Gallery Media Group eyes $50M in revenue as it enters 13th year of profitability
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Gallery Media Group executives. Photo: VaynerX
Gallery Media Group plans to end 2024 with $50 million in revenue, CEO and founder Ryan Harwood told Axios. The company, previously named after its biggest property PureWow, has been profitable since 2011.
Why it matters: With no debt, consistent growth and no major layoffs in its history, GMG is a rare digital media success story.
- Its executives credit cautious spending, smart owners and a relentless focus on their consumers. While its business has expanded, the firm's core strategy of selling reach-based branded content has not shifted since launch.
Catch up quick: Harwood, a former banker, bought the domain for Purewow.com, a lifestyle site, in 2010. He raised $1 million in seed money to build an email newsletter audience and eventually a digital web presence.
- The company was early to the native advertising space and built a sizable business selling branded content across its social media channels. It recognized early the untapped potential of social media influencers for branded content.
- In 2017, Harwood sold the company for an undisclosed amount to entrepreneur Gary Vaynerchuk, who had expertise in influencer marketing. Harwood declined to share the value of that deal but said Vaynerchuk invested more in the brand at that time.
- Vaynerchuk created a parent company to his marketing firm VaynerMedia called VaynerX to house PureWow and other media projects. PureWow was renamed Gallery Media Group at that point.
- Gallery Media Group's cap table consists of VaynerX and Steve Ross' RSE Ventures, which invested in VaynerX.
By the numbers: Today, Gallery Media Group is home to more than 50 social-first brands that touch a wide array of lifestyle topics, such as fashion, beauty, food and pets. Nearly 200 people work at the company.
- Harwood and the team made a point to scoop up handles for terms like @fashion, @pets and @selfcare on platforms like TikTok and Instagram early to build social-first media brands.
- The company's biggest brands, @Recipes, @Moms, @Cocktails, @PureWow and @Ballplayers, exist primarily on social media and are monetized through branded content.
- Mary Kate McGrath, the firm's longtime chief brand officer, said the company hires niche creators who are "fanatic" about creating content tailored very specifically to what their social media followers find engaging, whether it be tofu recipes or lipstick colors.
Yes, but: GMG's business strategy is heavily reliant on consistency from major social platforms. While the firm doesn't have any plans to stop selling reach-based native content, the company is seeing early success expanding into events and commerce, chief revenue officer Chris Anthony said.
- It launched Gallery Houses, a series of creator outpost for brands across major cities and cultural moments. It plans to soon launch a stand-alone events series for Ballplayers, its sports brand.
The big picture: GMG has kept a relatively low profile over the past few years as it plotted expansion, mostly organically.
- While it's not as big of a name as some of the other digital holding groups, such as BDG Media or Vox Media, its size has helped it stay nimble and weather changes in the media landscape.
What's next: While Harwood said he's not trying to proactively sell the business, he wants the industry to be aware of GMG's growth, as the firm is open to acquiring more brands or entering strategic partnerships.
