BPA Rule Change Webinar January 2012

1. BPA Rule Change Webinar January 2012

2. Agenda for the Day Board Actions Applying to: • All Members • Business and Consumer Magazines Only • Canadian Newspapers Only • All Other Newspapers Worldwide • Associate Members Only • Other new BPA initiatives

3. Advisory Committee Meetings • US Audience Development (B&C) • European Audience Development • Canadian Newspaper and Magazine Audience Development • US Teleservices • US Fulfillment • US Media Managers • US Publishers

4. Advisory Boards • Executive Committee • Auditing Policies Committee • Board of Directors

5. Board Actions Applying to All Members

6. I. Reporting of Apps

7. Reporting Apps • We have seen publishers implement three general types of apps: • Apps that serve the magazine on mobile device • Apps that serve the magazine and additional functions (news feeds, etc) • Apps related to the brand, but serve function other than delivering editorial content (data/games/etc)

8. Reporting Apps • The rules were changed in 2009 to allow the first two groups to be reported as digital copies • The third group can be reported as a separate media channel on a Brand Report • Currently very little audit documentation to report apps metrics on BPA reports

9. Reporting Apps • Available audit trails: • App download reports (paid and free) • Session reports • Issue download reports • Lack of audit trail: • Deletion of apps • Successful push notifications (within the app) • Identification of recipient

10. Reporting Apps • Without information about deleted apps or successful notification, we cannot report app copies as “qualified” • BPA will now allow reporting “Downloaded Apps” by month, with an aggregate total, along with a footnote disclosing the limitation of the figures • Restricted to Brand Reports only

11. Reporting Apps

12. Reporting Apps • Publishers, at their option, may report downloaded issues as qualified circulation, provided there is audit documentation • As audit trails evolve and improve, BPA will revisit reporting more robust metrics data (possibly through a tag solution)

13. Board Actions Applying to Business Publications and Consumer Magazines Only

14. II. Digital Circulation

15. Non-Requested Digital • Dec ‘10 – BPA Board voted to allow non-requested digital editions on Brand Reports • Provided that they are clearly marked in the Executive Summary and Source/Age tables

16. Non-Requested Digital

17. Non-Requested Digital • Apply equally to all print and digital sources • Allow non-requested digital copies provided: • They conform to Field or Market Served and Definition of Recipient Qualification • Proof of production, distribution, demographic data (within 3 years) • Clearly identified within the statement • Must first receive intro email w/opt-out • Can include email newsletter lists, etc.

18. III. Electronic Request

19. Electronic Request • Subscriber access to digital copies (downloads or online access) substantiates a request to continue to receive a digital subscription • This rule only applies to those digital recipients who have previously made a personal direct request to receive the publication

20. Electronic Request • Subscribers will qualify as a request according to the following schedule: Frequency:Access minimum: • Weekly publication (or less) 9 times every six months • Monthly publication (or less) 2 times every six months • Quarterly publication (or less) 1 time every six months • Semiannual publication 1 time per audit period • Publications must maintain proof of initial request and subsequent engagement activity for auditor

21. IV. Age and Source Reporting

22. Age and Source Reporting • In response to member feedback and to the marketplace, the Board reversed the May 2010 approval of consolidating all sources into two simple categories: Request Other than Request

23. Age and Source Reporting • Members will be required to report all six source categories: • I. Direct Request • II. Request from Recipients Company • III. Membership Benefit • IV. Communication other than request • V. Sources other than above (association rosters, business directories etc.) • VI Single Copy Sales • Effective on July 1, 2012 (December 2012 statements)

24. V. Consolidating Passive Sources

25. Consolidating Passive Sources • The most popular version of the source/age table offers six primary categories, and four sub categories of passive sources:

26. Consolidating Passive Sources • Passive source designations based on legacy print products: printed directories and association rosters, etc. • Most have moved to dynamic online databases • Some confusion in accurate reporting • Shifts/adjustments within passive sources are often viewed as inconsequential

27. Consolidating Passive Sources • Passive sources now consolidated (Optional to report passive sources detail)

28. VI. Telecommunication Sources:Company Requests

29. Telecom: Requestors • Rules required individuals making company request to be “authorized” • However, there is no definition of who is authorized to make a company request • BPA has reviewed this with committees discussing definitions of “authorized” – even proposing a change in the category

