Missing Link

Implications: Analysts consistently miss one of the greatest plums in News Corp: News America Marketing

Analysis: News America Marketing is a small division within News Corp, maybe $1 billion in revenue. While the company doesn't report the profits of this division as a line item it is reported to be one of the most profitable. With Valassis on the ropes News America Marketing stands to reap the rewards in FSI's. But more importantly it controls the retail Instore promotions within the grocery and drug chains.

As newspaper inserts decline NAM was not sitting on the sidelines it developed expertise to reach retail consumers in other ways. Namely the instant Smart Source coupons found in supermarket aisles. But that is only one part of their blanket coverage within the retail outlet. Look at the advertising on the shopping cart, check out lane, freezer case and even the floor.

All these products have been developed ny NAM to meet the consumer eye wherever they fall within the shopping experience. If you like News Corp you should like them even more when you get to know the hidden profit maker called News America Marketing.