Sunday, 28 July 2013

Final Report: Guardian


“How has the Guardian adapted itself to the 21st century landscape of digital journalism and what does this mean for the organisation’s future?”




Abstract
The following report will be detailing the Guardian’s transition into the digital era of journalism and just what the transition means for the future of the organisation. The Guardian are renowned for being digital pioneers of the industry and have recently adopted a new strategy in order be profitable in the ever-changing field that is modern journalism. Nowadays the paper tends to focus on analysis and comment on stories rather than scooping the breaking news, more ‘Newsnight’ than ‘News at Ten’, but why is this, and what forced the organisation to make operating changes?
Throughout the report I will be drawing from a variety of online sources, as well as my own personal experiences working for the paper as part of my placement. My time there was divided across two separate departments, with 72 hours spent working on the Multimedia department and 35 hours on the sports desk.
Methodology
To gather the information for the report, I spoke to a number of staff during my placement and used several online sources. During my time on the Multimedia department I was working alongside audio producer, Jason Phipps, and assisting him with the production of his shows, the Tech and Science Weekly podcasts, as well as numerous other tasks. My week on the sports department consisted of an assortment of activities, including writing articles for the website, and I will be touching on my experiences in further detail throughout the report, linking them to the digital transformation that the Guardian has undertook.
‘Digital First Strategy’
In June 2011, Guardian Media Group (GMG) announced a five-year transformation programme for the Guardian and Observer as part of its “digital-first” strategy. With times changing and newspapers dying a slow death, chief executive of GMG, Andrew Miller claimed that the strategy would push the organisation “beyond the newspaper, shifting focus, effort and investment towards digital, because that is out future,” and that the transformation will see the Guardian “change from a print-based organisation to one that is digital-first in philosophy and practice.” (The Guardian. (2011). Guardian News & Media to be a digital-first organisation. Available: http://tinyurl.com/698qta6  Last accessed 29th April 2013). As part of the plan, GNM reallocated a £25million investment that was earmarked for print, to the digital side of the organisation, and the objective is to at least double digital revenue by 2016.

In doing so, the Guardian became the first major UK newspaper to adopt such a stance, but the figures suggest that there was little other option for the organisation.  Speaking at the announcement, Miller claimed that the newspaper and its sister publication, the Observer, had lost £33million in cash terms over the last year and warned that unless business operations were dramatically altered, GMG could be completely out of funds within three to five years. The organisation tried to gain at least 100 voluntary redundancies, such is their financial strife, but only 30 or so volunteered. The latest figures from the financial year ending April 2012 really emphasise the importance of making a change, and the reasoning behind it. In April 2012 operating losses were recorded at £44.2million and the newspaper’s circulation fell 11% to just over 204,000, with income from print advertising down 4%. (Sabbagh, D. (2012). Guardian and Observer report losses of £44.2m.Available: http://tinyurl.com/cxeqs5c  Last accessed 1st May 2013). 

If an organisation’s circulation falls below 200,000 it becomes a real struggle to gain any substantial income from advertisers, who feel that their investment isn’t financially viable. In January 2012 the Guardian newspaper shrank, with the Film & Music supplement being axed and the sport supplement reduced to a two days a week publication. Its G2 supplement was also reduced in an attempt to halt losses. It wasn’t all doom and gloom however, with the digital side of the organisation announcing promising figures; figures that justify employing a digital first strategy. In the same period, digital revenues rose 16.3% to £45.7million (around a quarter of the organisation’s whole revenue) and of that total, digital advertising was up by 26% to £14.7million. (Sabbagh, D. (2012). Guardian and Observer report losses of £44.2m.Available: http://tinyurl.com/cxeqs5c  Last accessed 1st May 2013). GNM obviously saw this as a great opportunity to capitalise on their digital reach and at the same time compromise the financial losses on the print side.

'In-house' changes
For the first time in their history, the Guardian announced in October 2012 that they would be employing a “Director of Digital Strategy”. The new role was handed to Wolfgang Blau, chief editor of ‘Zeit Online’ and the German editor of the year in 2011, and he will be charged with: “helping (editorial and commercial teams) to grow global audiences and revenues by developing new digital platforms that deepen reader engagement and provide new opportunities to commercial partners.” (Andrews, R. (2012). Guardian hires first digital strategy director to grow online business. Available: http://tinyurl.com/9qkp7dh Last accessed 2nd May 2013).

