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The McClatchy Co., seeking to reverse a steep slump in advertising, today announced a five-point sales strategy that emphasizes the Internet and seeks to reconnect the company with former advertisers.
In one of the boldest moves, McClatchy will begin paying sales commissions to ad agencies, a move that will "level the playing field" with broadcasters and others that have traditionally paid commissions to agencies, said McClatchy Chairman and Chief Executive Gary Pruitt. "We haven't done that for years," he said.
In addition, the Sacramento-based newspaper chain will emphasize the Web instead of its newspapers when it comes to selling help-wanted ads. The shift is a recognition of the severe decline in help-wanted sales and the fact that "employers and job seekers are using the Internet," Pruitt said. The print papers will serve as a "complement" to Career Builder, which is partly owned by McClatchy, and other online venues, he said.
Nice, but car dealerships are closing and major advertisers are cutting back on their ad budgets. So who are the ad agencies going to get business from?
And, how many sales people will McClatchy lay off?