Gannett Co., Inc. (GCI): Business Model Canvas [10-2024 Updated]

In the rapidly evolving media landscape, Gannett Co., Inc. (GCI) stands out with its multifaceted business model that expertly blends traditional journalism with modern digital marketing strategies. This blog post delves into the Business Model Canvas of Gannett, highlighting key components such as value propositions, customer segments, and revenue streams. Discover how Gannett leverages partnerships and resources to maintain its position as a leader in both print and digital media.

Gannett Co., Inc. (GCI) - Business Model: Key Partnerships

Collaborations with local and national businesses

Gannett Co., Inc. engages in various collaborations with local and national businesses to enhance its advertising reach and content distribution. In the nine months ended September 30, 2024, Gannett's total revenues amounted to $1,888 million, with digital revenues contributing significantly to this figure. Digital advertising revenue was reported at $213 million, while print advertising revenues were at $397 million.

Partnerships with digital marketing platforms

Partnerships with digital marketing platforms are pivotal for Gannett's strategy to expand its digital footprint. The Digital Marketing Solutions (DMS) segment reported revenues of $360 million for the nine months ended September 30, 2024, reflecting a consistent demand for digital marketing services. Specifically, digital marketing services generated $106 million during the same period, indicating a growing reliance on digital platforms for revenue generation.

Partnership Type	Revenue Contribution (2024)	Growth Rate (%)
Digital Marketing Solutions	$360 million	1%
Digital Advertising	$213 million	4%
Print Advertising	$397 million	-3%

Alliances with content syndication networks

Gannett also maintains alliances with content syndication networks to broaden its content distribution capabilities. This strategy not only enhances content visibility but also aids in maximizing advertising revenues. In the nine months ended September 30, 2024, Gannett's digital-only subscriptions reached approximately 2.06 million, marking a 5% increase year-over-year, showcasing the effectiveness of these syndication partnerships in driving subscription growth.

Furthermore, Gannett's total digital revenues for the three months ended September 30, 2024, were reported at $277 million, reflecting a robust performance amidst a challenging advertising landscape. The company's ability to leverage syndication partnerships has been instrumental in maintaining a competitive edge in content delivery and revenue generation.

Gannett Co., Inc. (GCI) - Business Model: Key Activities

Content creation and curation

Gannett Co., Inc. engages in extensive content creation and curation across its various media platforms. As of September 30, 2024, the company reported digital revenues of $512.5 million for its Domestic Gannett Media segment, reflecting a 10% increase compared to the same period in 2023. This growth is attributed to enhanced digital content strategies and the expansion of digital-only subscriptions, which rose to 1.95 million, a 3% increase year-over-year.

Digital marketing services delivery

Gannett's Digital Marketing Solutions (DMS) segment generated revenues of $360.8 million for the nine months ended September 30, 2024, contributing significantly to the overall financial performance. The DMS segment saw an increase in client spending, which helped offset a decrease in client count. The average revenue per user (ARPU) for digital-only subscriptions reached $8.16, up from $6.82 in the previous year, indicating a robust demand for digital marketing services.

Metric	Q3 2024	Q3 2023	Change (%)
Digital Marketing Solutions Revenue	$360.8 million	$357.5 million	0.9%
Client Count	Decreased	Decreased	N/A
Digital-only ARPU	$8.16	$6.82	20%

Print and digital distribution management

Gannett's management of print and digital distribution continues to evolve. For the nine months ended September 30, 2024, print and commercial revenues totaled $943.6 million, a decline of 14% from the previous year, largely due to decreased production volume and facility closures. The company is adapting its distribution strategies to optimize costs, with total operating costs for print decreasing by 12% year-over-year, reflecting successful cost management initiatives.

Distribution Metrics	Q3 2024	Q3 2023	Change (%)
Print and Commercial Revenue	$943.6 million	$1.1 billion	(14%)
Total Operating Costs	$292.8 million	$332.4 million	(12%)
Digital Distribution Revenue	$823.3 million	$773.2 million	6.5%

Gannett Co., Inc. (GCI) - Business Model: Key Resources

Extensive media brands (e.g., USA TODAY, Newsquest)

Gannett Co., Inc. owns a diversified portfolio of media brands, including USA TODAY and Newsquest, which contribute significantly to its market presence. As of September 30, 2024, Gannett reported total revenues of $612.4 million for the third quarter, with revenues from the Domestic Gannett Media segment at $468.5 million.

The company's digital advertising revenue reached $84.7 million during the same period, reflecting a 5% increase year-over-year. The digital-only subscription segment also showed growth, with revenues of $50.1 million, up 25% from the previous year.

Robust digital marketing platform (LocaliQ)

Gannett's digital marketing services, branded as LocaliQ, play a crucial role in its business model, generating $119.9 million in revenues for the third quarter of 2024, representing a slight decline of 2% compared to the previous year. The platform emphasizes providing tailored marketing solutions to local businesses, enhancing customer engagement and advertising effectiveness.

