Associated Cuts Ad Rates As Freesheet War Continues

The freesheet war has moved up another gear after London Lite owner, Associated Newspapers, has undercut its ad rates in a bid to compete with News International’s thelondonpaper.

Lite‘s ratecard is already 6% lower, while thelondonpaper intends to raise its rates by 46% after a four-month introductory offer. London Lite‘s rates will remain fixed for six months before rising by 16%. However, according to reports in the trade press, media agencies say that, while thelondonpaper has offered a circulation guarantee, London Lite has yet to do so.

Steve Auckland, head of Associated Newspapers’ free newspapers division, said: “In our experience, introductory price offers generally stay. At Associated we have only increased our prices as circulation has increased.”

News International Free Newspapers general manager Ian Clark added: “Metro has a fairly tight, young profile, but ours is even tighter. The more the reader feels that it is their type of paper, the greater the connection, the greater the trust and therefore the greater the response.”

Associated has raised the price of the Evening Standard by 10p to 50p in an attempt to differentiate itself from the new freesheets (see Standard Raises Price As London Lite Launches), while both of the new papers have been clambering to beat each other to the newsstand, with London Lite securing the first print run of the two (see Lunchtime News War Starts Today).

Associated Newspapers: www.associatednewspapers.com