? Page 8 The Swiss media arena faces a massive trend to a growing tabloid sector: lower-quality tabloid media titles are growing strongly while high-quality titles are losing ground Entertainment and emotional appeals are becoming increasingly important; this raises the risk of companies being exposed to scandals Companies find it harder to reach wide sectors of the population with complex topics and arguments
www.foeg.uzh.chPage 9 Media concentration
www.foeg.uzh.chPage 10 Media concentration in the press market In the period 2001-2012, the number of media companies massively declined The publishing house Tamedia clearly dominates the press market (Share of Press market of Tamedia in german-speaking part: 40%; in French- speaking part: 70%) Concentration of the press market 2001 vs. 2012
www.foeg.uzh.ch Media concentration in the online market Page 11 The concentration in the online sector is even higher than in the press sector Only the biggest players can afford hosting online portals with a nation-wide coverage Again, Tamedia is the strongest player in this field 23% 20% 17% 14% 11% 7% 6% 1% German-speaking Switzerland BZM NZZ-Gruppe United Internet SRG Mic. Adv. Ringier Swisscom Tamedia
www.foeg.uzh.ch Media concentration means more of the same Page 12 Media concentration leads to a loss of diversity, especially in domestic, foreign but also business reporting The trend towards more of the same is even stronger online than in the print sector
www.foeg.uzh.ch Media concentration What does this mean for corporate communications? Page 13 The more of the same pattern of media reporting increases the scope for companies to find broad attention with certain topics But on the other hand it also increases the risk that critical or scandalizing reports will quickly trigger nation-wide attention
www.foeg.uzh.chPage 14 Financial and human resources
www.foeg.uzh.chPage 15 The press sector is losing advertising revenue; online information media cannot even nearly compensate the income losses This had led, among other things, to massive layoffs among journalists Lack of financial resources: loss of revenues Information press Other press In million CHF In million CHF 2011 988 686 2012 955 661 2011 1'337 667 2012 1'154 629 (Data source: Werbestatistik Schweiz) SalesrevenuesNetadvertisingrevenues Newssites Other online offers In million CHF In million CHF 2011 88 4232012 85 475 (Data source: Media Focus) Grossadvertisingrevenues
www.foeg.uzh.chPage 16 As (human) resources shrink with the layoffs of journalists, externally produced content such as news agency and PR reports is becoming much more important in the media arena Lack of human resources: Growing PR influence 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Sunday (n = 191) Subscription (n = 743) Tabloid (n = 135) Business(n = 426) PRinfluence media reports PRinfluence other reports No measurable PRinfluence
www.foeg.uzh.chPage 17 The media also react to their lack of financial resources by pooling their editorial staff (keywords: Newsroom, all-round journalism) In consequence, competent contact partners are being lost, especially in business reporting Lack of human resources: de-specialization
www.foeg.uzh.ch Lack of financial and human resources What does this mean for corporate communications? Page 18 The lack of financial and human resources in journalism is a two-edged sword for companies: On the one hand, the risk of scandalization increases (outrage journalism costs less than quality journalism) On the other hand, the influence of corporate PR is growing rapidly in media reporting (growing demand for information that can be used rapidly and that requires no expensive work) In their media relations, companies have to convey more basics because the number of specialized sector experts in journalism is shrinking
www.foeg.uzh.chPage 19 Media quality and corporate reporting
www.foeg.uzh.ch Quality of the media and reputation relationships (1) Page 20 Negative quality of the media Volatility of reputation+ r = .31, p = .041 Coverage about moral / social aspects Focus on individuals ++ Negative quality of the media increases the volatility of the reputation development within media reporting A focus on individuals makes reputation volatile Mark Eisenegger
www.foeg.uzh.ch Quality of the media and reputation relationships (2) Page 21 Negative quality of the media Reputation risks Coverage about moral / social aspects Focus on individuals + n.s. + + Both a focus of individuals and social topic coverage correlate with increased reputation risks (=negative reporting on companies) Mark Eisenegger
www.foeg.uzh.ch Quality of the media and corporate reporting What does this mean for corporate communications? Page 22 The sinking quality of the media leads to more volatile reputation of companies: praise and shame quickly follow upon each other A focus on individuals (CEOs, Chairmen etc.) and coverage in social contexts increase reputation risks CEO and CSR communications have to be used selectively and in moderation Good CSR is based on action and must not be exposed as a PR trick
www.foeg.uzh.chPage 23 And finally Social Networks important or overestimated?
