POVs
An Interview with New ABC Board Chairman Merle Davidson
Merle Davidson, director of media services for J.C. Penney Co.,
joined the ABC board in 2003 and was named 2009 board
chairman at ABC’s most recent annual meeting.
Davidson is a 30-year veteran of J.C. Penney, one of the world’s leading retail advertisers. Over the course of his career at the company, he has held a variety of store, district and corporate positions in sales promotion, advertising, marketing, production and visual merchandising. He is currently responsible for the strategic development, execution and operations of the national print media program, multimedia local-market programs, new retail and catalog store programs, and catalog distribution. In 2005 the Newspaper Association of America named Davidson its Advertising Person of the Year.
He recently met with ABC’s communications department to discuss some of the opportunities and challenges facing ABC and the media industry in 2009.
ABC: As you begin your tenure as ABC chairman, what are your expectations?
Merle Davidson (MD): I’m excited about this role. I know these are very challenging economic times for publishers and advertisers alike, but I believe there are many reasons for ABC members to maintain a positive outlook. We have a full plate of initiatives underway and my role, my goal, is to make them happen, as best I can. We need to fast-track these important initiatives so we can demonstrate progress and put these new programs and services in place to benefit all of ABC.
The organization has a tremendous knowledge base and we need to tap into that more. We have keen minds on the board and on our many advisory committees. There are several new ABC directors; their new thinking is valued and will benefit ABC in the year ahead. I welcome it.
ABC: What are some of the specific goals you’d like to accomplish in the next couple of years?
MD: There are quite a few, I admit. The first has to do with taking better advantage of ABC’s tremendous digital resources to make all of us more efficient and effective. “Go Green” marketing is top of mind for everyone and ABC is already there, in many respects. So how can we take advantage of that? We can expand ABC’s online database and reporting tools, the way we disseminate data and information to members, on down to the way we conduct audits, so that all constituents—media planners, buyers, circulators, publishers, auditors—are more efficient and effective.
Here’s a great example: ABC is about to launch a new “green” initiative that’s a very progressive, strategic, digital approach to how ABC will conduct its audits going forward. It relies on the organization’s IT infrastructure and online tools to, frankly, revamp the circulation audit model. We’re shifting auditors from publishers’ offices to centralized ABC locations and doing everything—as much as we can—electronically.
What’s the impact of this? Well, it’s going to help ABC control costs and fees for its members and make life easier for publishers, while continuing to provide advertisers with ABC’s traditional high-quality audits. A lot of documentation and forms and advance audit work will be exchanged and submitted online. Much more efficient for all parties.
ABC: Why is J.C. Penney a member of ABC and why do you serve on its board?
MD: That’s easy. These media are key to our business. They’re changing, our business is changing, and ABC and its membership are changing. Penney’s has a significant marketing spend in newspapers, in magazines, in digital. So we have a stake in their success. It’s important for us to be involved and help lead the industry. ABC is essential and valuable. So it’s a win-win.
ABC: What are some other key goals?
MD: ABC has to continue to lead the push to bring transparency and accountability to interactive advertising. We’re not just in print. We’ve been a leader in digital for many years, but it’s absolutely critical now. We need more agencies and advertisers to demand ABC’s involvement—wherever our interactive ad dollars are being spent. We formed a new Digital Advisory Committee last year to provide the board with some needed input and expertise. That’ll benefit us in many ways.
We also need to focus more on the unique needs of smaller publishers, especially community newspapers. These newspapers are critical to buyers and have a real strength in today’s newspaper market. We’re exploring strategic alternatives, and tailoring products and pricing to better address this segment of the market. Advertisers rely on these newspapers to ensure reach and coverage, so it’s critical that these publications are audited and are contained within the ABC database due to their delivery strength.
We’re also looking at some strategic changes for Canada. Despite some ups and downs last year, we have a strong membership base. We have top industry leaders actively involved in our board and advisory committees. But there are areas where we can become even better to ensure that we continue to meet this market’s unique needs. Rules. Organization. Committee expansion. Stay tuned.
Then there is new business development. ABC, like J.C. Penney, is an organization that has been around a very long time, but it’s still relevant today. That’s why we [J.C. Penney] are members of ABC. It has an expert staff. It’s progressive in its thinking. And it’s had to persevere over its nine-decade history. We have numerous new business initiatives underway. Developing new business is so very important and it’s a core part of ABC’s structure today.
ABC: Tell us a little about ABC board meetings, if you would. What goes on at a typical meeting? How is business conducted, rules amended, and things like that?
