By: Joe Nicholson The Newspaper National Network has already taken one precaution to prepare for a time when there is a sustained simmering-down of the go-go online economy: It requires about 40% of its dot-com advertisers to make advance payment.
"There will be a shakeout in the dot-com business. There is no doubt about that. We've tried to be careful about creditworthiness of some dot-com companies," says Nicholas Cannistraro Jr., NNN president and general manager, who says other industries are "hardly ever" required to pay upfront.
Aside from some of the dot-coms, Cannistraro says most of his clients are likely to do fairly well in weathering a downturn.
Among national ad categories not handled by NNN, Cannistraro says travel is a big newspaper advertiser likely to be impacted. "Certainly recreational travel would be affected by a recession," he says. He also notes tele- communications advertisers may be impacted because a downturn "might reduce the number of people who own cell phones" (see story, p. 26).
(Editor & Publisher Web Site: http://www.editorandpublisher.com)
(copyright: Editor & Publisher May 1, 2000)
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