www.foeg.uzh.chPage 24 Social networks show a particular preference for soft news For online information media, news items which go viral on the social networks are increasingly seen as successful This additionally increases the importance of soft news in the media arena Social Networks increasingly important, but over-estimated themenpuls.ch: Which media contributions are shared the most in social networks?
www.foeg.uzh.ch Contact details: mark.eisenegger@foeg.uzh.ch f旦g Forschungsinstitut ffentlichkeit und Gesellschaft / Universit辰t Z端rich Andreasstrasse 15 CH-8050 Z端rich Tel. 044 / 635 21 23 www.foeg.uzh.ch

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Declining quality of the media and consequences for companies and business reporting

  • 1. www.foeg.uzh.ch Zurich, 29 July 2014 Declining quality of the media and what this means for business reporting The case of Switzerland f旦g / University of Zurich
  • 2. www.foeg.uzh.chPage 2 1. Media use and quality of the media 2. Media concentration 3. Financial and human resources 4. Quality of the media and corporate reporting 5. To conclude: Some words about social media Overview
  • 3. www.foeg.uzh.chPage 3 Media use and quality of the media
  • 4. www.foeg.uzh.ch Development of the use of selected media titles (1) Page 4 Tagesanzeiger Tagesanzeiger.ch NZZ Radio SRF 1 Rendez-Vous nzz.ch High-quality information media (paid-for newspapers, public broadcasters) are continuously losing ground Online information media are gaining
  • 5. www.foeg.uzh.ch Development of the use of selected media titles (2) Page 5 Blick 20 Minuten Blick.ch 20minuten.ch Lower-quality media titles are recording the highest growth in use (i.e. free commuter newspapers on/offline; online editions of tabloid press) In Switzerland, the free paper 20 Minuten already reaches 1.7 million people daily!
  • 6. www.foeg.uzh.chPage 6 The boom in free media and online news sites has led to a significant growth of the (red) zone of lower-quality media titles The segment of the high-quality media titles is shrinking Quality dynamics 2001 2013 Indicators used to measure media quality: Hard news (+) vs. soft news and entertainment () Providing background information (+) vs. presenting news without context () Weighing up arguments (+) vs. polemics and emotional appeals () Source transparency (+) vs. lack of transparency as regards the sources used () Etc. Low quality Medium quality High quality 24% 64% 36% population coverage 2001 in % German-speaking Switzerland Low quality Medium quality High quality 38% 49% 27% population coverage 2012 in % German-speaking Switzerland
  • 7. www.foeg.uzh.chPage 7 Since 2010, there has been a loss of quality almost across the board On- and off-line free press, with the online tabloids trailing behind Media quality of different media types (2010-2013) Publicradio Subscriptionpress Suday/magazine PublicTV Subscriptiononline Privateradio Typemean PrivateTV Tabloidpress Freenewspapers Freeonline Tabloidonline 2,50 3,00 3,50 4,00 4,50 5,00 Pointsscored 5,50 5,49 5,24 5,07 4,86 4,80 4,74 4,76 4,56 4,42 4,10 4,31 4,01 4,07 3,90 3,80 3,50 2,64 3,32 3,07 3,07 3,60 2,94 2,79 2,53
  • 8. www.foeg.uzh.ch Media use and quality of the media What does this mean for corporate communications? Page 8 The Swiss media arena faces a massive trend to a growing tabloid sector: lower-quality tabloid media titles are growing strongly while high-quality titles are losing ground Entertainment and emotional appeals are becoming increasingly important; this raises the risk of companies being exposed to scandals Companies find it harder to reach wide sectors of the population with complex topics and arguments
  • 10. www.foeg.uzh.chPage 10 Media concentration in the press market In the period 2001-2012, the number of media companies massively declined The publishing house Tamedia clearly dominates the press market (Share of Press market of Tamedia in german-speaking part: 40%; in French- speaking part: 70%) Concentration of the press market 2001 vs. 2012
  • 11. www.foeg.uzh.ch Media concentration in the online market Page 11 The concentration in the online sector is even higher than in the press sector Only the biggest players can afford hosting online portals with a nation-wide coverage Again, Tamedia is the strongest player in this field 23% 20% 17% 14% 11% 7% 6% 1% German-speaking Switzerland BZM NZZ-Gruppe United Internet SRG Mic. Adv. Ringier Swisscom Tamedia
