Gannett Buys BLiNQ to Target Facebook Marketers

   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 [e-mail]

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