The usually high-flying Condé Nast publishing empire has hit some severe turbulence as its stable of luxury goods advertisers cuts back on spending, reports the New York Post's Keith J. Kelly. With Portfolio and Wired both down about 60 percent in advertising (the industry norm lately is much less), things are serious.
Quoting publishing people who say Condé's "overstaffed and overpaid," Kelly notes, " Much of the problem rests with Condé's policy of never discounting off the rate card.'Advertisers are finding that they can buy around them,' said [a] former executive."
It is, of course, pretty easy to change a policy about rate card negotiation -- assuming there's not a big mental block on the matter among the company's leaders. But serious economic times have a way of changing things.
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