Discover the power of media acquisitions and learn how they can help your business scale to new heights

27 Jun 2022 | Accounting

About the author

Hooshang Bakht

Brego Business was started with a mission to make entrepreneurship easy. Our goal is to help business owners grow and scale without having to deal with the day-to-day stress of running a business. We specialize in providing services that help business owners grow their businesses, including search engine marketing (SEM), social media marketing (SMM), LinkedIn marketing, video production, accounts receivable (AR), accounts payable (AP), internal audit, VCFO, and recruitment. We have helped more than 500 brands grow their businesses. We work closely with the clients to understand their unique needs and develop customized strategies that deliver measurable results.

Read More
Media Houses Scale

Companies often engage in media buying by acquiring different types of media house, which are platforms that produce and distribute content to a large audience. There are various types of media houses, including those focused on news, entertainment, lifestyle, and more. By acquiring these media houses, companies can leverage their extensive user base, data-driven consumer insights, and content creation expertise to introduce new products and services in different categories. In the past year, The Good Glamm Group, an Indian content-to-commerce company, has made a string of acquisitions totaling almost Rs.1885 Crore, including digital media brands like Plixxo, ScoopWhoop, BabyChakra, and MissMalini Entertainment, which are all examples of different types of media houses. MissMalini, in particular, is a well-known celebrity media and influencer talent management network.

Other instances where large companies acquired media houses 

HubSpot acquired The Hustle

HubSpot reportedly engaged in media buying with its $27 million acquisition of The Hustle, which was established by Sam Parr in October 2021. The Hustle is a media house that has worked to create a newsletter, Trends, a SaaS platform, and My First Million, a popular podcast presented by Parr and co-host Shaan Puri. The Hustle was rumored to generate $10–$12 million in sales, indicating a 2.25x–2.7x purchase price multiple..

Penn National Gaming acquired Barstool Sports

Penn National engaged in a media buying transaction when it paid $450 million in January 2020 for Barstool Sports, a digital media firm established by Dave Portnoy in 2003 and majority-owned, at the time, by The Chernin Group. Barstool creates sports and pop culture content and had a revenue of $90-$100 million at the time, resulting in a price/revenue multiple of 4.5x-5.0x.

Our tailored customer-centric approach in marketing maximizes sales.

Search Engine Marketing:Drive traffic, boost conversions & grow your business

Social Media Marketing:Maximize your social media potential & engage with your audience

LinkedIn Marketing:Unlock the power of LinkedIn!

Video Production & Photography:Elevate your business with captivating visuals

Get Started!

Robinhood acquired MarketSnacks

Robinhood, a no-fee stock trading firm, made its first acquisition by purchasing MarketSnacks, a millennial-focused media brand. This acquisition may appear unusual for the leading fintech company valued at more than $5 billion, but it seems a sensible decision considering Robinhood’s growing ambition to become a one-stop-shop for the needs of young investors.

JP Morgan purchased The Infatuation and Frank

JPMorgan Chase recently announced the acquisition of two platforms, The Infatuation and Frank. In addition to providing restaurant reviews and dining guides in 50 US cities, The Infatuation also offers opportunities for media buying. Meanwhile, Frank is a college financial planning platform that helps students access student assistance, financial guidance, and affordable online programmes for college credits. With this acquisition, JPMorgan Chase gains access to Frank’s client base of over 5 million students at 6,000 schools and institutions in the United States, as well as The Infatuation’s advertising and media buying capabilities.

How can this strategy help businesses scale?

Acquiring a media house through media buying lets businesses access an extensive audience base and specific communities. This strategy can help companies with customer acquisition at the lowest cost. For instance, The Good Glamm acquired Plixxo and MissMalini, which not only have a large following in the influencer arena but also have expertise in media buying. Thus, The Good Glamm can utilize influencer-led marketing for their new line of products through content to commerce channels, with the added advantage of leveraging the media buying skills of their acquired media houses. Further, these media houses come with their own set of special skills, such as creativity, ability to churn out large volumes of unique content, different forms of digital marketing abilities, technical knowledge on how to disseminate different kinds of content, and media buying expertise. Companies can use these special skills to build a hub for knowledge and specific types of content, while also benefiting from the media buying capabilities of the acquired media houses.

