Guide for Initial Audits

ABC Reporting Classifications Defined

Paid Subscriptions
Paid Subscriptions are defined as subscriptions purchased at a price of one cent or more, net of all considerations. The most common classifications for paid subscriptions include, but are not limited to:

• Individual: Subscriptions ordered and paid for by individuals. Subscription may be discounted (reduced price) or offered with a gift (premium).
• Combination: Subscriptions to two or more titles offered together in a single sale at a price less than the sum of the individual selling prices.
• Association: Subscriptions included with payment of annual membership dues to a non-profit organization and where the member is informed of their annual membership dues allocated to a subscription of your magazine. May be offered as deductible or nondeductible from dues.
• Loyalty/Award Point: Subscriptions purchased using loyalty or award points (such as frequent flyer miles or credit card points) in lieu of cash.
• Partnership: Subscriptions included with the purchase of another product or service. Must be deductible from the purchase price of the other product or service.
• Sponsored: Subscriptions purchased by a business or other organization for delivery to specific individual names at private residences or business offices and intended for personal consumption by the addressee.

Please see the Consumer Magazine Promotions Guide for qualification requirements and promotional examples of the above circulation types.

Verified Circulation
Verified circulation represents subscriptions designated by publishers for readership in public places or intended for individual use by recipients who are likely to have a strong affinity for the content of the magazine.

All locations or individuals that are receiving subscriptions intended to be claimed as verified circulation must receive a minimum of two consecutive issues and be provided with the opportunity to opt-in or opt-out of receiving the subscription at least annually.

There are two categories for verified circulation:

1. Public Place: Copies distributed to public places for individuals at those locations to read. These copies are not intended for pick-up and removal by the patrons of the establishments.
   • Waiting Rooms: Copies placed in waiting room locations such as medical offices, hospitals, etc.
   • Airlines: Copies placed on aircraft or in airline lounges.
   • Hotels: Copies placed in guest rooms and common areas of a hotel, motel, bed and breakfast, etc.
2. Individual Use: Copies mailed to specific individual names at private residences or business offices and intended for personal consumption by the addressee.
   • Individually Addressed: Copies sent to individuals whose names appeared on a list source. The origin of the list source must be one that implies the names will have a strong affinity for the content of the magazine.
   • Individually Requested: Copies sent to individuals who directly requested or agreed to receive a subscription of the magazine.

Please see the Guide to Verified Circulation for a complete explanation of qualification requirements, limitations and promotional examples.

Paid Single Copy
Paid single copy is defined as single issues purchased at a price of no less than one cent or more, net of all considerations. The most common classifications for paid single copy include, but are not limited to:

• Individual: Single issues purchased at newsstands (ordered and paid for by the individual). Copies may be discounted (reduced price) or offered with a gift (premium).
• Combination: Single issues of two or more titles offered together in a single sale.
• Partnership: Single issues included with the purchase of another product or service. Must be deductible from the purchase price of the other product or service.
• Sponsored: Copies of a single issue purchased by a business or other organization for delivery to specific individual names at private residences or business offices and intended for personal consumption by the addressee.

Please see the Consumer Magazine Promotions Guide for qualification requirements and promotional examples of the above circulation types.

Analyzed Non-Paid
Analyzed Non-Paid circulation is defined as copies mailed to individual addresses, either from a list or directory source, copies delivered as an insert into a host product, or copies distributed in quantities to unknown recipients.

• List Source: Copies sent to individuals whose names appeared on a qualified list source. No opt-out is required. See Rule F 13.4 Analyzed Non-Paid List Source.
• Market Coverage: Copies sent to individual addresses where a description of the recipients is not known and where consecutive issuance is not measured. This category also represents copies distributed to waiting room locations where copies are not intended for pick up and removal by the individuals. (There is no copy limit, no opt-out required, and consecutive issuance is not measured). See Rule F 13.6 Analyzed Non-Paid Market Coverage Circulation Defined.
• Delivered with Host Product: Copies delivered as an insert into another publication. See Rule F 13.7 Analyzed Non-Paid Delivered with Host Products Defined
.
• Non-Paid Bulk: Copies distributed in quantity at designated locations (such as trade shows, conventions, events, etc.) Recipients are unknown. See Rule F 13.5 Analyzed Non-Paid Bulk Defined.

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