Blau’s starting date was 1st April 2013 so I missed the opportunity of meeting the man and seeing how he imposed himself on the multimedia department in person. I did however hear his name mentioned often on the department and Jason Phipps, the audio producer that I was working alongside, was excited at the dawn of a new era.

Social Media and Apps
In September 2011 the Guardian built on their digital first strategy as they unveiled a Facebook application. The app allows users of the social networking site the choice to read and share Guardian and Observer content within the Facebook environment, bringing the paper’s work to a larger, engaged audience. It also allows a more ‘social reading’ experience where users can see what their friends have been viewing from the Guardian, and what articles are proving the most popular. Guardian News and Media’s Head of Digital Engagement, Meg Pickard, said of the app; “We know that a lot of Guardian readers are keen Facebook users, and vice versa, so we wanted to create a news experience that was native to the Facebook environment. The app draws on the social functionality they are already familiar with to highlight and discover quality Guardian content, and make users’ reading experience more personal and relevant.” (Guardian, The. (2011). Guardian announces new app on Facebook to make news more social. Available: http://tinyurl.com/c9gnk5a Last accessed 2nd May 2013). 
Within two months of its release the app had had over 4million users, with a million extra page impressions being recorded per day.  Chief executive of GMG, Andrew Miller, was delighted with the instant impression the app made, and the new audiences that were able to be engaged; “As well as increasing traffic, the app is making our journalism visible to new audiences. Over half of the app’s users are 24 and under, traditionally a very hard demographic to reach for news organisations. The Facebook app is one of a number of successful launches by the Guardian in recent months as our digital-first strategy gains momentum.” (Arthur, C. (2011). Guardian's Facebook app installed by more than 4 million users. Available: http://tinyurl.com/8yt4ef9 Last accessed 3rd May 2013). Interestingly enough, the most viewed and shared articles via the app were old stories, some from as early as the late 1990’s. In a sense this relates back to the Guardian focusing on analysis and comment rather than pure news stories; the style retains interest and relevance for a longer period of time as it more personal and opinionated.
Reaching a peak of 6million active monthly users in April 2012, the app was a definitive success and received an upgrade in December of the same year. Whereas before users had to read articles within the Facebook environment, the app now takes audiences straight to the story on the Guardian’s website. The Guardian saw the reach that Facebook has and felt that they were missing an opportunity by allowing users to bypass their own site whilst still enjoying their content. It was a shrewd move by the organisation as if only half of the app’s 12 million users do visit Guardian.co.uk, the site’s traffic will receive an exponential boost. This will obviously lead to an increase in online advertising revenue and help reduce the organisation’s financial losses. Anthony Sullivan summarises the move on the Guardian’s website; “Implementing the reading experience within Facebook was also a conscious decision to give us space to experiment away from the main Guardian website. The app has given us access to a hard to reach audience and has helped us learn much more about our new and existing readership, which as a digital organisation, is crucial.” (Sullivan, A. (2012). Guardian and Facebook - a more social experience.  Available: http://tinyurl.com/a7hwz63 Last accessed 4th May 2013).

As well as Facebook, Twitter is an integral part of the Guardian’s digital strategy. The Guardian’s main twitter feed has just under 1million followers, and overall the organisation has over 30 different Twitter accounts for different departments. Similar to the way in which the Facebook app operates, links that are posted on the Twitter feed direct users straight to the Guardian website. This increases traffic to the site and users can ‘re-tweet’ stories they have read which will appear on their friend’s timeline even if they aren’t followers of the Guardian themselves. A new audience can be reached as a result. 


