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19. "Unchained Melody"
Prior to the arrival of Tom Kemp, I had been transferred from ever-growing Rodney Parham Road Behemoth to an established Park Plaza-Hillcrest-Old Cantrell territory.
But not before selling and handling two backbreaking grand opening ad events: Breckenridge Village and, subsequently, Trellis Square.
Fortunately, I was rescued before The Market Place was completed.
The Park Plaza of those days is not the three-story Mall seen today at Markham and University. It was the original open air plaza with fountains and ponds. Well-known businesses graced her breezeways: Vivian Pearce, Shelly Rand's, Gold's House of Fashions, Lewis Gourmet, The Photo Shop, Joes Hobby Shop, et al.
Fond memories, but I digress.
Notwithstanding an ease in burden, what Tom did next was most welcome.
I recall neither the name nor location of the newspaper Tom visited. It was not in Arkansas. However, I do remember him saying that he was impressed by the fact that all desks in the sales department were clean, save for a pad and pencil atop each.
Such was in sharp contrast to our desks that were piles under all manner of paperwork: layout pads, PC paper for typing ad copy, T-bags, memos, ad nauseam.
The aesthetics were not great. But Tom wasn't concerned with appearance. Instead, he saw these things as symptomatic of a serious malady in the department - one that robbed salesmen of precious time in the field.
"One day, I want to be able to walk through my department and see your desktops clean," Tom said. "Your time should be spent with clients and not paperwork."
Tom set goals, some of which were completely realized before his departure a few years later. The first concerned production. Instead of admen doing the layouts, copy writing and typing, a new department would be established to handle creative services. Secondly, proofs and tearsheets were to be delivered by courier.
Moreover, Tom set a new incentive plan in motion, but not without objection. One department head saw in the numbers the potential for admen to earn a higher income than he. If memory serves, Tom's retort was something to the effect that everyone would be better off financially if salesmen were given an incentive to earn more by selling more.
Further, admen - both retail and classified - were placed in sales training and given market research data from which to sell. As far as I know, this was a first for the Gazette.
The old rusty lock was finally opened, freeing us from our desk-bound chains. It was about time. The Democrat had already implemented most, if not all, of these measures.
Would this be enough to stop the Hussman advance?
Next: "I Am Woman."
Monday, December 7, 2009
Saturday, December 5, 2009
18. "Tommy Can You Hear Me?"
Tom Kemp had great expectations concerning his ad department. He was willing to go the extra mile to provide the means to achieve fulfillment. To this end he held a series of meetings with the ad sales staff that centered upon one vital question.
What do you need to do your job better?
I couldn't believe it. Finally someone was interested in what those of us on The Front thought.
At first there was hesitancy. Some wondered if his query was serious. If so, would our remarks be held in confidence? Would he really hear us? With little bit of prodding, many of us began to share our experiences.
Tom always listened intently. True, he was a talker and a slow one at that. But when it came time for others to speak, he was quite focused.
The adman perhaps the most forthcoming in The Kemp Meetings was Norman Young. He remembered Tom from their earlier days together at the Gazette. To Norman, he was "Tommy." This became a source of levity among us and we found ourselves referring to him as "Tommy" as well, but never to his face.
Tommy assured us that the tools needed to succeed would be available soon.
I believed him.
Next: "Unchained Melody."
Tom Kemp had great expectations concerning his ad department. He was willing to go the extra mile to provide the means to achieve fulfillment. To this end he held a series of meetings with the ad sales staff that centered upon one vital question.
What do you need to do your job better?
I couldn't believe it. Finally someone was interested in what those of us on The Front thought.
At first there was hesitancy. Some wondered if his query was serious. If so, would our remarks be held in confidence? Would he really hear us? With little bit of prodding, many of us began to share our experiences.
Tom always listened intently. True, he was a talker and a slow one at that. But when it came time for others to speak, he was quite focused.
The adman perhaps the most forthcoming in The Kemp Meetings was Norman Young. He remembered Tom from their earlier days together at the Gazette. To Norman, he was "Tommy." This became a source of levity among us and we found ourselves referring to him as "Tommy" as well, but never to his face.
Tommy assured us that the tools needed to succeed would be available soon.
I believed him.
Next: "Unchained Melody."
Thursday, December 3, 2009
17. John Robert Starr
I'm not sure that Gazette management understood why Walter Hussman hired John Robert Starr as managing editor. If so, they didn't let on.
I cannot say that I knew either. At least not at the outset.
However, a few of us in the ad department knew the affect that the new editor had upon Democrat readers, and it didn't bode well for the Gazette.
Perhaps I was too quick to award our newsroom an A+ in an earlier installment. I apologize to gentle reader for the lapse in memory.
For a number of years Gazette editorial positions had become increasingly liberal. Many a complaint we heard from advertisers concerning this. There wasn't a baker's dozen that wanted their ad positioned anywhere near the editorial page.
I suspect that Hussman spotted this weakness and responded by placing Starr at the helm of his newsroom.
The contrast between Starr and Gazette writers was sharp to say the least. He was a conservative. More than this he understood typical Arkansans. He spoke their language.
I didn't read his column at first. After all, he was "the enemy." But in due course I found myself looking forward to his daily offering. He was both well-informed and engaging. There is no doubt that he was just what the doctor ordered for an ailing Democrat.
While Gazette management was complaining about Hussman placing opinion (i.e. Starr) in "the news" they remained with their liberal editorial policy.
Big mistake. But understandable given the Gazette's strategy of marginalizing the other paper.
Hussman's editorial strategy was brilliant. The Democrat had nowhere to go but up, and Starr was an integral part of a team that was, with the passing of each deadline, inching in that direction.
Wednesday, December 2, 2009
16. Arkansas Times on the Newspaper War
This morning I retrieved my copy of the May 1979 issue of the Arkansas Times.
"Listen You,
I'm Bob Starr
of the Democrat
and I am Declaring War
on the Gazette!"
So declared The Lion of Arkansas Journalism perched atop a Gazette box.
There is, perhaps, no better summary of the early days of The Newspaper War than Bill Terry's article. Therein does Terry take us back to 1979 and the way we were.
I do not propose to reprint the text. First of all it is copyright. Secondly, the information is on record both in The Times and elsewhere. However, Terry cites something Hugh Patterson said that evokes memory.
Prior to the Hussmann acquisition of the Democrat, the previous owners had approached the Gazette with an offer.
Please buy us!
Hugh's response was understandable. "No," said he. The Democrat was a losing enterprise and the last thing he wished to do was throw money into a sinkhole.
The publisher was not a man given to admitting mistakes to his employees. However, as the War waged into the second year, he opened up to a few with a candid confession.
"When I had the opportunity we should have purchased the Democrat and shut it down," he lamented.
Perhaps.
Hugh was not a prophet. Events could have unfolded in any number of ways. But hiding behind this candor was a man clearly worried about the depth of his pockets.
Back to the Arkansas Times.
I do not know if copies of the May 1979 issue are still available through their circulation department. I rather doubt it. However, maybe the archivist can direct interested readers to a source. www.arkansastimes.com
The Central Arkansas Library System may also be a source.
If you can manage to locate a copy, by all means read it.
Friday, November 27, 2009
Arkansas Newspaper War
The untold story of how the Arkansas Gazette lost the battle.
Volume 2
____________________________________________________________
15. Simple realities.
Though the writing may be great and circulation huge, place an effective drain on advertising revenue and a daily newspaper will die.
