Unconventional Business Model Pays Off for Investor’s Business Daily – And Its Readers

Thu, Jun 14, 2012 22:45 CET

LOS ANGELES, CA (June 14, 2012) — At a time when the newspaper industry continues to struggle, Investor’s Business Daily (IBD) is expanding its content, boosting revenue and growing one of the most dedicated readerships in the nation. It’s done that by developing a business model focused on proactively training readers to be successful, while providing them with proprietary ratings and research in whatever format they prefer.

“IBD is not your typical newspaper,” said Chris Gessel, Executive Editor and Chief Strategy Officer. “We don’t just deliver news. We make sure our readers know how to use our stock lists and market insight to make money. By actively engaging and educating our readers, we empower them. That builds loyalty and has opened up previously untapped sources of revenue.”

IBD Meetups

One way the company interacts with both subscribers and non-subscribers is the IBD Meetup program, now the largest and fastest-growing network of investing clubs in the country.

Groups meet monthly in cities all across America. IBD supports each group by training the leaders and regularly sending out speakers to give free workshops. IBD founder and Chairman, William J. O’Neil, also personally developed a 13-part Investor Education Series exclusively for Meetup members.

IBD Meetups are free and open to both subscribers and non-subscribers. Rather than being a cost center, the program has significantly boosted revenue. It's improved retention rates by helping members make more money in the market. IBD Meetups have also increased attendance at the company's wide range of paid workshops, where members go for more advanced training. The program has also proven to be a powerful word-of-mouth venue for bringing in new subscribers.

Paid Content, Free Training

For years, newspapers have struggled to charge readers for online content. IBD's solution was simple; require a paid subscription for proprietary ratings and research not available anywhere else, while providing free access to training and more general news.

As a result, 45% of IBD's subscription revenue is now generated online through eIBD™, Leaderboard™, eTables and other digital products. In terms of total company revenue, 37% is currently derived from online products and online advertising.

“The fact is, people will pay for indispensable content,” said Gessel. “The trick is to make sure they understand the value of that content and how to use it to make money. That's where IBD Meetups, online investing courses and other free training comes in. It's a win-win business model. Readers become more successful and IBD's business grows."

A Growth Story in the Newspaper Industry?

The latest numbers show Investor’s Business Daily is bucking industry trends. Subscription and advertising revenue are up.

According to the latest numbers for IBD and its website, Investors.com:

Subscription revenues are up.
Print ad revenues are up 8% YOY
Digital RPMs are up over 5% YOY
Digital ad revenues are up over 6%
Unique Visitors to Investors.com up 42% YOY

An Avid Readership Advertisers Love

There's another benefit to IBD's emphasis on training readers to be successful investors: the creation of one of the most active and loyal investing communities anywhere.

Readers spend an average of 12+ minutes per visit on Investors.com, with nearly 85% of the traffic bookmarked or typed-in directly, resulting in an engaged and loyal audience. That commitment and engagement continues offline as well through local IBD Meetup groups that get together each month around the country.

"Advertisers know IBD offers a uniquely affluent, proactive and very engaged audience," said Jerry Ferrara, Vice President of Advertising Sales. "They're eager to get their brands in front of these readers online, in print and via face-to-face social interactions.

"We're in the Success Business"

Whenever an industry goes through a transitional period, companies need to step back and ask what business they're really in. IBD realized early on it wasn't just in the "printed news" business. It was in the business of helping readers make money in the stock market, and subsequently help advertisers effectively engage with these readers. That required a commitment to train people so they have the skills to succeed and to make sure they have access to tools and research whenever and wherever needed.

"When you boil it down, we're in the success business," said Gessel. "Our job is to give readers the skills and information they need to make money in the stock market. As the latest results show, when we do that right, everyone wins."

Kathleen Sherman
310-448-6746
kathleen.sherman@investors.com

ABOUT INVESTOR'S BUSINESS DAILY (IBD)

Investor's Business Daily provides investors of all levels with the ratings, research and tools they need to make money in stocks. Since 1984, IBD has established a proven record of highlighting winning stocks as they emerge and of alerting readers to major shifts in market direction.

IBD’s analysis is based on the CAN SLIM®Investing System; the number one growth strategy over the last14 years.* Developed by IBD founder and Chairman William J. O’Neil, the CAN SLIM System is built on O’Neil’s unique study of every market cycle and top-performing stock since 1880.

IBD’s award-winning website, Investors.com, offers extensive training and research tools, including Stock Checkup®and IBD TV. IBD’s latest innovation, Leaderboard™, is an online list of leading stocks with intraday updates from market experts.

Investor’s Business Daily has an extremely dedicated community and IBD Meetup is now the largest and fastest-growing network of investing clubs in the country.

*The American Association of Individual Investors' independent "real-time" study of 63 leading strategies found IBD’s CAN SLIM Investment System achieved an annualized return of 25.2% for the past 14 years (January 1998 through December 31, 2011, AAII Stock Screen). It is the #1 long-term growth strategy measured by AAII Journal.