London Lite undercuts rival's ad rates by 6%

Associated's London Lite has increased the pressure on News International's thelondonpaper by undercutting it on ad rates.

The former's ratecard is already 6% lower, while thelondonpaper intends to raise its rates by 46% after a four month introductory offer.
Conversely, London Lite's rates will remain fixed for six months before rising by 16%.
However, media agencies say that, while thelondonpaper has offered a circulation guarantee, London Lite has yet to do so.
Steve Auckland, head of Associated Newspapers' free newspapers division, said: "In our experience, introductory price offers generally stay. At Associated we have only increased our prices as circulation has increased."
However, News International is confident thelondonpaper will give advertisers the response they desire. News International Free Newspapers general manager Ian Clark said: "Metro has a fairly tight, young profile, but ours is even tighter. The more the reader feels that it is their type of paper, the greater the connection, the greater the trust and therefore the greater the response."
Furthermore, thelondonpaper has removed editorial barriers for advertisers, meaning that there can be content integrated ads as well as front-page ads.

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