Business

Capitalist content

SAN FRANCISCO — The wall between editorial and advertising collapsed here yesterday when a controversy erupted over a Forbes program that allows advertisers to pay outright for stories.

The debate pitted Bloomberg Businessweek Editor-in-Chief Josh Tyrangiel against Forbes Media Managing Editor Bruce Upbin, both of whom were on a panel hosted by the MPA, the Association of Magazine Media, and moderated by Good Housekeeping Editor-in-Chief Rosemary Ellis.

The two drew praise at the start of the conference when Forbes landed a coveted spot on a prestigious list of top magazines by trade publication Advertising Age, which also honored Tyrangiel as Editor of the Year.

A couple of years ago, Forbes Media’s chief content officer, Lewis DVorkin, instituted a sweeping overhaul that opened Forbes.com to hundreds of postings from outsiders who were often unpaid contributors. Those contributors report up through the editorial side.

The controversy centers on a parallel program started by the business side, which allows advertisers to — in a sense — “pay to play” in the editorial sandbox.

Through Forbes BrandVoice, writers who are paid by advertisers can also submit articles. About a dozen marketers, including Microsoft, Dell and Oracle, use the program, which was called Forbes AdVoice before it was rebranded this month.

The advertiser-sponsored copy appears in the same style and format as articles contributed by Forbes writers and editors, although there are some subtle signs to alert readers that it is not pure editorial.

Upbin said yesterday that editors have to “give up” the idea that they are only ones who are smart enough to control content on the Web.

Often the marketers have valuable points to make, according to Upbin, who said he had no problem when their articles were played up right alongside editorial work.

In fact, many of the posts come from laid-off journalists who have found employment with corporations in their media-relations departments, he added.

“Is it the end of Western civilization?” asked Tyrangiel. “No, but I would not call that journalism.”

Ellis noted that signs to alert readers that it is sponsored copy, not independent journalism, are “very small.”

Sid Holt, president of the American Society of Magazine Editors, appeared uneasy with the idea but could not say for sure if it would get flagged for violating ASME guidelines.

“It is something I’d have to look into,” Holt told Media Ink. “The important thing to keep in mind is whether it is clear to the reader or not.”

Adding fuel to the fire is the fact that sponsored copy can rank right alongside editorial copy under the most popular stories of the day on Forbes.com.

Back in New York, DVorkin insists that only happens if readers vote for it — the editors don’t interfere with the tally, which is done automatically.

He said that marketer contributions to Forbes.com probably amount to only four to five a week, while staff writers and outside editorial contributors account for hundreds of postings.

Forbes, which had suffered serious losses several years ago, is now profitable and just posted its best financial results in the past five years, he said.

“The contributor model is controversial, but it is working,” Upbin said. “We haven’t had any pushback for BrandVoice other than from other editors in the industry.”

On the ball

Mary Berner, the new president and CEO of the MPA, had fighting words in her first address to the embattled magazine industry.

Berner, who exited her last gig as CEO of the Reader’s Digest Association in the spring, said she jumped at the chance to take over the MPA, where she started only three weeks ago.

“I jumped at the chance for a couple of reasons. I love magazines, and I believe in magazines. I believe that magazines on both print and digital platforms have a bright future. And because I am pissed,” she said. “I am pissed that we as an industry have allowed others to hijack our story, our narrative.

“We are not in the printing business. We are in the content business,” she said, adding, “It’s the content, stupid.”

Berner said that last line was courtesy of MPA Chairman Michael Clinton, who is Hearst’s president and marketing and publishing director.

Clinton pointed out that while revenue from tablets makes up only 2 to 3 percent of industry subscription revenue, it is expected to grow rapidly.

Berner said that when all platforms are added into the mix, the total unduplicated online and print audiences for magazines grew 4 percent last year.

“When as an industry we talk about magazines, amongst ourselves, to advertisers and agencies, the press, to the financial community, policymakers and of course, consumers, we need to stop talking about magazines — which to most people still means the printed versions of a magazine — and instead start relentlessly talking about magazine media, which includes our tablet and online footprints in addition to print,” she said.

At the same time, she urged members to stop being apologetic about print. “Print remains and will continue to remain a desirable platform for both readers and advertisers,” she said.

Berner told the audience that she planned to lead the MPA “with chutzpah and balls as your advocate and your voice.”