Isabel Russ, Editor in Chief at Vorarlberger Nachrichten & Managing Director Russmedia Austria
Georg Burtscher, Managing Director Russmedia Austria
September 18, 2024
Achieving sustainability: Implementing a revised business strategy for a growing newsroom – a methodology
A visit to Bergen, Norway proved a pivotal moment for senior management at Austrian local media group Russmedia, one of most progressive local news companies in the German speaking world. What the leaders found in Norway was a fresh approach for both reader and advertising revenue to support its local newsroom. In this webinar we learn about the strategy itself, its deployment as well as insights and challenges along the way.
Presented by Isabel Russ, Editor in Chief at Vorarlberger Nachrichten & Managing Director Russmedia Austria and Georg Burtscher, Managing Director Russmedia Austria
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By Niklas Jonason
Article Summary
The webinar presented Russmedia’s innovative approach to sustaining a growing newsroom by revising their working routines in the newsroom and ad portfolio. The management team was deeply influenced by their visit to two media companies in Bergen, Norway in 2023. After coming back to Austria, the management team set a new strategy for content and sales.
On the editorial side, the most notable change was the storytelling approach, which focused on placing people at the center of the stories and enhancing breaking news coverage. Inspired by their experience in Bergen, the team started highlighting personal, emotional narratives rather than relying solely on political figures or officials. This new storytelling approach helps to create stronger connections with readers. Real-world examples, such as a story on a kindergarten closure and a mystery about missing sheep, demonstrated the power of engagement to drive reader interest. Their breaking news strategy also evolved, emphasizing speed and eyewitness accounts to enhance trust and further enhance reader engagement.
In advertising, the Russmedia team introduced a more authentic form of content marketing, which they termed "Premium Stories." Instead of using traditional corporate-driven ads, they focused on people-driven stories to market products, enhancing reader engagement by emphasizing real experiences over polished corporate messaging. This method proved highly effective, resulting in significantly higher reader interaction and conversion rates. Overall, this strategy not only increased digital ad revenue but also positioned Russmedia as a unique local media outlet with unmatched storytelling capabilities.
Background on Russmedia
Russmedia is a family-owned local media company with its home base in the Vorarlberg region in western Austria, The group combines online portals, printing, logistics, radio, and IT services under one roof at its main location in the outskirts of Bregenz, next to the Bodensee. The over 40 brands within the group includes the newspaper Vorarlberger Nachrichten VN, the news property vol.at and online portals such as quoka.de, erento.com, cvonline.hu and Bregenz.com.
Russmedia also has an international arm with focus on online marketplaces and online services in countries such as Germany, Hungary, Romania and the UK.
It was in 1919 that Eugen Russ purchased the local newspaper. In 1945 the first issue of the independent Vorarlberger Nachrichten, VN, was published with Eugen as editor-in-chief. In 1962 Eugen died and his son Doktor Toni Russ took over and made VN the market leader. In 1983 the young Eugen A. Russ, son of Toni, became managing director of the VN Group as well as editor-in-chief of the VN. Recently, Isabel, one of the two speakers at the webinar, and the daughter of Eugen represents the 4th generation in the family, working in the company
The Russmedia Group has been progressive during the years and claims the following “firsts”:
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In 1987, the first daily newspaper to be produced via Desktop Publishing (which means through mass market computing hardware and software), as well as the first newspaper in Europe to use infographics to illustrate content for readers.
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In 1992, the first media company in the world to put computer-to-plate technology into practice (process technology that prepares the newspaper pages for print).
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In 1993, VN was the first first daily newspaper in the world which could be printed in full-colour.
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In 1995, Vol.at became the first regional news portal in Austria.
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In 2010, VOL was the first german-speaking news portal app for the iPad and one year later the first HTML 5 news app.
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In 2011, erento.com, the world’s largest online market for rentable goods, was acquired.
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In 2015, its alpinresorts,com became Europe's largest independent online ski equipment rental company,
The Russmedia group has about 1000 employees at 14 European locations. They claim that the number of people that get their information daily from Russmedia is 9 out of 10 people in Vorarlberg.
