The Bleeding of Journalism and Corporate Marketing
Corrections: A Neon Tommy articles titled, "The Bleeding of Journalism and Corporate Marketing" excluded the word "when" before a quote from John Earnhardt and mentioned that the annual budget of The Network was two million dollars excluding backend operating costs. The Network's annual budget, in fact, includes backend operating costs.
Corporate newsletters have been a part of businesses for decades, highlighting everything from industry trends to quarterly financial statements. But the trend now is a shift from internal communiques to industry specific stories sponsored by a company. Such types of stories are known as "brand journalism" or "corporate journalism" in the PR industries.
"When we're not getting what we need from journalists so we're doing it ourselves," said John Earnhardt, director of corporate communications at Cisco, in describing the need for brand journalism. "What we're trying to do is start a conversation."
Cisco's own news site, The Network, launched in 2000 and has evolved from a "ra-ra Cisco" site to one with good original stories Earnhardt said. The site has an impressive list of contributing journalists---several of whom are veteran reporters from major publications like Forbes, BusinessWeek, The New York Times, etc.
One contributing journalist, Steve Wildstrom, offered his thoughts in a pre-recorded video of his experiences in writing for Cisco's publication.
"The future of journalism is that every one is going to have to be more entrepreneurial," Wildstrom said. "There is no more working for one employer."
In that vein, Wildstrom continued by adding that chronicling events should no longer be the focus of journalism because social networks often allow for news to be directly shared to the public.
"They need journalists to make sense of things," Wildstrom said in describing the value of journalists as interpreters of technical information.
Both Wildstrom and Earnhardt touted the amount of freedom journalists are afforded in terms of editorial control, with the exception of two guidelines: 1. Don't hurt the company; 2. Don't highlight the competition. To this day, only one story was killed to his memory Earnhardt said, not due to a violation of the guidelines, but rather because of a conflict with a product launch date.
It's easy to point fingers at such guidelines seemingly conflicting with unbiased reporting. However, good original reporting and corporate sponsorship are not mutually exclusive Earnhardt continued--a fair point considering the history of news publications which are, to this day, mainly funded by ad revenues.
But if brand journalism is able to produce solid original reporting, how will this affect traditional news publications? After all, stories from The Network are classified by Google as news stories--something that took some convincing on the part of Cisco according to Earnhardt.
"We're not ad-based," Earnhardt said in clarifying Cisco's intent. "We sell routers."
Cisco's aim is not to compete for viewership/readership, but to target specific audiences "that have influence with their audiences."
Earnhardt did not offer answer to whether brand journalism would be the future during the director's forum because that wasn't his intent--nor is it an answer that can be conjured up over an half-an-hour discussion.
But what's obvious is that journalism is in a transformative stage and one option may lie with a more direct corporate sponsorship rather than ads.
Cisco has shown that it's willing to hedge its bets on corporate journalism. The Network operates at an annual budget of approximately two million dollars (excluding nine backend operators) and that figure is likely to increase. And Stefan Pollack of The Pollack PR Marketing Group, says that two millions dollars is a sizable investment in marketing even for a large company like Cisco.
With many print publications struggling to find a working ad revenue model as they transition online, corporate journalism seems to be a viable option.
Reach Jacob Chung here.