The Quartz Way (2)
Last week, we looked at Atlantic Media’s business site Quartz (qz.com) from an editorial and product standpoint. Today, we focus on its business model based on an emerging form of advertising.
The Quartz business model is simple: it’s free and therefore entirely ad supported. Why? Doesn’t qz.com target a business readership that shouldn’t mind spending nine dollars a month? “It was part of the original equation: Mobile first, and free, embracing the open web”, explains publisher Jay Lauf, whom I met in Paris a couple of weeks ago. Jay is also an Atlantic Media senior vice-president and the group publisher (he once was Wired’s publisher).
According to him, launching Quartz was the latest iteration of a much grander plan. Four years ago, Atlantic Media held a meeting aimed at defining their strategy: “What we will do, but also what we will not do”, says Jay Lauf. The group came up with three key priorities: #1 being a growth company (as opposed to passively manage the shift from print to digital). That idea was greatly helped by Atlantic’s ownership structure controlled by David Bradley. #2 “Digitally lead for everything”, which was not obvious for a ancient publication — Atlantic Monthly was created in 1857. #3 Atlantic must focus on “decision makers and influential people”.
Today, the goals set four years ago translate into a cluster of media brands reaching every month a highly solvent readership of 30 million people:
- The Atlantic, the digital version of the eponymous magazine.
- The Atlantic Wire aimed at a younger generation mostly relying on social media.
- The Atlantic Cities, that focuses of urban centers and urban planning.
- The National Journal that itself includes several publications, mostly about politics and society.
- Government Executive Media, which operates a number niche publications covering the federal government (including its use of technology)
- Atlantic Media Strategies, an independent division offering a full catalogue of advertising and marketing solutions. These range from analytics, social media campaigns and content creation, such as this one with General Electric in which a dedicated site features America’s economic futures – according to GE.
All this brings us to Quartz’s business model. It relies entirely on native advertising also known as branded or sponsored content (see a previous Monday Note What’s Fuss About Native Ads?). Quartz’s implementation is straightforward: a small number of advertisers, served with high yield campaigns....MORE