No one knew this better than Tom Kemp. He saw clearly where the Democrat had placed the bullseye. And he understood that time was of the essence.
No one knew this better than Tom Kemp. He saw clearly where the Democrat had placed the bullseye. And he understood that time was of the essence.
However, change is no respecter of time especially where the subject thereof is an Old Lady holding on to tradition for dear life. The road ahead for Tom would test anyone's patience. Change was needed. Ms. Gazette understood that, albeit grudgingly. But her steps would be Parkinsonian at best.
Tom's first project was to change the manner of doing business. A rather indifferent service oriented advertising department had to be transformed into a client-friendly selling machine. To accomplish this, a series of meetings with the ad staff ensued wherein he outlined his expectations.
At the top of the list was sales and service. In these sometimes lengthy sessions, Tom emphasized repeatedly that "we are salesmen," and "the customer comes first." He cited numerous examples of how the Gazette had offended advertisers over the years and how such would no longer be tolerated.
His view extended beyond the ad department. Every employee had an obligation to represent a New Gazette. To what extent this principle reached the other departments is not known. That the ad staff was to lead the way was made very clear.
To this end Tom held a very important key. With it, he was about to open an old rusty lock.
Tom's first project was to change the manner of doing business. A rather indifferent service oriented advertising department had to be transformed into a client-friendly selling machine. To accomplish this, a series of meetings with the ad staff ensued wherein he outlined his expectations.
At the top of the list was sales and service. In these sometimes lengthy sessions, Tom emphasized repeatedly that "we are salesmen," and "the customer comes first." He cited numerous examples of how the Gazette had offended advertisers over the years and how such would no longer be tolerated.
His view extended beyond the ad department. Every employee had an obligation to represent a New Gazette. To what extent this principle reached the other departments is not known. That the ad staff was to lead the way was made very clear.
To this end Tom held a very important key. With it, he was about to open an old rusty lock.
Tuesday, November 24, 2009
Arkansas Newspaper War
The untold story of how the Arkansas Gazette lost the battle.
Volume 1
____________________________________________________
CONTENTS
1. Seeds of defeat
2. Maiden voyage
3. Classified advertising
4. Retail advertising
5. Gifts to the competition.
6. Hugh B. Patterson, Jr.
7. Help from an unexpected source
8. Policy wonks
9. Loco rates
10. Forgotten player
11. Critique
12. Enter Walter E. Hussman, Jr.
13. Shooting Lady Gazette in the foot
14. New hope
1. Seeds of defeat.
The newspaper war between the Arkansas Gazette and the Arkansas Democrat has been documented largely from the editorial perspective while the more relevant story has yet to be told from the vantage of those responsible for generating the revenue.
Long before the arrival of Gannett the seeds of defeat were sown in the advertising department of the Arkansas Gazette. This writer was a witness to these events having arrived at the Gazette ca.1970 and, until shortly before her demise, worked in classified, retail and management.
Notwithstanding a great editorial tradition, the Gazette's fate was sealed by an antiquated form of advertising departmental management.
My first week at the Gazette was wonderful. Finally I had made it to the big time: the largest newspaper in the state and wages commensurate therewith. It didn’t get any better than that.
However, by week two something was clearly amiss. This wasn’t the place wherein the pursuit of excellence continuously reigned supreme as I had thought when interviewing with assistant advertising director Darrell George. Not that he necessarily painted a glowing picture of the advertising department. It was probably my preconceived notions. While working for a small daily in the state, I had created an illusion of greatness based largely upon her editorial achievements.
Little did I know then that such did not hold true concerning the commercial end of the business.
3. Classified advertising.
My first few months were spent in classified advertising. The modus operandi of Gazette management was to use this "bastard daughter" of the department to rid themselves of the runts. Only the pick of the litter made it into retail advertising. I suppose this strategy worked for the most part, but the whole experience was laughable.
Management had set a copy deadline of noon, and so salesmen (there were no salesladies in those days) rushed to get ads from customers, speed back to the office and beat a path to the composing room with copy before the whistle blew.
The rest of the day? Many went to the golf course, home or wherever the newspaper wasn't. The classified manager was an elderly fellow who seemed oblivious to it all. His assistant? He was a conscientious sort but his mind may have been more on the football field than in the sales field.
So did the best people graduate to retail? I observed some who worked the required eight hours and wanted to succeed. However, a few coasted in who carried old habits in tow.
Sowing the seeds of defeat in the classified department was ongoing long before I arrived. From all appearances, the classified section itself was fat and overflowing with ads. However, it was not through any effort by Gazette salesmen. In those days the Arkansas Democrat was in rapid decline. Quite simply, the Gazette had no competition and advertisers held their collective noses while they gave the Old Lady most of their ad dollars.
Once Walter Hussman came to town all of this would change. A mortal wound was about to be inflicted upon Gazette classifieds from which neither she nor the paper would recover. But we shan't go there at the moment. We'll get to D-Day in due course.
Meanwhile, I moved into the retail advertising department where things became quite interesting.
4. Retail advertising .
Most of the rather cavernous first floor was host to all advertising services: retail, classified and national. Matching ca.1950 desks lined up in neat rows and a few old Underwoods on rolling stands parked in the narrow isles awaiting the beck and call of ad reps. Much more of the latter and significantly less of the former was a sight to behold as deadline approached each day.
So the move to retail was easy enough. Just a trip to the next isle.
What followed wasn't.
Just as the desks were from another era, so was the style of doing business. This was the 1970s. Much progress had been made throughout the industry in the art of selling newspaper advertising. That is, most everywhere except the Gazette.
Ever tried to get into your vehicle, see lots of clients and work up ad programs while chained to your desk? Neat trick. Try it sometime.
Not only were we expected to call on numerous customers out in the field, it also fell our lot to design ads and type all copy on special paper that allowed the composing room folks to measure picas, ems, ens, et al. Each ad was accompanied by a handwritten epistle and a short form on a t-bag. Photoprints and engravings required a ticket as well. Estimated ad reservation sheets were filled out for both daily and Sunday papers. Customers frequented the front counter and we had to handle them too. Plus a multitude of phone calls and meetings.
All against the backdrop of a daily deadline.
And that's just for starters.
Being the new kid on the block, I was treated to an extra special surprise: helping accounting with photoprint billing each day.
5. Gifts to the competition.
Though the ever-shrinking Arkansas Democrat was no real competition, their sales staff put forth a valiant effort. They called on clients throughout Greater Little Rock occasionally selling an ad program. We wondered what could possibly be keeping the old paper afloat. Certainly not circulation. As a profit-center that is a loser at best.
Other print media wasn't much of a force either. Direct mail was yet to make its mark in central Arkansas. The Arkansas Times was only a dream for Alan and Mara Leveritt who, in 1978, stepped into the media market and eventually became a force to be reckoned with.
The real competition came from both radio and television. Broadcast sales reps were very aggressive in covering the market and they sold lots of commercials. I no longer recall all of the major radio stations of the day. KAAY comes to mind. Also KARN. In television, both KATV and KARK were major players. KTHV, owned by the Democrat, was a distant third, but doing much better than her print venture.
One Gazette gift to broadcast was to deny advertising agencies a discount for placing local retail and classified ads. The rationale? Gazette monopoly mentality. The result: agencies placed more with broadcast and less with us.
Another gift was a shackled sales department.
While we were, in effect, required to remain in the office for much of the morning taking care of details; while we had to return to our desks by early afternoon to engage in the same, where was the Gazette's competition?
