Conde Nast’s ‘Good and Valuable Consideration’

Last week, Conde Nast Publications sued Turks & Caicos Tourist Board for $1 million in unpaid advertising in five of its magazines. http://www.wwd.com/media-news/conde-nast-sues-an-archipelago-2223419?src=rss/recentstories/20090727 and http://www.wwd.com/media/pdf/Advance-Turks.pdf

In its story, WWD (which is owned by Conde Nast) points out a controversy over the $1 million plus ad buys. They featured LisaRaye McCoy-Missick, who was paid $300,000 to appear in and provide art direction for the ads. At the time the ads were placed, McCoy-Missick was married to Michael Missick, the premier of the British Territory. He was accused of sexual assault and corruption and resigned in March 2009.

We have another question.

Conde Nast publishes Traveler magazine. If you were going to spend over $1 million to increase tourism to your exotic islands where movie stars and moguls frolic, might you not spend some of your money on a high-end travel magazine?

Instead, Turks & Caicos spent $296,535.34 to advertise in three magazines: W, Elegant Bride and Vanity Fair. It spent an astounding $1 million to sponsor the really crummy Fashion Rocks insert of 2007 and its accompanying bash at Radio City Music Hall. (If you don’t remember the Fashion Rocks supplement to the Conde Nast mags, you’re not alone. It attempted to combine the glamor of the music industry with fashion in a way that seemingly appealed to about 10 people. The publication was killed in October 2008.)

Two hotels on Turks & Caicos, Point Grace and Parrot Cay, had previously been featured on various best of lists published by Traveler, which has since honored Point Grace.

Couple other things. The population of Turks & Caicos is 30,000 people. Its GDP per capita is $17,112.

It was also recently reported that Conde Nast has called into McKinsey & Co. for an assessment of its business in the dismal publishing environment.

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