Overall, LocaliQ has contributed significantly to Gannett's digital transformation, with total digital revenues amounting to $277.4 million for the quarter. The average revenue per user (ARPU) for LocaliQ's core platform was reported at $2,777, marking a 5% increase year-over-year.

Skilled workforce in journalism and digital marketing

Gannett's workforce is a vital asset, comprising skilled professionals across journalism and digital marketing. As of September 30, 2024, Gannett had approximately 143,209 basic weighted average shares outstanding, reflecting its ongoing engagement with its human resources. The company has invested in its workforce, with share-based compensation expenses totaling $9.2 million for the nine months ended September 30, 2024.

The company has also seen a decrease in its operating costs by 12% year-over-year, amounting to $292.8 million in the third quarter of 2024. This reduction is attributed to efficiency improvements and a focus on digital transition, underscoring the importance of a skilled workforce in adapting to changing market dynamics.

Key Resource	Details	Financial Data
Media Brands	USA TODAY, Newsquest	Total Revenues: $612.4 million (Q3 2024)
Digital Advertising	LocaliQ platform for marketing solutions	Digital Advertising Revenue: $84.7 million (Q3 2024)
Digital Marketing Services	LocaliQ	Revenues: $119.9 million (Q3 2024)
Skilled Workforce	Journalism and Digital Marketing	Share-based Compensation: $9.2 million (9M 2024)
Operating Costs	Reduction in costs due to efficiency	Operating Costs: $292.8 million (Q3 2024)

Gannett Co., Inc. (GCI) - Business Model: Value Propositions

Trusted journalism with local insights

Gannett Co., Inc. is renowned for its commitment to trusted journalism, providing local insights through its extensive network of newspapers and digital platforms. As of September 30, 2024, the company reported total revenues of $612.4 million for the third quarter, with digital revenues contributing significantly to this figure. The digital segment alone accounted for approximately $277.4 million, reflecting a year-over-year increase of 5% in digital revenues compared to $263.6 million in Q3 2023 .

Comprehensive digital marketing solutions for SMBs

Gannett offers a suite of comprehensive digital marketing solutions tailored specifically for small and medium-sized businesses (SMBs). The Digital Marketing Solutions (DMS) segment generated revenues of $119.9 million in Q3 2024, a slight decrease of 2% from $121.9 million in Q3 2023. Despite this decline, the DMS segment remains a critical component of Gannett's strategy, providing services such as search advertising, display advertising, and social media management.

Revenue Type	Q3 2024 Revenue (in thousands)	Q3 2023 Revenue (in thousands)	Change ($)	Change (%)
Digital Marketing Solutions	119,929	121,919	(1,990)	(2)%
Digital Advertising	84,742	80,758	3,984	5%
Digital-Only Subscriptions	50,055	40,039	10,016	25%

Diverse content across multiple platforms

Gannett’s value proposition is further strengthened by its diverse content offerings across various platforms, including print, digital, and broadcast media. The company reported a total of $1.888 billion in revenues for the nine months ended September 30, 2024, marking a decrease from $1.994 billion during the same period in 2023. This decline reflects broader challenges in the media industry but underscores Gannett's efforts to adapt its content strategy to meet evolving consumer preferences.

Content Segment	Revenue (9M 2024 in thousands)	Revenue (9M 2023 in thousands)	Change ($)	Change (%)
Digital Content	823,263	773,225	50,038	6%
Print and Commercial	1,064,777	1,220,920	(156,143)	(13)%

Gannett Co., Inc. (GCI) - Business Model: Customer Relationships

Subscription-based engagement for digital content

Gannett Co., Inc. has seen a significant increase in its digital-only subscription revenues. For the nine months ended September 30, 2024, digital-only subscription revenue amounted to $139.8 million, marking a notable increase from $113.7 million in the same period of 2023, reflecting a growth rate of approximately 23%.

As of September 30, 2024, Gannett reported 2,056 digital-only paid subscriptions, which is a 5% increase from 1,964 subscriptions reported a year prior. The average revenue per user (ARPU) for digital-only subscriptions also improved, rising to $8.16 from $6.82, reflecting a growth of 20%.

Personalized marketing solutions for businesses

Gannett's Digital Marketing Solutions (DMS) segment generated revenues of $360.8 million for the nine months ending September 30, 2024, compared to $357.5 million in the same period of 2023, indicating a modest growth of 1%. Core platform revenues, which are critical for personalized marketing solutions, slightly decreased by 1% to $358.1 million for the nine months ended September 30, 2024.

The average revenue per user for the core platform also saw an increase, reaching $2,751, up by 6% compared to the previous year. Gannett's customer count for the core platform averaged 14.5 million, a 4% decrease from 15.1 million in 2023.

