• by Gavin O'Malley  @mp_gavin, January 9, 2007

Targeting younger readers, Hearst Magazines' digital media unit has acquired teen social network eCRUSH.com for an undisclosed sum.

The purchase--along with social networking plans for many of Hearst's titles--stems partly from high demand for teen-targeted ad inventory, said Chuck Cordray, vice president and general manager of digital media at Hearst.

"We certainly could have used the additional inventory during the last half of 2006," said Cordray. "There's a lot of demand to reach teens online."

Launched in 1999 by music marketing entrepreneur Clark Benson and Northwestern University fund-raiser Karen DeMars, eCRUSH was designed with viral marketing in mind, as members can send email "crushes" to non-members, who must then register with eCRUSH to digitally unmask their admirers.

Under the direction of Pamela Raley, Hearst's recently appointed vice president of digital sales, the company plans to offer ad packages across eCRUSH's sites and Hearst's network of teen sites. The addition of eCRUSH is both a chance for Hearst to sell eCRUSH inventory to existing Hearst advertisers, and to sell inventory across Hearst's sites to existing eCRUSH advertisers--including, The Wall Street Journal, Vonage, and Universal Studios, among others.

With the acquisition, Hearst gets two other eCRUSH Web properties: eSPIN, which is a Web version of the classic game spin-the-bottle, allowing users to connect randomly; and HighSchoolStyleBoard, a photo-rating site a la Hot or Not, where users can post photos in numerous categories, from "best hair" to "preppiest."

In addition, later this month Hearst plans to debut MyPromShopper.com, a prom-planning site that combines editorial content from CosmoGIRL, Seventeen, and Teen, with tools and features for girls to search out dresses, and create prom notebooks and polls. The information can then be published on third-party social networking sites like MySpace and Facebook.

In February, Hearst is slated to unveil new Web sites for its three teen magazines--CosmoGIRL.com, Seventeen.com, and Teenmag.com--featuring interactive content, photos, video, and podcasts. Each site with have its own social community, which will be powered by a third-party vendor, according to Cordray. The networks will exist independently of each other and eCRUSH's network, while the registration names of user will be recognized across Hearst's network of sites, he added.

Traditional media companies have had their eyes on social networking startups since News Corp.'s precedent-setting acquisition of MySpace for $580 million in 2005. Wired Digital--owned by Hearst rival Conde Nast--acquired social news site Reddit.com for an undisclosed sum in November.

Beyond the realm of gloss, Sony Pictures Entertainment last July completed its $65 million takeover of Grouper, a site that specializes in user-generated video. Also, in August, Barry Diller's IAC/InterActiveCorp acquired a majority stake in comedy site CollegeHumor.com for a reported $20 million.

Hearst's digital initiatives have been ongoing this past year. Last March, for example, Hearst launched mobile sites for Cosmopolitan, CosmoGIRL!, and Seventeen magazines. The sites, which use the Bango mobile service, let readers buy ringtones and cell phone wallpapers, access horoscopes, and find health and beauty tips.

And last July, Seventeen magazine and MySpace.com partnered up for a contest and public service campaign inviting members of the uber-social networking site to create their own PSAs about "what it means to be an activist."

Building up its digital media team, Hearst late last year made several key hires, including former Walt Disney executive Pamela Raley as vice president of digital sales. In addition, Christopher Johnson came over from IAC Search & Media to serve as Hearst's digital content direct, while Sophia Stuart rejoined Hearst as its director of mobile initiatives. All three executives are reporting to Cordray.

More than one million unique users visit the eCRUSH Network of sites each month and 90% are 13 to 19 years old, according to internal metrics. Also, eCRUSH claims about 2.4 million registered users. Hearst's EBITDA--earnings before interest, taxes, depreciation, and amortization--came to $1.4 million in 2006.