NEW YORK--(BUSINESS WIRE)--
New Media Investment Group Inc. (“New Media” or the “Company”, NYSE: NEWM), one of the largest publishers of locally based print and online media in the United States as measured by number of publications, announced today that it has acquired a 20% equity stake in TapOnIt, an opt-in text-based platform that delivers offers from local businesses direct to consumers’ phones.
TapOnIt was launched in April 2015 by digital advertising veteran Katie Wilson in Quad Cities, Iowa. In under three years, the company expanded to three additional Iowa markets – Des Moines, Iowa City and Cedar Rapids – and built a database of over 70,000 registered users. The investment by New Media is expected to help TapOnIt to expand across the country by being added as an available product offered to advertisers at New Media’s publications across its 540 markets.
TapOnIt users register to receive up-to three image-based text messages per week featuring three local offers per message. With a 98% open-rate – including 90% who open within three minutes of receiving – the TapOnIt platform delivers immediate results at a fraction of the cost of traditional direct mail. And unlike other app-based discount offer platforms, TapOnIt business customers keep 100% of the revenue generated by users.
“Because our platform is text-based with no apps to download or update, we experience less than a 2% monthly churn rate compared to 70% churn for apps in their first 90 days,” said Wilson. “And our users redeem the offers they receive at rates of up to 11%.”
Beginning in this quarter, TapOnIt will start rolling out their platform in select New Media markets. “We are incredibly excited to partner with New Media,” continued Wilson. “We believe its investment in and commitment to the TapOnIt Reseller Network will rapidly accelerate our expansion to additional markets and allow us to bring special offers to consumers and drive traffic, revenue and awareness for businesses.”
“The platform that Katie and her team have built has been embraced by businesses and consumers throughout the markets they have launched,” noted New Media CEO Michael E. Reed. “With their proprietary technology that leads to immediate and trackable results for local businesses, we see an incredible opportunity to bring the TapOnIt platform to the millions of consumers and small businesses that reside in our markets across the country. There is the potential for great revenue upside for both companies as TapOnIt is sold into New Media’s footprint.”
“We were really impressed with not only the quantity of traffic but also the quality,” said Shaun Page, Owner/Operator of a Chick-fil-A restaurant in Davenport, IA and TapOnIt customer. “TapOnIt drives an impressive amount of traffic and branding for my business.”
TapOnIt is based in the Quad Cities and is led by Founder and CEO Katie Wilson and Co-Founder Sara Castillo.
About New Media Investment Group Inc.
New Media supports small to mid-size communities by providing locally-focused print and digital content to its consumers and premier marketing and technology solutions for our small and medium businesses partners. The Company is one of the largest publishers of locally based print and online media in the United States as measured by our 130 daily publications. As of September 24, 2017, the Company operates in 540 markets across 36 states. New Media’s portfolio of products, as of September 24, 2017, include over 640 community publications and 540 websites, serve more than 225,000 business advertising accounts annually, and reaches over 21 million people on a weekly basis.
For more information regarding New Media and to be added to our email distribution list, please visit www.newmediainv.com.
About TapOnIt
TapOnIt is a mobile database development company based in Davenport, IA. TapOnIt builds databases of people that have signed up to receive offers and promotions via text message; using their proprietary technology they deliver these promotions via MMS along with a link to a mobile interface where consumers can share, redeem and more. The company launched in April of 2015 and is now active in 4 Iowa markets with a combined database of over 70,000 users. Through partnerships with local media companies TapOnIt plans to rapidly expand their footprint of providing savings to consumers while driving traffic to local businesses.
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 statements regarding the timing and success of the rollout of the TapOnIt platform into New Media markets, including the ability to generate revenues, the potential to raise awareness of and revenues for businesses advertising on the TapOnIt platform and other potential benefits of the transaction and New Media’s investment in TapOnIt. 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 that 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 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and 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. 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.
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