Lawsuit: Perils of Ad/Edit Combo Deals
Posted on Wednesday, May 05, 2010 at 3:30 PM
Selling advertising with an editorial tie-in is a risky publishing
strategy.
By Andrea Obston
Just last month,
Calibra Pictures filed a lawsuit against Variety magazine for
giving their film a bad review.
In its suit the production
company claims that it agreed to pay about $400,000 for an "exclusive
promotion partnership" to support its movie, Iron Cross.
However, Variety's film critics seem to have had the temerity to
pan the film. The crux of Calibra's claim is that Variety's
advertising and editorial departments both promised positive publicity.
And, Calibra said both departments claimed this agreement would help
secure distribution for the film and a chance at one or more Academy
Awards.
A Sale or a Sell-Out?
Wait! What? Variety's
being sued for doing its job? Do I have that right? And do I also
understand that they sold away their right to do unbiased movie
reviews because the editorial department of the publication went along
with this $400,000 deal?
As a business owner in the marketing
communications field, it baffles me to think that any company would
consider selling off its competitive advantage. (That is especially
perplexing when others in the publishing industry are dropping like
flies.) But, if you believe the charges in the recent lawsuit against Variety,
that's exactly what they are being accused of.
Isn't the ability
to be an unbiased observer the most important thing that any legitimate
publication brings to the table? Isn't that what readers expect from it?
Indeed, it is the reason most publications still exist, and is what they
are supposed to do best. In my world, that's called a competitive
advantage. It is something a company does that makes it stand out among
its competitors.
The fact is that the competitive advantage that
print journalism has over some blog-ified, twit-ified competitors is its
promise of unbiased observation. It's why lots of readers still turn to
magazines like Variety for the whole story, even though they
peruse the blogs and check their Twitter accounts.
Drawing the
Line
Unbiased observation comes from the "Chinese Wall"
between the editorial and advertising departments. Yes, I know the
economics of keeping a publication alive and journalists fed has been
stretched to the limit. When journalists and critics can't do their
jobs, however, because sales people have "promised positive publicity,"
that should make anyone who depends on them question their judgment. And
that in turn can tarnish your brand.
The outcome of this lawsuit
is probably years away. I'm sure this is just the opening salvo of
publicity bombs slung by both sides. So there's no final lesson yet.
Nonetheless, the fact that it's been filed should give us all pause.
Once
advertisers believe they have the right to dictate editorial content, I
believe many consumers who depend on journalists will stop turning to
them for information. And when that happens, newspapers and magazines
will have sold their competitive advantage down the river, with no
ultimate rate of return.
Andrea Obston is the president of
Andrea Obston Marketing Communications, LLC (www.aomc.com),
a firm that helps businesses grow through a B2E (Business to Everyone)
marketing communications strategy. The firm provides strategic marketing
services, brand development and marketing, public relations through
traditional and social media outlets, media training and websites. Its
subsidiary, Andrea Obston Crisis Communications (www.crisismasters.com),
is a reputation and crisis communications firm that offers workshops and
seminars on a variety of contemporary marketing issues. Andrea's writing
has been featured in the Hartford Business Journal, where the
original version of this article appeared.
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