The “philosophy” of the group in four bullets
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Always searching. Focused. Efficient.
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Forward-looking. Open.
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Excellence-driven. Eager.
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Consistent. Hands-on.
The why, what and how of Russmedia Austria
All businesses must have a “why” and a “what”. In local news media the answer to “why?” can be something like “to inform citizens in a democratic society”and the answer to “what?” could be “telling true stories with any means in any channel”. To do that the local news company needs a newsroom and such an organisation needs a “how” - a methodology how to work and what to focus on! The “how” binds the “why” and the “what” together. The “how” is the same as a strategy. When a strategy works well it makes the organisation work effectively and reach its goal of sustainability. In these times of transformation from print to digital, the “how”, that is the strategy is crucial as we all know.
For this webinar we had invited Russmedia Austria to tell their story on how a visit to two competing news organisations in Bergen in Norway inspired them to adjust its strategy both content- and business wise. The Russmedia Group runs businesses in several European countries (see box above). However its very core, and where it all started, is the newsroom in Bregenz and the group's aim is to keep the newsroom growing.*
The case was presented by Isabel Russ, Editor in Chief of Vorarlberger Nachrichten and Managing Director and Georg Burtscher, also Managing Director, both at Russmedia Austria. Isabel joined the organisation in Bregenz in February this year. George has worked in different roles on the business side in the group since 2006.
A case inspired by Bergen in Norway
George Burtscher started, and as we will see also ended, by concluding that their case really started with an international exchange with Norwegian colleagues at the respectively Shipsted- and Amedia-owned competing news properties Bergens Tidende and Bergenavisen, both in the town of Bergen, and what they learned about subscriptions and reader focus in the newsroom and what the the sales team learned about content marketing as a complement to traditional advertising. The team from Russmedia visited Bergen about a year ago, in mid 2023.
- “It completely changed the way we work today and how we will work in the future.” means Georg and gave the word to Isabel to start with the newsroom side.
A new way of working on the editorial side
-”During the visit to Bergen, two storytelling approaches stood out to us.
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First it was putting people at the center of stories and
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Secondly, powerful breaking news coverage.”
Isabel Russ then continued to show us how the team implemented these approaches in the Bregenz newsroom, using real examples from the past few weeks.
Starting with people
In Bergen, Isabel’s team learned the importance of telling human stories that tap into community concerns by making them much more relatable and impactful.
- “The most impactful stories are the ones that put people and their emotions at the forefront. Therefore we start with people at the center. And people don't connect with politicians, they don't connect with CEOs, they do connect with their friends, their neighbors and those that they can relate to. One of the stories that we recently did was about the closure of a Kindergarten. And the easiest approach would have been to interview the mayor who explains the decision why they closed this kindergarten. But that's not what we did. Instead, we spoke to the parents whose children attended the kindergarten. So one family had to buy a second car just to manage the new commute. Another mother told us that they felt betrayed. And her words alone capture the frustration they felt. In Bergen, we learned how vital it is to convey emotion by letting people tell their own stories and making their experiences the heart of the narrative. This creates a much deeper connection with readers.”
-”A second example is the missing sheep. The story unfolds like a mystery novel, with living sheep that disappear. The local community was puzzled. It turns out that the trail of the sheep leads to a potential culprit. And the reporter brought readers into the scene, making them feel like they were standing right there staring at the empty field with the owner of the sheep. A simple report on missing sheep, you know, wouldn't be interesting. However it is interesting in the way that the story is told.”
Powerful breaking news
One of the most important lessons from Bergen was how to handle breaking news.
-”Speed, of course, is crucial. In Bergen. They have a one minute rule to respond to breaking news, but just as important is incorporating eyewitness accounts. So not only relying on police reports, as they say in Bergen, “we're not the parents of the police”. So for an example, just last week actually, a body was found in a village in Vorarlberg. Our in-house editorial team got the story out online quickly. And our breaking news team, on the other hand, was on site almost immediately.”
