Virtual Press RoomBoard Actions
Summary of March 2009 Board Actions
Schaumburg, Ill. (March 17, 2009)—The following are highlights of the actions taken by the Audit Bureau of Circulations’ (ABC) board of directors at its meeting held on Mar. 11 – 13. (Note: The full update to ABC’s bylaws and rules is regularly made available on ABC’s website within weeks following each board meeting.)
BUSINESS PUBLICATIONS
Unanimous Consent – Effective March 16, 2009
In October 2008, the board modified Rule D 10.3 Digital Versions and Digital Editions to eliminate the requirement that publishers of digital versions/editions send an e-mail to paid subscribers notifying them that the latest issue is available on the publisher’s controlled-access website. At this meeting, the board further clarified that this rule only applies to individually paid subscriptions. For subscriptions purchased in bulk by a third party, the publisher will still need to send the e-mail notification.
CANADIAN PUBLICATIONS
Unanimous Consent – Effective March 16, 2009
To ensure full representation of ABC’s Canadian membership and increase autonomy and control over Canadian rules and reporting, the board agreed to expand the Canadian committee to include six additional media buyer and publisher members. The new members will join ABC’s current Canadian directors and include one newspaper executive, two business publication executives and three media buyer executives. This is just one of the many steps 
ABC has taken to continue to reflect the unique media buyer and seller needs of the Canadian marketplace.
The additional directors will serve on the new ABC Canada board (formerly known as the Canadian committee). These individuals will only act and vote on issues related to Canada and will not participate in board-level operational, administrative or governance issues.
In addition, ABC will write separate articles and rules for all Canadian publishing divisions, similar to the Canada-specific rules that already exist for newspapers.
Bylaw 4.2 Membership Representation was modified to reflect the above changes.
CONSUMER MAGAZINES
Unanimous Consent – Effective March 16, 2009
The board approved changes to F 1.1 Paid Circulation Definedthat will allow publishers to include circulation generated from an offer of a one-copy extension to current paid subscribers if the subscriber provides their e-mail address to the publisher.
Unanimous Consent – Effective March 16, 2009, for June 2009 Statements
The board approved several modifications to ABC’s guidelines and report formats that expand the definition of consumer magazine paid digital editions. Under previous guidelines, all digital editions were required to be an exact replica of the print publication, e.g., a PDF; the pagination of the digital product was also required to be the same as the print publication.
The board agreed to the following modifications:
- The label “digital” will refer to the distribution of a magazine’s content via any digital means. The digital product must maintain the same identity as the host publication, i.e., the same name and logotype characteristics.
- A digital edition will qualify as paid circulation or individually requested verified when served in two formats:
- Replica – The digital edition is an exact replica—in both editorial and advertising—as the print publication.
- Nonreplica – The digital edition retains the same basic identity and consistent content as the print publication, but the editorial and advertising may differ.
Unrestricted public access to a Web site does not qualify as a digital edition.
- All digital editions—both replica and nonreplica—will be included in ABC reports.
- Nonreplica digital editions will be reported separately within ABC statements and not totaled with the core magazine circulation. Also, nonreplica digital editions will not be included in the totals used to compare against rate base.
- Publishers may continue to deliver their digital editions by providing the consumer with a unique user name and password to access the copy on a restricted website or by sending an e-mail notifying the consumer that the most recent issue is available.
Updated digital guidelines and a prototype of ABC’s consumer magazine Publisher’s Statement with replica and nonreplica editions are now available.
Unanimous Consent – Effective with the June 2009 Reporting Period
The board agreed to modify F 4.1 Publisher’s Statements. The changes will allow consumer magazines to optionally report circulation on their Publisher’s Statements for a 26-week ending period instead of the six-month period ending June 30 or Dec. 31. For example, a magazine may release a statement for the 26 weeks ending June 27, 2009, or July 3, 2009, instead of the six months ending June 30, 2009.
This change will allow magazines to maintain consistency with their fiscal reporting and minimize the need for separate ABC circulation reports and financial circulation reports.
Newspapers already have the option to report under this model.
For Information
The board granted a request from The Christian Science Monitor to transfer its membership from ABC’s newspaper division to the consumer magazine division due to a change in its frequency and format. The Christian Science Monitor will need to file as a newspaper for the March 2009 period and complete a newspaper resignation audit before it can file an abbreviated June 2009 consumer magazine statement.
For Information
The board agreed to establish a new task force to evaluate ABC’s current reporting process. The group of magazine advertisers and publishers will work with ABC staff to find ways to simplify the reporting process, eliminate extraneous information, and present additional audience and multimedia data of value to advertisers.
CANADIAN NEWSPAPERS
Final Passage – Effecitve April 1, 2009
The board granted final approval to modifications to the upcoming version of Rule C 25.3 Combination Sales. Newspapers may offer more than one subscription for the same newspaper to a single subscriber provided the subscriber pays an incremental amount for the second subscription. Based on the upcoming flexible pricing model that is effective April 1, 2009, the incremental amount is one cent. For example, a newspaper may offer two subscriptions for $100 as long as a single subscription is offered for $99.99 or less.
First Passage
The board gave initial approval to modify Rule C 23.3 Third-Party Sales to remove barter as a qualifying form of payment.
First Passage
The board granted initial approval to modify Rule C 22.13 Weekly Newspaper Group Audit Plan to make geographical reporting optional, including the distribution of copies in a definable market area and the Audit Report map that identifies the market and the geographic location of each newspaper in the group.
