Condé Nast CEO Bob Sauerberg told Adweek about his five-year strategy to transform the company for the future in which the company projects to generate $600 million in new revenue.
Among new priorities will be video production, creating new revenue streams from brands, such as experiences to commerce, all while boosting its data platform and B2B services.
Condé has already invested heavily in video and announced it would launch three OTT channels for Wired, GQ and Bon Appétit.
“We’re defining what short-form video really can be in this market and in our marketplaces. We see that as a continued growth area,” Sauerberg said. “We’re going to pour more gas on it, and over time it will become our predominant content format.”
Don’t expect Condé to remain the same in these next five years.
“We’re going to have to continue to drive costs out of the business,” Sauerberg said. “There will be changes as we change our company, there will be changes on how money is spent, toward the areas that are growing and less toward the areas that aren’t.”
Sauerberg chatted more extensively about his vision for the company, its financial veracity and where that leaves W, Brides and Golf Digest.
The conversation has been edited for clarity and length.
Adweek: What brought about this vision?
Bob Sauerberg: I saw last year that we were going to have to do a combination of things. I want to expand our biggest brands and I want to be in a real leader in video, experiences and B2B in the top brands that I have. I felt like that was the best way for us to create value for the company.
As I looked out five years from now, I didn’t like the trends that I saw with my business. I wanted to create a new outcome that set a very clear path for the company I wanted us to be, that is built to last. Not just to make it for the next few years. That’s what set the whole planning off.
It isn’t just that this is the place you want to be if you’re a print expert, it has to also be if you’re a producer, if you’re an engineer who creates digital products. This place has to be the place you want to be. We needed some real focus on that, and we needed to really get the company to understand that … We’ve got to find a way culturally to really come together, around one plan with one focus and one mission.
In the past, I had directional things, like we’re going to build a digital business. Now what we have here is a very specific approach, and I think our company needed it. This plan gives us a clear roadmap, clear accountabilities. We kicked it off with the company yesterday.
How was the reception?
I think it was really positive, I think people really appreciated it. Human beings love to know what they should be doing, and so I think what will happen now is that there will be a downstream in activity as our leaders go to implement this in their areas of responsibility. There will be a lot of areas that will help the company focus and execute the strategies so the implications to every employee will start playing out over the next few months.
But what we’re going to do at my level is repeat our intention, and we’re going to remain disciplined about executing this vision, these strategic choices and these initiatives. I believe when all these things happen, it makes the company grow, makes the company more profitable, makes the company a better place to work, and there are very clear outcomes that come as a result of it.