Whenever there's blood in the water, you can be certain that advertisers will be looking for a discount off the rate card. The Business Journal reports that Macy's and several unnamed local auto dealers say they will be expecting better deals next year, based on the paper's circulation drop (15 percent since the last ad rates were set). The Times has yet to publish its rate card for next year. From the Business Journal:

When analyzing media options, agencies compare their cost per thousand readers, known as CPM. To calculate CPM, take the cost of a standard ad size – say a full black and white page, which costs about $117,000 in the Times’ main section – and divide it by the circulation. According to data in the 2006 rate card, such a CPM for the Times works out to $129. Based on the new preliminary circulation numbers, the Times’ CPM would rise to about $150. Alternately, the price per column inch would have to drop from $908 to $776 – a 15 percent decrease – to hold the CPM steady at $129.

Dale Travis, chief strategy officer for the Novus Print Media Network, said CPM is important, but there are other factors. "What I’m looking for is value, and that’s a function of price and effectiveness. I can ramp up that effectiveness through editorial adjacency, prime placement, day-of-the-week strategies or extension of the campaign onto LATimes.com site. So I have to weigh that price against all the other factors.” Spoken like a true ad guy. I believe this story is available without subscription.