Friday, October 06, 2006

RAB: Newspapers' Loss Could Be Radio's Gain

A retail exodus from newspaper insert advertising may be in store next year -- if a remark from the often-prescient Carat CEO David Verklin is true.

During a panel discussion at Media magazine's Forecast 2007 conference last week, Verklin, who heads up Carat's Americas and Asia units, dropped the bombshell that a major retailer has told agencies that future media plans would eliminate freestanding inserts -- the colorful supplements announcing sales and other commercial events -- from its advertising plan by 2007.

Chased down after the panel, Verklin declined to elaborate. But it's worth noting that the Aegis-owned company is currently pitching retail giant Wal-Mart, in tandem with DraftFCB, the new-breed marketing agency. Carat is also the media agency for Radio Shack. A source familiar with the shop's strategy said it has been advising the electronics retailer to cut back on FSIs for several years.

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