Why spend years building an audience for your brand if you can buy a turnkey niche media property?

When we need a new kitchen table, few of us head to the local hardware store to pick up timber. We know the experts do it better.

So, why are brands building their own content marketing foundations without seriously considering a ready-made option? The pros of buying a successful media entity targeted to the brand’s audience are significant because it:

-Knows how to create engaging content and get it in front of the right people
-Has the editorial talent to build your content site
-Offers a new revenue stream because you can earn advertising dollars
-Minimizes the significant time and resources required to build your own content site, which can be redirected elsewhere – at significantly lower risk

And there is one standout advantage of buying an existing audience that goes largely unnoticed: Data.

Publishers sit on a veritable gold mine of user-behavior data.

Want proof? Consider the global powerhouse Kraft Foods Group. Through print and online, Kraft’s publishing efforts generate the equivalent of 1.1 billion ad impressions a year. But even more interesting, Kraft tracks 22,000 attributes of more than 100 million annual visitors to its websites, according to AdAge. With all that data, Kraft can run sophisticated sentiment analysis on its audience’s online behavior. The deep dive helps Kraft understand not only what recipes will work well in which channels, but what a particular individual is likely to want to cook on a particular day.

While most brands don’t have enough data to mimic what Kraft does, many publishers’ content-engagement analytics can provide juicy information for product development, channel strategy, promotions (e.g., coupons), and even content development.

In 2001, Johnson & Johnson (J&J) acquired online parenting resource BabyCenter for a cool $10 million from near-bankrupt publisher, eToys.com. The BabyCenter website provides educational resources for a community of engaged women on the topics of birth, pregnancy, and parenting.

Christina Hoff, Manager of Global Strategic Insights for J&J, cites BabyCenter’s data as among J&J’s most powerful data-mining resources. The company uses sentiment analysis on the site’s 35-plus million readers, developing relevant messaging for target consumers. “We can tell what a mom is going to do before she does [it] based on what she is searching for,” Hoff explained recently to an audience in Spain.

What’s holding you back?

With all the advantages of the buy and the difficulties of the build, what’s stopping brands from purchasing a publisher for their established audience?

Skeptics contend the profit-seeking behavior of a corporate Big Brother may compromise the ability of a media company to tell stories without an agenda, undermining the quality of the very asset the brand hopes to leverage. If a cosmetics company purchased Vogue, would readers leave in outrage? If the airliner Emirates bought National Geographic, would everyone stop watching, reading, and subscribing? Such deals may scream shameless selling to the uninitiated, but if the content is valuable and has integrity, provenance simply doesn’t matter.

Zac Zavos, Conversant Media co-founder and managing director, agrees. With three online publications reaching a combined 2.8 million visitors per month, Zavos has a good handle on the publishing industry. As he says, “If the content is good enough, and the audience is happy, why not?”

And as it turns out, brands aren’t the only companies sniffing around for deals. Media companies are also ready for change. Many are looking outside of advertising and subscription revenue, and some publishers are even actively seeking corporate support.

Men’s digital powerhouse Thrillist Media Group reverse engineered the buying decision. After passing 1 million email subscribers, the publisher noticed one advertising partner increasing its spend exponentially. JackThreads, a members-only e-commerce site, was selling more and more men’s fashion apparel through Thrillist’s subscription list of twenty-something urban guys.

Ultimately, JackThreads acquired Thrillist for $10 million. “This is a win-win for Thrillist and JackThreads … we see e-commerce as an exciting ancillary revenue stream with lots of potential,” CEO Ben Lerer said at the time of acquisition.

Four years later, JackThreads has over 5 million members and the Thrillist Media Group has annual product sales over $100 million. Thrillist knew how to tell stories and build a trusting audience. JackThreads knew how to monetize this same audience. A happy marriage was born.

Who else is doing it?

Here are a few more interesting brand acquisitions and publisher investments that show the model works:

-Bellroy, an Australian wallet e-retailer, invested in Carryology, a leather-goods lifestyle blog. The goal: To further their shared belief in “quality ways to carry.” At last count, Bellroy has connected with over 160,000 carry-savvy potential customers as the blog continues to grow.

-L’Oréal’s 2011 acquisition of the 10-year-old property Makeup.com is an often-mentioned success story. “L’Oréal used what they would have normally spent in media dollars to actually create value,” explains Robert Rose, CMI’s Chief Strategy Officer.

-In 2009, the owner of photography periodical JPG Magazine was on the verge of collapse. In one of the first deals of its kind, camera retailer Adorama stepped in to invest. Explains social media expert Chris Brogan on his blog: “This is another move into the land of content marketing. It’s easy: Adorama wants to sell cameras, and JPG is a magazine dedicated to pointing out awesome camera work. It’s a perfect little marriage. Instead of buying ads in good content projects, buy the content project.”

Image courtesy of CCO magazine

Published with permission.



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