Ford Calling

Brandweek, July 3, 2000 by Jeff Green, Lisa Granatstein

Chatting up 'Mag Massacre' Victims

A year after Ford Motor stunned the publishing world with a so-called "magazine massacre" that shifted as much as $100 million from traditional print to new media and other alternatives, the automaker seems to be laying the groundwork to return to some of those properties.

Several people close to the media buying community in Detroit have indicated that Ford has quietly negotiated open-ended deals with several magazines that had been cut off last summer by Ford (Brandweek, July 26, 1999).

Ford didn't have an immediate comment and even among buyers it was clear no decision has been made yet where Ford might actually spend the money Ford is not expected to increase its magazine spending but with the new model years starting in October, automakers typically start to make some print media buying decisions soon.

The suggestion isn't that Ford is shifting back to old media from new, but that it is operating to ensure it has attractive rates with print outlets if it decides to use that medium, several sources said. One source said a majority of the magazines cut off last year were tentatively back on a buy list, but that could not be confirmed.

It has been suggested by several observers that the departure from Ford last year to a dot-coin of former Reebok and Pizza Hut marketer David Ropes (Brandweek, Nov. 29, 1999), who helped craft the media shift, might soften the automaker's stance.

The new policy apparently does illustrate a shift in the way Ford is approaching magazine media buying, said one source. In the past, the automaker would negotiate a block of advertising with a publishing company based on what the company thought it might need in advertising with that company's books for the year.

Under the new system, Ford reportedly negotiates a rate it will pay for advertising without commitments to any minimum.

"They want to do business with most of us again, but that business is not guaranteed," said one source. "The magazine companies now must fight for the business based on the sort of strategic options they bring to the table. We're not going to be just selling pages anymore."

Even after the media shift last year, Ford executives said they weren't precluding doing business with the companies who were removed from the buy list.

Among the reported big losers for Ford media buys in 2000 were Hearst, Meredith, Newsweek, Reader's Digest and TV Guide, as funds shift to spot TV, cable, major new outdoor initiatives, direct marketing, the Internet and one-to-one marketing. The Time Inc. publishing group and Hachette Filipacchi Magazines, with longterm contracts in place, became major Ford partners.

Last week, reps from Hearst had no comment, Newsweek execs said they were unaware of any decisions, and other magazine execs did not return phone calls.

In the meantime, at least, print reps are optimistic that the willingness to negotiate rates means they might see some business shift back their way One media rep said he's just waiting for the phone to ring in the next couple weeks, hoping Ford is calling.

"Baby needs a new pair of shoes," he joked." sure hope they call."