First Passage
Following the board’s action to eliminate the day-of-week reporting requirement for newspapers with average weekday paid circulation of 50,000 or less, the board further modified Rule C 22.1 Circulation Averages to allow these newspapers to report “Power Days.” This would allow newspapers that do not report their circulation by day-of-week to report certain daily circulation averages in a separate column. Examples include food days, car days or a Friday and Saturday average.
Rule C 23.3 Third-Party Sales was modified to require publishers to notify ABC 14 days in advance of a third-party program only if circulation generated from third-party sales programs represents four percent or more of the total paid circulation reported on the most recent Publisher’s Statement. From time to time, the ABC audit manager may also request 14-day advance notification to conduct field testing necessary to complete the audit.
U.S. NEWSPAPERS
Rescind First Passage VoteThe board voted to rescind its previous first passage vote to allow newspapers with 50,000 to 75,000 total average paid circulation to engage in every-other-year audits. As a result, all newspapers with 50,000 paid circulation or greater will continue to undergo annual circulation audits. In July 2008, the board gave initial approval to modify rules B 2.4 Time of Making Audit and C 4.1 Timing of Audit to allow U.S. newspapers with total average paid circulation between 50,000 and 75,000 to engage in every-other-year audits.
The proposed rule change was rescinded because the media buyer representatives on ABC’s board and committees felt that a yearly audit was necessary for newspapers in this size category.
In Oct. 2008, the board approved every-other-year audits for Canadian newspapers between 50,000 and 75,000.
Final Passage – Effective April 1, 2009
The board granted final approval to modifications to the upcoming version of Rule C 5.3 Combination Sales. Newspapers may offer more than one subscription for the same newspaper to a single subscriber provided the subscriber pays an incremental amount for the second subscription. Based on the upcoming flexible pricing model that is effective April 1, 2009, the incremental amount is one cent. For example, a newspaper may offer two subscriptions for $100 as long as a single subscription is offered for $99.99 or less.
The board granted final approval to modifications to C 2.9 Analysis of Individually Paid Home-Delivered Circulation by Price Category that require newspapers to report subscription circulation above and below 25 percent of basic price if more than five percent of a newspaper’s subscription circulation is less than 25 percent of the basic price. This information will only be reported in a password-protected area of ABC’s website, not on ABC statements.
The board further clarified that the information would be available to all ABC-member advertisers and advertising agencies. If requested, competing newspapers will be allowed to access each other’s information.
First Passage – Effective Oct. 1, 2010
The board granted initial approval to modify Rule C 2.13 Weekly Newspaper Group Audit Plan to make geographical reporting optional, including the distribution of copies in a definable market area and the Audit Report map that identifies the market and the geographic location of each newspaper in the group.
First Passage
Following the board’s action to eliminate the day-of-week reporting requirement for newspapers with average weekday paid circulation of 50,000 or less, the board further modified Rule C 2.1 Circulation Averages to allow these newspapers to report “Power Days.” This would allow newspapers that do not report their circulation by day-of-week to report certain daily circulation averages in a separate column. Examples include food days, car days or a Friday and Saturday average.
Rule C 3.3 Third-Party Sales was modified to require publishers to notify ABC 14 days in advance of a third-party program only if circulation generated from third-party sales programs represents four percent or more of the total paid circulation reported on the most recent Publisher’s Statement. From time to time, the ABC audit manager may also request 14-day advance notification to conduct field testing necessary to complete the audit.
For Information – Effective March 16, 2009
In an effort to address current economic conditions and still encourage participation and growth in an advertiser-valued program, the ABC board approved the following changes to the IVS program:
- The shelf life of an IVS report with a proficiency rating of 98 percent or greater will be extended to three years. In the off year, the newspaper will be required to undergo a less intrusive and less costly qualitative or process audit. If the newspaper fails the process audit, a traditional IVS audit will be required immediately.
- The shelf life of an IVS audit report with a proficiency rating of at least 96 percent but less than 98 percent will remain at two years.
- The pass/fail standard of 96 percent approved in July 2008 will continue.
For Information
To address the proliferation of electronic and non-traditional newspaper editions, the ABC board established a joint NAA/ABC task force to develop new audit guidelines and reporting standards for newspaper products that fall outside of the core newspaper. The task force will also address joint buyer and publisher issues related to digital audiences. Jerry Hill, director of audience development at the St. Petersburg Times, will lead the task force of newspaper advertisers and publishers.
OTHER DEVELOPMENTS
For Information
In response to the current economic challenges facing many ABC member organizations, the board agreed to postpone this year’s annual conference originally scheduled for Nov. 11 and 12 in Toronto. The board agreed to hold an annual conference in Toronto in 2010.
In lieu of a conference, ABC will hold a brief annual business meeting in New York on November 11. All members will be invited to attend the meeting, where they will receive updates from the ABC chairman, the president and the treasurer, and vote for board directors. ABC will also hold a virtual “Nuts & Bolts” session for all members to learn about any recent rule changes and audit guidelines.
For InformationABC elected two new directors to the board:
- Ed Cicale, vice president of media services at AutoNation Inc., as an advertiser director.
- Evan Ray, senior vice president of finance and operations, USCP division, Gannett Co. Inc., as a U.S. daily newspaper director.
The ABC board passed a formal resolution acknowledging Mary Jacobus for her unparelled and significant contributions during 10 years of service and unwavering dedication to ABC. Jacobus died on Feb. 20 at the age of 52.
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Corporate Communications Contacts: | ||
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Executive Vice President, Strategic Planning, Communications and General Manager, ABC Interactive t: 224-366-6363 |
Manager, Communications t: 224-366-6365 |
Assistant Manager, Communications t: 224-366-6432 |