You guessed it. Calling on clients. Our clients.
Broadcast had advertising production departments. They knew how to utilize these services in order to create valuable time for sales efforts. And it paid off.
In the face of smart broadcast strategy, what kept the Gazette afloat? Quality journalism. The paper was still in its glory days with well-known writers such as Richard Allen, Orville Henry, Jonathan Portis and a host of others. Managing editor Bob Douglas practically had the market cornered on the best syndicated columnists and features. Arkansans loved it and showed their affection by affording the paper a huge circulation.
While a few conscientious salesmen tried against all odds to maintain some measure of professionalism - working late hours each day to properly service their clients - for the most part the Gazette advertising department simply rode the wave.
6. Hugh B. Patterson, Jr.
Most of us never knew J.N. Heiskell. On the occasion of his 100th birthday KATV aired a special program on his life. This was our introduction to an amazing editor and publisher. It was a wonderful piece of broadcast journalism.
Mr. Heiskell appointed his son-in-law Hugh B. Patterson, to the position of publisher in 1948. He was elected president of the company in 1970.
Mr. Patterson was a frequent visitor to the retail advertising department on Saturday when the office was closed. Since the relative quietness offered opportunity to play catch up, some of us could be found at our desks during the day. A rotating schedule placed at least one rep in the office in the morning for "desk duty" to handle weekend problems.
When passing through, Mr. Patterson often sat at an adjacent desk and chatted sometimes for an hour or more. He was an affable gentleman who seemed genuinely interested in the future of the family enterprise, even before the change of ownership at the Democrat.
Notwithstanding Gannett's role in the ruination of the oldest newspaper west of the Mississippi, it has become the norm, at least in the circles wherein I travel, to place substantial blame for the Gazette's demise on Hugh. The reigning sentiment attributes the Democrat's success to Mr. Hussman's brilliance and Patterson's mistakes.
Fact is, once the war was underway both men implemented good strategies. Both made mistakes along the way.
A strategy is only as good as the team that implements it. Team Democrat won. Team Gazette lost. Therefore, this isn't going to be a Hugh Bash. We all played a part in the tragedy. There is no doubt that Patterson's role was large. After all, he was the publisher. However, the failures of others must be considered as well. (Yes, we'll get to my sins too.)
Max Brantley notes on the Arkansas Times website that just a handful of folks will be interested in yet another piece on the newspaper war. This is both true and sad. The Gazette has been gone for 18 years. Usually it only takes the passing of a generation to forget the lessons of the past. Then the cycle of mistakes commences once again.
History is a great teacher. The rise and fall of the Arkansas Gazette is a textbook from which students who aspire to join the industry may learn where errors were made and how to avoid them. Perhaps enough is available though booksellers, libraries and curricula to maintain a meaningful visibility for generations to come.
If our remarks do nothing more than to keep interest alive, then this effort shall not have been in vain.
7. Help from an unexpected source.
Long before arriving at the Gazette, I was forewarned about a certain secretary by the name of Lee Sudbury. I worked with her soon-to-be ex-husband at a small newspaper in the state. It goes without saying that conversation around the morning coffee break was less than flattering. Upon learning of my move to Little Rock he offered a few parting shots. I wondered why a great newspaper would hire a lady of such low character.
Sure enough, upon promotion to retail, there she was: secretary to retail advertising manager Doug Oliver. Strange. She didn't look like Lizzy Borden. I kept my distance at first, but soon realized that she was the bright spot in an otherwise chaotic department - exceedingly helpful in all things. Amazing what the other side of the story reveals.
After a few days of orientation, I was assigned a rather large sales territory to cover: from Battery Street on the east to the Arkansas River on the north, and from the north side of Asher on the south to the west as far as the eye could see. In those days it was where The Good Earth Garden Center eventually planted itself on Highway 10. With the exception of Park Plaza, University Mall and The University Shopping Center, it was all mine. Included in this geographical whopper was a rising commercial area known as Colony West on a narrow winding road called Rodney Parham.
As implied earlier, the Gazette loved paperwork. Management burdened us with so much of it that our outside sales efforts were hindered. The secretaries didn't escape the paper jam either. Lee grew tired of generating reams of reports, and so she resigned when Walter Hussman bought the Democrat. His people made an offer she couldn't refuse.
Lee hired on as a sales rep. However, she didn't stay too long. Personal problems, we heard. Afterward, she remarried and achieved some notoriety: lots of press, a best selling book, and time spent where angels dare not tread.
Her name?
Mary Lee Orsini.
8. Policy wonks.
The manner in which both classified and retail ad departments did business created much animosity toward the Gazette among advertisers throughout the area. Management knew they had a virtual monopoly on daily print advertising and acted accordingly. While the competition was beating the bushes to shake out every available ad dollar, most of us had little more time than to give customers the revolving door treatment and deny most, if not all, requests. Emphasis was placed upon what we could not do.
The following scenario was all too common:
Salesman: "What do you have for me?"
Mr. Peck: "Here is the list of autos. Make it look nice."
Salesman: "Yes sir. We'll do what we can."
Mr. Peck: "Could you place my ad on a right hand page above the fold?"
Salesman: "We neither sell nor guaranty position."
Mr. Peck: "I've done business with you people for umpteen years - big money in classified."
Salesman: "I'm sorry but we cannot guaranty position. The most I can do is give you a section choice, and even that is not assured."
Mr. Peck: " Don't give me that. I see MM Cohn consistently on page 3A."
Salesman: "If you'll give us the same portion of your budget as MM Cohn, perhaps we could work something out."
Mr. Peck: "Really? What about the two inch Cordell's ad that you consistently place on 2A. That doesn't look like a big budget to me."
Salesman: "During the integration crisis when the paper was losing circulation, verbal commitments to certain advertisers were effected in order to keep their business."
Mr. Peck: "All you people know how to do is quote Gazette policy."
Upon that sour note the conversation usually ended.
Gazette policy, indeed. Lest we lose our jobs, we became quite proficient at parroting company policy on all manner of requests.
While the competition gave clients reason to do business with them - thereby building good relationships - the Gazette, in effect, gave reasons not to do business. Advertisers were begging for a stronger Arkansas Democrat.
After years of dishing out shabby treatment, the soft spot on Goliath's head was showing and it would only take a young David with the courage to face him.
That day was drawing nigh.
9. Loco rates.
In the early 1970s, a businessman walked into the ad department with a big budget. He wanted to run a full page. If successful, the paper would received a nice schedule. The ad rep took the order, designed the layout, and scheduled it for publication.
It was a huge success. The customer came back for more.
However, in the interim, something about the ad caught the attention of general manager J.R. Williamson. It was the logo: Memphis Silver. Concerned, he pressed upon the advertising director who in turn asked the rep why the customer was allowed to run his ad at retail rate.
The rep said that the company address was in Arkansas and, therefore, an in-state retail business and, according to present policy, entitled local retail rate.
Not so, he was told. Memphis is out of state and, therefore, the national rate applies.
The rep retorted that the name was no different than Kentucky Fried Chicken - a local restaurant paying retail rate.
The AD was not inclined to debate, and so the conversation dried up. However, he was not without compassion. He said that local general rate would be acceptable.
Local general was a rate just under national, but much higher than retail. It applied to advertising that department management determined did not fit into either category. It was a loco rate in the view of most ad reps - usually angering those who had to pay it. Among these were distributors around the state.
