• Media Life, Friday, December 8, 2006 11 AM

Despite their awful circulation numbers, many newspapers plan to hike their ad rates between 3% and 6% early next year. But unlike in years pass, the increases are apt to be met with strong resistance.

Big spenders like Macy's are looking for rate drops in light of falling circulation--and this is especially true from papers like the Los Angeles Times, which saw an 8% circulation slump since rates were last set.

"The newspapers want their advertisers to pay higher rates and advertisers want to pay lower rates. It's the oldest game in the newspaper business," says Mike Monroe, vice president of media and advertising operations at Macy's, which advertises in four dozen newspapers and is one of the LA Times' largest advertisers. What is new, he adds, is that media budgets are being more carefully scrutinized, and buyers will be quicker to look to other media.

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