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Ask ABC: I am a newspaper member and I want to run a marketing program where I sell a cup of coffee with my newspaper. How would the circulation generated from this type of promotion be classified?
Many newspapers choose to run a promotion where a single-issue of the newspaper is sold in conjunction with a cup of coffee or other non-newspaper item such as a donut, soda, sandwich, etc. The circulation generated from this type of promotion may be claimed as paid single-copy circulation on ABC reports if the promotion complies with the following:
- A single issue of a newspaper and the coffee are sold together as a package deal for a single price.
- Neither the newspaper nor the coffee is referred to as “free,” “no additional cost,” “no extra charge” or other synonymous language.
- U.S. newspapers must charge at least 25 percent of the basic single-copy price (Canadian newspapers must charge at least one cent), plus the full retail value of the coffee.
- The retail value of the coffee is the highest price that the coffee is sold to customers, without the purchase of a newspaper, during the promotion.
- The difference between the newspaper and coffee package price and the retail value of the coffee is the implied value of the newspaper. This implied value must be no less than 25 percent of basic single-copy prices.
In addition to the above qualifications, the material promoting the newspaper and coffee package must:
- State the items involved in the purchase (newspaper and coffee).
- State the selling price.
- State the price that the coffee may be purchased separately from the package.
- Exclude any reference to either the newspaper or coffee as being free, no additional cost, no extra charge or other synonymous language.
Here are some examples that meet all of the above qualifications:
Example 1
Illinois Todays’ daily single-copy basic price is 50 cents.
The circulation generated from this promotion qualifies as single-copy paid circulation because:
- The purchase items, a 12-ounce coffee and a daily newspaper, are clearly stated.
- The package price of $1.25 is clearly stated.
- The coffee is also sold separately for $1.00.
- The implied value of the newspaper is 25 cents (the difference between the cost of the newspaper/coffee package and the separate price for coffee). This implied value exceeds the minimum U.S. price requirement of 25 percent of the basic single-copy price or one cent in Canada.
Example 2
Illinois Todays’ daily single-copy basic price is 50 cents.
The circulation generated from this promotion qualifies as single-copy paid circulation because:
- The purchase items, a 12-ounce coffee and a daily newspaper, are clearly stated.
- The package price of $1.25 is clearly stated.
- The coffee is also sold separately for $1.09.
- The implied value of the newspaper is 16 cents (the difference between the cost of the newspaper/coffee package and the separate price for coffee). This implied value exceeds the minimum U.S. price requirement of 25 percent of the basic single-copy price or one cent in Canada.
Example 3
Illinois Todays’ Sunday single-copy basic price is $1.00
The circulation generated from this promotion qualifies as single-copy paid circulation because:
- The purchase items, a 12-ounce coffee and a daily newspaper, are clearly stated.
- The package price of $1.00 is clearly stated.
- The coffee is also sold separately for 69 cents.
- The implied value of the newspaper is 31 cents (the difference between the cost of the newspaper/coffee package and the separate price for coffee). This implied value exceeds the minimum U.S. price requirement of 25 percent of the basic single-copy price or one cent in Canada.
If you are developing a promotion and are not certain if it meets ABC’s requirements, please contact your Publisher Relations manager for a free, confidential review.
Learn More
To learn more about ABC’s rules and guidelines surrounding single-copy and home-delivery promotions, U.S. newspapers can register to attend our Newspaper Home-Delivery and Single-Copy Webinar on June 27 at 9 a.m. and 1 p.m. CDT.
Do you have a question you’d like to see featured in an upcoming Ask ABC column? Fill out our online comment form.
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