Wednesday, December 30, 2009
Conde Nast Boosts Ad Rates 2.5% Instead of Its Usual 5% Hike
Conde Nast is also reportedly more willing to negotiate and make concessions on certain things at the moment, media buyers say (via Adweek). However, the publisher refuses to bargain on full-page bleeds. A bleed surcharge of 15% is included on the publisher’s rate cards, and buyers who want nonbleed rates must request them. In fact, with the “disguise” of including bleed charges in the regular rate for the first time, buyers could potentially believe that Conde Nast’s rates have jumped 17.5%, points out Mike McHale, founder and chief media officer for Cleverworks.
The publisher generally asks for the highest rate hikes; most publishers have sought 2% to 3% increases in recent years.
In 2009, Conde Nast slashed budgets by about 25% across the board, and shuttered six magazines, including Gourmet, Modern Bride, Elegant Bride, and Cookie. Ad pages for the company’s monthlies slipped by nearly a third in 2009. The magazines that took the worst hits included Architectural Digest (ad pages down 49.9%), W (down 46%), Conde Nast Traveler (down 41.1%), and Details and Wired (both down about 39%).
The company has worked to strengthen its appeal to advertisers by offering customized ad campaigns across its titles.
Conde Nast is also part of a consortium of magazine publishers who are banding together to create a digital storefront for magazines. Conde Nast, Hearst, Meredith, News Corp and Time plan to work together to create a storefront to sell editions of their magazines that readers can access via e-reader and other digital devices. The goal of the venture is “to develop open standards for a new digital storefront and related technology that will allow consumers to enjoy their favorite media content on portable digital devices,” according to the companies.
In related news, the company’s Fairchild Publications is reportedly working on a new men’s wear publication, according to FishbowlNY. The news comes a year after the company folded men’s wear trade publication DNR and its sister pub Menswear into WWD.
Posted by MITCH TV at 7:44 PM