The latest newspaper chain to turn to daily deals to supplement its online revenue: Hearst Corp. The company will soon offer daily deals in many of its local markets, under an agreement with white label daily deals service Analog Analytics. Analog Analytics CEO Ken Kalb tells us that SeattlePi.com will be the first Hearst-owned property to offer the option to its advertisers.
The move comes as most of the major newspaper companies have now moved to capture some of the booming daily deals market. Both McClatchy (NYSE: MNI) and Media General (NYSE: MEG) have partnered with market leader Groupon. Other papers, including the New York Times (NYSE: NYT), are launching their own in-house daily deals services, while others are working with white-label daily deals services like Analog Analytics, which provide a software platform that their sales teams can use.
Analog Analytics says it’s powering deals for 850 different publishers and broadcasters, a number which the company says gives it enough scale that it can promote a daily deal in multiple markets across the country.
Noteworthy existing customers include Freedom Interactive and MediaNews Group, and Kalb says the company will announce its biggest customer to date in a few weeks. Kalb says the company typically takes a 7 percent cut of each sale. The advertiser takes 50 percent, the publisher 40, and the credit card company the remaining three percent.