-”In Bergen, we learned how critical it is to speak to eyewitnesses. And that's what we did. We talked to the couple who discovered the body. And their shock added emotional depth to the story. So unfortunately, we didn't have a picture of the couple there. Usually we would have preferred to have a picture of the couple, but sometimes you have to go with what you get. This personal account still made the story much more engaging than if we just had talked to the police or just gotten a statement from a policeman on scene. And maybe an interesting side note, we spoke with neighbors who mentioned seeing a Spanish couple nearby days before. And the police later asked us to hold that information. So apparently, this turned out to be relevant to the case. So you can see, we weren't repeating what the police told us. We were really no parrots, as they would say in Bergen.”
“Of course, there are challenges with this type of storytelling. Our biggest challenge since visiting Bergen has been finding eyewitnesses. Often by the time we arrive, people are gone. And it can be tough to track them down. It means chasing people, knocking on doors, and having lots of awkward conversations with strangers. In that sense it's far easier for reporters to stay in the newsroom, make phone calls, and report from the desk. But really anyone can make calls and rewrite statements. And that is essential. In fact, you can do that from anywhere in the world. But what sets us apart, as a local newspaper, is being on site and capturing firsthand accounts, speaking to the people, being part of the community. Despite the challenge, despite this being a very difficult storytelling approach, we've had major successes”, Isabel continues.
-”Stories like in the case with the murder, where we featured eyewitness reports, significantly boost reader engagement and lead to more subscriptions. And being first with human-focused reporting also strengthens trust. And we're seeing more and more people willing to pay for this kind of journalism. So we're definitely on the right track here.”
With these words Isabel gave over to her colleague Georg Burtscher to cover “the other side” of what they brought back from Norway, a new secret sauce for the advertising sales.
The new way of working on the sales side
-”So on the editorial side the big take-away from Bergen was to focus on the story. In the sales team we thought that maybe that could work for us too.” And now he knows it does work for them. Georg started from the beginning.
-”We are flooded with information and advertising, and we, in advertising sales, are thinking about how to stand out among all these messages. That is the challenge for our clients. And I mean, storytelling is not something new, but at the end, it's about relationships.”
-”Every day, companies are telling us that they have the best CEO, the best products, the best new building etc., and everything is focused on the company itself. However at the end, they don't ask you how it fits to the needs of the reader and the audience. What we should ask ourselves is what the people really want to know?”
-”It is actually a similar challenge as in the editorial department. People out there are saying, okay, if you have the best product, how does it affect me? How do you have the best office building? How is it to work there? And if you have a great CEO, it's okay, but I don't care if he or she is perfect at this moment. People do not want to see the perfect world, they want to see how it really is. They don't want to hear from the police, they want to see the eyewitness report.”
A unique ad product based on honest people stories
-”It's the same with advertising. So, just as journalists, we started with what we see. We had to learn to write our clients stories and stop spreading the stories that clients sent us. And we should write with the knowhow we have built up during more than 100 years in the history of our company“. Later Georg describes what is different from the journalistic job at that is that in sales the stories “are written for the clients and not for the readers” and quickly ads “however you still need to be honest”.
What Georg is referring to is not new. It goes by the name of the general term “content marketing” or “native advertising” when content is published on an independent news site in an identical way to editorial stories however marked as advertising. At Russmedia they call their format “Premium Story” (that can be compared, as below in the slide, another much simpler new format called simply “sitelink”).
-”In the end, it's similar to when you book a hotel on Booking.com or when you buy a product on Amazon. First you read what other people tell you about the product, then you decide what to buy. If you see there are only two stars, you will not buy that product or you will not go to that hotel. But if you do, please tell us how it really was. What people tell then is normally true. And it's more authentic than saying that it's the best product and showing images from the best photographers in town. We want to tell stories in a different way for our clients.”
-”For example, when we talk about hearing aids. The manufacturer wants to sell his product, by telling us that it is the best product that you can get. Instead we tell the story about a young woman who's wearing these hearing aids and how it improves her life quality through being able to participate in daily life much better than before. It's a completely different approach and a completely different story. However with the same ultimate goal as a normal print ad, billboard ad or banner ad in any digital channel”.
