INDIAN NEWSPAPERS SWAP COMPANY SHARES FOR AD SPACE
January 15th 2008 10:31
New Delhi-based Business Standard reports from that Indian newspapers are considering replicating the Times of India’s ‘private treaties’ system, whereby the publisher, Bennett, Coleman & Co, sells advertising space in exchange for shares in small-to-medium companies,
Major companies including HT Media Ltd, publishers of the Hindustan Times, Bhaskar Group, publisher of the Dainik Bhaskar Hindi-language daily, and Jagran Prakashan, publisher of the Dainik Jagran, are evaluating Bennett, Coleman’s business model, the Business Standard said.
The controversial advertising model, which some pundits say questions the editorial integrity of the publisher, originated in the dotcom boom, where several companies made equity deals with start-ups in lieu of advertising.
The company’s chief of publishing Ravi Dhariwal said, “There is a lot of misinformation about private treaties and we see no reason why we should clarify. We totally believe there is no conflict of interest in our role as a newspaper and our business.
“They have no cash for marketing. Our belief is that the small and medium enterprises will grow but they need to build brands. We have the space and the skill to market them.”
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