AUDIT BUREAU OF CIRCULATION


A GUIDE TO ABC AUDIT

FOR DAILY AND WEEKLY NEWSPAPERS

VARIOUS TERMS USED - BUREAU'S AUDIT GUIDELINES :


1)  DEFINITIONS:
1.1   AUDIT:

Examination of publisher’s as well as his principal agency/agencies (local or otherwise) distribution, and financial records and corroborative evidences in order to establish the Qualifying Sales and non Qualifying Sales and to verify whether the publisher and his concerned principal agency/s has complied with all Bureau’s audit guidelines from time to time.

1.2   AVERAGE:

Means average per day, per week as the case may be, of the relevant audit period.

1.3   BACK COPIES:

Any issue of a publication which is not a current issue. The current issue is defined as follows:
a)  Daily Publication -  Day of the date of imprint only (In the case of evening Newspapers including copies despatched prior to the issue for the following date is published)
b)  Weekly -  Upto the date of imprint of the next issue

1.4   COMBO OFFER:

More than one publication available under any scheme (other than subscription) to readers at a combined price.

1.5   DAILY NEWSPAPER:

A daily newspaper which is printed and published daily for atleast 5 working days in a week except approved holidays.

1.6   DISTRIBUTION COST:

An amount paid to the distribution trade by whatever name called plus any additional incentives / benefit which is directly connected with selling / distribution of the newspaper paid to the trade, the same shall be totaled to arrive at the gross trade term payable to the trade for distributing copies.

1.7   DISTRIBUTING TRADE:

A general term applied to agents, hawkers, principal agent (local or otherwise) and any other person engaged in distribution of a publication

1.8   EDITION:

A publication/title separately registered with Registrar of Newspapers for India (RNI) and having a separate registration number, serial No. & Volume Number.

1.9   EXCESS CIRCULATION - NRR:

"Excess circulation" is the incremental circulation of any non compliant issue as compared with the circulation of the same print run of a compliant immediate previous same day of the week, provided that the particular immediate previous week was compliant on a weekly average basis as per the prescribed NRR audit guidelines.
[for further details Ref. point 2.4]

1.10   Excess Circulation – Gift on newsstand sale:

When a gift / sample is provided with a particular issue of a publication value of which is more than 50% of the cover price of publication, then the excess circulation achieved as compared with the average qualifying sales of previous week when no promotional activity was carried out will not be considered for certification as Qualifying Sales.

1.11   FREE COPIES:

Voucher, exchange and complimentary copies, and copies (if any) given to agents for onward free distribution for which records are available.

1.12   INSTITUTIONAL SALES:

Copies of newspapers (Dailies & Weeklies) which are either sold directly by the publisher and/or his distributing trade to organisations not connected with newspaper distribution trade provided bonafides of the organisation(s) involved in Institutional Sales are established to the satisfaction of the auditors (Unless Auditors/Bureau having any evidence to the contrary).

Institutional Sales are accepted for certification only to the extent of 10% of Qualifying Sales.

1.13   JOINT SUBSCRIPTION OFFER:

A subscription offer for more than one publication for which subscription at the prescribed rate is received in advance for a specified term.

1.14   LOCAL AGENT:

An agent appointed by a publisher to effect distribution of copies within the town of publication or any of its printing centre.

1.15   NET REALISATION RATE (NRR):

Net Realisation Rate (NRR) is the term used for value of newspaper in waste computed on the basis of waste rate per kg. as fixed by the Council from time to time.

1.16   NORMAL CIRCULATION - NRR:

Normal circulation is the average circulation of a particular print run of any week during an audit period when all relevant issues of the week are compliant with the qualifying principle and accordingly the corresponding circulation of the print run during the week qualifies for certification.

1.17   NON COMPLIANT WEEK - NRR:

Is such a week of a particular print run which on an average basis do not comply with the Net Realisation Rate criteria.

1.18   PRINCIPAL AGENT:

An agent who distributes or effects at least 20% of the total sales subject to a minimum of 25,000 copies per printing centre / edition is recognised and termed as a “principal agent”.

1.19   PRINTING CENTRE:

Printing of an edition of a publication carried out simultaneously at any other location with same RNI registration number and volume number.

1.20   PUBLICATION:

A piece of printed matter of regular periodic issue, selling at a prescribed price, which may or may not carry advertising.

1.21   PUBLISHING DAY:

A Publishing day is a day on which the publication is normally published whether as a regular issue or a special issue, and concurrently or separately in the case of a multi-centre publication. Special issues will be excluded only if they are IN ADDITION to the regular issue.

1.22   QUALIFYING SALES:

Circulation figure which meets the following criteria is treated as “qualifying sales” and certified under ‘Part A’ of the ABC certificate of circulation.

“For each issue of a particular print run on a daily basis the net sale price to the dealer (first point of sale) at any trade margin is higher than the net realisation rate (NRR) with a provision to remove “excess circulation” of non compliant issue of a particular print run where **net sale price to the dealer at any trade margin offered is lower than the net realisation rate (NRR)” subject to such non compliant issue of a particular print run being compliant on a weekly average basis.

(**Net sale price to the dealer is the net price at which a newspaper is sold to the dealer calculated at cover price of the publication less applicable trade commission, delivery charges or by whatever name called).

1.23   RETURNS:

Copies of publication remaining unsold out of copies indented as notified by agents and accepted by publishers and in case of additional copies supplied without agents’ indents, all copies reported as unsold by agents whether or not such claims are accepted by publisher.

1.24   SINGLE COPY SALES:

All copies sold to the reader at the prescribed cover price.

1.25   SUBSCRIBER:

Purchaser of a publication on a term contract, whose subscription at the full prescribed rate has been received

1.26   TRADE TERM:

Commission and allowances etc. mutually agreed to between the publisher and the distributing trade and paid continuously and consistently.