RSSWhat Does CMP’s Restructuring Move Mean for B2B Media?
One interesting fold in this story, a B2B media player pointed out to me today, is that tech publishers like IDG, Ziff Davis, and CMP are often “early adopters” in this industry. Or, at least they have been seen that way–and rightfully–since the invasion of the Internet.
With this move, CMP Technology becomes much smaller (from about 1,100 employees to about 900), and much more online-focused. Steve Weitzner, CEO, told me that he is looking to put resources in growth areas. Even though online and face-to-face initiatives have been growing by double digits in the past few years:
“We’ve had double digit growth in online and events for some time, but we’ve been unable to feel like a growth company because we still had a lot of print. This is an appropriate amount of print in the portfolio right now, and it allows us to put an appropriate focus in the business of online and events. This does improve our margins, immediately,” says Weitzner.
Will other companies follow this example, and take a big block of resources out of print and put it behind online and face-to-face?
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It will not take long before the elinination of b2b print will prove a major mistake for companies like CMP. The basic problem they have now is they have inferior print products. They are not getting readership and response. They have invested 90% of their effort into the internet.They have used 100% of their assets [print]to build their online products. Now they have no one to drive the audience to their web sites. Time will tell how bad a decision made by non publishing people very soon.However it opens the door for great opportunities for new print products.This is the positive and the future.
Think back what did CMP sell other than rates and reach. The business today is readership and response.
Paul Beatty
CMP never sold readership and reponse. They entered the market selling rates and edit. The market fell for it and got zero ROI. That is the basic reason they are going out of print. This was one company that change the basic mission and the true objective of the business to business press.It changed the industry. However…it will open new areas of print opportunities for many dedicated
publishising companies dedicated to the reader and the advertisers needs and wants .This is a positive.
Paul B. Beatty