Gannett Issues Statement in Response to Wall Street Journal Story Regarding Advertising Data

Rhea-AI Summary

Gannett Co., Inc. (NYSE: GCI) addressed inaccuracies in data shared with advertisers over nine months, due to a caching error. The company regrets this oversight, which impacted less than $10 million in revenue from third-party programmatic advertising, while ensuring direct sales were unaffected. Gannett confirmed that user data and geo-specific ad targeting remained intact. The company has reviewed its quality assurance processes to prevent future errors and emphasized that the number of affected advertisers was minimal against its broader programmatic advertising landscape.

Positive

• Only a minor revenue impact of less than $10 million from the error.
• No effect on direct sold digital or programmatic advertising revenues.

Negative

• Accusations of sharing inaccurate information may harm credibility.
• The issue was present for nine months before being discovered.

MCLEAN, Va.--(BUSINESS WIRE)-- Gannett Co., Inc. (NYSE: GCI) today issued a response to a story published by the Wall Street Journal (WSJ) on March 8 that implies Gannett intentionally shared inaccurate information to advertisers over a period of nine months.

Gannett sincerely regrets inadvertently passing along the incorrect data parameter. This human error was immediately rectified when the Company independently discovered the issue. The data parameter issue was caused due to a caching error when the Company implemented changes to how data is passed from the publisher to the ad exchanges.

It is important to note that the revenue associated with third-party programmatic advertising exchanges that potentially used the incorrect data parameter in question was less than $10 million in total over the impacted period. Also, none of Gannett’s direct sold digital advertising or direct sold programmatic advertising were affected.

No user level data was impacted and there was no impact to geo-specific ad placement or user data targeting and in all cases ads remained within the USA TODAY NETWORK of sites. Only select exchanges have adopted this specification, which greatly reduced the potential impact. Likewise, Gannett believes the number of advertisers impacted from this error was nominal in relation to Gannett’s overall programmatic advertising universe.

Gannett has fully evaluated the quality assurance program relating to product releases and is implementing procedures to ensure that an error such as this does not occur again in the future.

ABOUT GANNETT

Gannett Co., Inc. (NYSE: GCI) is a subscription-led and digitally-focused media and marketing solutions company committed to empowering communities to thrive. With an unmatched reach at the national and local level, Gannett touches the lives of millions with our Pulitzer Prize-winning content, consumer experiences and benefits, and advertiser products and services. Our current portfolio of media assets includes USA TODAY, local media organizations in 45 states in the U.S., and Newsquest, a wholly owned subsidiary operating in the United Kingdom with more than 120 local news media brands. Gannett also owns digital marketing services companies branded LOCALiQ, and runs one of the largest media-owned events business in the U.S., USA TODAY NETWORK Ventures. To connect with us, visit www.gannett.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our business outlook, digital revenue performance, our ability to develop and implement quality assurance programs for our product releases and our ability to identify and remediate problems in connection with such product releases. Words such as "expect(s)", "plan(s)", "believes(s)", "will", "target", "outlook" and similar expressions are intended to identify such forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties. These and other risks and uncertainties could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond our control. The Company can give no assurance its expectations will be attained. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could cause actual results to differ from such forward-looking statements, see the risks and other factors detailed from time to time in the Company’s most recent Annual Report on Form 10- K, our quarterly reports on Form 10-Q, and our other filings with the Securities and Exchange Commission. Furthermore, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. Except to the extent required by law, the Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220308006454/en/

MEDIA

Lark-Marie Anton

Senior Vice President, Communications

(646) 906-4087

lark@gannett.com

INVESTOR RELATIONS

Trisha Gosser

Senior Vice President, Investor Relations

(703) 854-6708

tgosser@gannett.com

Source: Gannett Co., Inc.

FAQ

What was the issue Gannett faced regarding advertising data?

Gannett acknowledged sharing inaccurate advertising data for nine months due to a caching error, resulting from changes in data handling.

How much revenue did Gannett lose due to the data error?

The incorrect data impacted less than $10 million in revenue from third-party programmatic advertising.

Did Gannett's direct sold advertising get affected by the error?

No, Gannett's direct sold digital advertising and programmatic advertising were not impacted.

What steps is Gannett taking to prevent future data errors?

Gannett is implementing procedures to enhance quality assurance programs to avoid similar errors in the future.

How many advertisers were affected by Gannett's data error?

The number of advertisers impacted is considered nominal in relation to Gannett's overall programmatic advertising universe.