Active community engagement initiatives

Gannett has implemented various community engagement initiatives aimed at fostering relationships with local audiences. The revenues from print advertising, which include community-focused initiatives, decreased to $397.5 million for the nine months ending September 30, 2024, down from $434.4 million in 2023, reflecting a decline of 8%. However, print circulation revenues were reported at $493.9 million, which shows a decrease of 16% compared to $588.3 million from the previous year.

Despite the decline in print revenues, Gannett continues to invest in community engagement through events and local content initiatives, which are integral to their customer relationship strategy. The company reported that commercial and other revenues increased by 18% year-over-year, reaching $198.3 million.

Metric	2024	2023	Change (%)
Digital-only Subscription Revenue	$139.8 million	$113.7 million	23%
Digital-only Paid Subscriptions	2,056	1,964	5%
Digital-only ARPU	$8.16	$6.82	20%
DMS Revenue	$360.8 million	$357.5 million	1%
Core Platform ARPU	$2,751	$2,605	6%
Print Advertising Revenue	$397.5 million	$434.4 million	-8%
Print Circulation Revenue	$493.9 million	$588.3 million	-16%
Commercial and Other Revenues	$198.3 million	$167.7 million	18%

Gannett Co., Inc. (GCI) - Business Model: Channels

USA TODAY NETWORK and local media outlets

The USA TODAY NETWORK operates as Gannett's flagship platform, providing a wide range of news and information across various mediums. As of September 30, 2024, the Domestic Gannett Media segment generated revenues of $1.456 billion for the nine months ended, a decrease from $1.566 billion in the same period of the previous year. The USA TODAY NETWORK encompasses over 250 local media outlets, facilitating local news dissemination and advertising opportunities.

Digital platforms (websites, social media)

Gannett leverages multiple digital platforms to reach its audience. For the nine months ended September 30, 2024, digital advertising revenues amounted to $253.7 million, reflecting a slight decline from $242.5 million in the corresponding period of 2023. The average revenue per user (ARPU) for digital-only subscriptions increased significantly, reaching $8.16, up from $6.82 year-over-year. Gannett's websites and social media channels also serve as key distribution channels for content and advertising, supporting its digital marketing solutions, which generated revenues of $360.8 million for the nine months ended September 30, 2024.

Events and promotions to connect with audiences

Gannett utilizes events and promotions as a strategy to engage with its audience. However, the company has experienced a decrease in event-related revenues, primarily due to fewer events and a decline in ticket sales. For the nine months ended September 30, 2024, commercial and other revenues, which include event revenues, decreased, highlighting the impact of reduced event activities. This segment reported a revenue of $173.3 million, down from $198.3 million in the previous year.

Channel	Revenue (9 months ended Sept 30, 2024)	Revenue (9 months ended Sept 30, 2023)	Change (%)
Domestic Gannett Media	$1,456,139,000	$1,566,636,000	-7.0%
Digital Advertising	$253,673,000	$242,464,000	4.9%
Digital Marketing Solutions	$360,772,000	$357,525,000	0.6%
Commercial and Other	$173,327,000	$198,262,000	-12.6%

Gannett Co., Inc. (GCI) - Business Model: Customer Segments

Local and national advertisers

Gannett Co., Inc. generates significant revenue from local and national advertisers, primarily through its digital and print advertising services. For the nine months ended September 30, 2024, Gannett reported total print advertising revenues of $397.5 million, while digital advertising revenues amounted to $253.7 million. In the same period, Gannett's digital marketing services contributed an additional $359.3 million. This indicates a robust demand for advertising services as businesses seek to reach diverse audiences through Gannett's extensive media portfolio.

Revenue Type	Q3 2024 Revenue (in millions)	Q3 2023 Revenue (in millions)	Change (%)
Digital Advertising	84.7	80.8	5
Print Advertising	123.9	137.2	(10)
Total Advertising Revenue	208.6	218.0	(4)

Digital subscribers seeking news and information

Gannett's digital subscription model has seen growth in recent years, particularly with the rise in demand for online news and information. As of September 30, 2024, Gannett reported digital-only subscriptions totaling 2.1 million, reflecting a year-over-year increase of approximately 5%. The average revenue per user (ARPU) for digital-only subscriptions also increased by 20% to $8.16. This demonstrates Gannett's ability to attract and retain digital subscribers in a competitive landscape.

Subscription Metric	Q3 2024	Q3 2023	Change (%)
Digital-Only Subscribers (in millions)	2.1	2.0	5
Digital-Only ARPU ($)	8.16	6.82	20

Small and medium-sized businesses needing marketing solutions

Gannett's Digital Marketing Solutions (DMS) segment serves a crucial role in providing marketing services to small and medium-sized businesses (SMBs). For the nine months ended September 30, 2024, the DMS segment generated revenues of $360.8 million. This segment includes a variety of services such as search engine marketing, social media management, and website development tailored to the needs of SMBs.