The Guardian also made alterations to the way in which readers can interact with stories in December 2012. They announced features such as interactive polls for sports stories and an alteration of the commenting method for articles. This interactivity creates a digital community which in turn means users will come back to see if their comment has received any responses. (Sullivan, A. (2012). Guardian and Facebook - a more social experience.  Available: http://tinyurl.com/a7hwz63 Last accessed 4th May 2013).
Whilst working on the sports department I was asked to write a couple of cricket features for the website and saw first hand just how the social media side of things intertwines with the work that sports journalists produce. My articles were published on the website and now as standard with the Guardian there are options for the article to be shared via social media websites. The feature allowed my articles to reach audiences that it may not have before and it was great to actually be a part of the digital-first strategy. When the articles were put up on the website they were also posted on the Guardian Sport Twitter and Facebook feed which directed more traffic towards the site.



With the emergence of tablets and smartphones, the Guardian have invested heavily in optimising their output for such devices. There is a Guardian Kindle edition, a specific version on the website formatted for mobiles, and an app for iPhones, iPads, Windows phones and Blackberry devices. Speaking at the Guardian Mobile Business Summit 2012, Anthony Sullivan, group product manager for Guardian Core products claimed, “Mobile is having a huge transformational effect not only on how our audience seek out content, but how they’re discovering it. The way we’ve organised ourselves reflects that we put mobile really at the centre of our planning.” (Dredge, S. (2012). Guardian mobile visits overtake desktop at some times of day. Available: http://tinyurl.com/c4pfvrd Last accessed 5th May 2013). The statistics confirm that the area is one of real growth for the organisation. 

At the start of 2011, mobile devices accounted for just 10% of visitors to the Guardian’s core products, but by December 2012, the figure is closer to 30%. Once you add tablets to the mix, the figure is around 35%. (Dredge, S. (2012). Guardian mobile visits overtake desktop at some times of day. Available: http://tinyurl.com/c4pfvrd Last accessed 5th May 2013). The reach of mobile devices is so much in fact that research has revealed at certain points of the day, there are more people accessing the Guardian from mobile devices than desktop, and the tipping point is only a couple of years away. “If you look between 6am and 7am in the morning, we’re now getting more visits coming from mobile devices. On Saturdays at 3pm when the Premier League is in full flight, we also have more mobile devices than desktop.” (Dredge, S. (2012). Guardian mobile visits overtake desktop at some times of day. Available: http://tinyurl.com/c4pfvrd Last accessed 5th May 2013).




Audio
The audio side of the Guardian is a crucial component of its digital presence. The website has over fifteen podcasts, including Football Weekly, Science Weekly and Tech Weekly. The most recently released statistics surrounding podcast downloads date back to 2008, where 1.5million podcasts were downloaded in January alone, with Football Weekly, the most popular podcast, attracting an impressive 80-100,000 downloads a week. (Oliver, L. (2008). BBC podcasts criticised by Guardian audio head for 'unimpressive' audiences. Available: http://tinyurl.com/cwkwehw Last accessed 5th May 2013).
The figures are sure to have increased considerably by now. To capitalise on such an impressive reach, the Guardian announced in 2009 that brief adverts would now feature on their podcasts, a lucrative source of income. During the second half of my time on the department, once I had learnt the ins and outs of the production process, I was asked to mix sections of the final podcast together. As part of the mixing criteria I was instructed to include two advertisements, one at the beginning of the podcast and one halfway through. This gave me the opportunity of seeing the commercial side of audio production first hand.
Whilst working on the multimedia department I was assisting with the production of the Science and Tech Weekly podcasts and got to watch the Football edition recorded several times. During my time there one of my tasks was to archive all of the old podcast episodes in preparation for the switch to SoundCloud. From March 2013, the Guardian’s output will appear on SoundCloud as well as iTunes and Guardian.co.uk. This move allows the organisation to reach an even larger audience and adheres to the digital-first strategy.  What struck me was the sheer scale of the multimedia department, and I got to see in person just how crucial the department is to the Guardian. There were eight studios, in excess of 100 iMac Pros and over 50 staff all working on a variety of multimedia products.  Video was also created in the same department but I will mention more on that later. The sheer amount of iMac pros, which cost around £2,500 each, was evidence of the significant investment that had been put aside for multimedia. When speaking to Tim Nice, the producer of the Books podcast, he told me at how ten years ago there was hardly any of these facilities available for staff, as it simply wasn’t necessary.



