Milestone Group Quarterly: January 2008
Articles
Face to Face:
Heather Harde, CEO of TechCrunch
Milestone: Heather, tell us about TechCrunch; it’s quite a story.
Harde: TechCrunch was founded in June of 2005 by Michael Arrington. It started out as a hobby for Michael, as he was getting back into the start-up scene after having taken time off from work. The site started as a way for him to share what he was learning as he networked with other new start-ups. Then, as sometimes happens in life, his hobby ended up becoming his primary vocation.
He was in the right place at the right time and the popularity of the blog exploded. I got to know Michael while I was working at Fox Interactive Media in an M&A capacity. TechCrunch was my favorite read of the day, and the management team at Fox Interactive valued Michael’s insights into early-stage businesses and entrepreneurs.
Milestone: What does it feel like to walk into a business where essentially it’s exploded from the roots? How do you compare it to your experience at Fox Interactive?
Harde: That’s the reason I joined the business. I really believe that blogging will give mainstream media a run for its money. At News Corp., I focused on buying or launching new businesses that were disrupting our traditional media channels and then growing them to scale. I see TechCrunch as an opportunity to translate my corporate development and operating skills to grow a successful start-up blog into a sizable, technology-media channel.
Milestone: How should we think about Web publications like TechCrunch? Is it dedicated to journalism, commentary or advocacy? And how does that become defined as its core mission?
Harde: At TechCrunch we focus on breaking news coverage but there’s also strong commentary about new Internet and technology products and services. We are opinionated in the editorial that we produce because we want to engage the community into debate about the subjects we cover. Our rich audience engagement is one of the key attributes that differentiates blogging from traditional media.
Milestone: Obviously, there has been a great deal of scrutiny on the relationship between the companies that you feature on the site and, perhaps, those same companies advertising on the site. This seems to have been a story of publishing throughout history. Why has it become such an issue at TechCrunch?
Harde: I hope that it’s become less of an issue at TechCrunch since I joined. I focus on advertising and new business development and leave the news to Michael and our editorial team. In the early days, Michael had to both write content and sell space to run the business. Now we have a more traditional line between publishing and editorial responsibilities.
Milestone: Has it been difficult for you to be “not Michael Arrington?” Have you been able to transition TechCrunch from that of a blogging rock star to that of an online publishing concern?
Harde: I’m very comfortable with Michael’s big personality, and I’m focused on growing and diversifying a substantial business around our strong editorial voice. We’ve doubled page views in the last year. We’ve added four new blogs to the portfolio and we now have a team of more than a dozen full-time writers in addition to a dozen part-time contributors. Erick Schonfeld is now co-editing TechCrunch, and we are keen to attract other star writing talent to grow our footprint in tech journalism.
Milestone: People tend to think of TechCrunch as a single blog, but you mention four additional properties. How have you diversified the various blogs or channels that you’re offering now?
Harde: TechCrunch is actually a network of a dozen blogs. CrunchGear is our second largest site, covering the tech gadgets and hardware space. We’ve diversified geographically with localized content in the United Kingdom, France and Japan. We’ve also launched topical channels, like TechCrunch Political Primaries — helping to raise awareness of candidates’ positions on various technology-related issues.
One of our more recent properties is CrunchBase, which will become the definitive resource for statistical information concerning start-ups. A lot of this information has traditionally been available only on a subscription basis, and we want to open that up and provide better visibility for start-ups and their peers.
Milestone: Let’s talk ad revenue. Clearly TechCrunch is one of the top Weblogs in advertising revenue, but the vast majority of publishers are not even close to selling their space at a premium. Will that change and if so, how?
Harde: Blogging properties like TechCrunch command strong ad premiums. We reach an extremely influential audience of start-ups, VC’s, corporate folks and media. We’ve been successful with sponsorship models focused on the reach and engagement we deliver with our audience. Advancements in the display and interactivity of information (Ajax, etc.) means that page views are becoming less meaningful metrics. I focus on the quality and breadth of our unique users to sell advertising.
Milestone: What’s the current trend in Web-based advertising? Are you seeing those sales coming at the expense of other mediums, like broadcast and print?
Harde: That’s an interesting question. In the print world, The Wall Street Journal, reported that their advertising in the technology sector was down 60% in the third quarter versus a year ago. Similarly, CNet reported declines in technology advertising replaced by growth in consumer goods advertising. I believe that blogs are slowly taking share from both traditional print and traditional Internet media as we establish ourselves as authorities with readers, often by breaking stories ahead of other publications.
Milestone: How will Web 2.0 elements come together in the next couple of years? Looking at publishing, social networking, instant communications, and other technologies, how are these going to morph together as a platform for TechCrunch going forward?
Harde: There are many ways that blogs can improve as opinion-sharing and networking platforms for end users and businesses. We’re looking to implement tools to amplify reader communications and contributions.
Milestone: Who are the other interesting players in your space?
Harde: The blogosphere seems to thrive on co-opetition. We recognize that we can compete as individual properties, but still work together to pull the industry forward on a collective basis as well. For example, we co-hosted an awards show (on January 18th) called the Crunchies with GigaOM, Read/WriteWeb and VentureBeat.
Milestone: What competitive strategies need to be employed to keep the business profitable in this highly disruptive environment?
Harde: We focus on being nimble and quick to take on new projects while staying lean with our cost structure. We think that’s the prudent way to grow the business. To date, we have been self-funded. We pursue a combination of short-term, revenue-focused projects to help fund long-term strategic initiatives.
Milestone: Some say that TechCrunch can make or break an early stage company. How do you respond to that? What would you advise entrepreneurs to do other than focus exclusively on your site?
Harde: Coverage on TechCrunch does drive tremendous traffic to many early stage start-ups, more so than even they expect. We take inbound leads and rely on start-ups to contact us for information and breaking news, which we appreciate. I think the main thing is to focus on your business, focus on your passion. If you’re doing interesting things, the right editorial coverage will follow, whether that’s from TechCrunch or other technology blogs.
Heather Harde is CEO of TechCrunch. She was part of the founding team at Fox Interactive Media and their SVP Mergers & Acquisitions, steering over $1.3 billion in capital on eight acquisitions and two equity deals.
Prior to Fox Interactive Media, she held a variety of posts at News America Marketing, TVGuide and AskyB and Viacom at Showtime Networks. She began her management career at investment banking firm Brown Brothers Harriman & Co. and is a graduate of Mount Holyoke College and Harvard Business School.
|
