extraordinary news events. Hearst shall retain control over the content of
advertising to be published in the P-I as specified in Section 3.4.
Times agrees that it will use its best efforts, using the same degree of diligence,
to sell advertising space in the P-I and the Seattle Times and to promote and
circulate the P-I and the Seattle Times.
The Times shall establish by December 15 of each calendar year a
promotional
budget identifying the circulation, advertising and company promotional activities
(including column inches of in-paper advertising) for the next calendar year. The
dollars spent on promotional activities and programs (excluding news and editorial
promotional activities as defined below) for the P-I and the Seattle Times shall be
equal. Circulation promotion shall include radio and television, other print media,
outdoor advertising, rack cards, point-of-purchase displays and in-paper
advertisements. Direct circulation sales expenses shall not be included in the
promotional budget and shall be allocated by Times among the Newspapers so as
to maximize the maintenance and enhancement of circulation of the Newspapers
to the extent economically feasible. Such sales expenses shall include items such as
carrier premiums and the expenses of order generation. All promotion and
circulation sales expenditures shall be Agency Expense except news and editorial
promotion activities. If either the P-I or the Times determines that it wishes to
engage in news and editorial promotion (i.e., promotion not directed toward
increasing circulation or advertising but instead primarily directed toward
increasing the prestige of either newspaper), its newsroom shall supply basic
information for promotional
advertisements (e.g. highlighting features, columnists,
etc.).
The Times promotion management shall be responsible for all
final
promotional copy preparation, based in the case of P-I
news and editorial
promotion on the material supplied by
Hearst, and placement of all promotional
advertisement.
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