Condé Nast Reorganizes Its Revenue Side—Again
Craig Kostelic and Monica Ray are tapped to oversee ad sales and consumer revenue, respectively, as the publisher organizes its brands under three chief business officers.
A year after gaining oversight of Condé Nast’s business-side operations, Pamela Drucker Mann is implementing another significant executive reorganization, the chief revenue and marketing officer informed employees at One World Trade Center Tuesday morning.
Effective November 1, the company’s organizational structure is being realigned to reflect its three largest revenue streams (advertising, consumer, and agency), with Drucker Mann deputizing Craig Kostelic—currently chief business officer of Architectural Digest, Bon Appétit, Condé Nast Traveler, Epicurious and Self—to head up all advertising sales across the Condé Nast portfolio.
Meanwhile, citing “incredible paywall success,” Drucker Mann announced that longtime EVP of consumer revenue, Monica Ray, will add product development and production to her responsibilities, and a third, yet-unnamed exec will be appointed to lead CNX, which “will expand as a full service global agency.”
“The changes we’re announcing will complete the modernization of our revenue organization and better align us with the market,” explained Drucker Mann in the memo to staffers, which noted that the changes come amid “some of our strongest financial results in years, fueled by our innovation and growth in video, web, data and consumer revenue,” after overall company revenue declined by a reported $120 million in 2017, largely due to slumping ad revenues.
Reporting to Drucker Mann will be three chief business officers for three “clearly defined divisions” of the company’s brands, each of whom will be responsible for both ad sales and consumer revenue.
The style division, comprised of Allure, Brides, Glamour, GQ, Vogue, and W, will be led by current Vogue chief business officer Susan Plagemann, with Amy Oelkers and David Stuckey serving as fashion category leads and Lucy Kriz and Kim Fasting-Berg heading up the beauty category and marketing, respectively.
Alison Moore, who had previously overseen revenue for Allure, Brides, and Glamour, is out as a result of the changes.
Chris Mitchell, who runs the culture division (The New Yorker, Teen Vogue, them, and Vanity Fair) will add Wired and Pitchfork to his purview, with Tracey Baldwin, Doug Grinspan, Risa Aronson, and Laura Sequenzia heading up the auto, tech, luxury, and spirits categories, respectively. Maya Draisin will serve as marketing lead in that division. Mitchell had previously spent about a year as VP and publisher of Wired way back in 2008, when he was appointed to that role by then-Condé Nast group president David Carey.
A third, lifestyle division, consisting mostly of Kostelic’s former titles (Architectural Digest, Bon Appétit, Condé Nast Traveler, Epicurious and Self), will be run by current digital GM Eric Gillin, who will add oversight of Golf Digest to the division. Jen Mormile will lead all category sales for the division, overseeing individual category leads Jordana Pransky (CPG), Beth Lusko (travel), Jeff Barish (home), Dan Robertson (golf), and marketing lead Bree McKenney.
The changes are an iteration on Drucker Mann’s previous reorganization one year ago, which had essentially organized the company’s titles into five groups rather than three. The company had previously (and somewhat controversially) eliminated the role of publisher to better facilitate category-specific sales across its portfolio—a move spearheaded by Drucker Mann’s predecessor, Jim Norton, and which resulted in the departures of Allure publisher Agnes Chapski, Brides publisher Michelle Myers, and Glamour and Self publisher Connie Anne Phillips, but mostly sparing titles like The New Yorker and Vogue.
Lisa Hughes, who had run the business side of The New Yorker for eight years, eventually left the company after Drucker Mann first reorganized the business side following Norton’s departure last September.
But back to this week’s changes: Kim Kelleher, who had been leading an “Innovation Collection” comprised of Ars Technica, Golf Digest, GQ, Pitchfork, and Wired, will transition to a yet-to-be-determined role, seemingly contradicting recent rumors that she was out at the company.
Each of the three divisions will also be given a head of operations, a new role “across both edit and advertising to develop and shape product strategy,” wrote Drucker Mann.
Additionally, Evan Adlman, who was brought on in 2016 to head up programmatic sales, will lead an enterprise sales team, also reporting to Kostelic, and marketing senior VP Eric Johnson will add research and events to his responsibilities under the revenue structure, working alongside senior VP of business operations and strategy, Christine Maguire.
“I am excited about this next step we’re taking, as we have the best team in the industry—full of creative and driven talent that pushes the boundaries of what is possible,” added Drucker Mann in the memo. “While we’re building a new way forward for Condé Nast that allows us to accelerate the growth of our business, we’re continuing our company’s legacy of being bold and innovative.”
The announcement comes a week after chief digital officer Fred Santarpia left the company, following the earlier departures of digital GM and senior VP Matt Starker and VP of emerging products Arlie Sisson, both from Santarpia’s team, as well as Condé Nast Entertainment president Dawn Ostroff, chief experience officer Josh Stinchcomb—who had been working alongside Drucker Mann to develop new revenue streams and client offerings.