September 20, 2024

POLITICO Publisher Splits Media Operations

Major media publishers are restructuring. Axel Springer, the owner of POLITICO, has struck a deal with investment firm KKR to break up its business, splitting its media operations from its classified ad ventures. The move is part of CEO Mathias Döpfner’s strategy to streamline the company, with a particular focus on expanding its U.S. media presence.

Private equity is having a profound impact on news media. The decline of local newspapers in has been largely driven by the industry’s struggles to maximize profit. Many media groups have cut costs, reduced staff, and reduced reporting to prioritize financial returns.

Amazon Announces 5-Day RTO Policy

Amazon announced a shift in its return-to-office policy, requiring corporate employees to work in the office five days a week starting January 2025, a change from its previous three-day-a-week requirement, which was heavily monitored by management. Amazon joins other major companies, including Goldman Sachs and Tesla, that have required full-time office use for workers.  

Despite trends for return-to-office, PR pros continue to support flexible work arrangements. Recent studies have shown fewer than 10% want to work in the office full-time. The nature of PR and media work mean more blurring of work-life balance. A recent report showed communicators take less paid leave, with PR pros taking only 72% of their vacation time.

Warner Music Makes Major Layoffs

Media and tech companies continue to make cuts. Warner Music Group plans to lay off 750 employees, about 13% of its workforce, as part of a restructuring effort focused on its core recorded-music business. This is an increase from the 10% reduction originally planned, reflecting a deeper push to streamline operations amid broader industry challenges.

The media industry continues to face layoffs due to a slowdown in the advertising market and the rising influence of AI-driven search engines. Major publications like CNN and the Wall Street Journal, announced workforce reductions earlier this year as media companies shift strategies.

Sequence Summaries: Media Makeover, Office Overhaul, and Layoff Landscape

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September 13, 2024

Google Antitrust Trial Shapes Future of Online Ads

The world of online advertising is being upended by federal investigations into Google. Testimonial from the DOJ’s antitrust trial alleged manipulation by the tech giant to stifle competition. A ruling against Google could have far-reaching impacts across the ad sector, including more scrutiny of other major tech players like Meta and Amazon, increased regulation in the ad tech industry, and potentially reshaping how digital ads are bought and sold.

Testimony also detailed how Google’s control over both ad exchanges and ad-serving tools forces publishers and advertisers to stay within its ecosystem, limiting competition and innovation in the ad tech space. Google faces challenges outside the U.S., too. The European Union’s highest court upheld a €2.4 billion fine for antitrust violations related to its price-comparison shopping service.

Tech and Media Firms Face Ongoing Restructuring

Major consultancies and tech firms are restructuring amidst a trying time. PwC is laying off 1,800 employees, representing 2.5% of its U.S. workforce, marking its first formal job cuts since 2009. Tech layoffs in August surpassed 26,000, the highest since January, as companies shift focus to funding AI initiatives and adjust after overhiring during the pandemic.

In media, publishers continue to cut costs by reducing workforces. Penske Media Corporation, the parent company of Hollywood Reporter and Variety, has laid off several staff members over the past few weeks, though the company has not disclosed specific details. In 2024, major media entities, including Gannett, TIME, and Axios have implemented significant layoffs as ongoing financial challenges persist.

Misinformation Plays Central Role in 2024 Campaign

Misinformation is defining the 2024 U.S. elections. From fake social media accounts, to the amplification of misleading election claims, voters must contend with endless efforts to influence them. Tools like the News Literacy Project’s Misinformation Dashboard helps voters identify misleading content, encouraging individuals to rely on trusted sources and engage directly with local election offices to verify information.

While more are relying on AI, a recent AP survey reveals that most Americans do not trust AI-powered tools like chatbots for election information, with around two-thirds expressing skepticism about their reliability. Survey data from four countries show understanding algorithms increases vigilance about misinformation, but knowledge is unevenly distributed.

Sequence Summaries: Ad Antitrust, Corporate Cuts, and Misleading Messages

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September 4, 2024

New PR Tools Boost Productivity at a Cost

PR pros have more tools at their disposal than ever before, but their proliferation is coming with increased costs. After an initial AI boom, companies are beginning to determine the value of this emerging technology. Graphic design platform Canva is raising prices up to 300% as it incorporates AI-driven design tools. Google has re-launched its image generator tool, following months of reworking.

Communications company Muck Rack has acquired Keyhole to enhance its PR software, integrating ‘social listening’ capabilities, allowing users to monitor social media conversations and trends. A marketing agency, ironically named Eavesdrop, is pursuing new software that listens to user voice data to curate targeted advertising.

