NOVEMBER 7, 2008 NORTHAMPTON, MA ©2008 Audit Bureau of Circulations.

NOVEMBER 7, 2008NORTHAMPTON, MA

©2008 Audit Bureau of Circulations


Agenda

October 1, 2008November 3, 2008April 1, 2009October 1, 2010Other ABC ServicesAudit Quicklink

(NEW!)


Structure

ABC Staff is responsible for performing audits to ensure compliance with the rules. Also, we assist members with interpreting and applying all rules and reporting formats.


Structure

Qualification and Reporting Task Force (Q &R) Created after July 2006 Board meeting

Mission Review current newspaper rules and reporting formats to

ensure they are relevant to the industry today. Consider focus of total distribution, not just paid.

Make ABC data most useful and effective for the newspapers and their media buyers

Vet recommendations through the committees, then propose to Board of Directors


Task Force

Implementation: Improvements to rule and reporting formats for U.S.

Newspapers received first passage at March ’08 Board meeting.

Final passage received in July ‘08. Amendments continue.

Improvements to be phased in beginning October 1, 2008 and continue through October 1, 2010 Provides time to understand improvements, then apply to

your own marketing strategies and system applications.

• OPTIONS FOR NEWSPAPERS WITH

•50k or less weekday circulation•50-75k weekday circulation

October 1, 2008 Improvements



50k or Less Weekday Circulation

Day-of-week reporting is optional. To eliminate, please notify your Publisher Relations

Manager.

Every-other-year audit is available. Note that ABC must maintain a balanced workload

each year. To take advantage, please e-mail your Audit Manager

to request and discuss.


50k – 75k Weekday Circulation

First passage in July ‘08.Final approval deferred in Nov. ‘08.

Deferred for more conversation between buyers and publishers

To be reconsidered in March ‘09: Day-of-week reporting is still mandatory Every-other-year audit may be available (EOY).

Must receive final passage at this Board meeting. To take advantage, please e-mail your Audit Manager to

request and discuss. Must participate in ABC’s Preprint Projection Center Adjustment must be less than 2% in recent audit. Third-party sales must be less than 5% of total avg. paid circ.

• SEPARATE BASIC PRICES

• Electronic Editions• Hybrid Subscriptions

November 3, 2008 Improvement



November 3, 2008

You may establish separate sets of basic prices for your electronic and hybrid subscriptions. Must collect minimum of 25% of the new basic prices

for electronic and hybrid subscriptions.

“Hybrid” A consumer is buying a single subscriptions (i.e. 7-day),

but some days of the week are delivered in electronic format, while other days of week are delivered in print format.

The print and electronic formats do not overlap on any day of the week.

• DEFINITION OF PAID CIRCULATION• OMITTED DAYS• JOINT DISTRIBUTION AGREEMENTS• BONUS DAYS (INTERMITTENT SUBSCRIPTIONS)• FORCED CONVERSIONS• FREQUENCY UPGRADES• BASIC PRICES• PRICE PAID REPORTING

April 1, 2009Improvements



Definition of Paid Circulation

As of April 1, 2009: One cent or more, net of considerations

Consideration: Anything offered to an end purchaser in addition to

the newspaper . Considered an inducement – i.e. t-shirts, hats, free ads, etc.

Net of Considerations: Amount paid by consumer after you subtract the value

of all inducements from the purchase price.


Omitted Days

As of April 1, 2009: You do not need ABC pre-approval

Just include when filing the P/S. Option days eliminated


Joint Distribution Agreements

What is a JDA? When a non-7-day newspaper wants to distribute copies

of another newspaper to its own subscribers on the days it does not publish. Limit of 2 days per week.

As of April 1, 2009 Notice required to be sent to the non-7-day a week

subscribers offering option and instructions on how to opt-out of the “other” newspaper.

Only applies to new JDA’s formed on or after April 1, 2009.

Those already in place prior to April 1, 2009 may continue to force the “other” paper to the non-7-day newspaper subscribers.


Bonus Days

What is a bonus day? A newspaper received by a subscriber on a day that

was not known to be included in their subscription contract at the time the order was placed. All Sunday only subscribers will receive Thanksgiving

Day. When they ordered their subscription, none of the

promotional material indicated that Thanksgiving was included.

Therefore, Thanksgiving would be a bonus day.


Bonus Days

April 1, 2009 – March 31, 2011: 120-day advance notification to advertisers required via

ABC hosted Web site. I.e. if a bonus day is to be served on April 1, 2009, you must

post to the ABC Web site by December 2, 2008. Not posted 120 days in advance? Not eligible as paid

circulation. May cancel a bonus day at any time, just update the ABC Web

site. Web site will maintain history of all postings.

