Updates

 

Sell It Yourself

October 2002

When we examined the business plan of ReadyMade, a start-up magazine publisher in Berkeley, California, that aimed to give do-it-yourself projects a trendy twist, our experts had concerns ("This Hip House," October 2002). Richard B. Stolley, the founding editor of People magazine, feared ReadyMade lacked enough capital to support increased circulation, a bigger staff, and plans to extend the ReadyMade brand into other areas.

Funding the company did turn out to be a constant struggle. In 2004, ReadyMade received a capital infusion from Interweave Press, a publishing company in Loveland, Colorado, which helped the magazine move from quarterly to bimonthly publication. But after increasing from 60,000 to 100,000, circulation stalled.

In October, founders Shoshana Berger and Grace Hawthorne sold ReadyMade for an undisclosed amount to Meredith (NYSE:MDP), a large media company based in Des Moines. Meredith, which publishes Better Homes and Gardens and Ladies' Home Journal, among many other titles, will retain ReadyMade's staff, including Berger and Hawthorne--the magazine's editor in chief and publisher, respectively. "We've been pushing water uphill for a very long time," says Hawthorne. "We landed with the best possible partner." --Stephanie Clifford

Little Ads, Big Investors

June 2006

Last year, we wrote about a new advertising service, Spot Runner, which lets businesses choose from a library of customizable commercials and buy local time slots for as little as $10 ("TV Advertising for the Rest of Us," June 2006). It didn't take long for this Los Angeles start-up to get noticed within its industry. In October, Spot Runner announced it had raised about $40 million from a group that included two of the largest advertising conglomerates: WPP Group (NASDAQ:WPPGY) and Interpublic Group (NYSE:IPG). CBS (NYSE:CBS) and Lachlan Murdoch, Rupert's son, also invested in the round.

Bant Breen, Interpublic's global director of strategic development and innovation, says his company was intrigued by Spot Runner's ability to reach a customer base that Interpublic typically misses: mom-and-pop shops. "In the past, a local dentist or lawyer who wanted to advertise wouldn't even have considered TV," says Breen. Plus, he notes, larger chains and franchises can use Spot Runner to advertise in multiple local markets. Contours Express and Coldwell Banker recently signed up for the service. --Athena Schindelheim