-”Or if you have a store opening, you can tell the story that this is a great building and the store is open, or you can, as we try to do, tell the story of the people who are working there and how happy they are that they can work in a new store, how the preparations is going and what the first clients will say you about the store. At the end, it has the same goal, to bring people to this store or to bring new employees and so on. We do not tell the audience that the building is so cool and that the CEO is the greatest. Instead we let the client's employees say that they are working for the best company in town and that everyone should come and see for themselves.”
-”And a great asset that makes us different when working like this is that we are a locally based media company with a certain audience. To sell, reach is not so difficult. Advertisers can go to Facebook and Google and put an ad there for 15 cents per click. However with us the audience is staying in the client's story, under our brand brand, for three to four minutes. Engagement and time spent is the most important criteria, not reach. What we realize is that with this strategy we are really the number one media outlet in this region, also in advertising. We have more than 30% reach on a daily level. So if you want to advertise or create advertising in our region, you should talk to us. We are even bigger than Facebook and Google. So in combining our local reach with local storytelling, building on the knowhow of our editorial team, we can boost the campaigns of our clients. Nor Facebook, neither Google, can match this, not even a media agency can, because they do not have the media reach and neither the local foot print.”
This is actually a job ad. Put your smart phone camera on the bar code up in the upper right corner (or click at this link) and you will be able to read (in german or your preferred language with a tool like Google translate) about the company “Getzner" that is looking for employees. This innovative ad format combines print with digital and content marketing with traditional advertising.
Strong numbers proofs the format
Georg wants us to look carefully at the advertising in their examples.
“-Do you see any CEO? Do you see any buildings? No everywhere you see people, people and people. You see the people who are living there and working there.”
In the language of the sales people, the client, that is the advertiser, gets 100% share of voice on the website, compared to a banner ad where an ad slot normally is shared by several advertisers. The client's story looks like an editorial article, but it's branded as advertising and with the logo of the client. This means it is clear also to the reader that this is advertising. Russmedia includes A/B testing with up to 20 different text and image elements to find out what works the best. The content ads are sold in “all-inclusive” packages. The client has no work to do. Russmedia does it all. Customers that insist on having their own pictures and copy will be refused. Russmedia has a formula and there is no compromise.
The ad effects are great according to George Burtscher. For example, client stories told through these formats have up to 50% more people reading the message than a traditional PR-message or even compared to a display ad. Russmedia sees a minimum of a 12 times higher CTR - Click Through Rate, which is much better than for normal campaigns. Readers stay in average 3-4 minutes with the content. On average, they have more than 10 000 people reading a client's story and sometimes up to 20,000. A traditional PR message has about 5 000 readers.
This is an ad for a skiing area. Put your smart phone camera on the bar code up in the upper right corner (or click at this link) and you will get to know people working at the ski station, the owner and a lot more (in german or your preferred language with a tool like Google translate). In some ways you can see that the page is inspired by the “immersive storytelling” from the New York Times “Snowfall-story” that can be read here
From 0 to 15% in 6 months
-”What we offer, Facebook and Google, can not offer. What we do, only a local media company can provide” Georg states and continues. “We started this six months ago and it now makes 15% of our digital ad revenue. And we already have a digital to print ad ratio of about 40% digital ad revenue. The rest is print ad revenue”.
Before taking questions George and Isabel emphasized the importance of sharing experiences in our industry, as they did in Bergen and as we aim to do in the WAN-IFRA Innovate Local program. He means that the competitors are in the States and in China, but not here over the street. “We have to work together and inspire each other to see new concepts. And then we have to copy, really on a concrete level, because what is working in Norway, also should work in Austria, in both editorial and in advertising.
“100% SOV” is sales lingo for Share Of Voice which means that one client has all exposures of the ad position. “A/B testing 10x” means that 10 different headlines and images are tested before choosing the one that results in most engagements.
Questions and answers
At the webinar the following questions came up that got answers from ISabel and Georg:
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Question: "Before you went to Norway, how was the approach different?”
