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DISCUSS THESE CAREER FAIRS IN THE FORUM

GANNETT NEWS

Gannett faces problem with CareerBuiler


Gannettoid.com | news@gannettoid.com | Posted: Dec. 18, 2009 • Morning report


Despite being profitable, virtual career fairs hosted by Gannett properties are in violation of an exclusivity contract the company signed 12 years ago with CareerBuilder.com, according to an internal memo sent Thursday.

The career fairs were hosted by App Vault, a vendor that sells virtual career fairs and other employment products, and generated as much as $40,000 with a fee of $1,695-2,500 to produce.

Thursday's memo from Dan Donaghy, Gannett's senior vice president of sales, said CareerBuilder, "is of the opinion, and we agree, that the virtual career fair products from AppVault, LLC and Reel Centric are in violation of the exclusivity provisions in our longstanding affiliation agreements."

Donaghy said sites will be permitted to honor previous agreements for the career fairs, but must not schedule more or renew any agreements.

"Exclusivity was one of the basic principles by which we established our online classified partnerships and has been one of the keys to their success," Donaghy wrote. "It is a contractual obligation that is just as valid today as it was when we signed the first affiliate agreements 12 years ago."

In an Aug. 24 memo, Gannett's vice president of advertising, Leslie Giallombardo, wrote that she had negotiated special pricing with App Vault and was encouraging more sites to run an online career fair.

"App Vault does all of the work setting up the site with your local brand, preparing print promotional ads to direct job seekers to the event, and disseminating resumes. Cincinnati and Nashville have used App Vault for virtual career fairs and both give them high grades for consumer usability, results for advertisers, and ease of implementation. Cincinnati generates from $30k to $40k per event and Nashville $23k. Both paid App Vault $2,500 per event to create and manage the online events.

The memo was encouraging schedule career fairs in October and January. The memos do not mention how many properties set up events, but an Aug. 31 memo with details on a seminar for the career fairs was sent to representatives from 38 newspapers.

AUGUST MEMOS: HERE

Here's the Dec. 17 memo:

From: "Donaghy, Dan" (removed @gannett.com)
Date: December 17, 2009 11:05:28 AM EST
To: "Publishers/Newspaper Operating Unit Heads (USCP Only)" (removed @gannett.com), "Ellwood, Susie" (removed @dnps.com), Ad Execs - East Group (removed @gannett.com>, Ad Execs - Interstate Newspaper Group (removed @gannett.com), Ad Execs - South Group (removed @ad.gannett.com), Ad Execs - West Group (removed @gannett.com), Ad Execs - Detroit (removed @gannett.com)
Cc: "Williams, Jack" (removed @gannett.com), "Dickey, Robert" (removed @gannett.com), "Krans, Michelle" (removed @gannett.com), "Giallombardo, Leslie" (removed @gannett.com), "St. Cyr, Larry" (removed @gannett.com), "Torrison, Kimberly" (removed @gannett.com), "Christopher, Diane" (removed @gannett.com), "Haddad, Katie" (removed @gannett.com)
Subject: Virtual Career Fairs

All,

While many of you now know about the problems surrounding the virtual career fairs that some of you have conducted or are planning to hold in your markets, we’re sending out this message to ensure that everybody is fully informed of the company’s position on this subject.

As you’re all aware, CareerBuilder.com is the exclusive provider of online employment listings on our sites.  That means we can’t sell competitive products, nor can we carry a competing set of listings on our sites. CareerBuilder.com management is of the opinion, and we agree, that the virtual career fair products from AppVault, LLC and Reel Centric are in violation of the exclusivity provisions in our longstanding affiliation agreements.

If you have already contracted with a third-party vendor to hold a virtual career fair in the coming months, you will be permitted to honor that obligation. But in order to remain in good standing as a CareerBuilder.com affiliate, no Gannett newspaper can enter into any new agreements or renewals for virtual career fairs with any vendor.

Exclusivity was one of the basic principles by which we established our online classified partnerships and has been one of the keys to their success. It is a contractual obligation that is just as valid today as it was when we signed the first affiliate agreements 12 years ago.

The opportunity to grow digital revenue in employment and the other classified categories through the sale of our partners’ core products is greater than ever.  Let me know what we and our partners can do to help with your sales efforts.

Thanks for sharing this e-mail with all appropriate members of your advertising and digital teams.

Dan

****************

Dan Donaghy
Senior Vice President, Sales
Gannett Digital Ventures


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