Virtual Press RoomNews Releases
ABC Board Approves New Community Newspaper Service, Examines Scan-Based Trading Issues
Elects Sunni Boot Chair of Canadian Board Committee
SCHAUMBURG, Ill. (July 28, 2009)—The board of the Audit Bureau of Circulations gave initial approval to launch a new ABC Community Newspaper Audit service that will significantly lower publisher costs and simplify audit requirements. Pending final approval, the service will be available to all U.S. and Canadian newspapers with paid circulation under 25,000 beginning Jan. 1, 2010.
The new service will feature:
- All-inclusive fees that begin at a flat annual rate of $2,000 per year
- Streamlined, off-site audits that occur every other year and require less publisher preparation and involvement
- Simplified rules and reporting requirements
- Inclusion in FAS-FAX and ABC’s searchable online database
- Flexible billing options
“This is a significant new service offering that directly addresses the challenges many community newspapers face today,” said Kirk Davis, president and COO of GateHouse Media Inc. “Many publishers in this category will likely see savings of 25 to 50 percent, with the quality and brand draw of an ABC audit to help them attract local, regional and national advertisers. I think it will have widespread appeal for many newspapers.”
Merle Davidson, director of media services at J.C. Penney Co. and chairman of the ABC board, added, “In today’s marketplace, many regional and national companies are advertising in community newspapers to improve reach and coverage in local markets no longer being served by metropolitan newspapers. Having important, ZIP-code-level information from these newspapers included in ABC’s integrated database is essential for advertisers that want to build the most effective media plans.”
ABC’s new Community Newspaper Audit service is just one of several steps the nonprofit organization has taken recently to help its publisher members address the realities of today’s market. At its meeting last week, the ABC board agreed to freeze audit fees for 2010, the third year in a row fees have been held in place. Earlier this year ABC introduced Audit Fast Track, a new digital audit initiative that makes the ABC audit process faster, less intrusive and more efficient. And last year ABC announced a cost-containment program for most of its newspapers and magazines.
Key Magazine Actions
The Magazine Committee of the ABC board discussed scan-based trading and the implications for auditing and reporting of retail newsstand sales. Earlier this year its publisher and media buyer advisory committees began reviewing several key areas, including the lack of per-issue data available from many scan-based systems and how to account for “shrink”—the difference between the number of magazines delivered to a retail outlet minus unsold copies, versus the amount identified as sold in its scan system. The advisory committees and a new dedicated task force will work toward an industry resolution.
The board issued guidelines for U.S. magazines that were affected by Anderson News’ decision to cease distribution operations in February. Full details are available on ABC’s website.
The ABC board also agreed to modify the partnership sales rule to allow up to three consumer magazines to be bundled with the purchase of a good or service provided certain criteria are met.
For U.S. and Canadian business publications, the ABC board agreed to modify the format of publisher’s statements, making several areas optional that were previously mandatory to report. If given final approval in November, these changes will take effect with December 2009 statements.
Key Newspaper Actions
In March ABC and the Newspaper Association of America agreed to form a strategic task force to study the evolution of newspapers and the rapidly growing channels available to advertisers. Areas under examination include evolving newspaper publishing plans, print/digital hybrid models, targeted niche publications, e-readers and mobile platforms. The group, comprised of publishing and advertising executives, is assessing how these dynamic areas are likely to affect advertising models and how ABC should measure, audit and report the print and digital audience data that stem from these channels. The task force provided a progress report to the ABC board last week and is expected to deliver recommendations for changes to ABC rules, definitions and report formats in November.
Due to positive response and numerous inquiries, the board also agreed to extend for one year the testing of an optional consolidated report that allows newspapers to display a variety of print, online and other audience data to demonstrate brand extension and reach. In June ABC released the first such report for the Chicago Tribune and the Tribune Media Group.
The ABC board also gave final approval to a rule modification that allows U.S. and Canadian newspapers with average weekday paid circulation under 50,000 to break out “power days” if they opt not to report their circulation each day of the week.
Key ABC Canada Actions
The newly formed ABC Canada Board Committee met in Toronto on July 16, naming Sunni Boot, president and CEO of ZenithOptimedia Canada Inc., as its new board chair. Dennis Skulsky, president and CEO of Canwest Publishing, will serve as vice chair. The group welcomed Joan Brehl 
, ABC Canada’s new vice president/general manager, brand leadership and innovation. Brehl, who officially begins her duties on Aug. 4, most recently served as publishing director in charge of Time Inc.’s Canadian organization.
To address the unique needs of the Canadian publishing and advertising market, the ABC Canada Board Committee approved the establishment of separate rules governing all Canadian consumer and business magazines.
The board also gave final approval to a rule change that removes barter as a qualifying form of third-party sales payment for Canadian newspapers.
The ABC board of directors meeting was held July 22-24 in Chicago. For a complete summary of board actions, visit ABC’s Virtual Pressroom.
With nearly 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 online database of audited-circulation information and a growing array of readership, audience and website usage data. To learn more, visit http://www.accessabc.com.
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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 |
