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Chart: The Slow Death of Traditional Media

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Chart: The Slow Death of Traditional Media

The Slow Death of Traditional Media

Desperation time as old guard clings to falling market share

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

Bill Gates once famously said that we systematically overestimate the change that will occur in two years, while underestimating the change that will come in the next ten.

The ongoing conversation about the death of legacy media definitely fits that mold.

Over the last five to ten years, people have been talking about how the newspaper, magazine, or radio station would become all but obsolete. And while certainly things have changed in all of these industries, it’s clear that there has not been a full paradigm shift yet.

Here is the evidence that we have finally reached that inflection point.

Fixing the Plane

In a recent interview at the City University of New York’s journalism school, Ken Lerer described the challenges of traditional media as follows:

You have to fix the plane while you’re flying it.

Lerer, a co-founder of the Huffington Post and currently the Chairman for Buzzfeed, is alluding to the fact that legacy media has to maintain old business models based on subscription and print ad revenue, while successfully venturing into the digital world. The latter category is already hard enough, even without taking into account the balancing act of the former.

The moral of the story? Some of these “planes” are going to land safely, but most of them are going to crash and burn.

The cost structure of legacy media just doesn’t make sense in today’s digital world. Overhead is high, and revenue is harder to find due to the limited success of paywalls, rampant ad blocking, and the steady fall in display ad prices due to the emergence of programmatic bidding.

Legacy Revenues

Why has legacy media been so slow to adopt change? Why don’t they just lay off half of their staff, ditch print operations, and start from scratch?

It’s because their major revenue sources are as slow at adopting as they are.

In 2015, there was only one age demographic with more than half of its constituents reading a daily newspaper, and that was “65 years old and up”:

Daily Readership of Newspapers

That said, the people that still read newspapers are among the wealthiest people in the country. Warren Buffett, for example, reads five a day. But even he does not know how to save the print industry from its woes.

Meanwhile, Madison Avenue has been notoriously slow at evolving to meet the needs of the digital revolution. If the biggest advertisers are still demanding the status quo, it makes it very difficult to “fix the plane”.

New Models

The most noticeable signal of change, however, is the relative success of new media companies such as Vice, Buzzfeed, and Vox – and the fact that some of their largest backers are from the old guard.

All of the above companies are “unicorns” valued at $1 billion or more by private investors, which include venture capital stalwarts such as Andreessen Horowitz, Accel Partners, Khosla Ventures, RRE Ventures, or Lerer Hippeau.

More importantly, however, they’ve also posted strategic investments from legacy media companies that are trying to wisely hedge their bets. Some of these include NBC Universal, The Walt Disney Company, 21st Century Fox, and Hearst.

Digital will become the largest channel for ad revenue globally by 2019 – investors and companies that believe in the media business should position themselves accordingly.

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Ranked: The 10 Organizations With the Best (and Worst) Reputations

According to a representational poll of 18,228 Americans, these are the organizations considered to have the best and worst reputations.

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There is no shortcut to gaining a bulletproof reputation.

To get there, businesses not only need to think long term, but they also need to do what is considered “right” in every possible situation.

Aspiring companies must be truly customer-centric, going above and beyond in how they treat their customers. They also require a cohesive vision that helps create a loyal and fervent fanbase that will go to bat for them anytime it’s needed.

The Best and Worst Reputations in America

Today’s infographic from TitleMax highlights the 10 organizations that have the best reputations in the country, followed by 10 that fall on the exact opposite end of the spectrum.

In total, the visualization shows five years of data, so you can see how the rankings have changed over this stretch of time.

Ranked: The 10 Organizations With the Best (and Worst) Reputations

As you can see, the reputations of organizations are very much in flux.

In fact, you can even see the impact of recent news cycles on the rankings for 2019.

For example, Patagonia shot up the rankings to become the #3 most respected company after donating its entire $10 million tax cut to environmental groups, while the U.S. government and Facebook both make an appearance on the worst list, thanks to recent negative media coverage.

The Best Reputations Over Five Years

If you haven’t heard of Wegmans Food Market, you might want to stop by a location the next time you’re in the Northeast.

