Diving deeper
The acquisition comes amid tumultuous times in the media industry. In the past few months, news websites such as Buzzfeed News have shuttered due to economic headwinds, while others such as Vice News, have filed for Chapter 11 bankruptcy protection. Countless legacy media organizations have also laid off dozens of staffers this year.
DTC brands, though, are continuing to invest in editorial holdings in an attempt to deepen ties with consumers. DTC companies such as women’s health brands Stix and August are both building out their editorial offerings. Last month, Stix relaunched its editorial arm, Real Talk, where readers can get information about sex education and read stories from people who have had abortions.
Also read: August looks to expand its retail presence
“Right now, for DTC to survive, it needs to be something that speaks to people’s ideology, their values, and core parts of people’s existence,” For Them Chief Marketing Officer Em Chadwick said in an interview. It’s “just impossible” for DTC companies to “thrive,” Chadwick said, pointing to rising consumer acquisition costs. “Alongside a brand making products that speak to people’s identities, values, and ways of living, it makes sense that you would have content and editorial that sits well within that ecosystem of a consumer brand.”
For Them is a venture-backed business, but Freeman says its investors understand the value the Autostraddle acquisition brings to the table. DTC brands have historically grown via community-building efforts, and Autostraddle has done 14 years of community-building with the same audience that For Them now wants to reach.
“I’m not expecting a queer publication or any publication, to be honest, to venture scale,” meaning grow at the speed a venture capitalist might expect, Freeman said. “But I think that if you have a core profitable business model [with For Them], which we do, you can absolutely add on a ‘break even’ publication that is doing amazing things, that can serve our members in the way that we want to serve them.”
Freeman said that they pitched the Autostraddle deal to their investors with the idea that Autostraddle will keep breaking even, rather than making a vast amount of profit. “They’re investing in a company assuming that it’s going to 10 times its valuation. My challenge to them is that Autostraddle supports the service of our customers, and therefore grows our business,” Freeman said.
from Digital Marketing Education https://ift.tt/ZAMSeJI
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