What I learnt more than anything was how involved the production process is and just how much work goes into it. The Tech Weekly podcast for example required several days of researching content before the technical process even began. The podcast employed four different people; Jason was the producer, Jemima Kiss the presenter, with Charles Arthur and Aleks Krotski the tech correspondents. With an average of four employees per show, sometimes more as in the case with Football Weekly, and there being over fifteen different types of podcast, you can see the importance that the Guardian place on their audio output. When using the studio to record news bulletins or interviews we had to book a specific slot and ensure we were punctual and worked fast so that other podcasts and audio features weren’t disrupted. This is due to the sheer wealth of audio output that the Guardian export and the studios are always in high demand as a result. 
One thing I was impressed with was the size and quality of the studios. Having previously had experience at TalkSport and other local media organisations, I had noticed that there were often one or two main studios and then several scaled down smaller versions. This however was not the case at the Guardian, and although there was one larger studio that Football Weekly was recorded in, the other studios were all identical with full mixing desks, four microphones and ISDN lines. Having only moved to their Kings Cross headquarters in 2008, it was evident from viewing the facilities that the Guardian had invested significantly and specifically wanted the multimedia department to be well equipped for the digital era.
The editing software that is used for audio at the Guardian is Cubase and it cost tens of thousands of pounds to get the licensing for every individual iMac Pro. The Guardian Audio edition had just been released during my time there, and as Jason produced the show, I also assisted in its production. The Audio Edition is an audio summary of the biggest news stories of the week and was designed to reach new audiences that can now absorb Guardian products whilst driving, on the move or if they are blind. This is a new addition to the digital first strategy and it was great to be a part of its fledgling period. I was editing down segments for the show for Jason and then I was taken through the process of how audio is uploaded to iTunes and Guardian.co.uk. The export process was interesting as it gave me an insider’s look at how the Guardian ensure their products are reaching the right people. I learnt how to add ID3 tags and keywords, which allow web users to access the shows with ease. One thing that surprised me was that the upload had to be sent to a technical department downstairs before appearing on the website itself. This shows the scale of digital operations at the Guardian, as there is a department for producing the multimedia and then a department specifically for checking over the tags, content and format before it reached the website. This care and attention that the organisation has for its digital products shows just how highly they value their multimedia output and the audience receiving it.
Every Wednesday on placement, I had to write the Tech News bulletins for the podcast and this taught me a lot about content ‘re-purposement’. Jason advised me to scan the Tech news section of the Guardian website and then re-write the top stories for audio format. It taught me a lot about the differences between writing for the eye and the ear and I found it interesting that the organisation use their online content for audio purposes. This shows just how in tune the Guardian are with their digital audience and they know that their demographic are media-savvy and will be able to pinpoint the differences between style across differing formats.
In my last week at the department, Jason set me a couple of individual mixing projects that he had been sent from the picture desk downstairs. As well as podcasts and interviews, a major part of the Guardian’s audio output are its audio slideshows. I was asked to compile a backing track for two slideshows; one regarding the opening of a Pangolin Sculpture Exhibition in London, and the other marking the tenth anniversary of the invasion of Iraq. It was a very enjoyable task and I was delighted when my tracks were used for the final pieces on the website. By witnessing how other departments all come to the multimedia department made me realise further just how crucial digital media is to the Guardian. Although working in the multimedia department, I was collaborating with staff from the politics and culture desks, which showed me just how important video and audio are to the organisation. A story about politics, sport, travel or any other subject, is almost guaranteed to involve some form of multimedia, whether it be a video report to accompany the copy, or an audio slideshow like the ones I worked on. Throughout the entirety of my time on the department I noticed how the multimedia staff are almost skilled hands for hire with journalists from all over the building coming in to ask for a video or audio segment. The multimedia department is arguably the cornerstone of operations at the Guardian and is a diverse, fast-paced environment.
Video
Video is just as crucial as audio to the Guardian’s digital output. Nearly every single story on the website will have an accompanying video report and the video section of the website has interviews, reports and analysis ranging across an array of different topics.  
Although I was working on the audio side of the multimedia department, I managed to talk to several video producers and observe them at work. Every day there was at least twenty staff working at one time on a variety of different videos, and it was interesting to see how some staff switch between audio and video projects. This showed me the versatility that journalists need to succeed at a top institution such as the Guardian, and the skills that are required to have a successful career within modern journalism.
Whilst there I managed to sit in on the recording of the ‘European Paper Round-up’, a weekly sports feature in which James Richardson runs through the continental headlines from the past seven days. Having worked primarily in an audio capacity, it was great to see how video is produced and I learnt a lot about the production process. I got to see how the autocue is constructed and was able to assist with writing the script. In line with their digital strategy, the Guardian also launched a video version of their Football Weekly podcast which I was able to see put together.
On the sports desk I was required to research videos for another regular feature; “Classic YouTube”. I had to scour the web for interesting and relevant videos and the feature is one of the most popular on the sports site.

