Fairfax: Use readership not circulation numbers
Fairfax has launched an attack on News Ltd for its use of circulation rather than readership figures to promote its property advertising.
In a full page advertisement in today’s Sydney Morning Herald for Fairfax’s Domain property masthead, it attacks News Ltd’s local Courier and Cumberland newspapers for using circulation numbers in its ad campaigns.
Headed “THE FACTS”, the ad says: “This circulation is not a measure of audience; it is in fact the total number of newspapers distributed to letterboxes. Distribution, or circulation, does not provide an advertiser with a true measure of exposure within an audience group or geographic area. Readership is what an advertiser pays for.”
It then features graphs suggesting Domain has a greater readership than various News Ltd titles.
The ad taps into a long-running debate over both systems.
The Audit Bureau of Circulation number is seen by many as a more robust measure, while there is less transparency around Roy Morgan Research’s readership numbers. The readership system is currently under review, by Newspaper Works, whose main funding comes from News Ltd and Fairfax.
Mark O’Brien, trading director at media agency PHD, told Mumbrella that he preferred to use circulation numbers because he found them more credible.
He said: “I’ve no trouble with News talking about circulation. Sure you need to talk about cost per thousand readership, but readership methodology just hasn’t changed, whereas they’ve cleaned up how they measure circulation quite a lot. It’s my preferred methodology.”
And OMD’s head of publishing Simon Davies said that circulation was also the first number that he used. He said: “We track performance over time based on the ABC numbers and use that to negotiate, and we use readership as a planning tool. We feel that circulation is a more accurate measure of performance.”
Earlier this week, the AFR reported that the industry body was refusing to reveal the progress of the review, although media buyer Harold Mitchell urged them to “get moving to fix it”.
What a shame you didn’t dig deeper into the story behind the ad….nothing to do with whether the circulation figures are robus at all.
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The whole argument is mute – there is no accountability behind sectional readership (ie Domain) in either a circulation or a readership guise – full-stop – as both are just based on ”host” paper circ or readership.
This debate is a facade hiding the reality that using host paper circ or readership to promote a section is, in essence, just a scam. It works ok for property sections as the bulk of their business comes from real estate agents who don’t know any better. Automotive classifieds are starting to struggle though – as a more sizeable chunk of their ad revenue comes from agencies whose job it is to understand the accountability of their recommendations (and if they’re not they should be).
We’ve undertaken proprietary research that indicates sectional readership at more like 10-50% of the host paper (depending on the section) – publishers know this is the reality – and consequently we will never see the publishers commission sectional readership as it will only result in a de-valuation of their commodities. 5 years ago we couldn’t argue as they were the only real option – however now, with the digitalization of these environments, we have other more accountable solutions – print classifieds are fast heading down the slippery side of the bell-curve…
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Well said LJ. One of the biggest scams in print medi ais the fact that the newspapers have never been able to give out sectional readerships.
Last I heard was that they couldn’t agree on a methodology between News and Fairfax. It is in both of their interests to agree to disagree until they both stop cutting down trees and turning into newspapers.
It’s a cause you should take up Tim becuase this is a HUGE issue. Millions (Billions??) are spent on advertising in these sections based on the readership of the host section. It’s BS and a strcutural corruption of the newsaper industry. Put the questions to Fairfax and News and if you feel like a laugh publish their responses. The excuses will be amusing. I Assure you…….
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