If change is a constant for old media these
days, it stands to reason new media such as
Fairfax Digital are well placed to live with the
mantra – whatever form the alterations may
take. In broader terms, the entire Fairfax
Media organisation is adjusting to life under a new
chief executive.
Pippa Leary, Fairfax Digital managing director,
has this to say about David Kirk’s exit and the
appointment of his deputy Brian McCarthy as CEO:
“There has definitely been a subtle change in
direction.” Kirk, she says, was focused on online and
was great for when Fairfax Digital was in “hot-
house” mode preceding the economic downturn.
“Brian’s now a little bit more focused on the cost
part of the business, and for this economic climate
that’s perfect,” she says. “There are merits in both
styles, and I think both styles are equally suited for
different times. So it’s kind of like a natural
evolution for us, it’s been interesting to watch.”
At a more specific level to Fairfax Digital, Leary
and her commercial team have been confronted with
the small matter of adapting to downward pressure
on media bills from advertisers and agencies. “We
spend a lot of time thinking about how the media
agency community perceive us,” Leary says. “Last
year we lost a couple of points of share against the
top five, so we had to turn inwards and do a lot of
analysis about why we were losing sales
effectiveness. And we had to look at how the team
was being viewed. What we think happened was we
really got a little bit confused in our trade message.
We lost sight of the number-one point of our
message, which is ‘you cannot get to as high a
quality AB audience, online or offline, anywhere else
in Australia’. It’s a massive audience and we hold
them from 8am until 8pm, so you can get to them at
times when no other media outlet can. That’s a really
fantastic kernel, we forgot that and confused it and
started to try and compete on price and compete in
the performance world.”
And Leary says the tweak to that essential
market interaction is paying dividends: “We’ve now
had eight months of consecutive share gain. We’re
really happy with the way the team is functioning.
That said we have a program for another six months
of improvement.” Then there’s the very modern
change issue that crystallises the oldest of
publishing headaches – how to get past the editorial
versus commercial mindset that pervades many a
media business and bond the two together, in this
case online. As a former journalist and digital
producer, it’s a subject close to Leary’s heart.
“On a day-to-day level we hugely respect that
online editors have an instinct for what an online
audience want. But that needs marrying with
product management,” she says. “In my mind
traditional media is still too in love with the idea
that an editor just has a gut feel for what the
audience wants. Unfortunately, media consumption
habits are changing so fast you can’t rely on just
that. It’s important, you absolutely still have to have
it, but you also have to combine it with the science
of product development.”
As for the Australian Government’s proposed
changes to broadband, Leary says that, for Fairfax
Digital, the success of that particular change is all
about speed and technology. “If it can all happen
within the time frame we’d be really excited,” she
says. “But my gut feeling is rather than spend all
that money on fibre, maybe some of it could have
gone on wireless, especially for rural areas ... as I’m
not sure eight-years from now fibre will still be the
technology ... But we welcome it, and we love that
this government has stood up and done something.”
Seven years have passed since Lee Stephens,
now Aegis Media chief executive, brought Leary to
Fairfax Digital. Over that time she has learned much
from the top brass. “I’ve seen managers and CEOs
who can combine the drive to grow and think
strategically as well as have attention to detail.
They’re still very cost focused, but not so cost
focused they forget that this is an innovation
business. And that’s been really confronting for me,
because I’m not a details person.
“But to go into meetings with the CEO of Fairfax
where he is over every single detail, and is pulling
facts and figures out from within the business that I
run, that happens to you a couple of times and then
you make sure every time you get back in front of
him you’re so well schooled in every little aspect of
you're business. It’s a wonderful discipline.”
It's an especially handy lesson to have picked up,
given the challenges of operating in a downturn. As
Leary herself sums up: “Looking back, I don’t think
we've made too many wrong moves. But right now it
feels like we’re crossing a river jumping stone-to-
stone ... make one wrong move and you’re gone. So
we’re being really careful where we jump.”