Reporting remains the same Separate line item in Paragraph 1 and itemized in Explanatory

if you serve 8 or more bonus days in a P/S period.


Bonus Days

Limitations enacted: Limit of 50 between 4/1/09 - 3/31/10 Limit of 25 between 4/1/10 – 3/31/11

Eliminated from paid circulation as of 4/1/11. All paid requirements associated also eliminated

120-day notice eliminated Separate reporting eliminated Limit eliminated

Shifts to Verified, Home-delivered.


Forced Conversion

What is it? When a subscribers receives an upgrade in delivery

frequency as a replacement for their FOD being eliminated.

As of April 1, 2009 Discontinued FOD cannot be reinstated for at least 6 months. Discontinued FOD cannot be promoted 30 days prior to

elimination. Affected subscribers must receive notice prior to the change.

Additional days of service may not be stated or inferred as free. Requires 120-day advance notice to advertisers via an ABC

hosted Web site.


Frequency Upgrade

What is it? When a subscribers receives an upgrade in delivery

frequency at the newspaper’s discretion. The FOD originally ordered is not being eliminated.

As of April 1, 2009 Affected subscribers must receive clear and conspicuous

notice prior to the change and must include: Opportunity to decline/opt-out of upgrade. Simple instructions on how to decline upgrade. Additional days of service may not be stated or inferred as

free. Upgraded service must continue for a minimum of 12 weeks.

Opt-out requests received at any time in first 12 weeks result in the exclusion of the serviced upgraded copies from paid circulation.

Requires 120-day advance notice to advertisers via an ABC hosted Web site.


Sales Production

Current Paragraph 4 is eliminated Sales of premiums, combo sales, etc. Associated explanatory also eliminated


Basic Prices

As of April 1, 2009: Reporting significantly downsized. Must publish in newspaper at least quarterly. Only report annual basic prices for each frequency. May also have Electronic and/or Hybrid annual prices


Analysis by Price Paid

As of April 1, 2009 No longer on ABC documents. Required to be provided on an ABC-hosted Web

site for advertiser access only if: 5% or more of your subscription circulation is sold at less

than 25% of basic prices. NOTE: Applies only to Home Delivery and Mail

circulation

Note: The concept of disclosing an “average price” was being discussed. Those plans were discontinued at the Nov. ‘08 board meeting.

• GENERAL REPORTING IMPROVEMENTS

• SHIFT IN QUALIFICATION & CLASSIFICATION

• Elimination of “other paid” classification • Introduction of business/traveler• Introduction of Verified circulation

October 1, 2010Improvements



General Reporting Improvements

As of October 1, 2010 Reporting by ABC Zone is optional

ZIP Code reporting is mandatory Paragraph 3 (County) is required Paragraph 3A (Town) is optional Paragraph 3B (ZIP) is required

Shift in Classification

As of October 1, 2010

Other Paid

Third Party Sales

Electronic & Unique Editions Unpaid

Individually Paid

Now

Business/Traveler Verified

Electronic & Unique Editions Unpaid

Individually Paid


Individually Paid & Business/Traveler

Individually Paid Ordered and paid for by individual consumers.

Business/Traveler Purchased by businesses for their own designated

employees. Names of specific recipients are available. Purchased by hotels for placement within the hotel

property. Delivered to hotel guest rooms after guest is notified

and provided an opportunity to decline and receive a refund.


Verified

Verified Circulation Distributed to individuals in a controlled environment Focus is on how/where copies are being distributed No payment or paid element for ABC purposes

Can I charge for these copies? Absolutely, but copies will still be classified as Verified. ABC will not evaluate any financial transaction when qualifying

this circulation.

5 types of Verified Home Delivered – Requested Home Delivered – Targeted Educational Programs Employee/Independent Contractor Copies Retail/Business Copies


Verified

Home delivered – Requested Distributed to an individual at a residence Requested by recipient Minimum term of 12 weeks Maintain orders and route lists for audit

Home delivered – Targeted Distributed to an individual at a residence Request not required No minimum term of service (may be a single day) Maintain route lists for audit


Verified

Educational Programs Ordered by and distributed to educational facilities Used for educational purposes Maintain orders & affidavits for audits

MYTH: ABC doesn’t care about kids. They want to shut down all NIE

programs. False, false, false. You can still raise funds to cover your own expenses or to

increase revenue. It is the strategic decision of each newspaper as to whether to continue the program and in what format or structure.

This ABC improvement expands your opportunities for fundraising by removing restrictions such as how to obtain eligible donations, language on promotional efforts, eligible classroom settings, etc.