MD: On one hand there is a heavy schedule of various committee meetings. Because of the board’s hands-on involvement in rule-making, some can be tedious, to be frank. But on the other hand, you get the opportunity to connect with other individuals who are truly dedicated to moving the industry in a positive direction.
There’s a great dynamic on the ABC board, with both seasoned and new directors. You definitely need good listening skills, negotiating skills, as the dialogue can get intense at times. I guess I could label it as “healthy conflict.” There are passionate views, as each of us tries to represent our constituency yet think objectively to achieve a solid and fair middle ground. The end results are what matter.
It’s a cliché, but ABC truly is a unique organization. I can’t think of another organization quite like it.
ABC: Where do you think ABC needs to focus its attention in the next year or two?
MD: This sounds pretty simple, but we need to continue working on being a more efficient and effective organization. That ties back to the goals I described earlier, so I won’t repeat those. We need to passionately focus on accomplishing those core goals.
ABC: What do you think are some of ABC’s biggest strengths and opportunities?
MD: ABC’s biggest strength is its awareness in the industry, and knowing what advertisers and publishers need. It’s a very high-profile organization. It’s frequently in the press, front and center at key industry events and conferences. It’s not just auditors in the back room.
While not an advocacy group, ABC is an organization that’s very engaged in the issues of the day. It’s a non-profit forum for its members and the industries they represent. So they understand advertising and what media buyers and sellers need. That’s a big strength, or I wouldn’t be personally involved in ABC.
It’s also an organization that over its history has proven to be progressive and adaptable to change. So that’s a great legacy to build on.
As far as opportunities, we need to find the right balance between print and digital and what advertisers need. Fortunately, there are many smart and capable individuals in this industry that the ABC board can and does rely on for this. We need to keep moving down this road quickly, smartly and decisively.
ABC: How has the role of ABC changed over the years and how do you see it changing in the future?
MD: I’ve seen many changes during my tenure at ABC. And that’s to its credit. Speaking as an advertiser, ABC’s primary role as the industry’s leading independent media auditor is still as vital today as ever.
Just look at the website and you’ll see change reflected in the products and services there: sweeping new U.S. newspaper rules, ABC Rapid Report for magazines, the newspaper Preprint Projection Center and a preprint insert audit program, Audience-FAX, ABC Interactive. All incredibly important and valuable to our industry. It goes back to the ABC spirit of cooperation, balance and listening to create a value for all of its constituency groups.
Looking forward, I think change is inevitable and the ABC board fully recognizes that. Today, we are much more than circulation and we’ll continue with urgency down that path, wherever it may lead.
ABC: You mentioned ABC Interactive a moment ago. Where does that fit in the organization today?
MD: It’s a very important component. ABC has been in the interactive auditing space for more than a dozen years, believe it or not. So we’ve got deep experience. We’re continuing to address it at the highest levels of the organization. We created a new digital advisory committee last year to help us, as a board, examine important trends and business opportunities. What do buyers want and need from ABC in digital? What role should ABC play in some of these new media? It’s complex.
But at the same time, publishers are trying to tell a broader story about their entire media footprint and ABC audits of these nontraditional media are helping. We created multimedia ABC Publisher's Statements for consumer and business magazines and the Audience- FAX initiative for newspapers. We’re beginning to audit e-newsletter delivery, ad-serving systems and even new media like widget platforms. All of this points to how ABC is attacking some of those important core goals I mentioned earlier.
ABC: Final question: Newspapers and magazines are struggling, as are all media, with the downturn in ad spending. As one of the country’s leading advertisers, what’s J.C. Penney’s view on today’s media environment?
MD: We’re in the midst of a transformation, for sure. But we’re all changing. It’s inevitable. Retailers change—we change brands, marketing strategies, products; we change to adapt to our consumers’ lifestyles.
Newspapers probably aren’t going to get back to their previous circulation levels. But they have quality readership, quality audiences, strong digital platforms. And, frankly, we’re [advertisers] part of it. From behavioral targeting capabilities they’ve never had before, alliances with companies like Yahoo—these are all positive elements that have value for advertisers and the media industry.
I believe it’s very important to remain positive. There’s too much negativity and doom and gloom. Everyone is struggling in this economy; it’s not just print publishers. It’s a different world and we are addressing it together. I also think that quality journalism is so essential. Newspaper and magazine journalists are the best in the world. All media rely on them. It’s the journalism— the content—that attracts the readers. And it’s the readers who attract the advertisers. It’s all connected. Let’s not lose sight of that.
