Analysis: MRN’s plan to diversify and conquer Anila Azhar
For the likes of STW and the Photon Group the future is all about growth into diversified services, while during a recent trip to Australia, chief executive of WPP (which owns 19.5% of STW) Sir Martin Sorrell, painted a picture five to 10 years from now where it would be generating the bulk of its revenue from non-traditional advertising businesses. So last week when media company Macquarie Radio Network announced its move into public relations, it wasn’t an altogether surprising move.
MRN is a publically listed company, majority owned by John Singleton. Its flagship station 2GB 873 is Sydney’s top rating talk station and has been in the game for over 80 years. Almost a year ago it acquired video production company Pixel Mill, and has spent the past two years beefing-up its online credentials in a bid to attract younger consumers. And now it has added the newly-created PR firm, Map & Page (MAP) to the group, headed by the co-founder of PR company the Launch Group, Antonia O’Neill. MAP has also incorporated a digital PR division – Litmus Digital. O’Neill says: “We know that digital integration is no longer a cutting edge service category, it is a must-have offering.”
MRN chief executive Angela Clark says the company’s move into this area was aimed at filling a void in the business’ structure.
“From the client’s perspective if you are trying to make contact with the consumers, in this changing world, then you may want to do more than just produce display ads. You may want to produce some content that sits within an environment, or you might want someone to devise what used to be called a traditional communications strategy, but it might be in a viral sense.”
And on the acquisition of Pixel Mill, Clark adds that to maximise the value of audio content across multiple channels it needs to be converted into multiple formats and mediums. “So audio is great, but we also want to turn that into video. So, why does a video/production business, make any sense for a radio business? Because we are not experts in video and it is now needed.”
Its growth online has seen the creation of a national video news service available through the 2GB website as well as in podcast format. It has also launched lifestyle websites (www.freedigitalcontent.com and www.fashion-scoop.com) to more directly cater for younger demographics.
Just two months ago MRN also launched a national news site, www.livenews.com. Clark says: “Our capacity to populate the site with rich media – audio and video for a radio business is quite strong.”
She says there is a definite shift in the overall media landscape. “I think media companies, creative agencies, and media buying companies are all evolving in this way. We are trying to evolve a business to deliver the kind of integrated solutions that clients want, and I don’t know that all media companies will do this, but some will, and a lot of creative/media agencies, are already heading in this direction.”
Paul McNab, PricewaterhouseCoopers’ leader of technology and entertainment media sector in Australia, says the real trend in the media landscape lies in the crossover of skill sets among workers.
“There is a real trend that people with skill sets appropriate for ad agencies and so on are now turning up in media organisations and helping them work through their strategy for cross-platform ad sales.”
He said the lines of distinction between businesses are now blurred.
“The previous bright line between businesses no longer exists. There is now a subtle blurring of the distinction between some of those businesses. I think it is going to be some time before it becomes clear how it will pan out. What we have noticed is that, as we see media organisations trying to broaden their footprint, they invariably bring creative talent in-house.”
Paul Meischke, group business director at Carat, says diversification is not a new trend for the media industry.
“I think if you look inside every single radio network, TV station, they all have someone who helps with things doing things like PR, or promotional activity. I guess it is just a way to not only do things for current customers, but potentially get some new customers in.”
In terms of cross-selling using the multiple platforms, Clark says it will be largely dependent on the nature of the client.
“It really depends on what the client wants to do. It won’t be enforced, it will be done where it would be appropriate. It is certainly not one size that fits all.”
While Clark is hesitant to talk about its future plans, she says livenews.com will expand into Melbourne.
