Papers Gamble With Rate Increase in '07

december 11, 2006  05:16 pm
Many large dailies, including those with falling circulations, will raise ad rates in the new year, reports Media Life. The hikes reflect pressure from Wall Street to maintain profit margins even as the industry suffers increased competition from electronic media. Getting advertisers to pay the new rates, however, may prove more difficult than printing new rate cards: "If a newspaper says it's going to increase advertising 3 percent irrespective of circulation, that doesn't necessarily mean that everyone is going to pay a 3 percent increase," Len Kubas, a Toronto-based consultant, tells the Web site.