The battle is on.

The Wall Street Journal launched its new 'Greater New York' section today with all the fanfare of a political campaign kick-off.

Taking over the grand ballroom of The Plaza Hotel in Manhattan, the Journal feted dozens of guests with a breakfast of bagels, quiche, coffee, Danish and other goodies. Large screens in the room promoted the new section's name, while top guns Les Hinton, CEO; Robert Thomson, managing editor; and Michael Rooney, chief revenue officer, headlined the event.

Each spoke out about why this venture, which many analysts and newspaper experts have said is financially limited, will succeed.

“This is good news for New York and good business for Dow Jones,” Hinton told the crowd, adding that, in terms of advertising, “We didn't expect it to be as good as it has been.”

With that, the large screens boasted a list of advertisers for the new 16-page section, with names ranging from Amtrak to American Ballet Theater.

Thomson acknowledged the nay-sayers, noting: “There is much pessimism about newspapers. But the Journal is a profitable newspaper.”

He went on to cite the fact that The New York Times, the Journal's clear competitor in the venture, had lost some 40% of its regional circulation in recent years.

Today's release of circulation numbers from the Audit Bureau of Circulations for the past six months showed a slight Journal increase, about .5%, while the Times had dropped more than 8%, according to Editor & Publisher.

Thomson then took a shot at the growing number of opinionated reporters in the vast media landscape, asking, “what differentiates them from the blather of the blogger?” He said the Journal's history and deep reporting will give New Yorkers something different.

Later, when asked what advice he would have for the Times or its readers, Thomson said, “My advice is that if you really, really must read The New York Times, read it on the Web for free and buy The Wall Street Journal.”

The Journal also revealed it is offering deep discounts to new advertisers. Thomson said other local editions are likely in other cities down the line: “We will create sections in other parts of the U.S.”

Asked about the fact that much of the venture is based on News Corp. CEO Rupert Murdoch wanting to take on the Times, even if it means losing money, Rooney said, “News Corp. is a business and we are in this for business.”

The Times, meanwhile, was hardly sitting back and ignoring its new rivals. Marketing booths, such as one at New York's Penn Station, were set up offering discounted subscriptions and gifts, while hawkers surrounded the Plaza to promote the grey lady.

Times officials released data they believe shows it is a better New York read, while Times Publisher Arthur Sulzberger Jr. and General Manager Janet L. Robinson sent out a note to the press boasting the paper's status.

“After 120 years of existence, The Wall Street Journal this morning has finally decided to cover New York north of Wall Street. In the spirit of journalistic camaraderie, we welcome the Journal's new local section. The New York Times has been the paper of record in New York for nearly 160 years, and we know just how difficult it can be for start-ups to develop a following,” it said.

“While there will be much sound and fury to this new endeavor, we thought we would take this opportunity to remind everyone about our position of strength in the New York marketplace. We will include a series of numbers that, to borrow a phrase often misused, are 'fair and balanced.'”

Among the stats it offered:

- The New York Times has a 49% print share among the three national newspapers (Kantar Media, full year through December 2009; excludes in-house ads). The others happen to be The Wall Street Journal and USA Today.

- Across key measures for advertising effectiveness, NYTimes.com scores above industry averages - readers remember New York Times ads and are more likely to consider buying products advertised on the site (Dynamic Logic Market Norms, Q4 2008).

- We dominate the luxury advertising market with lush, brand-appropriate retail and editorial environments like T: The New York Times Style Magazine and the Style, Travel, Dining and Home sections.

The Times also had to take a friendly shot at the Journal's effort to cover New York, telling its rivals:

" ... as our welcome gift to New York, we pass on a few helpful hints to our Journal colleagues: the Dodgers now play in Los Angeles, Soho is the acronym for South of Houston, Fashion Week has moved to Lincoln Center, Idlewild is now JFK and Cats is no longer playing on Broadway.

“If you happen to know anyone who works for the Journal's new section and he or she wants any additional information about the greater New York region, tell them to check out NYTimes.com's always very helpful archive.”

Expect more in this battleground to come.