Isabel Russ: “We've always had a very big focus on people, always people first, having lots of people in the newspaper. But people for us ment also politicians and CEOs. So we have changed that now. We call them “real people”. People that are affected. Again, concerning the kindergarten closure, it's not the mayor, it's the parents that are affected. And with every topic, you have to find people that are affected by this. And it's much, much harder. And it doesn't always work. But again, we see that readers can relate so much more to these stories. I think we're doing the same thing, but on one deeper level.
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Question: "The latest webinar (in the WAN-IFRA Innovate Local program) was actually from a Swedish newspaper group, and, based on their own research. They talked about certain topics that were hot. Do you also have topics that you will not cover anymore?”
Isabel Russ: “I mean, definitely, our focus is, I think it's not so different from everyone else, on breaking news again. Anything related to accidents and things happening around you. Anything in the local economy such as companies that are insolvent or new restaurants that open up. Anything that really touches you outside of your own house. So you go outside and there's a new road or new roadworks. People want to know about these things. So this is really what we're focusing on. I think that it's important that you do politics well, because it's at the heart of what journalists do, and what journalism is. But it doesn't bring us a lot of subscriptions. And I think that's something that other media companies are also seeing.”
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Question: "I believe that you have earlier had ambitions to be a complete media agency supplier of ad products also of competitors such as the Google and Meta ad products. Is that still a business for you?”
Georg Burtscher: “Of course, we still do this. But in the end, I think, we, as local media companies, have a really strong footprint in the region. And sometimes we forget how strong we are. And if our clients talk about Facebook and Google, we also sell these new shiny toys. However in the end, we really see that our “premium story” format, and we have tested it also on different platforms, is really the best performing format in engagement and time spent. So I think we also forget that a local news brand and a local company or local grocery store, or employer brand, fit together. And also, it's more inspiring to the users. They really get it, because it's regional. We wire and connect the region and bring it closer together and therefore ads work much better with us on our local news brands or outlets, than on Facebook and Google and other ones. And again, we have enough reach to be proud, we are strong. But sometimes I think we forget about that, when we talk about Facebook and Google.
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Question: "Is you business subscriber based and did you have specific goals with the new strategy, such as getting new subscribers? Something measurable must have been involved?”
Georg Burtscher: “Of course, we have numbers in the background. Our goal is to finance the whole editorial team through digital ads. This is the clear goal at the end. And before we were in Bergen, we were thinking that we understood the concepts behind what was happening (in Norway). And then we made our visit in Bergen and had a really deep dive. We are really thankful to our Norwegian colleagues up there. They were so open to us. I think we understood it much better and came back to Austria and changed the whole strategy on how we want to tell stories in the editorial department. How we want to do journalism. We see now that we have to change, especially in how we bring stories to people and how we understand how people are affected by stories. So we can continue to bring the politicians in front, however you will never get the answer how it will affect me, the reader. It's more interesting to share the story of a young family who cannot afford living because there were some decisions made by politicians. So it's a completely different approach. It's funny to see how it changes the daily routines and work. Person to person conversations between journalists and people out there on the outside are getting more and more important. Back to your question, yes we have reader revenue. And, of course, as every other media company is experiencing print is in decline and in digital, I think, we're not where we wanted to be. So that was the point when we were going to Bergen. And it really inspired us seeing media companies that have managed to do the digital transformation and to do it successfully and to finance their newsrooms with digital subscriptions. That meant a big change for us, you know, seeing that there is a model out there. So I think for us the visit to Bergen, ment a big surge in motivation and a very clear goal now.
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Question: "How did the journalists react to the new way of working?”
Isabel Russ: “There was a positive reaction. Well, of course, because we've never had to do a big firing round of, getting rid of journalists because our newsroom was too big. We never had to do that. We were always very lean. And now seeing how it works in Bergen, we have a new motivation as we now know that this model works. Regional media companies can actually go into the digital world and be sustainable. And now we're hiring new journalists again, for the areas where we see that we're making subscriptions. That is lots of breaking news. Also traffic coverage and sports are areas that I didn't mention before. These are areas that we're actually hiring journalists in again. And I don't think there's a lot of media companies, at least German speaking, that can say that. Of course it has been different for them (that is the journalists). It's changing their whole work routine, but also an outlook into the future, which a lot of companies can't give to their journalists anymore.”