  • 12. www.foeg.uzh.ch Media concentration means more of the same Page 12 Media concentration leads to a loss of diversity, especially in domestic, foreign but also business reporting The trend towards more of the same is even stronger online than in the print sector
  • 13. www.foeg.uzh.ch Media concentration What does this mean for corporate communications? Page 13 The more of the same pattern of media reporting increases the scope for companies to find broad attention with certain topics But on the other hand it also increases the risk that critical or scandalizing reports will quickly trigger nation-wide attention
  • 15. www.foeg.uzh.chPage 15 The press sector is losing advertising revenue; online information media cannot even nearly compensate the income losses This had led, among other things, to massive layoffs among journalists Lack of financial resources: loss of revenues Information press Other press In million CHF In million CHF 2011 988 686 2012 955 661 2011 1'337 667 2012 1'154 629 (Data source: Werbestatistik Schweiz) SalesrevenuesNetadvertisingrevenues Newssites Other online offers In million CHF In million CHF 2011 88 4232012 85 475 (Data source: Media Focus) Grossadvertisingrevenues
  • 16. www.foeg.uzh.chPage 16 As (human) resources shrink with the layoffs of journalists, externally produced content such as news agency and PR reports is becoming much more important in the media arena Lack of human resources: Growing PR influence 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Sunday (n = 191) Subscription (n = 743) Tabloid (n = 135) Business(n = 426) PRinfluence media reports PRinfluence other reports No measurable PRinfluence
  • 17. www.foeg.uzh.chPage 17 The media also react to their lack of financial resources by pooling their editorial staff (keywords: Newsroom, all-round journalism) In consequence, competent contact partners are being lost, especially in business reporting Lack of human resources: de-specialization
  • 18. www.foeg.uzh.ch Lack of financial and human resources What does this mean for corporate communications? Page 18 The lack of financial and human resources in journalism is a two-edged sword for companies: On the one hand, the risk of scandalization increases (outrage journalism costs less than quality journalism) On the other hand, the influence of corporate PR is growing rapidly in media reporting (growing demand for information that can be used rapidly and that requires no expensive work) In their media relations, companies have to convey more basics because the number of specialized sector experts in journalism is shrinking
  • 19. www.foeg.uzh.chPage 19 Media quality and corporate reporting
  • 20. www.foeg.uzh.ch Quality of the media and reputation relationships (1) Page 20 Negative quality of the media Volatility of reputation+ r = .31, p = .041 Coverage about moral / social aspects Focus on individuals ++ Negative quality of the media increases the volatility of the reputation development within media reporting A focus on individuals makes reputation volatile Mark Eisenegger
  • 21. www.foeg.uzh.ch Quality of the media and reputation relationships (2) Page 21 Negative quality of the media Reputation risks Coverage about moral / social aspects Focus on individuals + n.s. + + Both a focus of individuals and social topic coverage correlate with increased reputation risks (=negative reporting on companies) Mark Eisenegger
  • 22. www.foeg.uzh.ch Quality of the media and corporate reporting What does this mean for corporate communications? Page 22 The sinking quality of the media leads to more volatile reputation of companies: praise and shame quickly follow upon each other A focus on individuals (CEOs, Chairmen etc.) and coverage in social contexts increase reputation risks CEO and CSR communications have to be used selectively and in moderation Good CSR is based on action and must not be exposed as a PR trick
  • 23. www.foeg.uzh.chPage 23 And finally Social Networks important or overestimated?
  • 24. www.foeg.uzh.chPage 24 Social networks show a particular preference for soft news For online information media, news items which go viral on the social networks are increasingly seen as successful This additionally increases the importance of soft news in the media arena Social Networks increasingly important, but over-estimated themenpuls.ch: Which media contributions are shared the most in social networks?
  • 25. www.foeg.uzh.ch Contact details: mark.eisenegger@foeg.uzh.ch f旦g Forschungsinstitut ffentlichkeit und Gesellschaft / Universit辰t Z端rich Andreasstrasse 15 CH-8050 Z端rich Tel. 044 / 635 21 23 www.foeg.uzh.ch