Marketing Solutions Metric	Q3 2024 Revenue (in millions)	Q3 2023 Revenue (in millions)	Change (%)
DMS Revenue	119.9	121.9	(2)
Total DMS Revenue (nine months)	360.8	357.5	1

Gannett Co., Inc. (GCI) - Business Model: Cost Structure

Operating costs related to content production

The operating costs associated with content production for Gannett Co., Inc. have shown a varied trend. For the three months ended September 30, 2024, the total operating costs were $30,026,000 compared to $29,845,000 for the same period in 2023, reflecting an increase of 1%. The breakdown of these costs is as follows:

Cost Type	2024 (3 Months)	2023 (3 Months)	Change ($)	Change (%)
Newsprint and ink	$2,605,000	$3,089,000	($484,000)	(16%)
Distribution	$3,292,000	$3,312,000	($20,000)	(1%)
Compensation and benefits	$13,477,000	$12,798,000	$679,000	5%
Outside services	$3,908,000	$4,088,000	($180,000)	(4%)
Other	$6,744,000	$6,558,000	$186,000	3%

Marketing and advertising expenses

Marketing and advertising expenses for Gannett have shown a slight decrease in recent quarters. In the three months ended September 30, 2024, total selling, general, and administrative expenses, which include marketing costs, amounted to $15,706,000 compared to $15,768,000 in the same period of 2023, marking a decrease of approximately 0.4%. The specific components are outlined below:

Expense Type	2024 (3 Months)	2023 (3 Months)	Change ($)	Change (%)
Compensation and benefits	$11,893,000	$11,811,000	$82,000	1%
Outside services and other	$3,813,000	$3,957,000	($144,000)	(4%)

Technology and infrastructure investments

Gannett has made significant investments in technology and infrastructure to support its digital transformation. For the nine months ended September 30, 2024, technology-related expenses included in outside services totaled $227,453,000, reflecting an increase of 4% compared to $219,615,000 for the same period in 2023. The overall operating costs for technology investments are summarized below:

Investment Type	2024 (9 Months)	2023 (9 Months)	Change ($)	Change (%)
Outside services	$227,453,000	$219,615,000	$7,838,000	4%
Depreciation and amortization	$116,954,000	$124,126,000	($7,172,000)	(6%)

Gannett Co., Inc. (GCI) - Business Model: Revenue Streams

Digital advertising and marketing services

The digital advertising segment for Gannett Co., Inc. reported revenues of $253.7 million for the nine months ended September 30, 2024, reflecting a growth of approximately 4% from $242.5 million in the same period of 2023. The digital marketing services contributed $359.3 million in revenues during the same timeframe, an increase from $357.1 million year-over-year.

For the three months ended September 30, 2024, the company saw digital advertising revenues amounting to $84.7 million, compared to $80.8 million for the same period in 2023, marking a 5% increase.

Subscription revenues from digital content

Gannett’s digital-only subscription revenues reached $139.8 million for the nine months ended September 30, 2024, compared to $113.7 million in the same period of 2023, indicating a significant growth of approximately 23%. The digital-only average revenue per user (ARPU) increased by 20%, from $6.82 to $8.16.

For the three months ended September 30, 2024, digital-only subscription revenues were reported at $50.1 million, up from $40.0 million in 2023.

Print advertising and circulation sales

Print advertising revenues totaled $397.5 million for the nine months ended September 30, 2024, down from $434.4 million in the prior year, marking a decline of approximately 8%. The print circulation revenue also saw a decrease to $493.9 million from $588.3 million in the same period of 2023, reflecting a 16% decline.

In the third quarter of 2024, print advertising revenues were reported at $123.9 million, a decrease from $137.2 million in 2023, while print circulation revenues amounted to $157.3 million, down from $187.1 million.

Revenue Stream	Q3 2024 Revenue	Q3 2023 Revenue	Change (%)	YTD 2024 Revenue	YTD 2023 Revenue	Change (%)
Digital Advertising	$84.7 million	$80.8 million	5%	$253.7 million	$242.5 million	4%
Digital Marketing Services	$119.6 million	$121.9 million	-2%	$359.3 million	$357.1 million	1%
Digital-Only Subscriptions	$50.1 million	$40.0 million	25%	$139.8 million	$113.7 million	23%
Print Advertising	$123.9 million	$137.2 million	-10%	$397.5 million	$434.4 million	-8%
Print Circulation	$157.3 million	$187.1 million	-16%	$493.9 million	$588.3 million	-16%

Article updated on 8 Nov 2024

Resources:

1. Gannett Co., Inc. (GCI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Gannett Co., Inc. (GCI)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Gannett Co., Inc. (GCI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.