The AD thought he was doing Memphis Silver a favor. When the client was told of the sudden rate hike in tandem with the rationale he didn't see it that way. He knew that the ad qualified for retail. So did the rep.
Grudgingly, he paid the higher rate for further advertising, but would never forget the injustice.
Some 15 years later, and by then a successful high profile Little Rock business owner, he recounted the story to a Gannett squad sent out to learn why the Gazette was losing the newspaper war.
As the squad continued with its mission, they discovered that such was not an isolated incident. Back then it was business as usual and the ramifications of this and other outrages had, in effect, killed the Gazette long before Gannett cut the check.
And it gets worse.
10. Forgotten player.
It is not known by this writer precisely when Hugh Patterson hired his new advertising director. It's really not relevant to the issue. Suffice it to say that by at least ca.1970 he was head of adverting sales and services.
He came from a retail background having owned a clothing store in the Heights. Clearly, Hugh liked him and brought him aboard, some say over the objection of general manager J.R. Williamson who had not been informed of the hire.
The new man was very polished. A snappy dresser. Intelligent. Carried himself well. All business. Intimidated by no one. A true gentleman in every sense of the word. Adman Gary McElmurry said he had "the silver tongue." Indeed he did. Notwithstanding his apparent lack of experience in print advertising sales, production and service, it is easy to see why Hugh was impressed by him.
I certainly was.
He conducted my initial interview via telephone. Replying to a help wanted ad, I was asked about a good time for interviewing. After hesitating for a moment, "Can't do it on company time," I mumbled. Without hesitation he fired back, "It's a good thing you said that, otherwise this conversation would have been terminated. I will not hire anyone who takes off on company time. I won't be here for the next few days. My assistant Darrell George will see you. Just let him know when you can see us."
I breathed a sigh of relief.
One evening I made the trek to Little Rock. Even though interviewed by Mr. George, I could tell almost from the outset that, by the strength of my previous conversation with the ad director, the job was mine.
The AD was not an easy man to approach. Typical of my parents' generation, he was cool and somewhat distant. However, if he liked you a welcome chair in his office awaited the privileged. Some candor ensued. He could be funny. Witty. Personal.
He both commanded and received respect from us all. He was Mister, save to Brandy Moore, who called on Pfeiffer-Blass. Brandy was a veteran from the First Newspaper War. We sat side-by-side in the office. An elderly fellow, sadly he passed away a couple of years later.
What you are about to read is not generally known except by a few of us who grew to know the AD. Though having a starring role in the tragedy at Third and Louisiana, he is the forgotten player.
Most writers attribute the Gazette's loss to both the ill-advised lawsuit against the Democrat and to the stupidity of Gannett. While these events certainly played a part, it is the view of this writer that the war had, in effect, been lost long before and that these factors amounted to nothing more than a vain effort to save a terminally ill patient.
The disease that killed the Gazette commenced before Walter Hussman purchased the Democrat. It began in the advertising department and spread throughout the entire body until she gave up the ghost. Even the famous Gazette newsroom could not escape the deadly infection. Here is where the Old Lady breathed her last, aided by Mr. Gannett who, with all his money, could not save her. If anything, he drove the final nail into her coffin.
The AD never met Mr. Gannett. He passed away shortly after retiring from the Patterson's company. He held the position for many years and during his last days had been given the additional title of vice-president.
He was from the old school. With respect to the newspaper this meant continuously reminding advertisers of who is in control. Excepted, to some extent, were major accounts. However, even they had to toe the line, but such was done more through inference.
I worked for an AD at another newspaper who graduated from the same school. The theory of control was two-fold:
1. The newspaper is not a public utility; it is a private business. Certain policies must be enforced. Do business with us on this basis, or take it elsewhere.
2. This appearance of strength marginalizes competition.
Coming off of a huge win in the First Newspaper War, the Gazette had become quite heady. Big circulation. Lots of ad revenue. The AD fit right in.
But times change and so do ways of doing business. Some adapt. Others do not. The AD was of the latter class. His advertising staff was, understandably, a reflection of his image. While most of the media in Central Arkansas were asking advertisers: "What can we do for you?" We were asking: "What do you have for us?"
The problem goes much deeper than this.
The means through which control was exercised over advertisers had waxed gross and the welcome chair for the privileged provided a front row seat. On more than one occasion I was asked to sit down and listen as the AD telephoned one of my clients and dressed him down over some negative thing said about the Gazette. Other admen experienced the same.
Please, gentle reader, give this more than a glance.
Think about it.
Let's say you walked into Dillard's, purchased an item, and later returned it making some negative observation only to be scolded by the manager. How would you react? Would you shop there again? What would you tell your friends about the experience?
Now, place yourself in the shoes of the Gazette client who has been berated by management.
11. Critique.
At the time wherein the Arkansas Democrat changed hands, the Gazette engine was running on fumes. However, like a freight train speeding down the tracks, it would take some time to stop her.
Wheels were already in motion to do just that.
After years of mistreatment, most advertisers were ready to support an alternative print medium with either a total or split budget. We heard this time and again from customers throughout Greater Little Rock.
Those of us who possessed the courage to convey our concerns to the AD were laughed off. He believed that Gazette circulation was so far ahead of the declining Democrat that it was only a matter of time and the tired old daily would close.
The Gazette that Mr. Hussman was about to face was both weak and strong. Unfortunately, her weakness was in a vital area, namely, advertising. If the well of ad dollars dries up, a daily newspaper cannot survive. It was here that Husmann focused much of his multi-front attack.
The following critique of the Gazette is rather ominous, the few high marks notwithstanding.
By department:
Advertising (F)
Admen have limited availability to advertisers. Emphasis is upon paperwork as opposed to sales. Heady management is condescending, even rude, to advertisers. A monopoly mentality pervades. Countless business owners are begging for a stronger Democrat.
Circulation (A+)
Leon Reed & Co. are doing a great job. Numbers are high and growing.
News (A+)
Superb journalism. A disconnect with the advertising department is a hindrance at times.
Production (C+)
Union shop. Good work. The requirement that we manually type all ad copy is a major hindrance to outside sales efforts.
Accounting (A)
Claude Collie and staff are very cooperative.
Teamwork (D-)
There is no such department. However, the ability of the respective newspapers to function as a team will play an important role in the donnybrook.
12. Enter Walter E. Hussman, Jr.
The purchase of the Democrat in 1974 by the Hussman family was a surprise. After all, these folks had, for many years, published several small successful newspapers. On the other hand, the Democrat was in a rapid downward spiral losing both circulation and advertising revenue. To stop the losses would be hard enough. Overtaking the Gazette? That seemed impossible. Moreover, the Democrat was an afternoon daily and these were trending down throughout the industry.
To most observers the odds were very much against turning the Democrat into a profitable endeavor.
If Walter did the recon - as no doubt he did - he must have spotted weaknesses in the Gazette and knew she was vulnerable. In this respect he was quite astute. However, his strategy to best her was not so smart - at least not from the outset. Had he made the right moves in the beginning, the war might have reached a conclusion in his favor much sooner.
Over at Third and Louisiana the strategy to counter this new presence in the market was not to ignore it as some have suggested. There were meetings. Lots of them. A definitive plan was devised and implemented within days.
13. Shooting Lady Gazette in the foot.
No one at Third and Louisiana believed that Walter Hussman would gain the upper hand. However, they were not taking any chances. Gazette management wanted to hasten their competitor's demise while he was most vulnerable - new in town and unfamiliar with the market.
