Postmedia extends financial tech collaboration to 2020

The deal with Mogo aims to help the fintech company build brand awareness through Postmedia's 200-plus news platforms.

A marketing collaboration deal between Postmedia and Canadian financial tech company, Mogo, was extended another two years, the companies announced last week.

The agreement, which was initially struck in 2016 and covered three years, aims to build brand credibility and increase awareness of Mogo’s millennial targeted brand nationally.

Through the arrangement that will now extend to the end of 2020, Mogo financial products are promoted through the national print, online and mobile platforms of Postmedia’s 200-plus brands, which have a cumulative readership of more than 18 million per month and include publications such as the National Post, Financial Post and Vancouver Sun.

Mogo was provided with a minimum of $50 million in media value over three years as part of the deal, an amount Feller said they are exceeding. The latest announcement indicates Mogo will receive “similar minimum annual media value” for the extended period. Meanwhile, Postmedia will receive a fixed cash quarterly payment of about $525,000 – equal to the Q4 2017 revenue share payment – in lieu of a percentage of Mogo’s revenue.

According to Mogo president and CFO Greg Feller, the partnership has been working for both sides. The more the Mogo brand grows its recognition, customer base and revenue, the better it is for Postmedia, he said.

Feller added that Mogo’s member base has grown from “a couple hundred thousand to 600,000 in Canada,” with most of the marketing being done through Postmedia.