The ROI Experts
Needham, Mass.-based TechTarget bills itself as “The IT Media ROI Experts,” and return on investment is certainly what both IT professionals and vendors are looking for from products featured online. With potentially millions of dollars at stake in a major hardware purchase, companies seek the highest-quality information targeted to their specific needs and business strategies. TechTarget has built its reputation—and ever-expanding share of the media market for IT research and peer support—on providing precisely that.
Founded in September 1999, the company has grown to 474 employees, and it generated revenues of $79 million in 2006. With the acquisition last June of TechnologyGuide.com Inc. and Ajaxian Inc., followed, in November, by the purchase of KnowledgeStorm Inc., TechTarget now runs 46 Web sites, drawing 6 million active, registered members, and two print magazines.
Eclipsing even these benchmarks was the company’s transition from private to public in May 2007, making TechTarget the only Web-based publisher to go public last year and, according to company CEO and Co-founder Greg Strakosch, the only online business-to-business media company to go public in the last eight years.
Strakosch chalks TechTarget’s success up to an ability to recognize and capitalize on important trends in online usage. “The main shift that has fueled the growth of our business is that every major purchase is researched on the Web,” he notes. “Whether bought online or bought offline, the audience has shifted to the Web, and the ad dollars have followed the audience, and that’s been very disruptive to the traditional media companies.”
Put simply, according to Strakosch, TechTarget’s success has been built on three major market opportunities: a migration of IT professionals from print to online media, the use of the Web for highly targeted product research, and the desire of advertisers and vendors to have quantifiable results and multiple points of access to potential customers.