Establishing Media Credibility

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• Establishing Media Credibility-
• The Need for Circulation Audits

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Our Mission Today

• We have all joined with MEPC
• to promote cooperation and exchange between
  Middle East and the global society
• to find an effective way towards mutual benefit
  and common progress
• to open to the outside world and attract foreign
  capital
• to contribute to the further development of the
  publishing economy, including marketing and
  internationalization

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To Accomplish this Mission

• We must recognize
• the value verified media audits add to the
  commerce of publishing
• measurement provides justification for
  advertising investment
• audits are the marketers companion to making
  good decisions

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GLOBAL TOP 10 COUNTRIES BY GDP (CIA WORLD
FACTBOOK 2004)
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GLOBAL TOP 10 BY GDP BY MAGAZINE AD SPEND
(FIPP/ZENITH PROJECTIONS 2004)
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IFABC Members Active in Top 10 GDP Countries
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Summary

• Media Economies Rely On Media Audit Data
• Audit bodies are non-governmental,
  self-regulatory industry associations.
• Industry association is preferred route to
  governmental legislation less red tape,
  relevant to all parties, expert and adaptable to
  change.

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What is accountability for publishers ?

• Two-fold accountability to reader as well as to
  advertiser/ad agency
• Clear positioning editorial , circulation
• Appropriate design and production environment
• Competitive advertising rates
• Reliable , objective editorial content
• Reliable and verifiable circulation claims

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Two-fold accountability to reader and to
advertiser / agency

• What readers want
• relevant, useful, entertaining content/design
• objective, reliable, credible contents
• attention to their changing need
• convenient subscription/purchasing options
• prompt, reliable delivery
• useful support services
• reasonable price

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Two-fold accountability to reader and to
advertiser / agency

• What advertisers/ad agencies want
• clear positioning content , circulation ,
  audience , design , brand
• verifiable circulation and audience data
• editorial relevance to target audience
• evidence of loyal readers with purchase power
• quality design and production standards

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Clear positioning

• What is the editorial mission?
• Who are the target readers of the magazine?
• age , gender , location , job titles , income
  brackets , industry segments
• Does the circulation actually deliver what the
  publisher says it does ?
• What distinguishes the title from the competition
  ?

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Reliable , verifiable circulation claims

• Accurate data on print run and distribution
• Verified by third-party audit statement
• Geographic and demographic data on
  readers/audience
• Reliable and verifiable circulation can justify
  higher advertising rates

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Accountability is a strategic business decision

• Accountability improves profitability
• higher advertising rates vs. the competition
• competitive edge over other media choices
• helps sales team to be more effective
• builds loyal readership
• builds stronger customer relationships

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Case in point FORTUNE China

• Launched in late 1996
• two well established magazine competitors
• No advertiser-supplied or influenced edit
• BPA circulation audit
• Ad rates 50-100 higher than competitors
• Profitable in year two
• Advertiser market share leader by year three

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Conclusion Accountability Pays !

• Clear positioning and mission statement is key
• Publishers who keep editorial and advertising
  strictly separate attract more loyal readers and
  advertisers
• Publishers who accurately report and verify
  circulation details obtain competitive advantage
  and higher advertising income

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How to Conduct A Circulation Audit
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Audit Basics

• Circulation should be audited annually
• Publisher releases 2 claims each year which are
  published June and December
• Qualified circulation can be paid or non-paid,
  but source of data should not be older than 3
  years

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Audit Basics

• Three things need to be proved. That the
  publisher...
• Prints the proper number of copies
• Distributes those copies
• Reaches the audience claimed

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Audit Basics

• What an auditor should examine
• Printers bills
• Postal receipts
• Newsstand Sales Proof
• Qualification sources (qualification cards,
  industry lists, subs payment, etc.)
• Duplication
• Rotation

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Audit Basics

• And if thats not enough, the auditor should
  confirm the test selection directly with the
  subscribers by
• Mail
• Phone
• Email

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Audit Basics

• Internal Audit review quality control checks
• Two reviews for initial audits and audits
  requiring adjustments

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Credibility

• There must be clearly defined actions and
  penalties for unsubstantiated circulation claims
  or fraudulent data
• A good auditor prosecutes fraud by a hearing
  before a tribunal of advertisers, agencies and
  media owners

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Who does the auditing?

• Media companys own financial accountants?
• A designated group of financial accountants?
• Professional Media Auditors
• Challenge How to optimise specialist expertise
  and knowledge and guarantee independence for most
  accurate results whilst adapting to the
  developing multi-media context.

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Types of Audits

• Business Publications
• Consumer Magazines
• Newspapers
• Interactive (Web site)
• Events/Trade Shows
• E-mail Newsletters
• Wireless Media
• Databases
• Integrated Media

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Developments in Media Auditing

• Multi-media / New Metrics create new challenges
  we do more than just verify newsstand sales.
• The role of auditor as bean counter is over.
  Audit bureaux are responsible for complex
  audience verification across print, face-to-face
  and electronic media. This is specialist work
  requiring a high level of technological and
  personnel investment.

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• With the progress of political and economic
  reforms in the Arab world, situations will
  improve, there will be more transparency and
  increasing growth, the market will expand, the
  advertising industry will flourish, there will be
  an increasing demand for the media and only that
  which is beneficial to people will remain on
  earth.
• General Sheikh Mohammad Bin Rashid Al Maktoum
• 10th Conference of the Emirates Centre for
  Strategic Studies and Research

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• Thank you
• ghansen_at_bpaww.com

www.bpaww.com