Ad Campaign: “The Whole Picture”
In order to get their digital-first strategy into the public eye, the Guardian launched a major brand campaign to showcase its multi-platform credentials in February 2012. The tagline of the campaign was ‘The Guardian: The Whole Picture”, an intelligent slogan which encapsulates the organisation’s ethos and diverse range of multimedia.
The campaign was devised by award-winning creative agency Bartle Bogle Hegarty and featured a series of TV, cinema, outdoor, press and digital advertisements. In line with their digital presence the campaign also included a 24-hour takeover of the UK YouTube homepage.
GMO CEO, Alan Miller, said of the campaign: “We’re giving voice to our brand at a time when the Guardian is evolving from a newspaper into a truly multi-platform, global and digital-first organisation. We are becoming even more focused on our consumers and customers, and beginning to shape our activity around a more sophisticated understanding of our audience. The aim is to reach progressive audiences and show them why they should spend time with us.” (Guardian, The. (2012). Guardian launches major new brand campaign. Available: http://tinyurl.com/amrf3ww Last accessed 29th February 2012).


The Future
The objective for the Guardian’s digital first strategy is to double digital revenue by 2016, and although change is occurring only time will tell whether the objective is achievable. Despite now being the third most popular newspaper website in the world, after the Daily Mail and New York Times, the Guardian’s digital advertising is still not bringing in nearly enough revenue to offset losses on the print side. However, there are still three years left of the programme and with Wolfgang Blau now director of digital strategy there still remains cause for optimism.
There are rumours that the Guardian could be forced to become a completely digital organisation within the next couple of years. When quizzed on the possibility of this happening, CEO of GNM, Andrew Miller was not wholly opposed to the idea; “We are now very clear that we have a digital first strategy. We are much more concerned about telling stories than we are about the platform. From a commercial point of view I absolutely can see a time when there will not be as many newspapers on the high street.”  (Rushton, K. (2012). Guardian pins digital future on citizen journalism. Available: http://tinyurl.com/6nk56ny Last accessed 1st May 2013).

In my opinion I see switching to a digital only organisation as the only real solution to transforming the Guardian into a sustainable business model. Although it clashes with the Guardian’s liberal ideology, I can see the website installing a pay wall or tariff type system, as at the end of the day it is a business. Andrew Miller has also hinted at this being a solution if revenue does not pick up; “We will continue to monitor pay walls and we aren’t anti pay wall, that’s for sure.” The organisation has already effectively starting charging for content with the launch of its iPhone and iPad apps, and I see this as the future of journalism. It would be a gamble but the Times’ pay wall has proved a major success and they still remain the most viewed newspaper website on the Internet.

One promising thing for the organisation though is their grasp on the mobile market. As aforementioned, mobile users of the Guardian are close to overtaking desktop users, so when this tipping point occurs the organisation are in a great position to make profits.

Conclusion
In conclusion, the digital first strategy that the Guardian has enforced is without doubt gradually increasing the organisation’s online readership. However, worrying newspaper circulation statistics mean that a digital first strategy might not be enough alone for the organisation, who are facing the real possibility of running out of funds over the next five years.
There has been several new products launched this year by the Guardian, and with a director of digital strategy now in place it will no doubt be fascinating to see which direction the organisation takes. If the figures do not pick up for the Guardian however, I see no choice other than switching to a digital only organisation.



Appendices and full references