By: Joel Davis Major Advertiser Pulls Out
The Newspaper Association of America's (NAA) troubled NICC Web-based advertising system called eio (electronic insertion order) is dormant, and NICC has lost a major advertiser.
Although the NAA, which put about $16 million into the failed Web system, declined comment, NICC employees said NICC has reverted to its old system of placing ads via telephone and fax out of its main office in Sacramento, Calif., which employs a staff of about 70. "I don't think the [Web] system has been used for months," a NICC employee said.
In another development, J.C. Penney Co. Inc., the advertiser that helped expand NICC into a nationwide placement system when it was operated by the California Newspaper Publishers Association's Complete Newspaper Network (CNN), will soon no longer be advertising with NICC. While the loss of J.C. Penney, which has placed millions of dollars' worth of ads with NICC/CNN, is substantial, NICC is generating enough revenue to survive it, one source said.
Among remaining major advertisers is Wells Fargo, which had been the electronic service's lone advertiser, but has since reverted to the phone and fax system.
Joel Davis (jdavis@editorandpublisher.com) is West Coast editor for E&P.
Related stories:
EMBATTLED NICC BOSS BOWS OUT (05/21/01)
SECRET NAA COMMITTEE TACKLES TROUBLED NICC (03/26/01)
NAA WEB-BASED AD INITIATIVE SEEKS PARTNER (03/05/01)
NAA'S NICC ENVISIONS NEARLY $600 MILLION (12/13/00)
Copyright 2001, Editor & Publisher.
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