Tags: newsweek | ad dollars | ad fraud | turmoil

Turmoil Costing Newsweek Big Money

Turmoil Costing Newsweek Big Money

By    |   Thursday, 08 February 2018 04:03 PM

The rolling turmoil at Newsweek magazine is wreaking havoc on its parent company’s bottom line, NBC News reports.

In recent days, Ed Hannigan, the company's head of sales, has resigned, several top journalists severed ties with the company, the Manhattan district attorney’s office is probing allegations of ad fraud and some top editors and reporters who were investigating the company have been fired.

NBC quoted a senior ad executive who has worked with Newsweek as saying that the Newsweek Media Group, which owns Newsweek and the International Business Times, has lost hundreds of thousands of dollars in ad commitments since reports surfaced that it had bought traffic to hit business goals.

The unnamed ad executive reportedly told NBC that news of the inflated traffic claims was "shattering to us" and scared away clients.

"Newsweek is in disarray," the executive said. "We have pulled back on some buys. There is no one to speak to there anymore."

NBC said Nativo, an online advertising company, is "suspending" part of its business with Newsweek.

"We have been monitoring the situation," John Haake, senior vice president of marketing at Nativo, told NBC in an email. "Newsweek continues to utilize our tech to power their direct ad sales."

The district attorney's office declined to comment, and a Newsweek spokesman said the company does not comment on its advertisers.

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The rolling turmoil at Newsweek Magazine is wreaking havoc on its parent company’s bottom line, NBC News reports.
newsweek, ad dollars, ad fraud, turmoil
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2018-03-08
Thursday, 08 February 2018 04:03 PM
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