SproutBaby acquires blogging network EcoMom for online baby product empire

Online baby product retailer SproutBaby acquired blogging network EcoMom today in an all-equity transaction. The deal reflects a growing trend where editorial content and direct marketing are blended to drive sales in niche online communities.
SproutBaby sells “eco-conscious” infant products like organic baby food and skin care products that omit chemicals linked to cancer. EcoMom is a blogging network and online community of ecologically-conscious mothers.
“We realized we would have a much stronger offering together, than as separate companies,” said SproutBaby chief executive and founder Jody Sherman. ”Our community and market is made of parents who are dedicated to conscientious consumerism and raising their own families in a healthy and environmentally sound way.”
Although he wouldn’t release specific revenue figures, Sherman said SproutBaby, which launched last February, has high conversion rates; more than 5 percent of people who visit the site end up buying products from the company. Gross margins average out to be 40 percent on the 1,000 products the company carries. SproutBaby’s parent company, February Won, is backed with $360,000 in angel funding.
In very specific vertical markets, we’re seeing the traditional line between advertising and editorial content fade. Glam Media, another women-focused blogging network, recently raised $50 million at a $750 million valuation on the back of success it’s seeing with sponsored content and advertising sales. Passionate niche communities like those seen on EcoMom are likely to be more receptive to sales and offers that cater to their interests.
Tags: ecomom, sproutbaby
Companies: ecomom, sproutbaby