Gazette strategy was a two-fold, poorly conceived plan.
First, the decision was made to take as much money off of the table as possible. This was effected by increasing advertising rates over a set period. Rate increases were normal. However, these were to be greater than necessary.
In theory, larger rate increases seemed like a good idea. Leave no money on the table for the Democrat, and the new owner packs up and leaves town. For awhile it appeared to be working. At length, though, it only angered advertisers all the more.
Secondly, more emphasis was placed upon marginalizing the Democrat. This was done by emphasizing our dominate position in the market. We were neither to refer to the other paper as competition nor be seen as reacting to it.
Advertisers perceived this as business as usual, confirming their view that a one newspaper town would only make matters worse. Consequently, an increasing number of businesses found resources to run ads in the Democrat.
Furthermore, if the other paper implemented a good idea, we could not counter lest we be seen as reacting. In this, management held the gun and pulled the trigger shooting Lady Gazette in the foot.
Meanwhile, the Democrat wasn't doing well. In 1977, a mere three years after purchasing the Democrat, Hussman approached Patterson with a JOA proposal. It was declined.
The year following, Hussman must have realized that to compete against a large metropolitan newspaper, he had to give advertisers something they really wanted: a viable alternative to the Gazette.
Accordingly, he took a bold gamble, styled, D-Day.
In 1978 and the year after Hussman executed an ongoing program called D-Day. It offered free private party classified ads, swelling the section to unprecedented levels both daily and Sunday. He greatly expanded local news coverage, adding more pages to the paper. The time of publication was changed from evening to morning - the same as the Gazette. Moreover, he secured advertising contracts from certain major businesses affording all the space they could buy at only a dollar per column inch - significantly lower than Gazette rates.
With a much better product in hand, special incentives were put in place for potential subscribers and circulation increased.
Finally, Mr. Hussman got it right - a real alternative - virtually as much news, if not more, than the Gazette. Morning delivery. Growing circulation. Lots of ads. Affordable rates for everyone.
Much to her amazement, the Gazette found herself on a level playing field. Management didn't see it just yet, but the handwriting was on the wall. She had been weighed in the balances, found wanting, and her days were numbered. A few Gazette admen saw it clearly. Though at this juncture, Gazette generals were not interested in what their troops on the front line thought, that was about to change.
It was during this time that a couple of significant events transpired at the Gazette. Both the AD and GM were put out to pasture. It is not known if these retirements were forced.
I do have a theory.
Blind teaser ads leading up to D-Day had been placed in the Gazette by a trusted ad agency. When asked to reveal the name of the agency's client, the AE claimed to adman Dan Brown that his client's success was predicated upon anonymity. Not wanting to offend the agency, the ads were accepted in good faith.
Once the identity of the client became known, a rather large stink ensued. No doubt, Mr. Patterson was embarrassed by the whole affair. Perhaps this was a contributing factor in the exit of the AD and GM.
We can only speculate.
In certain quarters this move by the AE was seen as a brilliant. That the Gazette adman was taken advantage of and his employment placed at risk is conveniently forgotten.
The next move was Patterson's.
It was nothing short of genius.
14. New hope
Believe it or not, in the midst of the D-Day onslaught, we were still chained to our desks with Paper Galore. I was searching through mounds of the stuff for clip art to use in a layout when the AD strolled through the ad office with a stranger in tow. Passing by he said: "Hello, I never have to worry when you're here." The new face was silent, only glancing my way and nodding.
Actually, he wasn't new to the office. As we soon learned he worked for the ad department years earlier. Since that time he had gone on to bigger things, eventually rising in the ranks to advertising manager at Dillard's.
If Hugh erred in not supplying a timely remedy for an outdated style of advertising management, he made up for it with the hiring of Tom Kemp as Gazette AD.
So it would seem.
Tom was the right man for the job. Having been on both sides of the fence he understood the shortcomings of the Gazette as well as the unfulfilled needs of her advertisers.
If memory serves, Tom took the AD chair in 1980. From the outset one could sense that he knew precisely what program was needed to carry the Gazette to victory. On the other hand, one could also sense that he really wanted a new ad staff to implement it.
That made some of us nervous.
Word around the water cooler was that Hugh really didn't want to clean house. This was good for us, but not necessarily for Tom. He had to work with personnel from the former AD.
It was a challenge.
In our next volume, we will have a careful look at the Kemp years. If there was any hope for a Gazette triumph, it was during this period.
With respect to the ad department, these were the glory days of the Arkansas Newspaper War. In tandem with another talent tapped from Dillard's, Barbara Day, the Gazette was in position to force a halt to D-Day and send Walter back to small town USA.
Copyright 2009. All rights reserved.
The untold story of how the Arkansas Gazette lost the battle.
Volume 1
____________________________________________________
CONTENTS
1. Seeds of defeat
2. Maiden voyage
3. Classified advertising
4. Retail advertising
5. Gifts to the competition.
6. Hugh B. Patterson, Jr.
7. Help from an unexpected source
8. Policy wonks
9. Loco rates
10. Forgotten player
11. Critique
12. Enter Walter E. Hussman, Jr.
13. Shooting Lady Gazette in the foot
14. New hope
1. Seeds of defeat.
The newspaper war between the Arkansas Gazette and the Arkansas Democrat has been documented largely from the editorial perspective while the more relevant story has yet to be told from the vantage of those responsible for generating the revenue.
Long before the arrival of Gannett the seeds of defeat were sown in the advertising department of the Arkansas Gazette. This writer was a witness to these events having arrived at the Gazette ca.1970 and, until shortly before her demise, worked in classified, retail and management.
Notwithstanding a great editorial tradition, the Gazette's fate was sealed by an antiquated form of advertising departmental management.
2. Maiden voyage.
My first week at the Gazette was wonderful. Finally I had made it to the big time: the largest newspaper in the state and wages commensurate therewith. It didn’t get any better than that.
However, by week two something was clearly amiss. This wasn’t the place wherein the pursuit of excellence continuously reigned supreme as I had thought when interviewing with assistant advertising director Darrell George. Not that he necessarily painted a glowing picture of the advertising department. It was probably my preconceived notions. While working for a small daily in the state, I had created an illusion of greatness based largely upon her editorial achievements.
Little did I know then that such did not hold true concerning the commercial end of the business.
3. Classified advertising.
My first few months were spent in classified advertising. The modus operandi of Gazette management was to use this "bastard daughter" of the department to rid themselves of the runts. Only the pick of the litter made it into retail advertising. I suppose this strategy worked for the most part, but the whole experience was laughable.
Management had set a copy deadline of noon, and so salesmen (there were no salesladies in those days) rushed to get ads from customers, speed back to the office and beat a path to the composing room with copy before the whistle blew.
The rest of the day? Many went to the golf course, home or wherever the newspaper wasn't. The classified manager was an elderly fellow who seemed oblivious to it all. His assistant? He was a conscientious sort but his mind may have been more on the football field than in the sales field.
So did the best people graduate to retail? I observed some who worked the required eight hours and wanted to succeed. However, a few coasted in who carried old habits in tow.
Sowing the seeds of defeat in the classified department was ongoing long before I arrived. From all appearances, the classified section itself was fat and overflowing with ads. However, it was not through any effort by Gazette salesmen. In those days the Arkansas Democrat was in rapid decline. Quite simply, the Gazette had no competition and advertisers held their collective noses while they gave the Old Lady most of their ad dollars.
