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Newspapers, Despite Falling Circ., Raising Ad Rates

Newspapers are expected to raise advertising rates between 3 and 6 percent in early 2007, despite falling interest in the medium.

Advertisers are expected to push back against the increases, writes Media Life. Macy’s, for example, is looking for rate drops, not increases, because of declining circulations. The Los Angeles Times, which plans to raise rates, saw an 8 percent circulation drop in its latest audit, and a 15 percent plummet since last March.

“We don’t want to pay more for less,” Mike Monroe, vp of media and advertising operations at Macy’s, is quoted as saying. Macy’s advertises in nearly 50 newspapers and is one of the LA Times’ largest advertisers.

The New York Times and the Wall Street Journal are both planning low-single-digit increases, though neither would say how low those increases will be.

If newspapers insist on increased rates, advertisers are more likely than ever simply to place their ad dollars elsewhere.