By William Launder
Gannett Co. Inc. (GCI) has acquired BLiNQ Media LLC, a social
media advertising company that makes it easier for marketers to buy
advertisements on Facebook Inc. (FB) and other social media
sites.
Terms of the deal weren't disclosed, but a person familiar with
the matter said Gannett paid roughly $20 million in cash for the
company, with an agreement to pay an uncapped earn-out on its
profit contribution until 2015.
The acquisition comes as Gannett attempts to grow revenue from
digital marketing and media businesses, in order to offset ongoing
declines at its newspapers, including USA Today.
BLiNQ is one of a handful of new agencies attempting to decipher
the most effective ways to advertise through social media, using
analytics and relationships between media buyers and companies like
Facebook. Gannett sees the acquisition as a way to help its vast
count of local advertising clients buy space more effectively using
the social network--a task that marketers have previously
complained is unwieldy using Facebook's in-house system.
"We as a company bring a large customer base, while BLiNQ brings
a way to market to them," said Vikram Sharma, the chief executive
of Gannett's digital marketing division.
"What we've seen with Facebook is that best results come not
just from targeting the right customers," Mr. Sharma said, "but
with a real focus on driving people to [local] stores."
The BLiNQ deal comes six months after Gannett unveiled new plans
to charge for some online content and expand its digital
operations, where revenue is growing but has largely failed to
offset declines in its newspaper business. The company also has
shored up its management ranks of late, naming a new chief
financial officer and a new editor and publisher for USA Today.
BLiNQ was advised by Ad Media Partners, a New York-based firm,
and Gannett handled the transaction internally.
--Suzanne Vranica contributed to this report.
-Write to William Launder at william.launder@dowjones.com
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