Navigating New Heights: How Craig Fuller Built an Aviation Media Empire

Fuller's passion for aviation turned his side project into a content-to-commerce ecosystem

Special note: Thank you to Matt Reustle and Dom Cooke for introducing me to Craig Fuller’s story through their podcast, Making Media. Check out Colossus for some of the best content on investing and media on the internet.

An Accidental Pioneer in "Content-to-Commerce"

Craig Fuller discovered the value of a content-to-commerce business model when an initial plan to hire a PR professional for his company, Freightwaves, proved too costly. The PR expert advised him to focus on content creation instead. Taking this advice, Fuller's company began writing articles that attracted significant traffic, serving as a key source of traffic and brand recognition for the business. This strategy not only filled the top of the funnel but also established Freightwaves as an authority in the space, effectively supporting its commerce objectives.

Side Project Becomes a Media Playbook

Craig Fuller's acquisition of FLYING magazine was driven by his personal passion for flying. At the time of purchase, FLYING had around 100,000 subscribers, had been established in 1927, and was the largest US-based aviation magazine, according to its publisher, the Bonnier Corporation. Fuller transformed what was initially a side project into a blueprint for media acquisitions that he would replicate in future endeavors. FLYING was generating $2.5 million in revenue and $500k in EBITDA, and Craig reportedly paid 5x EBITDA ($2.5m purchase price). Fuller's approach to FLYING magazine—enhancing its quality, refining its subscriber base, and increasing its advertising revenue—yielded significant returns and provided a platform for additional media assets and related businesses.

Changes to FLYING

Upon acquiring FLYING magazine, Fuller implemented significant changes to revamp its business model and market positioning. He aimed to enhance the magazine's quality, which involved tripling the subscription price and improving the paper stock to make the magazine more premium. This price increase led to a sharp decline in subscribers, from about 100,000 to about 30,000, causing Fuller to worry that he had significantly damaged the business. However, his goal was to filter out less engaged subscribers and retain a base of truly passionate customers willing to pay more for quality content and, importantly, the products he was going to advertise through FLYING. Fuller rationalized that having fewer but more passionate customers about aviation would be more valuable. He encouraged his sales team to shift their pitch to advertisers, asking whether they preferred a larger audience or a smaller, more dedicated group likely to make significant purchases, such as buying multi-million-dollar aircraft. With the subscription price raised to $30, FLYING magazine concluded the year with a 270% increase in advertising revenue, validating Fuller's strategy of prioritizing quality and engagement over the volume of subscribers.

Rolling Up Aviation Media

Craig Fuller's success with FLYING led him to acquire Plane and Pilot, another major aviation magazine, significantly expanding his footprint in the sector. Initially, he assumed that Plane and Pilot would have a significant audience overlap with FLYING. Surprisingly, it was less than 20% (given it had a different core audience focus), but they achieved a 40% attachment rate for FLYING magazine subscribers—an interesting cross-sell opportunity.

He then purchased 25 other aviation brands or media properties. By leaning into the unique audience of each publication and implementing effective bundling strategies, this approach not only diversified his media portfolio but also transformed his business into a single source for advertisers looking to target specific segments within the aviation market. Advertisers appreciated the ability to tailor their campaigns across Fuller's network, enhancing the value and appeal of his media properties. From an initial investment in a business generating $2.5 million, Fuller's strategic acquisitions and savvy market segmentation have propelled the company to a $40 million run-rate today, establishing him as a dominant player in the aviation media industry.

Media as Negative Customer Acquisition Costs (CAC)

Fuller adeptly leveraged his expansive media assets, including FLYING magazine and other aviation-related brands, to support and drive customers to his diverse business ventures within the aviation sector. Among these is an ambitious real estate project in East Tennessee, where he's developing luxury homes that cater to aviation enthusiasts, complete with private plane parking. By advertising this unique offering in his own publications, Fuller successfully raised $28 million in pre-bookings for the 1500-acre development. Beyond real estate, he has acquired businesses in e-commerce, used aircraft marketplaces, and financing.

Fuller's acquisitions have solidified his position as the largest publisher in the aviation sector but also strategically positioned his enterprises at the intersection of content, commerce, and finance, creating a comprehensive ecosystem for aviation professionals and enthusiasts alike.

In the next post, I’ll dig into the broader takeaways from Fuller’s media passion-project-turned-empire.