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Media people mull
and puzzle
over the goings on at U.S. News
Reacting to reports of management
shuffles
By Jeff Bercovici
U.S News & World Report
holds a special place for media people as the little newsmagazine that could, and if
things always seem to be in turmoil there--compare it to a soap opera whose team of
writers changes every week--it continues to hold people's attention for its promise. In
the most recent round of changes, announced earlier this week, group publisher Ira
Ellenthal returns to the top sales position at the New York Daily News, another Zuckerman
property, and longtime Ellenthal protege Bill Holiber becomes U.S. News publisher.
Jeffrey Ahl, recently named co-publisher with Holiber, assumes the lesser title of
associate publisher. As a backdrop to these changes, owner Mort Zuckerman (See News Story
No. 3) has been squabbling with longtime business partner Fred Drasner, amid reports that
the two will soon part ways, Drasner to assume control of the News, Zuckerman to run U.S.
News and Fast Company.
Media Life called on some of the nation's top media buyers to get
their reactions to these events. Here's what they have to say.
Carol Karpa, president, KDM
I was surprised by the way they made
the announcement. I thought theyd handle it a little more diplomatically. I adore
Ira [Ellenthal] and Bill [Holiber] both. Theyre both great guys.
U.S. News is very political. In that respect its no different
from any other newsweekly. Theyre very competitive with each other, and very
competitive internally. People are always jockeying for position. There isnt a lot
of turnover with the top spots.
Im not sure that this
decision wasnt more about politics than it was about business. With two strong
people there at the top, eventually one had to fall. When you have two incredibly talented
people like that, they cant both be king of the forest.
Those two guys [Zuckerman and
Drasner] are joined at the hip. Id be very surprised if there were a complete
parting of the ways.
Peter
Gardiner, media director Bozell
Worldwide
I think change is good at U.S.
News. Theyve lost a lot of key people in the last couple years, and the loss of
senior management has taken its toll. Its been difficult for them to overcome
that.
Theyre trying to fight a very tough battle in a very tough category
with two formidable competitors. With this move I think theyre trying to get some
clear leadership at last.
Steven Lerch, manager of print media at Campbell, Mithun, Esty in Minneapolis.
Mr. Zuckerman is in charge at U.S.
News. Theyve been cleaning house, so his recent actions arent so surprising.
Its too early to say yet how its going to impact the advertising community.
I like U.S. News for what
they do better, how they differentiate themselves. Time and Newsweek are becoming more
pop-culture oriented, more like People. U.S. News has tried to separate themselves from
this. Theyve been more issue-oriented, more news-focused. Its very difficult
to beat Time and Newsweek, but U.S. News doesnt try to compete head to head. They
get different advertisers too, especially finance advertisers. When I make a buy I keep in
mind what product its for because the magazines have different audiences.
They [Zuckerman and Drasner] have a financial history of smart
investments in media properties. I dont know what kind of effect Zuckerman parting
ways with the Daily News will have on it editorially, but it doesnt affect my day to
day life much.
Roberta Garfinkel, senior
vice president and director of print media at
McCann-Erickson
You usually have group publishers
where there are synergies, and I dont see any real synergies between U.S. News and
Fast Company. I think theyll be better served by having one person who concentrates
on each title. Im not a big fan of the group publisher slot unless you have a really
strong number two person.
Ellen Oppenheim, senior vice president and director of media at Foote, Cone, Belding.
Were at a point where people
understand that the economy is as good as its going to get, and theyre
deciding where they want to go from here.
U.S. News challenge has always been that theyre the smallest, and
theyve taken the task upon themselves of getting rear traction with special issues
such as the college issue. Things like that have raised eyebrows in some circles, where
people question whether thats real journalism.
Now were in a place where people do look at categories. When
making a cross-category buy, people try to sort the titles out to achieve the most reach.
Its tough if youre not one of the top one or two titles in a category.
Whats most surprising to me
is that they brought someone over [Jeffrey Ahl] and then so quickly changed the nature of
his job--that they made the decision to elevate someone, and then to eliminate his job.
Bob Rose, media
director at Western Initiative in New York.
U.S. News is a great brand name,
and their product is still very strong. I think anyone who looks at the magazine will see
that its very good. Its my favorite newsweekly.
Weve had some complicated deals with Bill Holiber, and I
think hes a good guy, a smart guy, and very qualified. I think were seeing
some internal politics at play here. There are issues between Mort Zuckerman and Fred
Drasner at the heart of this. Its not about Bill Holiber or Jeffrey Ahl. But
Im optimistic that the organization will evolve well and continue to be strong.
Dan Binder, media director, magazine group,
Starcom, Chicago.
Theyre in a very competitive
marketplace, going up against two books that do have their act together. Relative to those
two, yes, I think they [U.S. News] have their act together, at least from outside
appearances.
What theyve done in the last five years, with the redesign and the
"News you can use" theme--you would think they would take that deeper into the
marketplace and try to present themselves as the everyday mans newsweekly.
Have they had success in selling to the advertising community? Have
they been competitive? Yes, I would say they have. But a lot of other factors have changed
how [Ira Ellenthal] was viewed in the organization.
Mort Zuckerman is a real strong personality. When you get a couple of
strong personalities like that together, sparks will fly.
Paul Benjou, vice president-director of media planning at Draft Worldwide, New
York.
I dont know why theres
such a big brouhaha over all this. This is a business issue, not an editorial issue.
U.S. News is a viable product with a viable audience.
Theres no concern about it falling through the cracks.
So Mort Zuckerman has decided to involve himself more closely and make
it work. What signaled concern was that the magazine was down about 40 or 50 percent in ad
pages for the first couple issues of the year. Thats not drastic, but hes
concerned internally, so hes doing something about it.
This is not a knee-jerk reaction. I think hes been weighing
this for a while, and the straw that broke the camels back was whats going on
in this first quarter. They were off to a very bad, slow start, and he had to make a
correction. He decided to install himself at U.S. News for a while.
Thats not unusual. If a ships captain sees the ship veering off
course, he runs to the helm and takes over for a while. And if he notices that some of the
crew is not doing what he expected them or wanted them to do, he has the right to make
changes.
Are these changes that hes making enough to cause a further
backslide? No. I would never say to a client, dont advertise with them, theres
too much turmoil there. They have a circulation base of over 2 million. Thats not
small change.
Should the owners part ways, will the magazine differ at all?
I dont see why it should. If we were talking about a major
editorial shift, that would give us something to think about. But a change in the sales
force or the business unit--that doesnt affect me very much.
-Jeffrey Bercovici is a staff writer for Media Life.
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