Two years ago, the ABC board endorsed a set of strategic recommendations for U.S. newspapers that aimed to provide advertisers with more useful information, streamline the ABC audit process, simplify reports, and create more straightforward, intuitive circulation-qualification standards.
Fresh standards for newspaper subscriptions that include digital editions address the growing market for paid content across multiple platforms, such as e-readers and mobile apps. The board’s goal was to establish a foundation for the future as more newspapers move to bundled print/digital subscription offers and hybrid publishing plans.
The changes reflect the collaborative recommendations of both the NAA/ABC Qualification and Reporting Task Force and the Vision Committee, representing nearly two dozen newspaper and advertising executives.
U.S. newspaper Audit Reports and Publisher’s Statements will feature a new reporting structure effective with December 2010 Audit Reports and March 2011 Publisher’s Statements. Publishers will now report a total average circulation metric that combines individually paid copies with two new categories of circulation: paid business/traveler and verified. In addition, newspapers will have the option to report ‘branded editions’ as part of their total average circulation.
Branded Editions for Traditional ABC Audits
What is a branded edition?
A branded edition is a publication of the ABC member newspaper often targeted at a specific audience or geography but containing a different name than the primary newspaper. Branded editions must contain editorial content and be published weekly. However, if the branded edition is an opt-in publication, such as Sunday Select or other similar programs, it does not need to include any editorial content.
Beginning October 1, 2010, branded editions may be included in a newspaper’s total average circulation and shown on ABC reports.
Newspapers that undergo a traditional ABC audit must report branded editions separately from the primary newspaper. However, all geographic editions will continue to be counted as part of the primary newspaper’s total average circulation.
For traditional audits, branded editions data will be detailed in the Audit Report in Par. 1 by the following categories: individually paid: home delivery and single copy; business/traveler; verified, and in Par. 3 by county and ZIP code.
The first line in the publishing plan box will always be dedicated to the primary newspaper. The expanded reporting in subsequent paragraphs will also begin with the primary newspaper’s data and be followed by any and all branded editions. Each branded edition will be reported separately in its own paragraph.
Buyers will be able to access the newspaper data as they do today. If a newspaper reports branded editions, those editions will be tied to the primary newspaper.
Yes, ABC has always reported editions, but the circulation was counted as part of the primary newspaper’s circulation. Now, if a newspaper chooses to report branded editions, the circulation is broken out separately from the primary newspaper.
Branded Editions for Community Newspaper Audits (CNA)
How do the rule changes affect the Community Newspaper Audit (CNA) program?
CNA papers are not required to report branded editions separately from their primary newspaper. However, they have the option to do so for an incremental fee.
Branded edition circulation will be included with the primary newspaper's circulation in Par. 1 and in Par. 3 by ZIP code just as they are currently reported. However, if a CNA newspaper chooses to categorize branded editions separately, the detail will be broken out and reported in the same way as a traditional ABC audit.
The intent of CNA was to keep the reporting simple, yet continue to provide buyers with as much data for as many newspapers as possible. CNA was designed with input from buyers and newspaper publishers who wanted a cost-effective audit and a simplified report format. For a fixed cost of $2,000 annually, CNA newspapers value the ABC audit. To require CNA papers to report branded editions would translate to additional costs and reporting fees.
No. Currently nothing has changed with respect to how ABC reports the data at the Zip code level. If CNA newspapers choose to break out branded editions in their report, then buyers will be getting more detail than they do now.
No. All CNA data will continue to be commingled with traditional ABC audit data
Verified Circulation
Can you describe the newly created verified category?
Verified circulation is comprised of newspapers that are available for use by individuals and are either nonpaid or purchased by someone other than the individual. A third party wishing to sponsor the copies may pay for them, but ABC does not audit to the level of financial transactions.
There are six subclasses of Verified circulation:
- Home Delivered – Requested
Nonpaid subscriptions requested by individuals for delivery to their residences for a term of no less than 12 weeks.
- Home Delivered – Targeted
Subscriptions or single issues delivered to individual residences. The copies are distributed to residences targeted by the publication (for any term), requested by a third party (for any term) or requested by an individual for a term of less than 12 weeks.
- Educational Copies
Requested by schools or other formal educational settings for use by students in the classroom.
- University Copies
Copies requested by colleges or universities for distribution to their registered students in a campus setting via limited-access areas.
- Employee Copies
Copies provided to employees and agents of the newspaper as a benefit of employment or independent contract.
- Retail/Business
Copies requested by businesses for reoccurring distribution to its patrons.
Visit our website for more information about verified circulation.
To maintain ABC membership eligibility, at least 70 percent of a U.S. newspaper’s total circulation must be classified as paid on ABC documents. This 70 percent excludes verified circulation, other audited distribution and unpaid circulation. As a result, the total verified, other audited distribution and unpaid circulation combined is limited to 30 percent of the total average circulation on any Publisher’s Statement or Audit Report.
The “other paid” circulation category was eliminated from ABC reports. Circulation previously classified as other paid will migrate to the verified and unpaid circulation categories depending on the nature of the circulation program.
Newspapers given away at state fairs, auto shows, concerts, etc. will be reported on ABC statements as “unpaid” circulation.
Yes. Nonpaid digital editions available for individual consumers are classified as 'verified, subscriptions' or 'verified, single issue'.
FAS-FAX
How will the new rules affect what is currently reported in FAS-FAX?
Two versions of FAS-FAX will be available in March 2011.
An electronic version will be available to the public and will include the total average circulation of print, digital replica, digital nonreplica and branded editions for all newspapers that file. The print version will include frequency reporting for Sunday, average weekday, and Saturday.
In addition, a newly created newspaper analysis tool will allow users to query Paragraph 1 detail by day-of-week for the print and electronic version (for both paid and verified), as well as detail for all branded editions. The analysis tool will contain publisher’s statement data and will be updated in real time.
No, due to the significant rule and reporting changes that will impact newspapers’ March and September 2011 data, ABC will not make direct comparisons. Instead, the data will be presented in two different sections. The first section will include current circulation and the second will include the prior year’s data. Direct comparisons will resume in the March 2012 FAS-FAX report.
Rules & Resources
