According to Hiller, revenue fell 10% in the second quarter, and cash flow was down 27%, “making it one of the worst quarters ever experienced.”  Advertising, he explains, has evolved as a business, and newspapers now face competition from the Internet, cell phones, digital billboards, and even advertisements in video games.

Counteracting these pessimistic figures, the LA Times has plans to for new projects such as its Metromix page and re-designed sections.  

These plans also foresee an expansion of “the types and positioning of advertising” offered to clients, which includes space on the front page.  Although Hillard acknowledges that such changes can have a strong effect on readers, he claims that “front page ads will raise several million dollars in revenue and make a meaningful contribution to improving current trends.”  He insists that the ads will be relevant and artfully done (not “schlocky”) and that communication of the changes to readers should ensure acceptance of the change.

According to Hiller, front page ads are “common at reputable papers across the US and Europe, including the Wall Street Journal’s much admired redesign.”  It remains to be seen, however, if these prominent advertisements will act as a panacea for the difficulties currently faced by the newspaper industry.

Source: LA Observed through Media Bistro