With 99 stores and about $9 billion in revenue per year, this family-run supermarket chain believes that in order to be a great place to shop, it must also be a great place to work. This mantra must be effective, since Wegmans consistently ranks as having one of the best reputations in the entire country.

Also ranking high on the list is Amazon, which was founded as an “obsessively” customer-oriented company. The online retailer has taken the #1 spot in the rankings in three of the last five years, despite a generally negative sentiment hanging over tech giants in recent months.

“A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well.”

— Jeff Bezos, founder of Amazon.com

The Worst Reputations Over Five Years

As Warren Buffett quipped, a reputation can be built over decades, but it can also be lost in just five minutes.

Various companies that have experienced recent scandals make the list here (i.e., Facebook, Volkswagen, Equifax). It’s also interesting to see that years after each scandal, rankings seem to normalize as the media and public get preoccupied with newer events.

Ranking Methodology

The ranking is based on a survey by Harris Poll, in which the 100 Most Visible Companies in the country are scored and ranked using a proprietary “Reputation Quotient”. For the 2019 edition, the poll had 18,228 respondents from a nationally representative sample.

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The World’s 100 Most Valuable Brands in 2019

Technology brands account for 20 of the world’s 100 most valuable brands in 2019, combining for a whopping 43% of total brand value.

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The World’s 100 Most Valuable Brands in 2019

Brand equity can be a challenging thing to build.

Even with access to deep pockets and an innovative product, it can take decades of grit to scrape your way into the mainstream consciousness of consumers.

On the path to becoming established as a globally significant brand, companies must fight through fierce competition, publicity scandals, changing regulations, and rapidly-evolving consumer tastes – all to take a bite from the same piece of pie.

Cream of the Crop

Today’s visualization comes to us from HowMuch.net, and it showcases the 100 most valuable brands in the world, according to Forbes.

Here are the powerful brands that sit at the very top of the list:

RankBrandBrand Value ($B)1-Yr Value ChangeIndustry
#1Apple$205.5+12%Technology
#2Google$167.7+27%Technology
#3Microsoft$125.3+20%Technology
#4Amazon$97.0+37%Technology
#5Facebook$88.9-6%Technology
#6Coca-Cola$59.2+3%Beverages
#7Samsung$53.1+11%Technology
#8Disney$52.2+10%Leisure
#9Toyota$44.6+0%Automotive
#10McDonald's$43.8+6%Restaurants

It should be noted that the list is ordered by brand value, a measure that tries to calculate each brand’s ultimate contribution in financial terms to the parent company. You can see that full methodology here.

Finally, it’s also worth mentioning that brands with only a token representation in the United States have been excluded from the rankings. This means companies like Alibaba or Vodafone are not represented in this particular visualization.

Tech Rules Again in 2019

For another straight year, technology dominates the list of the 100 most valuable brands in 2019 – this time, with six of the top seven entries.

Most of these brands saw double-digit growth in value from the previous year, including Apple (12%), Google (27%), Amazon (37%), Microsoft (20%), and Samsung (11%). The one notable exception here is Facebook, which experienced a 6% drop in value attributed to various struggles around the company’s reputation.

Here’s a look at how industries break down more generally on the list:

Industry# of BrandsBrand Value ($B)
Total100$2,231.9
Technology20$957.6
Financial Services13$198.1
Automotive11$208.9
Consumer Goods10$123.8
Retail8$133.0
Luxury6$124.1
Beverages4$49.3
Diversified4$56.8
Alcohol3$69.8
Apparel3$34.7
Business Services3$33.5
Restaurants3$73.0
Telecom3$24.3
Heavy Equipment2$36.7
Leisure2$19.8
Media2$34.8
Transportation2$41.1
Tobacco1$12.6

As you can see, technology brands make up 20% of the list in terms of the number of entries – and a whopping 43% of the list’s cumulative valuation.

In total, technologies brands combined for $957.6 billion in value. Even when including Facebook’s recent drop, this is an impressive 9.7% increase on last year’s numbers.

Will the double-digit increases for the world’s largest tech giants continue into 2020, or are brands such as Amazon and Google going to start seeing the same type of pushback that Facebook has grappled with among consumers and regulators?

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