More Media Focus on Local News

As the news business continues to grapple with declining readership and revenue, more reporters are searching for new opportunities. Many journalists are moving away from major coastal cities to smaller towns and rural areas, a trend accelerated by the pandemic and remote work. Local journalism is evolving through innovative practices, such as leveraging digital platforms and new revenue models, to overcome challenges like declining print revenues.

The changed landscape is leading newsrooms to find new ways to build community. Outlets like The Texas Tribune are creating their own online platforms to foster dialogue among readers and build deeper engagement with local audiences. Media company Scripps is attempting to modernize and reshape local news by significantly expanding local newsrooms, especially in small and midsized markets.

Antitrust Inquiries Expand to AI and Advertising

Federal regulators are expanding antitrust inquiries into AI. Chipmaker Nvidia has been subpoenaed by the U.S. Department of Justice as part of an investigation into potential breaches of export controls related to its high-performance chips that power AI systems. The probe adds to growing scrutiny of Nvidia’s market power as it continues to lead the rapidly expanding AI industry.

The recent federal ruling declaring Google a search monopoly could have big implications for the world of tech and AI. Google’s antitrust defeat is drawing attention to tech companies that control critical AI technologies and infrastructure. Google is facing an additional antitrust trial, set to begin September 9, that will focus on potential violations regarding its ad tech.

Sequence Summaries: Tool Tradeoffs, Local Lens, and AI Antitrust

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August 28, 2024

PR Pros Facing Burnout Amidst Shifting Landscape

The public relations industry is navigating a new age of work. Muck Rack’s first-ever State of Work-Life Balance in PR report found that nearly half of PR pros considered quitting in 2024 due to burnout, with many preferring hybrid or fully remote work—fewer than 10% want to work in the office. Agency communicators are the most burned out—three-quarters reported high stress this year.

Overall, salaries are up for PR professionals. Muck Rack’s survey found that annual pay for brands is up three percent, at an average of $110,000. The average salary for PR pros at agencies ticked up four percent, at an average of $83,500. A survey also found that one in three PR professionals moved jobs last year.   
 
TikTok Users More Skeptical of Influencers  

A number of new updates are hitting social media platforms. Meta and Spotify are reportedly collaborating on a new social music-sharing feature that allows users to share music across platforms. Instagram will also allow users to add a song to their profile, a throwback to the MySpace era of social media.

A new study shows online influencers should reevaluate approaches to brand-sponsored campaigns, as TikTok users are increasingly skeptical of influencer authenticity. Meta’s Threads is exploring potential ad formats, with a focus on native content, promoted posts, and partnership opportunities.

Telegram CEO Arrested in France

As governments and intelligence agencies pursue tech oversight, new controversies are taking shape. Telegram CEO Pavel Durov was arrested by French police under a warrant that alleged the executive had not sufficiently moderated criminal activity on the app. Durov’s arrest has ignited a debate about free speech, particularly in Ukraine and Russia, where the encrypted Telegram app is extremely popular.

In the U.S., Meta CEO Mark Zuckerberg made headlines by saying that Biden administration efforts to address COVID-19 misinformation online were wrong. In a letter to the House Judiciary Committee, Zuckerberg said he regretted not pushing back on pressure from the White House to “censor” content on Facebook and Instagram.  

Sequence Summaries: PR Pressure, Platform Progress, and Tech Tensions

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August 21, 2024

Federal Agencies Aim to Rein in Social Media Disinformation

The struggle over information is intensifying as U.S. elections draw closer. Federal agencies are resuming coordination with social media companies to combat foreign disinformation, following a Supreme Court ruling last June. The news comes on the heels of confirmation by intelligence officials that the Trump campaign had been breached by Iranian hackers.     

As AI ascends and misinformation magnifies, new concerns are permeating across the political landscape. To combat disinformation, voters must be more skeptical when consuming digital news. Digital doubt is more important as major social media companies retreat from regulation. This month, Meta announced it would shut down its CrowdTangle tool, which had been vital for tracking disinformation across Facebook and Instagram.

Another U.S. Judge Blocks FTC’s Noncompete Ban

The back-and-forth battle between labor and business continues. This week, a U.S. judge struck down the FTC’s recent rule to ban noncompete agreements. The temporary block is the latest challenge to the decision made last spring to lift the restrictive rules impacting 30 million workers. In July, a federal judge also partially blocked the FTC’s ruling, following intense lobbying by the U.S. Chamber of Commerce.

