Growth Strategy
Since 1998, through a combination of internal growth, website development and marketing, and systematic acquisitions, Target Media's publishing profits have increased at a compound annual rate in excess of 20%. Our profit margins are enviable by any publishing standard, and low working capital and capital expenditure requirements mean that our free cash flow is approximately equal to our EBITDA.
Target Media's internal growth strategy is based on increasing revenues and improving margins, by focusing on specific opportunities at each local or product niche level. We manage our publications on a decentralized basis, with the general manager of each publication responsible for the top and bottom line at his or her operating unit. At the corporate level, highly experienced senior operating managers provide strategic direction, coordination of day-to-day operations, and specific expertise in print and interactive advertising sales, printing and distribution.
Our revenue growth derives from effective physical and electronic distribution to ensure advertiser response, aggressive goal setting and measurement of results, unlimited revenue and growth-based incentive compensation for sales representatives, upselling existing advertisers, targeting new advertisers, rate integrity, and geographic and niche product extensions. By showcasing our local and niche content and supplementing advertiser response, our co-branded websites generate incremental revenues without incremental printing and distribution costs.
Our strong profit margins and cash flow derive from the formats of our publications (limited editorial content; targeted rack and electronic circulation) and are supported by our cost discipline, variable-cost compensation structures, corporate expertise in printing and distribution, integrated database, and automated proprietary ad-taking, pagination and circulation software.
In addition to aggressively growing our existing publications and websites, Target Media is actively seeking acquisitions of classified, photo and other specialty advertising publications, as well as strategic and content alliances with other media companies to increase advertiser response and extend our products and services.
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