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Advertisers Want "LA Times" To Cut Rates

Several major advertisers want rate cuts on display advertising in the Los Angeles Times due to a drop in the newspaper's readership. Buyers for Macy's, one of the newspaper's largest advertisers, and some big local auto dealers say they will try to leverage the lower circulation figures when they cut their deals for 2007.

But despite an 8% daily readership falloff over the past year--and 15% from when the last ad rates were set--advertisers are expecting tough talks. Newspapers don't always see circulation drops as a reason to trim ad rates.

Newspapers, as general rule, are reluctant to identify the exact relationship of circulation to rates, says Mike Monroe, vice president of media and advertising operations at Macy's. Usually, they don't offer decreases in rates. So, whatever rate is paid eventually is something the publisher and the advertiser will agree upon.

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