OMD/Imaginova Study Identifies New Mass Market of "Intellectually Curious"

Media agency OMD has discovered a new mass audience: science nerds. Well, not exactly nerds, but the Intellectually Curious. In conjunction with science and technology company Imaginova, OMD has identified an Intellectually Curious market totaling 40 percent of the 18 to 54 year old U.S. population, or 60 million people. The market for science-related information and consumer products, says OMD in a new study, extends well beyond hardcore science enthusiasts and is growing. OMD suggests Internet-delivered science media are underdeveloped, representing an important marketing and media opportunity.

Tapping into the OMD findings, Imaginova, whose interests include Space.com, LiveScience.com, Space News, Orion telescopes and binoculars, and the Starry Night line of astronomy products, is expanding its business model to broaden its reach and increase subscription and commerce models targeting multiple segments of the Intellectually Curious audience. "When we think about designing our content we want to be credible with audiences who are passionate, but also appeal to other segments," commented Imaginova president and CEO Dan Stone in an exclusive interview with Jack Myers Media Business Report.

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Stone, who joined Space.com from Turner Broadcasting before the Lou Dobbs-founded company restructured and re-branded itself as Imaginova, points out "web based companies are still wrestling with the same challenge of how to best build connections with customers that will drive revenue and sustain profitability now. They are increasingly focusing on three points: content, commerce, community." (Dobbs now serves as a member of Imaginova's board but is otherwise not involved in the company's operations.)

"Truly integrated content, community and commerce is the key to driving multiple revenue streams and ensuring long term success," says Stone. "Content leads to community leads to revenue." Stone noted the rapid growth of audiences to Imaginova's websites, publications, and content syndicated to other sites. "Our content," he points out, "is among the most widely read at Yahoo! The OMD findings confirm that our market expands beyond the Science with Passion enthusiasts to two additional markets: Money, Success and Science, a group that's interested in science but doesn't typically share this interest with others; and Style with Science, who follow scientific breakthroughs and enjoy discussing them in social situations."

"By working with Imaginova to test our hypothesis that more than one science segment existed, we found that consumer interest in science and science-related consumer products is both larger and more complex than many people previously thought," said Mike Hess, Global Director of Communication Insights and Research at OMD. "The results of our study present new insights into a growing consumer market and an opportunity for marketers to determine how best to reach the different segments."

Stone believes it's important for marketers to recognize the opportunities these expanded science-based markets offer. "We are appealing to a broad cross section of an important upscale market who believe our information speaks directly to them. The members of our community are highly sought after by premium advertisers. Sponsorships, integrated creative and the flexibility to produce customized editorial content that aligns with and supports advertising initiatives are all part of our multi-dimensional approach."

"Truly integrated content, community and commerce is the key to driving multiple revenue streams and ensuring long term success. Content leads to community leads to revenue." Imaginova CEO Dan Stone

Multi-dimensional business models, Stone argues, are the key to future growth for many online-based companies. "The fact the online ad market is growing doesn't mean a company should not be multi-faceted," he says. Emphasizing the importance of driving audiences from content to commerce, Stone explains Imaginova's business model is designed to capture multiple revenue streams. Users of space.com and livescience.com are encouraged to explore commerce-driven areas of the platforms. Imaginova sells both its advertisers' products and its own products at the company's commerce areas, also selling its own products at retail stores.

"Because there's not a large base of endemic advertisers in our category, we can afford to be in the commerce and ad business without conflicting with our own advertisers," he says. "When audiences connect to a company's content either online or off line, they should feel intrigued, interactive and invested. As Imaginova captures information about community members, we are able to cross-promote additional company-owned commerce and content sites, completing a virtuous circle. Imaginova's ability to synthesize and analyze these separate traffic and revenue streams in a way that optimizes their potential is the key to the ultimate success of the content, community and commerce model."

Stone makes the case that the increased focus on content, commerce, and community "represents a maturing of the industry in a way that fulfills the heady promise of the dot com vision 'back in the day' and brings it in line with the realities of today's complex, rapidly shifting media and eCommerce landscape. It also points up the value of an organization's marketing team, by underscoring how it can be enlisted to build revenue through creative, interactive outreach, driving revenues through subscription, syndication/licensing, advertising and commerce. These revenue streams, in and of themselves, are fairly standard cornerstones when building potential profit centers," Stone acknowledges. "However, getting there can be an organizational and operational challenge. The payoff depends on execution."

"The overall challenge," Stone suggests, "is to stay focused on the bigger picture and to pro-actively synchronize the priorities of each part of the business: editorial, advertising sales, eCommerce, business development, operations and sales, as well as marketing. It requires active leadership to insure that no parts of the team stray from the larger marketing and strategic objectives. As always, execution is the key."

Imaginova is generating an estimated $30 million in annual revenues, with the expanded potential audience base expected to drive significant revenue growth. "Over time we have been able to build a substantial community who we reach daily via updated website content and through daily opt-in newsletters," Stone explains. "To build on this internal growth, we have been successful in developing syndication partnerships with leading news portals. These portals gain access to our original content to provide a better experience for their users while we benefit from those users who click back to our sites because they want deeper insight into the article or subject area, becoming part of our audience and community as well."

As part of the Imaginova community, users are exposed to various product offerings through three eCommerce sites, StarryNight.com, Telescope.com and LiveScienceStore.com. Product advertisements are also embedded contextually within articles, matching advertisers to customers' interests without being intrusive.

For more information contact Dan Stone at dstone@imaginova.com.