Rules of Engagement: Newspapers Negotiate a Changed Media Environment with New Reporting Rules, Pricing Challenges and Distribution Options

By Fitzgerald, Mark | Editor & Publisher, November 2010 | Go to article overview

Rules of Engagement: Newspapers Negotiate a Changed Media Environment with New Reporting Rules, Pricing Challenges and Distribution Options


Fitzgerald, Mark, Editor & Publisher


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Newspaper circulation may be shrinking at many papers, but it's assuming a bigger role than ever before.

AS ADVERTISING DECLINES DUE TO THE CONTINUING POOR ECONOMIC climate and the migration to digital media, circulation must contribute more to a newspaper's revenue. Circ is no longer a matter of tossing a paper at the front door before the household departs for work or school. Now it must reach subscribers and non-subscribers alike with a wide variety of packages, with advertising content that can vary from door to door.

And now daily newspapers that are members of the nation's biggest and most influential circulation auditor will have to report circulation in a much different way. Advertisers and ad agency buyers will now have the most detailed picture yet of a newspaper's marketing strengths--or weaknesses.

The sweeping reporting changes crafted over three years of work by the Audit Bureau of Circulations, Newspaper Association of America and numerous task forces took effect Oct. 1, with the first reports to come out for the March 2011 reporting period.

For the first time, newspapers that publish so-called branded editions--products a paper publishes under a different name, such as commuter dailies or Spanish-language newspapers--can now include those numbers in their bottom-line "total average circulation, even if they are free-distribution papers.

And papers that publish in many forms--print, mobile, e-readers, etc.--may be able to count that circulation multiple times.

At the same time, the new reporting forms eliminate the notorious "other" paid circulation category, where it was also possible to stash circulation that advertisers might not want to buy, with new and detailed classifications.

Transparent motives

"The new rules will provide much more clarity and transparency to circulation numbers," says Merle K. Davidson, market media director for J.C. Penney Corporation Inc. and ABC's current chairman. "They'll also provide clarity to all the different platforms that newspapers publish."

The new reports recognize that daily newspapers are now spinning out publications that may not look like the so-called core product, but have hefty circulation or distribution numbers--such as the youth-oriented RedEye published by the Chicago Tribune, or Briefing, the digest-like paper The Dallas Morning News delivers free to certain high-end households.

"The driver of [the new rules] was to allow newspapers to report to advertisers their total media footprint," explains Michael Lavery, the Audit Bureau's president and managing director. "We anticipate some newspapers to have 10 or more branded editions in their reports."

ABC last year began counting as "paid circulation" any newspaper copies that are sold for any price, including a penny, something ABC had allowed Canadian newspapers to do for the better part of two decades and a long-standing and common practice among magazine publishers. Under the new rules, newspapers will also be able to count non-print products as paid circulation if they receive at least 5% of the price of the first, or base, subscription. One example would be a three-day print subscription offered for $100 a year. The paper could offer a subscription for digital editions the four other days for an additional $5 a year, and count all those copies as paid.

The reporting now requires more detail on "verified circulation," print copies or editions on digital media that are free but targeted to households by the newspaper or requested by a consumer.

Advertisers will know exactly what they are buying from newspapers, says John Murray, the Newspaper Association of America's vice president of audience development.

"If you look at the digital categories, you'll see how much circulation is NIE (Newspaper In Education), how much is home-delivered, what's going to a hotel, what's in the university program," he says.

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