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ABC Board Approves Consolidated Media Report for Business Publications, Takes Steps to Improve Audit Timeliness
Addresses Newspaper Third-Party Sales and Reader Profile Standards

SCHAUMBURG, Ill. (July 25, 2006) – At its recently completed meeting, the board of the Audit Bureau of Circulations (ABC) agreed to allow business publications to report circulation, pass-along readership, Web site traffic, and other auditable media in one aggregated figure. This “Total Audience Reach” will be featured in a new ABC Consolidated Media Report beginning with the June 2006 reporting period. A prototype is available on the ABC Web site.

“Today, publishing executives are responsible for much more than print media,” said Jill Manee, vice president and publisher of Advertising Age and chair of the ABC Business/Farm Media Committee. “We are, in fact, multi-platform brands that include print circulation, pass-along readers, Web sites, e-newsletters, and other media—all equating to a total audience. The ABC board is excited to introduce this new consolidated report to reflect the changes taking place in our marketplace, and Advertising Age looks forward to being one of the first publications to issue its report.”

For consumer magazines, the ABC board adopted additional steps to shorten audit-completion time. ABC auditors require timely access to vital records, such as subscription files, distribution channels, credit payments and cancellations, and agent sales. The board voted to withhold a magazine from the ABC FAS-FAX report when these necessary audit records have not been provided to ABC auditors within six months of the close of the publisher’s statement period. The board also agreed to require that sponsored-magazine payments must be received within four months of the start of a subscription, versus the previous seven-month requirement. Both actions take effect Jan. 1, 2007.

These steps follow the July 1 launch of ABC Rapid Report, a new tool that gives consumer magazines the option to report top-line circulation information for individual issues within weeks of the on-sale or distribution date. American Media Inc. has already posted July circulation data for nine of its weekly publications, including National Enquirer, Shape, and Star.

“Getting vital, trusted media information into the marketplace in a timely and relevant fashion is a top priority for ABC,” stated Robert Troutbeck, chairman of the ABC board of directors and president of Troutbeck-Chernoff advertising agency. “We’re pleased with the progress we are making and we will continue to focus our efforts on this important area.”

Key Newspaper Actions

The ABC board continues to closely monitor the rules governing newspaper third-party sales, making several adjustments at its July meeting. These include requiring attestations from both newspapers and purchasers for copies paid through barter transactions, providing a comprehensive summary of financial charges and credits associated with third-party purchase agreements, and providing 14-day advance notice to ABC auditors of third-party sales programs, including the identity of the purchaser.

The board also approved modifications to ABC’s Reader Profile standards governing verification of syndicated newspaper readership research. These include requiring that each wave of data from any syndicated research supplier for participating newspapers be audited, requiring that the study geography include at least 75 percent of the newspaper’s total circulation, and eliminating the bonus six-month shelf life for Reader Profile audit periods.

Other Key Board Actions

In other actions, the ABC board amended the eligibility rules of ABC Interactive (ABCi), the organization’s unit that audits and reports Web site activity of newspapers and periodicals. In response to increased market demand, ABCi will begin servicing new non-member companies, provided these organizations obtain an associate membership in ABC prior to the start of their initial Web site audit.

The ABC board also approved the launch of a new, streamlined reporting program for magazines published once per year and distributed solely via newsstand retail outlets. Titles participating in this program will report circulation estimates via ABC’s Rapid Report tool and will be verified by ABC auditors.

Business publications may now sell subscriptions or single issues in partnership with the goods or services of another business, provided that the purchaser of the item has the option to decline the subscription at the time of purchase.

The ABC board also agreed to lift the censure status of EBSCO Industries. EBSCO’S Consumer Magazine Services division (ECMS) was censured in March 2005 for improper record keeping and was required by ABC to submit a plan of corrective action. The plan included ceasing the operations of ECMS in April 2005, along with implementation of several other internal audit controls.

ABC also elected to the board Brett Dennis, director of media marketing for T-Mobile, as an ABC advertising director.

The ABC board of directors meeting was held July 19-22 in Santa Barbara, Calif. A broader summary of the board’s actions is posted online at ABC’s Virtual Pressroom. The organization is hosting regional briefing sessions for its newspaper members Aug. 2 in Newark and Los Angeles and, for magazine members, Aug. 3 in New York. Interested attendees can register on the ABC Web site.

With more than 4,000 members in North America, ABC is a forum of the world’s leading magazine and newspaper publishers, advertisers and advertising agencies. The organization provides credible, verified information essential to the media buying and selling process. ABC maintains the world’s foremost electronic database of audited-circulation information and an array of verified readership, subscriber demographics and online activity data. To learn more, visit http://www.accessabc.com.