What can media brands do?
Media companies want to open up new business areas with new ideas. The brands of existing products offer a supposedly good basis for expansion into new markets. But is this the case? The opportunities are certainly there, but there are more pitfalls than in other sectors.
The following section examines the opportunities for media brands to expand into new business areas. Where are the pitfalls that need to be avoided, what dependencies are there and what needs to be taken into account so that the original brand is not damaged and the core business is not jeopardized?
Greater overall range than ever before
The reader base of traditional print products is crumbling and revenues in the advertising market are declining. This is nothing new. The evil Internet? No. What is often forgotten: The overall reach of very many media products is at an all-time high. Thanks to the Internet, media brands are permanently accessible to anyone looking for them, day and night. Not just at the newsstand or via your own letterbox after taking out a subscription, as was previously the case. This potential can be tapped into via the almost infinite advertising space available on paper and on the Internet. This is an excellent prerequisite. It becomes more difficult when it comes to brand management in media companies.
Awareness of brand management
Conscious brand management is a basic prerequisite for expansion. A strong brand is not a product of chance. Ideally, brand management should be at the highest level of the company. This is the only way to ensure a compact brand image. Brand strength must also be measured in the relevant target group at regular intervals and influenced with measures if necessary. Such a set-up is hardly established in Swiss media companies. Quality and independence are often cited as brand values. These are generic buzzwords with no differentiating character. Knowledge of one's own market position is too often based on gut feeling and selective surveys of readers and advertisers. There is a lot of catching up to do here. In addition, media brands have a special starting position. The success of media products is based even more on trust than other goods. This has to do with the ability to assess the quality of the media offering. The perception of products can be classified into three categories: Search goods, experience goods and trust goods. In the case of search goods, the prospective customer is able to assess the quality of performance in advance using measurable criteria. This is not possible with experience goods. Here, the quality can only be assessed after use. And in the case of trust goods, the user cannot conclusively assess the quality even after use. Like a visit to the doctor, for example. Media products are among the experience and trust goods. Their brands play a trust-building role in these two categories. If this trust is violated by careless activities, collateral damage is caused that is difficult to eradicate.
What requirements must the brand fulfill?
A strong brand must be well known and have a suitable image for expansion. The values to be established must be as independent as possible from the original product. If a media brand only stands for a print product that is reliably delivered to the mailbox every day, this is not sufficient for further development. What is needed are overarching values that are not directly linked to the core product. Quality is not an option. It is a product-specific prerequisite. A frequently cited and good example from a completely different industry is Nivea. Beiersdorf has managed to build up a comprehensive range of care products with overarching brand values such as naturalness or harmony from a white cream in a blue tin.
Brand management pays off
Brand management is not primarily a discipline of business administration. But it pays off. "The aim of brand technology is to secure a monopoly position in the consumer's psyche," wrote Hans Domizlaff almost 75 years ago, thus introducing an important psychological aspect of brand management. With effect: strongly anchored brands with a high emotional connection achieve a price premium, a higher margin, through the existing trust. The media company Apple does not earn dream margins because it offers the best products, but because Apple has established a brand identity that buyers can identify with. And that brings us back to business management.
Set goals
If the core business declines year after year, it makes sense to use the new activities primarily to compensate for the loss of revenue. However, the focus does not always have to be on direct sales. It is also conceivable for the new commitment to have a modest monetary objective. In this case, the new brand should have a positive impact on the core brand and thus contribute to its vitalization, which in turn contributes to monetary success. This interaction between existing and new business always arises and must be kept in mind.
Assessing skills correctly
Once the brand has been correctly positioned and the goals have been set, it's time for implementation. Here it is important to sound out the available in-house expertise. But beware: even if the editorial team has a high level of dossier expertise, this should not hide the fact that a big step has to be taken from observer to market player. There are no simple markets. Where there is money to be made, there are already other providers who have not been waiting for another competitor.
If necessary, buying an experienced market player is a better option than a completely new setup. Of course, this is a question of willingness to take risks, willingness to invest, the time horizon set and market knowledge. A third option is to grant a license to a partner who is established in the market. This can minimize the risk. However, the margin is then correspondingly lower than if full responsibility is assumed by the company itself.
Proximity to the core business
When choosing a new field of activity, the brand is once again at the forefront alongside the existing expertise. Even if the values are highly independent of a specific product category, the match perceived by customers between the original brand and the transfer product is of particular relevance on the customer side. Is there a fit?
An extension can only be successful if there is a credible connection between the original brand and the extension product. The brand forms the bracket with its associations. If these are not present, dissonance arises on the customer side. Excessive steps should therefore not be taken. A sustainable development of a new product portfolio takes time and is most easily achieved in a first step by means of complementary offers to the core business.
Distance to advertising customers
The potential for conflict with advertising customers must be taken particularly seriously. If the new business segment is in direct competition with the offerings of important advertisers, the expansion must be called into question. Negative feedback on the core business should be avoided at all costs. It is also not much easier to establish a cooperation with an advertising client. The competitors of the partner involved are likely to see this as an overreach and avoid the core product in future.
Be careful with the choice of communication
One major advantage of media companies is the ample advertising space that is permanently available online and in print, often on a daily basis. The company also usually knows the customer's name and address and can therefore also use direct channels online and offline. Native advertising on the Internet and adverortials in the print titles do not have to be dispensed with. However, it is important to ensure that the measures are clearly recognizable as advertising. PR? The competition can rarely be counted on as a multiplier. Another editorial team is likely to be skeptical of the new activities, which are still at an early stage. And that's right in journalism.
So does the editorial team have to get involved? This is where it gets very tricky. No editorial team in the world should allow itself to be used for a clumsy promotion. This would cause the collateral damage mentioned earlier, damage the brand's reputation and damage reader confidence. But what's wrong with an interesting article on a fiery presentation from an organized congress with a reference to the next event? Internal communication should not be neglected either. If the idea is carried within the organization, employees will give constructive feedback and become involved as ambassadors in their environment.
In the right place at the right time
Timing also plays a role, of course. Business cycles should not be neglected. They can be very different in the new business area than in the core product. It is therefore advisable to focus on fields of activity that are geared towards medium and long-term needs in society, such as security, health and education, rather than trendy trends or even hype. Last but not least, and before making a final decision for or against a commitment, you should also consult your gut feeling. If it is right, if the offer is coherent and the market conditions are ideal, you should go for it. The window of opportunity is not open forever. And then it's a case of sticking with it, just like a story that can be developed. Be patient and persevere. Readjust and accept a healthy degree of risk. That way, the chances are good that the story will come to a good end.
Andreas Häuptli

The article is based on the Master's thesis on "Brand-driven development of new business areas for media companies" from the MAS course "Brand and Marketing Management" at the Lucerne University of Applied Sciences and Arts.