Once Walter Hussman came to town all of this would change. A mortal wound was about to be inflicted upon Gazette classifieds from which neither she nor the paper would recover. But we shan't go there at the moment. We'll get to D-Day in due course.
Meanwhile, I moved into the retail advertising department where things became quite interesting.
4. Retail advertising .
Most of the rather cavernous first floor was host to all advertising services: retail, classified and national. Matching ca.1950 desks lined up in neat rows and a few old Underwoods on rolling stands parked in the narrow isles awaiting the beck and call of ad reps. Much more of the latter and significantly less of the former was a sight to behold as deadline approached each day.
So the move to retail was easy enough. Just a trip to the next isle.
What followed wasn't.
Just as the desks were from another era, so was the style of doing business. This was the 1970s. Much progress had been made throughout the industry in the art of selling newspaper advertising. That is, most everywhere except the Gazette.
Ever tried to get into your vehicle, see lots of clients and work up ad programs while chained to your desk? Neat trick. Try it sometime.
Not only were we expected to call on numerous customers out in the field, it also fell our lot to design ads and type all copy on special paper that allowed the composing room folks to measure picas, ems, ens, et al. Each ad was accompanied by a handwritten epistle and a short form on a t-bag. Photoprints and engravings required a ticket as well. Estimated ad reservation sheets were filled out for both daily and Sunday papers. Customers frequented the front counter and we had to handle them too. Plus a multitude of phone calls and meetings.
All against the backdrop of a daily deadline.
And that's just for starters.
Being the new kid on the block, I was treated to an extra special surprise: helping accounting with photoprint billing each day.
5. Gifts to the competition.
Though the ever-shrinking Arkansas Democrat was no real competition, their sales staff put forth a valiant effort. They called on clients throughout Greater Little Rock occasionally selling an ad program. We wondered what could possibly be keeping the old paper afloat. Certainly not circulation. As a profit-center that is a loser at best.
Other print media wasn't much of a force either. Direct mail was yet to make its mark in central Arkansas. The Arkansas Times was only a dream for Alan and Mara Leveritt who, in 1978, stepped into the media market and eventually became a force to be reckoned with.
The real competition came from both radio and television. Broadcast sales reps were very aggressive in covering the market and they sold lots of commercials. I no longer recall all of the major radio stations of the day. KAAY comes to mind. Also KARN. In television, both KATV and KARK were major players. KTHV, owned by the Democrat, was a distant third, but doing much better than her print venture.
One Gazette gift to broadcast was to deny advertising agencies a discount for placing local retail and classified ads. The rationale? Gazette monopoly mentality. The result: agencies placed more with broadcast and less with us.
Another gift was a shackled sales department.
While we were, in effect, required to remain in the office for much of the morning taking care of details; while we had to return to our desks by early afternoon to engage in the same, where was the Gazette's competition?
You guessed it. Calling on clients. Our clients.
Broadcast had advertising production departments. They knew how to utilize these services in order to create valuable time for sales efforts. And it paid off.
In the face of smart broadcast strategy, what kept the Gazette afloat? Quality journalism. The paper was still in its glory days with well-known writers such as Richard Allen, Orville Henry, Jonathan Portis and a host of others. Managing editor Bob Douglas practically had the market cornered on the best syndicated columnists and features. Arkansans loved it and showed their affection by affording the paper a huge circulation.
While a few conscientious salesmen tried against all odds to maintain some measure of professionalism - working late hours each day to properly service their clients - for the most part the Gazette advertising department simply rode the wave.
6. Hugh B. Patterson, Jr.
Most of us never knew J.N. Heiskell. On the occasion of his 100th birthday KATV aired a special program on his life. This was our introduction to an amazing editor and publisher. It was a wonderful piece of broadcast journalism.
Mr. Heiskell appointed his son-in-law Hugh B. Patterson, to the position of publisher in 1948. He was elected president of the company in 1970.
Mr. Patterson was a frequent visitor to the retail advertising department on Saturday when the office was closed. Since the relative quietness offered opportunity to play catch up, some of us could be found at our desks during the day. A rotating schedule placed at least one rep in the office in the morning for "desk duty" to handle weekend problems.
When passing through, Mr. Patterson often sat at an adjacent desk and chatted sometimes for an hour or more. He was an affable gentleman who seemed genuinely interested in the future of the family enterprise, even before the change of ownership at the Democrat.
Notwithstanding Gannett's role in the ruination of the oldest newspaper west of the Mississippi, it has become the norm, at least in the circles wherein I travel, to place substantial blame for the Gazette's demise on Hugh. The reigning sentiment attributes the Democrat's success to Mr. Hussman's brilliance and Patterson's mistakes.
Fact is, once the war was underway both men implemented good strategies. Both made mistakes along the way.
A strategy is only as good as the team that implements it. Team Democrat won. Team Gazette lost. Therefore, this isn't going to be a Hugh Bash. We all played a part in the tragedy. There is no doubt that Patterson's role was large. After all, he was the publisher. However, the failures of others must be considered as well. (Yes, we'll get to my sins too.)
Max Brantley notes on the Arkansas Times website that just a handful of folks will be interested in yet another piece on the newspaper war. This is both true and sad. The Gazette has been gone for 18 years. Usually it only takes the passing of a generation to forget the lessons of the past. Then the cycle of mistakes commences once again.
History is a great teacher. The rise and fall of the Arkansas Gazette is a textbook from which students who aspire to join the industry may learn where errors were made and how to avoid them. Perhaps enough is available though booksellers, libraries and curricula to maintain a meaningful visibility for generations to come.
If our remarks do nothing more than to keep interest alive, then this effort shall not have been in vain.
7. Help from an unexpected source.
Long before arriving at the Gazette, I was forewarned about a certain secretary by the name of Lee Sudbury. I worked with her soon-to-be ex-husband at a small newspaper in the state. It goes without saying that conversation around the morning coffee break was less than flattering. Upon learning of my move to Little Rock he offered a few parting shots. I wondered why a great newspaper would hire a lady of such low character.
Sure enough, upon promotion to retail, there she was: secretary to retail advertising manager Doug Oliver. Strange. She didn't look like Lizzy Borden. I kept my distance at first, but soon realized that she was the bright spot in an otherwise chaotic department - exceedingly helpful in all things. Amazing what the other side of the story reveals.
After a few days of orientation, I was assigned a rather large sales territory to cover: from Battery Street on the east to the Arkansas River on the north, and from the north side of Asher on the south to the west as far as the eye could see. In those days it was where The Good Earth Garden Center eventually planted itself on Highway 10. With the exception of Park Plaza, University Mall and The University Shopping Center, it was all mine. Included in this geographical whopper was a rising commercial area known as Colony West on a narrow winding road called Rodney Parham.
As implied earlier, the Gazette loved paperwork. Management burdened us with so much of it that our outside sales efforts were hindered. The secretaries didn't escape the paper jam either. Lee grew tired of generating reams of reports, and so she resigned when Walter Hussman bought the Democrat. His people made an offer she couldn't refuse.
Lee hired on as a sales rep. However, she didn't stay too long. Personal problems, we heard. Afterward, she remarried and achieved some notoriety: lots of press, a best selling book, and time spent where angels dare not tread.
Her name?
Mary Lee Orsini.
