NEWS
Ten Newspaper Companies & SNA Form National Ad Network
National Advertising Network to Launch in August — Joint Venture between
SNA & Community Newspaper Leaders — All SNA Members Are Invited to Join the
Ownership Group
6/5/2007 — Current alliance includes ten newspaper companies, including some
of the largest and most respected community newspaper chains in North America along
with partner Suburban Newspapers of America.
We are pleased to announce the formation of a major advertising network financed
by SNA and ten community newspaper companies. National advertisers will now have
an easy way to place business with thousands of suburban and community newspapers.
We know that community newspapers represent the growth segment of the industry.
Regional and national advertisers want to reach the highly desirable markets served
by community newspapers, especially in the affluent suburbs. Now they will be able
to take advantage of a hyper-local approach to national advertising, and suburban
and community newspapers will be the beneficiaries.
The network is currently owned by ten newspaper companies and Suburban Newspapers
of America but this is expected to grow as the invitation for ownership is open
to all SNA members. Full owners include: ASP Westward, LP; American Community Newspapers,
LLC; Community Newspaper Holdings, Inc.; GateHouse Media, Inc.; Schurz Communications;
Sun-Times Media Group; and Suburban Newspapers Inc. (for profit subsidiary of SNA).
Smaller market newspapers were able to take advantage of a fractional ownership;
this group includes Rust Communications, Packet Publications, Recorder Community
Newspapers and Holden Landmark Corporation.
In addition to demonstrating their leadership by supporting this important initiative
for the industry, owner companies will receive special benefits including lower
commissions and increased sales pressure for their newspapers. They are also expected
to make a return on their investment by 2011. It is the goal of this alliance to
have more newspaper companies join the ownership group. Companies that are interested
in receiving the business plan can contact SNA President Nancy Lane at (843) 390-1531
or nancylanesna@aol.com. Opportunity for
ownership will expire on June 30, 2007.
Timing is perfect for the launch of such a network as media buyers struggle to reach
deep enough into communities with existing metro daily newspapers. Big box retailers
have shifted millions of dollars into community newspapers over the last five years
and national advertisers are starting to do so as well. The network will focus on
traditional national categories such as travel, telecommunications, automotive,
financial, insurance, pharmaceutical, pure-play internet, political and more. The
network will include print and online options (at realistic rates for advertisers)
and will represent the entire community newspaper industry — not just the
owner companies.
"Media buyers have been telling us for years that our industry is difficult to buy;
now we are removing that barrier," said Nancy Lane, President of Suburban Newspapers
of America. "This alliance marks the first time that the community newspaper industry
has collaborated on a project of this significance; it is a page right out of the
Newspaper Next handbook. We are excited to go after a piece of the $7.5 billion
dollar national advertising pot on behalf of the community newspaper industry. We
applaud the original ten owners for making this investment in the future of our
industry. We hope that more companies will join us."
Paul Ginocchio, an industry analyst with Deutsche Bank, told SNA conference attendees
in March of this year that there are national advertising categories that are under-penetrated
by newspapers including pharmaceutical, financial services, travel and luxury. He
stated that community newspapers would "benefit from affiliation with national networks
to improve reach, traffic and ease of buy for national advertisers."
Joanna O'Connell, Senior Media Planner with Avenue A/Razorfish (representing industry
giants such as Coca Cola, Wal-Mart, Ford and Disney) told SNA attendees at last
month's interactive conference that national advertisers are looking for standardization
with pricing, sizes and video opportunities. O'Connell strongly recommended that
online publishers partner with an advertising network to open up targeting opportunities
that smaller sites can not provide on their own.
"The board of directors identified this as a top priority at our annual strategic
planning meeting in January," said Jim Mannarino, Chairman of the Board for SNA.
"In just four months, a comprehensive business plan was developed and all of the
legal paperwork completed to bring this group of highly respected community newspaper
companies together. There is a sense of urgency among the owner companies and SNA
to get this network launched and fulfill this important need in the industry. SNA
is excited to be an owner and the managing partner of this amazing network."
MANSI, a division of the Pennsylvania Newspaper Association, will serve as the "backshop"
for the new network and will handle all database functions, billing, ad verification,
etc. MANSI currently places over 100,000 individual insertion orders per year. They
work directly with their own clients and also handle the "one order, one bill" services
for two other major national networks. "We are excited to work with SNA on this
important industry development," said Tim Williams, President & CEO of the Pennsylvania
Newspaper Association. "We have long believed that the community newspaper industry
could benefit from a national network and SNA is the logical manager for this project
given their knowledge and focus on the suburban and community newspaper industry."
The network will launch in mid-August. In the next two months, staff will be hired
including a senior level executive charged with running day-to-day operations and
being the lead representative. During this time, rates will be collected and service
agreements signed by newspapers that want to receive national advertising from the
network.
Newspaper companies interested in ownership or participating in the network can
call or email Nancy Lane for more information, (843) 390-1531 or
nancylanesna@aol.com.