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In 2023, climate publisher The Cool Down set a goal of reaching 10 million monthly unique visitors, aiming to prove in its first full year of operation that it could reach a scaled audience of climate enthusiasts.
After reaching nearly 30 million unique visitors in December, it has since set itself a new goal for this year: better monetizing that readership.
“I believe in audience development, and that it takes time to build brands and find out what people value,” said cofounder and CEO Dave Finocchio. “But now we are ready to start expanding.”
The Cool Down is one of a variety of publishers looking to capitalize on growing consumer and commercial interest in climate change reporting. The media company, launched in July 2022, produces a blend of climate change coverage and reviews of green consumer products, betting that people will buy environmentally friendly products—particularly if they can save money by doing so—and that The Cool Down can build a sustainable business by recommending them.
Direct sales teams and B2B efforts
From its launch through June 2023, The Cool Down operated without any ads, making money only through affiliate content.
In June, with its audience growth pacing ahead of schedule, the publisher turned on open-exchange programmatic ads. It has turned a profit on that revenue every month since, said Finocchio.
The company raised $5.7 million in seed capital and still has most of it, according to Finocchio. However, its programmatic revenue has allowed The Cool Down to preserve those funds and invest its profits into the business.
By the end of 2023, the company was generating 75% of its revenue from its ads business, according to Finocchio, with the remaining 25% coming from affiliate content. It generated $1 million in revenue in the fourth quarter of 2023 and is projected to bring in $4 million to $5 million in annualized revenue in 2024.
To do so, with an established audience, 200,000 free newsletter subscribers and six months of profitability under its belt, the publisher plans to expand its commercial capacities.
This year, it will grow its team of 10 full-time staff with the addition of a direct sales team, which will go to market beginning in the second quarter with newsletter sponsorships and integrated campaigns.
It also plans to launch a business-to-business newsletter, called Green Screen, in the coming weeks. And a business insights operation, predicated on helping companies manage their sustainability initiatives, is in the works for later this year.
Cultivating a consumer audience is critical to establishing a healthy brand. However, doing so requires substantial resources and only becomes lucrative at scale, according to a media executive who requested anonymity.
Enterprise efforts like Green Screen will help The Cool Down reach more valuable readers and tap into larger budgets—potentially even public relations reserves unavailable to standard publishers.
“There is a lot of opportunity with [environmental, social and governance] initiatives,” said the executive. “They can tap into spend outside of traditional media budgets.”
Green products, green revenue
The Cool Down integrates affiliate links into its reporting, and its recommendations consist of products and services.
According to Finocchio, some of its most popular products have been items like electric leaf blowers and hot plates. Both are greener versions of existing products at affordable price points.
On the services side, The Cool Down has worked with companies like GotSneakers, an upcycling service that lets people donate old shoes and receive a check for their value.
The offering taps into two of the motivators—guilt over throwing away shoes, and the financial incentive of a check—that power some of its most popular affiliate items, said Finocchio.
New publishers like The Cool Down face challenges of scale in the affiliate space compared to incumbents, making it a difficult industry to break into, said Michael McNerney, founder of Martech Record. And attribution, especially for services, can pose challenges.
But the market for sustainable alternatives to everyday products continues to expand.
“The ecommerce adoption curve is moving in the direction of higher prices and more complex sales,” according to McNerney. “It’s a good place to position themselves.”
