McKIM SAYS RADIO TO REMAIN A BUYER'S MARKET
By Adnews Staff
Daily newspapers and magazines will have the biggest ad rate increases next year because of rising newsprint costs, according to McKim Media Group, the media buying arm of BBDO Canada. While newspapers are planning rate increases they are watching circulation drop; it's down 3.3% this year. Newspapers will have increases of five to eight per cent, while magazine ad prices will jump five to 10%, predicts McKim. With demand outstripping supply, outdoor companies will hike rates three to six per cent. Television increases will run anywhere from zero to three per cent, depending on factors such as lead time and region. Radio will continue to be a buyer's market because stations are losing money. Radio can sell promotions to raise cash, so it's not as dependent on advertising as other media. Interactive media can expect no more than a 1% rate hike. This is due to delays, such those experienced by Videoway's UBI project in Chicoutimi, which has been pushed to next September. UBI is seen as the first large-scale interactive television project in Canada.