‘Virtually No Advertisers Will Commit to Long-Term Ad Programs’
Detailing Source Media CEO Jim Malkin’s blunt, 1,830-word memo to employees.
As first reported by FOLIO: this week, financial publisher Source Media is reorganizing its more than 60 magazines into four business groups—banking, capital markets, technology and professional services—and is recasting editorial staffs for each of its individual brands and rolling editors into combined units for each of the four new groups, "pooling" editorial by market.
In an 1,830-word memo announcing the reorganization to staffers, CEO Jim Malkin provided a detailed account of the hurdles plaguing the financial services and information publishing industries, and the debt market.
Malkin’s note provides a rather chilling look at the many challenges facing a number of print-centric b-to-b publishers right now.
According to the memo, Source’s print advertising, which makes up nearly 60 percent of the company’s total revenue, is down 17 percent, or $6.8 million, over the first half. The company currently carries $172 million in debt.
"Our clients who advertise to our readers don’t know what they can successfully sell to firms that are unsure of their future," Malkin wrote. "There are fewer industry participants to subscribe to our services and virtually no advertisers who will commit to long-term advertising programs."
Despite the grim near-term outlook, Malkin remained optimistic about the company’s future.
"This is the third major down cycle I have managed through," Malkin wrote. "Although it is the most severe, I am confident that the steps we take will see us through this and that we will emerge a stronger and better business. We will be better positioned to support our clients and to serve their needs with integrated solutions that provide value.
For the full memo, click here.