TZP Group, a private equity firm, and Eric Thorkilsen, a former Time executive, acquired This Old House, a multi-media brand in the home improvement (HI) sector, from Time Inc. The brand’s assets include a TV series that has been on air since 1979 as well as digital content and a publication
“AMR brought strong creativity and analytical rigor to the process – the output will certainly drive the business’ strategy going forward.”
William Hunscher, Jr, Partner, TZP Group
What is home improvement media?
- HI media provide content on a range of home improvement subject matter (e.g., remodelling a kitchen, woodwork, appliances, etc.) to consumers ranging from home improvement enthusiasts to professionals
- The majority of home improvement consumers turn to HI media for actionable information and inspiration; the bigger spenders and more experienced consumers use HI media to inform product choices
- HI content was traditionally dominated by media conglomerates with large TV or print brands, such as Scripps Networks Interactive or Meredith Corporation. More recently, the landscape has fragment in digital as retailers, manufacturers and amateurs all have opportunities to disseminate content to drive consumer engagement
Key market insights
- Home improvement is a large and growing industry, more cyclical than GDP but not as cyclical as the underlying housing market, driven by consistent maintenance spend. Long-term growth is expected to buoy HI media consumption, which is not as cyclical as the served market
- Traditionally of interest to older, more affluent consumers who watch public television, HI media has begun slowly adapting as younger generations move to digital and mobile. HI consumers are an attractive target for media providers because they are affluent, in the market to buy and evince a sustainable need for HI media
- Although there is continued demand for HI media from advertisers, the supply side has not completely adapted to digital realities which has led to declining advertising spend, but this trend is likely to reverse, as brand such as This Old House tailor their strategies to meet advertiser needs
How AMR helped
AMR helped determine the evolution of HI media consumption, the competitive strength and market position of the target and provided TZP Group with a clear view on the sustainability of the business model, notably through the assessment of the demand for advertising in HI media. AMR also provided strategic recommendations on how to build an attractive audience, optimize value to advertisers and bring content in line with modern audience consumption patterns
To discuss how AMR can help your company develop growth strategies please contact Denzil Rankine.