What’s in it for the business that is buying?

The Indian market doesn’t have the depth where one brand or category can make a thousand crores. A brand that deals with skincare, beauty products, or lifestyle products usually generates a maximum revenue of Rs.500-700 crore. If you wish to create a company that generates $1-billion, you could have 8-10 brands, each generating Rs. 500-700 Crore. A business that is buying media houses can accelerate revenue generation by scaling and expanding themselves, as well as the brands they’ve acquired through content to commerce approach.

Buying a digital media house or content-based brand means you will have a library of sharp, targeted content, to leverage your reach and obtain more consumers to buy your products.

Targeting customers through content is the most practical and cost-efficient way of grabbing their attention. They can combine product exposures within content pieces that are contextual to the story that the user is reading. Thus, they can expose prospective customers to the products directly.

What’s in it for the business getting bought over?

The kind of acquisition Good Glamm has done in the last 12 months will certainly help the acquired brands as they will receive hefty investments to grow and expand. Moreover, they now benefit from the expertise of professionals from different or similar industries.

Brands acquired by a billion-dollar business can also have access to broad offline distribution networks spanning thousands of points of sales terminals, including those of top media houses in India. And, the best part is that all the acquired digital media platforms can continue to work as independent brands and media houses.

These brands require phenomenal brand building to create a memorable picture in people’s minds, and under the banner of a unicorn or house of brands, they can utilise their expertise in branding, marketing, and advertising to establish themselves as a brand that stands out from the rest. Additionally, the top media houses in India that partner with these brands can offer them unique advertising opportunities to reach diverse audiences across the country.

Most importantly, these brands will now have to worry less about the technical aspects of keeping a business afloat, and can now focus on what they do best i.e. create great content. With the support of a billion-dollar business and the top media houses in India, the acquired brands can now focus on growth and innovation, while leaving the technical and operational aspects to the experts.

Is this a feasible strategy, and, if so, for what kind of businesses?  

The internet is here to stay, and in-home consumption will rise. Today’s internet market enables many new companies to emerge and grow. As a result, conventional brands must keep an eye on the future, as more customers are prepared to take chances with new brands, trends, and ideas.

In India, the D2C (direct-to-consumer) revolution is still in its early stages, with the beauty and personal care categories being underserved online. Apparel, technology, and food continue to dominate online purchases. As a result, there is enormous space for expansion, and acquiring brands that will push their products can help a business to become a billion-dollar entity.

Click To Know About Our Accounting Services

Ready to grow your business?

Drop in your details and schedule a free consultation with our team!

Get Started!

Looking to Increase Revenue Through Performance Marketing?

Generate more business through our performance marketing services.

Get Started!

Book your free consultation

Drop your contact details into the form, and we’ll reach out to you immediately!

Frequently asked questions

What is media buying?

Media buying is the process of purchasing advertising space or time on various media platforms, such as television, radio, print, and digital media, to promote a product or service.

What are media houses?

Media houses are companies that produce and distribute various forms of media, including newspapers, magazines, television and radio stations, and digital media platforms.

What are the top media houses in India?

Some of the top media houses in India include Bennett Coleman and Company Limited (BCCL), Zee Entertainment Enterprises Limited (ZEEL), Network18 Media and Investments Limited, and The Times Group.

What are the different types of media houses?

There are several different types of media houses, including print media houses (newspapers and magazines), broadcast media houses (television and radio stations), and digital media houses (online news portals and social media platforms).

What factors should I consider when selecting a media house for my advertising campaign?

When selecting a media house for your advertising campaign, you should consider factors such as your target audience, budget, reach and frequency, and the effectiveness of the media platform in delivering your message.

How do media buying agencies help businesses in their advertising campaigns?

Media buying agencies help businesses by leveraging their expertise and relationships with media houses to negotiate better rates and placements for their advertising campaigns, as well as to develop effective media strategies and measure the impact of their campaigns.

How do media houses determine their advertising rates?

Media houses determine their advertising rates based on factors such as the size and placement of the ad, the duration of the campaign, the target audience, and the demand for advertising space or time.

What are some common mistakes to avoid in media buying?

