By: Karim Mostafa

But Some Affiliates Are Concerned

A recent deal to bring national advertisers to PowerAdz.com’s 1,300
newspaper affiliates should deliver new revenues to local newspapers,
but some publishers are concerned about alienating local businesses.

24/7 Media of New York will post national advertisers’ banner ads
across the network of PowerAdz Web sites. Revenues generated from these
ad sales will be split 50/50 between PowerAdz and the affiliates. Local
newspaper affiliates will also receive a portion of any transaction
revenue generated from PowerAdz.com’s Marketplace, which includes co-

branded e-commerce with sites like FreeShop.com and GiftPoint.com.

‘Smaller sites are clamoring for national revenue streams,’ says Bruce
McEwing, director of marketing at Rensselaer, N.Y.-based PowerAdz.com.

That’s true, but some online newspaper editors worry that local
advertisers will object to national advertisers that compete directly
with their businesses. Local advertisers are the bread and butter of
newspaper Web sites, these editors say, pointing to the combo print-

online ad deals that are becoming more popular. The last thing local
publishers want to do is alienate local advertisers by rotating their
ads with those for a national competitor.

None of the editors we spoke to would allow us to use their names
because they all work with PowerAdz.com.

One example given was the local florist who would be upset to see
banners for 1-800-flowers in the same space where their ads appeared
the day before. Local publishers add that they get all of the revenues
from local businesses, while they only get a portion of revenues coming
through the national network. And one online editor finds that local
advertising has higher click-through rates than national advertising
since the site targets a local audience.

‘If local advertisers object to national advertising, PowerAdz will
review the objections on a case-by-case basis, but generally – no, we
will not remove the national ad,’ McEwing responds. ‘If ads are
politically, socially, or sexually problematic, the ad can be

George Dratelis, the corporate Internet marketing director for Ottaway
Newspapers Inc. of Campbell Hall, N.Y., says, ‘We’re working out
implementation of the 24/7 Media deal. We had some differences, but
we’re working out the details.’

Dratelis says he needed better reporting on how revenue would be
distributed to the newspaper affiliates. He also wants to protect local
advertisers who might object to some national ads.

‘As newspapers outsource and co-brand, there should be a solid
understanding that the newspaper maintain control of at least 50% of
the decision-making process,’ Dratelis says.

Newspapers hasten to add that any additional revenues are welcome,
particularly from national advertisers, which are out of reach for
small publishers. They just want to be careful not to lose local
advertisers in the process.


Karim Mostafa (karimm@mediainfo.com ) is
assistant editor of Editor & Publisher Online.

(c) Copyright 2000, Editor & Publisher

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