30. Telecom: Requestors • Ultimately: any co-worker from a company who is not an authorized assistant of the targeted individual will now be considered a company request • A series of alternate “closes” – similar to those for direct requests – have been approved and examples are available in the BPA rules

31. VII. Telecom: Script Approval

32. Telecom: Script Approval • Rules stated, “a telephone interview form must be submitted to BPA for approval” • As a result, BPA received hundreds of telecom scripts per year for approval • Publishers sometimes use multiple vendors – each sending in the same script, and looking for immediate approval

33. Telecom: Script Approval • BPA has never charged for this service, but it requires a good deal of resources to meet the growing demands

34. Telecom: Script Approval • BPA will now accept a request for a script approval directly from the publisher, not the telecom vendor • The allowance is for one approval (per title) per year • Any additional approval requests will be invoiced by BPA for the time incurred

35. VIII. Pre-populated Demographic Data

36. Pre-populated Data • Recorded calls have eliminated prior concerns • Incomplete/misrepresented calls • Leading calls • All previous data may be re-confirmed • By reviewing previous data, it brings many efficiencies to the call (both caller and person called) • We hear confirmation for corrections/updates made at that time

37. IX. Digital Edition Reporting: Magazines/Publications

38. Digital Edition Reporting • Currently report contains: Print; Digital; Both Print & Digital columns • To determine total print or total digital circulation you must add in the “both” copies

39. Digital Edition Reporting • Report gross print, gross digital circulation and unique, or de-duplicated Total Qualified figure • Required to be reported in Paragraphs 1 and 2 • Optional to report print/digital separately throughout the balance of the report

40. New Digital Edition Reporting

41. X. Disclosure Comments

42. Disclosure Comments • Multicopy Same Addressee/Sponsored • Dec ’10 rules changed to require additional MCSA/sponsored disclosure • In practice the disclosures became excessive • We have added thresholds to make the comments more manageable, including an optional reporting table • Aligned with business rules

43. Disclosure Comments B/C • Non-continuous: • Analyzed issue – up to 5% may be served less than 3 mo without further disclosure • Greater than 5% must be reported as non-continuous in all paragraphs throughout report • Non-continuous greater than 5% for any other issue in the period must be detailed in the explanatory paragraph

44. Disclosure Comments – B/C • Paid MCSA • If 5% or more of avg TQ, and reporting paid and non-paid separately in statement, comment required in explanatory paragraph: Qualified paid Multi-Copy Single Addressee Subscriptions averaging … copies were sold, in quantities of … to… to qualified recipients at prices from … to …

45. Disclosure Comments – Business • Duplication (2 copies delivered to same individual) • 10% but less than 25% of avg TQ, must be disclosed in Explanatory Paragraph; (optional to report in DRQ) • >25% or more of avg TQ, must be disclosed in Definition of Recipient Qualification (DRQ) Standard comments are in the BPA rules

46. Disclosure Comments – Consumer • Duplication (2 copies delivered to same individual) • 10% but less than 25% of avg TQ, must be disclosed in the Method of Distribution • >25% or more, must be disclosed in Market Served AND Method of Distribution Standard comments are in the BPA rules

47. Disclosure Comments – Business • MCSA • 10% but less than 25% of avg qualified circ to companies, must be disclosed in the Method of Distribution (MOD) noting the presence of re-distribution agreements • 25% or more of avg qualified circ to companies must be disclosed in both the MOD and DRQ noting the presence of re-distribution agreements Standard comments are in the BPA rules

48. Disclosure Comments – Consumer • MCSA and Sponsored Copies • If number of subs involved in any single sale represents 5% or more of the avg TQ for the period, comment required in Explanatory Paragraph (price/term/nature of subscription) • If exceeds 10%, must be explained in Market Served and Explanatory Paragraph Example comments are in the BPA rules

49. Disclosure Comments – Consumer • Sponsored Disclosures: • Orders 5% to 9.9% of all orders in period, Sponsored Average Annual Order Price footnoted in Explanatory Paragraph • >10% of all orders in period, SAAOP reported separately in Price & Frequency table on Page 1 with detailed explanation in Explanatory Paragraph

50. Disclosure Comments – Consumer • MCSA/Sponsored orders 5% to 9.9% of average TQ for period, all details (price, term, nature of sponsorship) detailed in Explanatory Paragraph • >10% of avg TQ for period, all details (price, term, nature of sponsorship) detailed in Market Served AND Explanatory Paragraph (with footnote under paragraph 1 referencing Explanatory Paragraph)