By Published on .

Chrysler Corp. gave the fledgling National Newspaper Network a shot in the arm last week by committing $1 million to a blanket advertising buy in 55 daily papers.

The NNN, formed by the Reston, Va.-based Newspaper Association of America, began calling on agencies last month in a bid to try to bring more national auto and package-goods advertising into newspapers. The lure is one order and one invoice for a network of daily papers.

"Newspapers are only getting 5% of the $80 billion spent annually by national advertisers," said Patricia Haegele, VP-general manager of New York-based NNN. "As recently as 10 years ago, we were getting 10% of the total national advertising."

Magazine Publishers of America President Donald Kummerfeld seems unconcerned by the new rival. NNN "is an improved mousetrap, but it is not the first attempt to build a simplified billing system for newspapers. I would not regard it as an immediate significant threat to magazines," he said.

The Justice Department gave the NAA permission to form the network only after newspaper executives convinced federal regulators such a move would not hinder competition.

"The newspapers definitely need to be more aggressive" in their rates, said Karin Gross, VP-manager of local media at Lintas Campbell Ewald, Detriot. "The rates for national accounts were about 75% higher than local retail."

Most Popular
In this article: