Katie Vanneck-Smith leads strategic transformation at Hearst UK

Katie Vanneck-Smith, a seasoned leader in the media industry, has been spearheading a strategic transformation at Hearst UK since her arrival in December 2022. Having transitioned from her role as co-founder and publisher at Tortoise Media, Vanneck-Smith took up the challenge at the glossy magazine publisher, which boasts well-known titles such as Cosmopolitan, Good Housekeeping, Esquire, Women’s Health, and Country Living.

At Hearst UK’s London headquarters, located just off Leicester Square, Vanneck-Smith has implemented a comprehensive overhaul to adapt the company to the ever-evolving media landscape.

Upon joining Hearst, Vanneck-Smith embarked on an ambitious plan to redefine the company’s strategy, focusing on building more direct relationships with advertisers while reducing reliance on broader platforms such as social media. Her “three-legged stool strategy” centres on three main pillars: consumer engagement, advertising and brand diversification.

Her storied career includes significant positions at Dow Jones, News UK, and Telegraph Media Group. Notably, while at News UK, she played a key role during the introduction of paywalls for The Times and The Sunday Times, a model that was sceptically received initially but has since become commonplace across the media industry.

Vanneck-Smith faced challenges at Hearst, as she found the consumer magazine sector mired in pessimism, overly tethered to the decline of physical print. Under her leadership, Hearst is reimagining what the ‘magazine of the future’ might look like, encompassing digital formats, podcasts, and apps that could rejuvenate their traditional allure.

Hearst’s financial health has been tested, as evidenced by an 8% fall in revenue to £111.9 million in 2023, with company profits plummeting from £6.2 million to £685,000. A crucial factor in this was a 17% decline in digital advertising revenue, exacerbated by algorithm updates on several digital platforms. However, Hearst anticipates a rebound, projecting a 19% increase in digital revenue in 2024, which they hope will result in a net growth of 2% over two years.

Douglas McCabe, chief executive and director of publishing and tech at Enders Analysis, pointed out that Hearst’s prior over-dependence on digital platforms, especially social media, had left them vulnerable. In response, Vanneck-Smith has redirected focus towards engaging Hearst’s most loyal users, rather than pursuing a broad, less-engaged audience.

This shift has already shown promise, with print advertising sales rising by 10% in the first half of 2024. Vanneck-Smith attributes this growth to the value placed on different advertising media by Hearst’s portfolio directors, who manage distinctive categories such as luxury, health and wellness, homes, women’s lifestyle, and entertainment. Each of Hearst’s top 200 advertisers is now assigned a client partner as part of her reorganisation efforts.

Nevertheless, Vanneck-Smith’s strategy has ruffled some feathers. Some media buyers believe that focusing heavily on brand positioning necessitates more agency involvement to ensure a holistic approach to spending, given the diverse clientele they work with.

Despite these challenges, Vanneck-Smith remains optimistic about her strategic vision, recognising the unique nature of each brand within the Hearst portfolio and the specific approaches required to cater to their distinct audiences. She is confident that building meaningful connections and embracing creative advertising, as opposed to purely data-driven approaches, will foster deeper audience engagement.

Source: Noah Wire Services