Some common mistakes to avoid in media buying include not having a clear advertising strategy or target audience, not negotiating rates effectively, and not tracking and analyzing the impact of the campaign.

How can businesses measure the effectiveness of their media buying campaigns?

Businesses can measure the effectiveness of their media buying campaigns by tracking metrics such as reach and frequency, click-through rates, conversion rates, and return on investment (ROI).

How can businesses stay up-to-date on the latest media buying trends and best practices?

Businesses can stay up-to-date on the latest media buying trends and best practices by attending industry events, subscribing to industry publications, working with media buying agencies, and conducting market research.

In the world of digital marketing, having a strong presence is crucial for businesses to succeed, and that's where Brego Business, a digital marketing agency based in India, come in. They offer a range of services, including media buying, to help their clients boost their online visibility and reach their target audience effectively. Media buying is a vital component of digital marketing that involves purchasing advertising space from media houses. Media houses refer to companies that own and operate media platforms such as newspapers, magazines, television channels, and online platforms.

Different types of media houses cater to different audiences and offer diverse advertising opportunities. Print media houses primarily focus on newspapers and magazines and have been popular for a long time. They can be an effective way to reach older audiences who prefer traditional media over digital channels. Broadcast media houses, on the other hand, own television channels and radio stations, providing advertising opportunities to reach a wide range of audiences. Both print and broadcast media houses are considered traditional media.

Brego Business conduct extensive research to identify the right types of media houses that are most likely to reach the target audience effectively. They work closely with clients to create effective ad campaigns that resonate with the target audience and align with their business goals. Using advanced analytics tools, they also measure the effectiveness of ad campaigns to make data-driven decisions and improve ROI for clients. As such, understanding what are media houses and the types of media houses available is critical for businesses to choose the right platform to advertise their products or services.

When it comes to media buying, Brego Business negotiate rates with various types of media houses to get the best deal for clients. They leverage their expertise and industry knowledge to identify the media houses that are most likely to reach the target audience effectively. By doing so, they can help businesses save money while maximizing their reach and engagement. The ability to navigate the different types of media houses and advertising platforms available is what makes Brego Business stand out from other digital marketing agencies in India.

In conclusion, Brego Business are helping their clients succeed in the digital world by offering a range of services, including media buying. Media houses play a critical role in advertising, and understanding the different types of media houses available is key to making informed decisions. Brego Business's expertise in media buying and advertising can help businesses identify the right types of media houses and create effective ad campaigns that drive engagement and improve ROI.

Conclusion

In today's digital age, having a strong online presence is essential for businesses to succeed. Brego Business offer a range of digital marketing services, including media buying, to help their clients reach their target audience effectively. By creating effective ad campaigns, identifying the right media houses, negotiating ad rates, and measuring results, Brego Business is helping businesses in India achieve their digital marketing goals. In India, there are several top media houses in India catering to different audiences and offering diverse advertising opportunities.

Print media houses are one such example of top media houses in India that primarily focus on newspapers and magazines. They have been popular for a long time and can be an effective way to reach older audiences who prefer traditional media over digital channels. Brego Business conduct extensive research to identify the right print media houses that are most likely to reach the target audience effectively. They work closely with clients to create effective ad campaigns that resonate with the target audience and align with their business goals.

Broadcast media houses are another example of top media houses in India. They own television channels and radio stations, providing advertising opportunities to reach a wide range of audiences. Brego Business leveraged their expertise and industry knowledge to identify the top broadcast media houses that are most likely to reach the target audience effectively. By doing so, they can help businesses save money while maximizing their reach and engagement.

Understanding the top media houses in India is crucial for businesses to choose the right platform to advertise their products or services. Brego Business's expertise in media buying and advertising can help businesses identify the top media houses and create effective ad campaigns that drive engagement and improve ROI. With their advanced analytics tools, they can measure the effectiveness of ad campaigns and make data-driven decisions to improve results for clients.

In conclusion, Brego Business is helping businesses in India achieve their digital marketing goals by offering a range of services, including media buying. By understanding the top media houses in India and identifying the right media platforms, they can help businesses create effective ad campaigns that drive engagement and improve ROI. With their expertise in digital marketing and media buying, Brego Business is well-equipped to help businesses succeed in the digital world.

Read More