Verified

Employees/Independent Contractors No change to current requirements

Retail/Business Ordered by a business Distributed on-site at the business location Business environment is a controlled setting Maintain orders and distribution records for audit


Membership Eligibility

Individually Paid+ Business/Traveler+ Paid Electronic Editions+ Paid Unique Editions

TOTAL PAID CIRCULATION*+ Verified+ Unpaid Circulation

TOTAL DISTRIBUTION

* Must represent 70% of more of total distribution.

HOW WILL CIRCULATION FROM MY CURRENT PROGRAMS

BE CLASSIFIED AS OF OCTOBER 1, 2010?

October 1, 2010Translation


ONLINE Q & R SUPPORT CENTERHTTP://WWW.ACCESSABC.COM/RESOURCES/QANDR.HTM

• New rule language• prototypes of 2009/10 and 2010 P/S’s• FAQ’s• Board action summaries for q &R topics

Q & R Resource


http://www.accessabc.com/resources/qandr.htm

Consolidated Media Report


NEW OPPORTUNITY!


Consolidated Media Report

Displays a variety of print, online and audience data. Daily publication Free distribution products

i.e. real estate focused, job focused, auto publications, etc. Free newspapers Web site activity

Recognition and opportunity to show media buyers that your newspaper’s reach may encompass more than just traditional print product

SAVE MONEY, SAVE TIME, SAVE PAPER

Audit Quicklink



What is it?

Tool that allows you to: Prepare some documents for audit online

Paragraph 3 Nth factor ABC Book Survey Questionnaire Debit/Credit Summaries

Submit documents needed for the audit directly to ABC online. All of the above, plus anything else you have ready in

advance. Can be any format of file or even scanned and attached.


Benefits

For you and your staff Convenience

Can submit documents at your convenience throughout the year.

Can update at ANY time. Reduce e-mails

Between you and the auditor when preparing for the audit. Auditor can access all information and documents you

download. Less intrusion during actual audit

Less document requests when auditor is on-site. Minimize math errors $$$$ savings


Savings?

Non-metro newspapers On Flat-rate pricing model Save money when you upload the following within 15

days after the close of the audit period: $150: Upload Paragraph 3 $200 - $400: Online ABC Book

• $200 if no day of week• $400 if day of week

Metro newspapers On hourly model Any data provided in advance may result in reduced

audit time, and therefore some cost savings.


Implementation

It is ready NOW!

Overview available at: http://www.accessabc.com/resources/

auditquicklink.htm

Log in at: http://abcas2.accessabc.com/pls/edp/

edp_newspaper_audit_menu.login Need your online filing username and password


Long-term Goals

Generate Publisher’s Statements directly from the information entered into the Online ABC Book.

Increase report functionality of ABC Book for member use.

Maintain other ABC account information desired by member.

Other ideas? Share them with your audit manager!

SAVE TIME, SAVE PAPER,

SAVE REPETITION

Preprint Projection Center



Preprint Projection Center(PPC)

Launched April 1, 2008.

Free, easy-to-use online tool.

ABC hosted central “data warehouse” Upload your pre-print data for confidential

use only by advertiser members of ABC in a secure environment.

Developed by ABC in partnership with NAA and the ABC Newspaper Buyers Advisory Committee.


PPC

Benefits to you Fast and efficient way to put your

newspaper’s pre-print information into the hands of media planners.

Streamlines task of updating your monthly pre-print quantities, zones, dates and distribution.

Can upload data plus any explanatory notes, disclaimers or contact information for your newspaper.

Cannot be viewed by other newspapers.


PPC

Benefits to media planners Makes media planning and buying process easier and

more convenient. Can have on-demand access to your newspaper’s pre-print

information. Data accessible in one central location for multiple

newspapers. Receive timely preprint information for their production. Projections for markets with seasonal fluctuations will be

available and accessible Have option to open or download files for future use.

Advertiser must be an ABC member and register for access.


PPC

Highlights Publishers:

Use your online filing username and password. Can upload data in various formats: PDF, Excel, etc. Can update data as often as you desire. History will be maintained and available for viewing by advertisers Other newspapers cannot access your data, but you can see a list

of participants in the database.


PPC

Disclaimers Participation by newspapers is optional and free. Information submitted is at discretion of the publisher. Publishers represent that data submitted is “best estimate”

at time of data entry. Publishers may only view their own data. ABC does not review nor audit the publisher data entered

into this database.

Check it out at:www.accessabc.com/products/ppe.htm

Q & A?


Thank you for attending.

NOVEMBER 7, 2008 NORTHAMPTON, MA ©2008 Audit Bureau of Circulations.

Documents

Transcript of NOVEMBER 7, 2008 NORTHAMPTON, MA ©2008 Audit Bureau of Circulations.