Media industries continue to adjust to changing norms in business and labor. TIME magazine announced new staff cuts following reductions in advertising budgets. Paramount Global has begun long-planned layoffs that will reduce its workforce by 15%. In PR, a new report shows 44% of professionals left the profession this year due to job burnout.

AI Advertising Boosts Meta’s Profit Margins

The emergence of AI is dramatically altering the world of advertising. After steep cuts and heavy AI investment, Meta is seeing a boom in its ad business. The company’s new tools leverage AI to optimize ad campaigns based on specific business objectives. CEO Mark Zuckerberg emphasized AI across its advertising services during a recent earnings call.

As regulators look to ramp up AI regulation, business interests are expressing broad opposition. California legislators are set to vote on a bill that would impose regulations on AI development. The legislation would impose mandatory safety testing and the requirement for a kill switch—a safeguard that would shut down or deactivate AI models that operate unpredictably or cause harm.

Sequence Summaries: Digital Deception, Labor Lockdown, and AI Advertising

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August 14, 2024

Campaign Communications Compromised in Hacks

Communications are being compromised as the 2024 campaign intensifies. The Trump campaign confirmed it was hacked after internal documents from an anonymous source were sent to multiple media outlets. The campaign has claimed information was obtained by Iranian hackers aiming to interfere with the 2024 election. The operation also targeted campaign staffers on the Harris campaign.

Several news outlets received confidential information, including vetting reports on potential vice presidential candidates, but most have refrained from publishing details. Instead, they have focused on the possible foreign hack behind the leak, marking a cautious approach following lessons learned from foreign interference in the 2016 election.

More Brands Center Social Media

Social media users’ attention spans are shifting. Consumers are increasingly favoring short-form, engaging content across platforms like TikTok and Instagram Reels. More marketers are adapting strategies to focus on creating quick, captivating content that aligns with these trends to effectively capture and retain audience attention.

Brands are centering social media in their PR strategies. More companies are understanding the power of creative storytelling, timely responses, and leveraging influencers to build connections with audiences. A slew of new social media tools are helping brands. Instagram has unveiled new Reels templates, while TikTok announced audience insight tools to give marketers more information on consumer behavior.

‘AI Nationalism’ Rises Across Globe

The intelligence and communications landscape continues to be redefined by AI. Countries worldwide are increasingly prioritizing the development of their own artificial intelligence technologies, driven by fears of dependency on foreign AI advancements. This AI nationalism has led to new laws, regulations, and alliances aimed at ensuring that the benefits of AI, such as economic growth and enhanced national security, are retained domestically.

AI-powered search is transforming PR, elevating AI over traditional content marketing. As AI-driven search engines prioritize authentic, expert-driven content, PR professionals will gain more influence in shaping brand narratives and visibility. AI tools specifically designed for communicators are helping PR pros streamline tasks like content creation, media monitoring, and audience engagement.

Sequence Summaries: Compromised Comms, Social Surge, and AI Ascension

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August 7, 2024

Google Loses Antitrust Lawsuit Against DOJ

Google has lost a significant antirust lawsuit against the U.S. Department of Justice and several states. A federal judge ruled that the tech titan illegally monopolized search and advertising markets. The trial, which began last September, found that although Google maintained an illegal monopoly, the company did not unfairly disadvantage rivals—a precedent Apple may use against accusations it hampers third-party app development.   

With the emergence of AI and the disruption of online search, Google is navigating uncertain times. Although the search giant will appeal the decision, another antitrust trial is set for this fall. Google also continues to be investigated for potential antitrust violations by the European Commission.

Advertising Slowdown Prompts Press Cuts  

Traditional news outlets and online sites are shedding jobs amidst the continued fracturing of the media landscape. Digital media outlet Axios announced a 10% reduction in staff, citing shifts in media and the need to focus on core business areas. Axios received pointed criticism for the tone of a staff memo from CEO Jim VandeHei about the layoffs.

Fears of a slowdown in the advertising industry are leading to even more layoffs. The Tampa Bay Times is cutting one-fifth of its workforce to control costs due to revenue shortfalls. Outside of media, the tech industry continues to see cuts. Chipmaker Intel announced 15,000 layoffs as it attempts to compete against AI-powerhouse Nvidia.

Media Momentum in the U.S. Presidential Election

The 2024 U.S. political season is in full swing following the finalization of the two major parties’ presidential tickets. Democratic nominee and Vice President Kamala Harris has significantly improved her relationship with the media in recent months, resulting in positive press coverage and momentum leading up to the party’s convention later this month.

