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Every
newspaper in the world has been following the basic 'circulation
feeds ad revenue' model.
Traditional methods of increasing circulation was mostly restricted
to improving editorial content. (This includes the recent trends
of mixing commercial offers with editorial content via tie-ups with
brand marketers.)
Another method, also traditional, that the newspaper industry has
employed to increase circulation is by distributing copies in bulk
to institutions, usually at highly discounted rates. But worldwide,
ABC bodies have consistently resisted from accepting bulk distributed
copies as part of 'paid circulation'.
The basic principle followed by ABC is that there must clearly be
some payment received for each copy sold in bulk. With a rider to
'discount' the number of copies based on cover price discounting.
Although this has long been a bone of contention between newspapers
& the ABC, newspaper groups continue to employ different practices
as far as bulk sales is concerned. For example, British daily 'The
Telegraph' distributed more than 50,000 copies in bulk to hotels
like Hilton group & railways. Interestingly, for reasons not yet
declared (although non-acceptance of figures by ABC is a likely
reason), The Telegraph has recently cancelled most of its bulk deals.
Not surprisingly, other British broadsheets have signed deals with
these instituions only too willingly.
In 2002, the U.S. ABC had refused to accept bulk sales of 11 magazines
belonging to the Hearst-owned National Magazine Co. titles, including
flagship magazine Good Housekeeping. The reason: they were bundled
free with other national & regional newspapers & received no income
from this source. All 11 magazines have been forced the restate
their circulations by a 5% downward revision in circulation figures.
Newspaper groups have a long-felt need to re-visit the 'bulk sales
requirements' of ABC bodies. All efforts have been without any results
to date. Recently however, there has been some development in that
direction. As per a December '02 report published in Media Week
(UK), the UK Audit Bureau of Circulations has initiated a review
of the way bulk sales of newspapers and magazines are reported.
It has set up a commitee (none too early as per the newspaper industry!)
to define 'legitimate' bulk sales for reporting separately in circulation
figures. In addition, it is also examining differences between the
rules governing different publishing sectors. The committee is consulting
with publishers to investigate how to distinguish between bulk sales
that offer a real opportunity for sampling and those that are simply
excuses to dump copies to boost circulation.
With this much needed exercise, the U.K. ABC is expected to show the
way for ABC bodies of other countries.
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