8. Policy wonks.
The manner in which both classified and retail ad departments did business created much animosity toward the Gazette among advertisers throughout the area. Management knew they had a virtual monopoly on daily print advertising and acted accordingly. While the competition was beating the bushes to shake out every available ad dollar, most of us had little more time than to give customers the revolving door treatment and deny most, if not all, requests. Emphasis was placed upon what we could not do.
The following scenario was all too common:
Salesman: "What do you have for me?"
Mr. Peck: "Here is the list of autos. Make it look nice."
Salesman: "Yes sir. We'll do what we can."
Mr. Peck: "Could you place my ad on a right hand page above the fold?"
Salesman: "We neither sell nor guaranty position."
Mr. Peck: "I've done business with you people for umpteen years - big money in classified."
Salesman: "I'm sorry but we cannot guaranty position. The most I can do is give you a section choice, and even that is not assured."
Mr. Peck: " Don't give me that. I see MM Cohn consistently on page 3A."
Salesman: "If you'll give us the same portion of your budget as MM Cohn, perhaps we could work something out."
Mr. Peck: "Really? What about the two inch Cordell's ad that you consistently place on 2A. That doesn't look like a big budget to me."
Salesman: "During the integration crisis when the paper was losing circulation, verbal commitments to certain advertisers were effected in order to keep their business."
Mr. Peck: "All you people know how to do is quote Gazette policy."
Upon that sour note the conversation usually ended.
Gazette policy, indeed. Lest we lose our jobs, we became quite proficient at parroting company policy on all manner of requests.
While the competition gave clients reason to do business with them - thereby building good relationships - the Gazette, in effect, gave reasons not to do business. Advertisers were begging for a stronger Arkansas Democrat.
After years of dishing out shabby treatment, the soft spot on Goliath's head was showing and it would only take a young David with the courage to face him.
That day was drawing nigh.
9. Loco rates.
In the early 1970s, a businessman walked into the ad department with a big budget. He wanted to run a full page. If successful, the paper would received a nice schedule. The ad rep took the order, designed the layout, and scheduled it for publication.
It was a huge success. The customer came back for more.
However, in the interim, something about the ad caught the attention of general manager J.R. Williamson. It was the logo: Memphis Silver. Concerned, he pressed upon the advertising director who in turn asked the rep why the customer was allowed to run his ad at retail rate.
The rep said that the company address was in Arkansas and, therefore, an in-state retail business and, according to present policy, entitled local retail rate.
Not so, he was told. Memphis is out of state and, therefore, the national rate applies.
The rep retorted that the name was no different than Kentucky Fried Chicken - a local restaurant paying retail rate.
The AD was not inclined to debate, and so the conversation dried up. However, he was not without compassion. He said that local general rate would be acceptable.
Local general was a rate just under national, but much higher than retail. It applied to advertising that department management determined did not fit into either category. It was a loco rate in the view of most ad reps - usually angering those who had to pay it. Among these were distributors around the state.
The AD thought he was doing Memphis Silver a favor. When the client was told of the sudden rate hike in tandem with the rationale he didn't see it that way. He knew that the ad qualified for retail. So did the rep.
Grudgingly, he paid the higher rate for further advertising, but would never forget the injustice.
Some 15 years later, and by then a successful high profile Little Rock business owner, he recounted the story to a Gannett squad sent out to learn why the Gazette was losing the newspaper war.
As the squad continued with its mission, they discovered that such was not an isolated incident. Back then it was business as usual and the ramifications of this and other outrages had, in effect, killed the Gazette long before Gannett cut the check.
And it gets worse.
10. Forgotten player.
It is not known by this writer precisely when Hugh Patterson hired his new advertising director. It's really not relevant to the issue. Suffice it to say that by at least ca.1970 he was head of adverting sales and services.
He came from a retail background having owned a clothing store in the Heights. Clearly, Hugh liked him and brought him aboard, some say over the objection of general manager J.R. Williamson who had not been informed of the hire.
The new man was very polished. A snappy dresser. Intelligent. Carried himself well. All business. Intimidated by no one. A true gentleman in every sense of the word. Adman Gary McElmurry said he had "the silver tongue." Indeed he did. Notwithstanding his apparent lack of experience in print advertising sales, production and service, it is easy to see why Hugh was impressed by him.
I certainly was.
He conducted my initial interview via telephone. Replying to a help wanted ad, I was asked about a good time for interviewing. After hesitating for a moment, "Can't do it on company time," I mumbled. Without hesitation he fired back, "It's a good thing you said that, otherwise this conversation would have been terminated. I will not hire anyone who takes off on company time. I won't be here for the next few days. My assistant Darrell George will see you. Just let him know when you can see us."
I breathed a sigh of relief.
One evening I made the trek to Little Rock. Even though interviewed by Mr. George, I could tell almost from the outset that, by the strength of my previous conversation with the ad director, the job was mine.
The AD was not an easy man to approach. Typical of my parents' generation, he was cool and somewhat distant. However, if he liked you a welcome chair in his office awaited the privileged. Some candor ensued. He could be funny. Witty. Personal.
He both commanded and received respect from us all. He was Mister, save to Brandy Moore, who called on Pfeiffer-Blass. Brandy was a veteran from the First Newspaper War. We sat side-by-side in the office. An elderly fellow, sadly he passed away a couple of years later.
What you are about to read is not generally known except by a few of us who grew to know the AD. Though having a starring role in the tragedy at Third and Louisiana, he is the forgotten player.
Most writers attribute the Gazette's loss to both the ill-advised lawsuit against the Democrat and to the stupidity of Gannett. While these events certainly played a part, it is the view of this writer that the war had, in effect, been lost long before and that these factors amounted to nothing more than a vain effort to save a terminally ill patient.
The disease that killed the Gazette commenced before Walter Hussman purchased the Democrat. It began in the advertising department and spread throughout the entire body until she gave up the ghost. Even the famous Gazette newsroom could not escape the deadly infection. Here is where the Old Lady breathed her last, aided by Mr. Gannett who, with all his money, could not save her. If anything, he drove the final nail into her coffin.
The AD never met Mr. Gannett. He passed away shortly after retiring from the Patterson's company. He held the position for many years and during his last days had been given the additional title of vice-president.
He was from the old school. With respect to the newspaper this meant continuously reminding advertisers of who is in control. Excepted, to some extent, were major accounts. However, even they had to toe the line, but such was done more through inference.
I worked for an AD at another newspaper who graduated from the same school. The theory of control was two-fold:
1. The newspaper is not a public utility; it is a private business. Certain policies must be enforced. Do business with us on this basis, or take it elsewhere.
2. This appearance of strength marginalizes competition.
Coming off of a huge win in the First Newspaper War, the Gazette had become quite heady. Big circulation. Lots of ad revenue. The AD fit right in.
But times change and so do ways of doing business. Some adapt. Others do not. The AD was of the latter class. His advertising staff was, understandably, a reflection of his image. While most of the media in Central Arkansas were asking advertisers: "What can we do for you?" We were asking: "What do you have for us?"
The problem goes much deeper than this.
The means through which control was exercised over advertisers had waxed gross and the welcome chair for the privileged provided a front row seat. On more than one occasion I was asked to sit down and listen as the AD telephoned one of my clients and dressed him down over some negative thing said about the Gazette. Other admen experienced the same.
Please, gentle reader, give this more than a glance.
Think about it.
Let's say you walked into Dillard's, purchased an item, and later returned it making some negative observation only to be scolded by the manager. How would you react? Would you shop there again? What would you tell your friends about the experience?
Now, place yourself in the shoes of the Gazette client who has been berated by management.
