Carlton and WH Smith in pounds 15m deal

Carlton Communications and WH Smith have struck a deal in which the retailer will receive pounds 15 million-worth of free airtime.

Carlton Communications and WH Smith have struck a deal in which the

retailer will receive pounds 15 million-worth of free airtime.



The two have linked to cross-promote their online businesses, with

Carlton pledging to promote WH Smith through all its media assets,

including its three ITV regions and cinema advertising business. Carlton

will sell the advertising across both companies’ websites and provide

the online content.



For its part, WH Smith will promote Carlton.com through its websites and

in its 700 UK stores, which are visited by eight million customers each

week. The retailer will also handle Carlton’s e-commerce, providing

administration and goods delivery.



Carlton and WH Smith will share the risks and rewards of the venture, a

strategy that differentiates the agreement from similar e-commerce

alliances that are based on commission.



WH Smith chief executive Richard Handover said: ’This alliance will

transform the scale of WH Smith in the online market. Carlton’s

advertising will give both our businesses access to millions of new

customers.’



Michael Green, chairman of Carlton, said: ’This is a powerful

partnership.



Carlton brings online content, mass-media promotion and interactive

potential, while WH Smith has a huge retail presence, strong e-tail and

distribution expertise.’



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