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Question: "I totally agree that pictures of people draw our readers, but we see a strange development that more and more people, those we are writing about, do not want to be photographed at all. Do you see a similar development? And if yes, how do you handle it?”
Isabel Russ: “Again, of course, the biggest challenge is finding these people and getting them to speak out. I think a big advantage is having a strong local brand and really being a part of the community. Trust is a big thing. Also we heard a lot of times during our visit in the Nordics, that people have to trust the media and they're doing a lot about this. I think there's much more that we should and can do here in the German speaking area. People have to trust that the information that they give you is going to be handled in a way that they want, that the photo, if they're in the newspaper with a photo, that this isn't going to affect them negatively. We tell them that they're doing good with this. Again, concerning the kindergarten that closes, a typical family topic. What was important in that story was that it was bilingual in English and German. We got mothers to talk about the fact that they wanted it to be more English speaking. And the municipality wanted it to be more German speaking. And so the mothers spoke out, they had a picture taken and, and they were in the newspaper. In the end, we managed to turn that around, right. And for readers to see that they can have an impact if they speak up. I think that helps, but yes, it's a development. And, yes we have had people that do not want their photo taken.
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Question: "Is there any way to measure trust? Do you do reader focus groups or what do you do?”
Isabel Russ: “Again, I think in the Nordics, they actually have a measure of trust. I remember they ask about it regularly. We don't have that yet. But there's different measures that you can take. And it's very small things. Something that you can do is to have a byline with a photograph and biography of the editor. So this way the reader feels he/she knows this person that is sharing insights out of the newsroom. Also not making any mistakes, grammar wise or other mistakes creates trust. It's about always asking both sides, as a principle. Always having two people look at every story. I think it's small things like that, that really build up trust. Being around for a hundred years also helps of course, but not everyone can say that. So time is running out.”
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Question: "You both have the title of managing director. How do you split the responsibilities?”
Isabel Russ: “In all we are four managing directors. On our side, Isabel is responsible for the whole editorial part. And she's also together with me, managing director of the digital part. So we split specially in editorial and sales parts. But at the end of the day, I think we all four are working really lean together. And we all know exactly where each of us are strong and where others are better.
Concerning the floodings in Austria
At the time of the webinar large parts of east Europe and particularly Austria, was in catastrophe mode because of extreme weather including large amounts of rain, leading to heavy flooding. However the western part of Austria, where Isabel’s newsroom is situated, had mostly sunny weather and very little rain this period and did not suffer.
Useful links and contact information
Thanks to the presenters, here is some useful information if you want to dig deeper:
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The webinar presentation can be downloaded here.
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The presenters can be reached on the following e-mail addresses
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Isabel Russ, Editor in Chief of Vorarlberger Nachrichten & Managing Director: Isabel.Russ@russmedia.com
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Georg Burtscher, Managing Director: georg.burtscher@russmedia.com
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The Russmedia Group web site is: https://www.russmedia.com/en/
The web site of Vorarlberger Nachrichten is: https://www.vn.at/ and its subscription offering is here.
Concerning the news media companies that the Russmedia team visited in Bergen Norway;
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Bergens Tidende: www.bt.no part of the Schibsted Media Group . You can also watch a case from Stavanger Aftenblad, another newspaper in the Schibsted Group, here at WAN-IFRA Innovate Local
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Bergenavisen: www.ba.no part of the Amedia group. You can also watch three cases from Amedia here:
You are welcome to contact me, Niklas Jonason, in the WAN-IFRA Innovate Local team, if you have questions or examples of similar cases or companies with similar strategic considerations (in which case we may will list them here): n.jonason@wan-ifra.org
*For inspiration on the why, how and what-model, please see this presentation from 2009 by Simon Sinek, an English-born American author and inspirational speaker on business leadership, at a TED conference or get his book.
** Source: https://digital-strategy.ec.europa.eu/en