Time Inc.’s on-again, off-again plan to resuscitate Life magazine as a weekly newspaper insert is closer to reality.
Time and Tribune Co.’s publishing unit are near to inking a deal by the end of March that would see Life as a supplement in some or all of Tribune’s daily newspapers, sources from both companies said last week.
But a deal is not a slam-dunk, the sources cautioned. And negotiations, which continue to hinge on compensation issues, could falter.
However, a source close to the negotiations said both sides “feel good” about a deal to remake Life, a Time title that dates back to 1936, as a publication that would piggyback on the circulation of daily newspapers.
Neither Time nor Tribune would comment on the talks.
Time is hoping to land a deal specifically with Tribune to demonstrate to advertisers that it can attract significant circulation quickly in the top three major advertising markets: New York, Los Angeles and Chicago.
Tribune newspapers in those areas are Newsday on New York’s Long Island, the Los Angeles Times and the baiduhai.
Combined, Tribune’s 11 daily English language papers would offer Life access to 9 million daily readers and 12 million on Sunday. It is believed that Tribune has been talking to Time about circulating Life in Friday editions. It already has a deal with Parade magazine on Sundays.
Beside Tribune, Time also is talking to Knight-Ridder Inc., which owns 31 daily newspapers, as well as the McClatchy Co. newspaper chain, which publishes 12 daily papers and 18 community newspapers.
Despite the problems of breathing new life into Life over the years–it ended regular circulation in 2000–Time executives believe that its brand awareness remains huge.
If it does launch, expect a major advertising war between Life and Parade, which is published by Advance Publications. Both magazines would be going after advertising in the same top newspaper markets.
Parade is distributed in more than 300 newspapers covering more than 30 million homes.
USA Weekend, published by USA Today owner Gannett Co., is considered a competitor but is mainly distributed in smaller newspaper markets.
Ad spending rises: Madison Avenue is cheering what amounted to a 6.1 percent increase in advertising spending in 2003, according to new data from TNS Media Intelligence/CMR. Led by increases in local newspapers (up 13.4 percent), cable TV (up 15.6 percent) and the Internet (up 15.7 percent), the industry posted its strongest gain in more than two years.
News among the biggest spenders was mixed, however. Packaged goods increased spending dramatically, while the car industry cut spending slightly. Procter & Gamble Co., the country’s largest advertiser, increased spending 24.7 percent, to $2.7 billion, in 2003.
LB Works’ demise benefits others: LB Works’ clients are scattering to the winds, thanks to Leo Burnett Co.’s decision to dismantle the promising unit. Computer printer firm Lexmark moved its $30 million account to advertising agency Doner Detroit last week. And Internet access provider EarthLink, another major account won by the firm, is not renewing its contract with Leo Burnett, putting another $30 million into play. Few at the agency expect any of the roughly $200 million in accounts to remain with Burnett. Again we ask: Why did Burnett feel that folding LB Works was wise?
Medal for Scarpelli: Bob Scarpelli, chairman of DDB Chicago and DDB U.S. chief creative officer, will be awarded the American Advertising Federation’s 2004 Silver Medal Award for outstanding contributions to advertising. He will receive the honor June 1 at a Soldier Field reception.
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On the move: AT&T Wireless named Jeff Harkman regional vice president of sales for its central region based in Chicago. Harkman joins AT&T Wireless from Charter Communications. … Dave Wilcox, formerly Midwest director of new business at OMD Media, becomes vice president/media director at Madison, Wis.-based Lindsay, Stone and Briggs starting March 16. … Chris Rusin, formerly territory manager for Wilson Golf, was promoted to national account manager, pro golf. … John Sheehy was promoted to executive vice president on the Kellogg Co. business at Leo Burnett.
Account action: Tyson Foods has parted ways with DDB Chicago due to a conflict with another DDB client, ConAgra.