11. Critique.
At the time wherein the Arkansas Democrat changed hands, the Gazette engine was running on fumes. However, like a freight train speeding down the tracks, it would take some time to stop her.
Wheels were already in motion to do just that.
After years of mistreatment, most advertisers were ready to support an alternative print medium with either a total or split budget. We heard this time and again from customers throughout Greater Little Rock.
Those of us who possessed the courage to convey our concerns to the AD were laughed off. He believed that Gazette circulation was so far ahead of the declining Democrat that it was only a matter of time and the tired old daily would close.
The Gazette that Mr. Hussman was about to face was both weak and strong. Unfortunately, her weakness was in a vital area, namely, advertising. If the well of ad dollars dries up, a daily newspaper cannot survive. It was here that Husmann focused much of his multi-front attack.
The following critique of the Gazette is rather ominous, the few high marks notwithstanding.
By department:
Advertising (F)
Admen have limited availability to advertisers. Emphasis is upon paperwork as opposed to sales. Heady management is condescending, even rude, to advertisers. A monopoly mentality pervades. Countless business owners are begging for a stronger Democrat.
Circulation (A+)
Leon Reed & Co. are doing a great job. Numbers are high and growing.
News (A+)
Superb journalism. A disconnect with the advertising department is a hindrance at times.
Production (C+)
Union shop. Good work. The requirement that we manually type all ad copy is a major hindrance to outside sales efforts.
Accounting (A)
Claude Collie and staff are very cooperative.
Teamwork (D-)
There is no such department. However, the ability of the respective newspapers to function as a team will play an important role in the donnybrook.
12. Enter Walter E. Hussman, Jr.
The purchase of the Democrat in 1974 by the Hussman family was a surprise. After all, these folks had, for many years, published several small successful newspapers. On the other hand, the Democrat was in a rapid downward spiral losing both circulation and advertising revenue. To stop the losses would be hard enough. Overtaking the Gazette? That seemed impossible. Moreover, the Democrat was an afternoon daily and these were trending down throughout the industry.
To most observers the odds were very much against turning the Democrat into a profitable endeavor.
If Walter did the recon - as no doubt he did - he must have spotted weaknesses in the Gazette and knew she was vulnerable. In this respect he was quite astute. However, his strategy to best her was not so smart - at least not from the outset. Had he made the right moves in the beginning, the war might have reached a conclusion in his favor much sooner.
Over at Third and Louisiana the strategy to counter this new presence in the market was not to ignore it as some have suggested. There were meetings. Lots of them. A definitive plan was devised and implemented within days.
13. Shooting Lady Gazette in the foot.
No one at Third and Louisiana believed that Walter Hussman would gain the upper hand. However, they were not taking any chances. Gazette management wanted to hasten their competitor's demise while he was most vulnerable - new in town and unfamiliar with the market.
Gazette strategy was a two-fold, poorly conceived plan.
First, the decision was made to take as much money off of the table as possible. This was effected by increasing advertising rates over a set period. Rate increases were normal. However, these were to be greater than necessary.
In theory, larger rate increases seemed like a good idea. Leave no money on the table for the Democrat, and the new owner packs up and leaves town. For awhile it appeared to be working. At length, though, it only angered advertisers all the more.
Secondly, more emphasis was placed upon marginalizing the Democrat. This was done by emphasizing our dominate position in the market. We were neither to refer to the other paper as competition nor be seen as reacting to it.
Advertisers perceived this as business as usual, confirming their view that a one newspaper town would only make matters worse. Consequently, an increasing number of businesses found resources to run ads in the Democrat.
Furthermore, if the other paper implemented a good idea, we could not counter lest we be seen as reacting. In this, management held the gun and pulled the trigger shooting Lady Gazette in the foot.
Meanwhile, the Democrat wasn't doing well. In 1977, a mere three years after purchasing the Democrat, Hussman approached Patterson with a JOA proposal. It was declined.
The year following, Hussman must have realized that to compete against a large metropolitan newspaper, he had to give advertisers something they really wanted: a viable alternative to the Gazette.
Accordingly, he took a bold gamble, styled, D-Day.
In 1978 and the year after Hussman executed an ongoing program called D-Day. It offered free private party classified ads, swelling the section to unprecedented levels both daily and Sunday. He greatly expanded local news coverage, adding more pages to the paper. The time of publication was changed from evening to morning - the same as the Gazette. Moreover, he secured advertising contracts from certain major businesses affording all the space they could buy at only a dollar per column inch - significantly lower than Gazette rates.
With a much better product in hand, special incentives were put in place for potential subscribers and circulation increased.
Finally, Mr. Hussman got it right - a real alternative - virtually as much news, if not more, than the Gazette. Morning delivery. Growing circulation. Lots of ads. Affordable rates for everyone.
Much to her amazement, the Gazette found herself on a level playing field. Management didn't see it just yet, but the handwriting was on the wall. She had been weighed in the balances, found wanting, and her days were numbered. A few Gazette admen saw it clearly. Though at this juncture, Gazette generals were not interested in what their troops on the front line thought, that was about to change.
It was during this time that a couple of significant events transpired at the Gazette. Both the AD and GM were put out to pasture. It is not known if these retirements were forced.
I do have a theory.
Blind teaser ads leading up to D-Day had been placed in the Gazette by a trusted ad agency. When asked to reveal the name of the agency's client, the AE claimed to adman Dan Brown that his client's success was predicated upon anonymity. Not wanting to offend the agency, the ads were accepted in good faith.
Once the identity of the client became known, a rather large stink ensued. No doubt, Mr. Patterson was embarrassed by the whole affair. Perhaps this was a contributing factor in the exit of the AD and GM.
We can only speculate.
In certain quarters this move by the AE was seen as a brilliant. That the Gazette adman was taken advantage of and his employment placed at risk is conveniently forgotten.
The next move was Patterson's.
It was nothing short of genius.
14. New hope
Believe it or not, in the midst of the D-Day onslaught, we were still chained to our desks with Paper Galore. I was searching through mounds of the stuff for clip art to use in a layout when the AD strolled through the ad office with a stranger in tow. Passing by he said: "Hello, I never have to worry when you're here." The new face was silent, only glancing my way and nodding.
Actually, he wasn't new to the office. As we soon learned he worked for the ad department years earlier. Since that time he had gone on to bigger things, eventually rising in the ranks to advertising manager at Dillard's.
If Hugh erred in not supplying a timely remedy for an outdated style of advertising management, he made up for it with the hiring of Tom Kemp as Gazette AD.
So it would seem.
Tom was the right man for the job. Having been on both sides of the fence he understood the shortcomings of the Gazette as well as the unfulfilled needs of her advertisers.
If memory serves, Tom took the AD chair in 1980. From the outset one could sense that he knew precisely what program was needed to carry the Gazette to victory. On the other hand, one could also sense that he really wanted a new ad staff to implement it.
That made some of us nervous.
Word around the water cooler was that Hugh really didn't want to clean house. This was good for us, but not necessarily for Tom. He had to work with personnel from the former AD.
It was a challenge.
In our next volume, we will have a careful look at the Kemp years. If there was any hope for a Gazette triumph, it was during this period.
With respect to the ad department, these were the glory days of the Arkansas Newspaper War. In tandem with another talent tapped from Dillard's, Barbara Day, the Gazette was in position to force a halt to D-Day and send Walter back to small town USA.
Copyright 2009. All rights reserved.
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