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Associated Newspapers' tactic of undercutting News International's ad rates in the battle for the London market appears to be reaping early dividends.
According to some agency sources, Associated, which this week launched its free London Lite product a week ahead of News International's thelondonpaper, is undercutting its rival by more than 10 per cent.
One press director said: 'It is offering more than 10 per cent off what thelondonpaper is delivering. This is crucial when demonstrating the cost per thousand to advertisers.'
Associated is also said to be offering large discounts to Evening Standard advertisers that also buy space in its London Lite edition.
Steve Auckland, the head of Associated's free newspaper division, said: 'All these things settle down, but we have deliberately priced at a position to get towards profitability.'
News International has accused Associated ...