Media Centre extends brand

Agencies are predicting chaos in the national press market if News International’s newsprint supply crisis is not alleviated quickly, following its decision to reduce pagination in its titles last week.

The paper crisis is understood to have been caused by NI’s failure to renegotiate a price with paper suppliers when its three-year supply deal ended at the beginning of this year. “If a group like NI can get it wrong, how many others are in trouble?” says Optimedia business development director Peter Russell.

Press buyers are concerned that a shortage of ad sites will increase rates and allow NI to pass on some of its increased newsprint costs to advertisers.

Reduced sites will also harm tactical advertisers, such as retailers and direct response advertisers, which operate on short lead times for promotions.

“In a tight market the media owner will be in a position to dictate to the advertiser on rates and position. Many advertisers will have to consider their use of the press,” says Helena Hudson, press buying manager at Ogilvy & Mather Media.

Agencies believe the paper-supply problems are pushing publishers further towards a yield-based advertising sales strategy and away from a share of volume strategy.

NI has claimed production will only be cut for the next three weeks and has denied its chief executive Gus Fischer and managing director John Dux left the company because of the crisis.

Industry sources believe Fischer and Dux disagreed with proprietor Rupert Murdoch over his price-cutting strategy. Fischer has been replaced by Bill O’Neill, a former managing director of NI, while Dux has been replaced by deputy managing director Douglas Flynn.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here