Political campaigns offer valuable PR lessons for non-political accounts, emphasizing the importance of data-driven strategies, compelling storytelling, and rapid response to public sentiment. By leveraging these tactics, brands can enhance their engagement, effectively manage crises, and build stronger connections with audiences.

Sequence Summaries: Google Grapples, Industry Instability, and Political PR

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July 31, 2024

Search Landscape Shifts as AI Advances

For years, Google has dominated online search—that’s changing with new AI-infused technologies. OpenAI has announced SearchGPT, a prototype search engine combining generative AI with real-time internet information. The company plans to integrate search features into ChatGPT, which has already supplanted traditional search engines for many users.    

It’s not just OpenAI entering the AI-powered search market. Perplexity, an AI search engine, has introduced a revenue-sharing program with six news publishers, including TIME and The Texas Tribune. The agreement aims to address plagiarism accusations by sharing advertising revenue generated from AI-generated search responses that feature published works.

Companies Willing to Pay More to Power AI

Concerns about climate impact and energy use are emerging as AI advances. The rising demand for generative AI is heavily taxing global power grids, with a single ChatGPT query consuming about ten times the energy of a typical Google search. While AI requires significant energy, it offers energy-saving benefits in industries like manufacturing and agriculture. Demand is also sparking clean energy incentives, with large majorities of companies willing to pay more for clean energy data centers to support AI initiatives. 

Following increased efforts to rein in AI, the U.S. government continues to press companies on ethical AI. The White House announced new commitments from companies, including improving safety guidelines and managing risks to human rights posed by AI. Microsoft is receiving increased scrutiny over its AI involvement from investors, who have not yet seen significant financial growth. 

CrowdStrike Crisis Provides a Reminder for PR Pros

Cybersecurity company CrowdStrike is facing widespread criticism for its handling of an historic IT outage earlier this month. CEO George Kurtz was criticized for not communicating clearly and failing to apologize for the disaster in his initial statement. Although, some PR pros have argued that a more measured response in lieu of an initial statement was the right course of action.  

The CrowdStrike crisis is instructive for communications teams everywhere. Effective crisis management involves investigating the incident, understanding its scale, issuing a prompt and empathetic apology, and providing clear, consistent updates on resolutions. Crises are unpredictable, but having a comprehensive response process can help businesses preserve trust and emerge stronger.

Sequence Summaries: Search Storm, AI Energy, and CrowdStrike Crisis

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July 24, 2024

President Biden Bypasses Mainstream Media in Big Announcement

As traditional news outlets struggle with readership and revenue, social media has become a preferred platform for politicians. President Biden bypassed mainstream media by announcing his withdrawal from the presidential race directly through his social media accounts, catching many by surprise. For PR pros, effectively reaching audiences on social media requires strategies that align with platform-specific trends and user behaviors.

While more politicians are using social media to communicate, data suggest that social media referrals are declining while newsletters and direct engagement methods are becoming increasingly important for audience reach. A new report from LION Publishers shows a significant shift toward direct communication methods over traditional social media platforms.

While AI Expands, Data Declines

Content creation is rapidly changing as AI continues to emerge. New research from Capterra finds that by 2026, nearly half of all business social media content will be AI-generated, up from 39% in 2024. Condé Nast has issued a cease-and-desist letter to AI search engine Perplexity, demanding it stop using content from its publications, which include The New Yorker, Vogue, and Wired, accusing the startup of plagiarism.  

As AI expands, concerns are mounting around the sustainability of the emerging technology. New research from the Data Provenance Initiative reveals a sharp decline in the availability of data used for training AI models due to increased restrictions from web sources. Meta recently announced their vision for open source AI, releasing its latest models which aim to make technology more broadly accessible for developers and organizations.

Newspapers and Magazines Must Innovate to Survive

To stem the tide of newspaper decline, some publishers are suggesting new ways to reach audiences. Newspapers should emphasize the importance of uniting with natural allies, including diverse organizations, and focusing on reader metrics over circulation. Maintaining a strong news brand and fostering trust is key. New research suggests more than half of consumers would recommend a brand if they trusted it.

Despite the struggles of the newspaper industry, the number of reporters and editors in the U.S. has remained relatively constant over the past three decades, according to census data. While newspaper jobs have plummeted, many journalists have transitioned to other sectors such as online publishing, nonprofits, and digital-only outlets.

Sequence Summaries: Biden Bypass, AI Advances, and Publisher Partnerships

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