Condé Nast's Fight For Digital Supremacy
The nature of media is changing, can Condé Nast keep up with the growth of digital media?
Condé Nast is a global media company that has built its success from its successful print publications. The journey started in 1909 with Condé Nast's purchase of Vogue. Since then, it has acquired and created many other successful publications, including GQ, Teen Vogue, Architectural Digest and many more. However, with the rise of social media and other digital platforms, there has been a consequential decline in print media. The company has struggled in its transition into the digital era of media with some of its publications faring a lot better than others.
According to a report in the New York Times, the company's US division lost $100m in 2019. It's a loss figure that reflects the increased investment in digital media by major advertisers who formerly spent more on print publications. Burberry and Gucci have invested a lot in their e-commerce platforms and have built massive audiences on Tik-Tok. According to a new study by Luxe Digital, Gucci remains the most popular brand online and the brand that best utilises digital media.
Recently, the company announced that Roger Lynch, the Chief Executive Officer of Conde Nast, will put an end to many of the company's country-specific editions in favour of global editions made to appeal to consumers across the globe. This is all part of a bid for Condé Nast to cut costs in a quest to achieve consistent profitability. The Financial Times reported that Anna Wintour, the Global Chief Content Officer for Condé Nast, took a 20% pay cut to help the company cut costs. The same report stated that Roger Lynch took a 50% pay cut. Over the past few years, many of the company's loyal editors of its publications have either stepped down or were sacked in addition to a lot of the staff that worked with them.
However, the budget costs did not start recently. They have just accelerated due to the effects of Covid-19. When global lockdowns began, the sale of print publications plummeted as the demand for digital content soared. Condé Nast saw a large increase in viewing figures on lockdown vlog videos on Vogue's YouTube channel as well as on the cooking videos of Bon Appétit. "The only way the plan changed was it accelerated. Some of the things we planned to get done by the end of 2021, we finished by the summer in 2020," Roger Lynch said in an interview with The Financial Times. Teen Vogue, a sister publication to Vogue founded in 2003, started cutting back on print distribution in 2015 in favour of online content, following a steep decline in sales. By the start of 2018, Teen Vogue had become 100% digital, with its last print run available in December 2017. According to The New York Times, it was part of a plan to cut costs that came with the loss of 80 jobs and the publishing of one fewer issue per year of GQ, Glamour, Architectural Digest and Allure. Last year, there were reports that Conde Nast considered breaking its lease with the World Trade Centre in another bid to cut costs.
Whether the company's aggressive business moves will pay off is left to be seen, only time will tell. With staff members given more responsibility with the same expectations there is a possibility that the quality of content could decrease as the company prioritises budget costs. In 2019, Activist Noor Tagouri was misidentified as Pakistani actress Noor Bukhari in a Vogue feature. It was one of many examples of a lack of attention to detail not associated with the Vogue of previous years. Condé Nast tackled the challenge of print media in an industry that many have failed in. Let’s see if they can successfully take on this new challenge of digital media.