Why was the Bureau established?

In general, the ABC’s primary objectives is to collect and certify circulation figures representing net paid sales of publications, and disseminate the data for the use of advertising industry.

Advertisers need to know to what extent any advertising medium is an effective sales promoter. Consequently, they must have knowledge of two factors (1) cost of the advertisement and (2) the results (effects) which they expect from the advertisement. Any calculation of results must necessarily be based on the scope of audience, which the advertiser is addressing. In the case of a newspaper or a periodical (magazine) this is directly related to number of copies, which are in circulation. ABC data is by far the most accurate information on circulation of important publications, which is available. It also shows the changes in the circulation trends and its coverage of circulation. This is why an independent audit bureau is a requisite for a credible advertising industry, as well as very important instrument of the standard press market.

All audit bureaus in general, as well as the Slovak bureau, shall the meet following qualifications:

• Have tripartite sponsorship – by advertisers, advertising agencies and publishers.
• Use standardised terms and definitions for reporting circulation.
• Operate as non-profit organisations.
• Issue facts about circulation, without opinion.
• Encourage active participation by all eligible publishers, advertisers and agencies.


When was the Bureau established?

An initial idea to establish ABC in Slovakia goes back to 1996, when the Slovak Publishers Association organised a seminar about the audit of circulation. Madam Christel Ploeger, director of ABC Switzerland, and president of European section of International Federation of Audit Bureaus of Circulation (IFABC), on the basis of Swiss experience, has explained the aims, methods and financing of the press circulation audit to the Slovak publishers and advertisers. Two years later, the representatives of the Slovak Publishers Association visited Germany in order to get the first hand experience in the country where the audit of press circulation is probably the most sophisticated.

As a result, the Slovak publishers decided to establish ABC as soon as possible, and to elaborate and accept such rules for auditing that would be as simple as possible. German rules were too complicated for us and we decided to use rules elaborated by our Czech brothers. Also these rules had to be simplified.

Finally, the Slovak ABC was established in November 1999. However, because of problems with press distribution caused by privatised distribution company, the auditing system began to function in July 2000, with collecting circulation data from April on.


Who has the Bureau established?

As you already know, ABC is a tripartite organisation. This organisation may have a regular member from all three parties. Publishers as the members are obliged to let an auditor to check circulations of their publications. Another possibility, however, is voluntary auditing as in Switzerland. In this case, a tripartite organisation elaborates rules of auditing, establishes bureau and hires a chartered accountant (auditor) to check the circulation figures.

This was the case of Slovakia. The Slovak Publishers Association, the Club of Advertising Agencies and the Slovak Association of Brand Producers established the association named ABC SR. In the present The Organisation ABC SR consists of The Slovak Publishers Association and the Associaton of Advertising Agencies. As laid in Statute of ABC SR, the main body of association is General Assembly consisting of representatives from publishers (5), advertising agencies (2) . To assist the General Assembly, and elaborate rules of auditing, a Methodical Commission consisting of 5 members (3 from publishers and 2 from rest parties) has been established. The association is lead by Chairman elected by GA, who, as a rule, is a representative of the Slovak Publishers Association. Organisational work of the bureau, as well as its administration is in the hands of the manager.

At the beginning, 16 Publishers with 36 newspapers and magazines have decided to take part in the auditing system. Nevertheless, these figures change frequently. Not only because of the press landscape is on the move (newspapers change their owners), but also for the reason that some Slovak publishers get in the system when their circulations increase and get out when the circulation decrease. This is possible only because the advertisers do not exert enough pressure on the publishers in order to have exact circulation figures when buying space for advertisements. So far, the most of advertisers and advertising agencies are – when buying space - satisfied by surveys data.

Now, the Bureau is financed by two founding organisations. The publishers are required to pay for audit of circulations of their publications directly to the auditor. Besides, the publishers pay non-returnable fee for each registered publication directly to The Organisation ABC SR once a year. The fee is 34 eur per each publication yearly.


How is the Bureau functioning?

As already mentioned, we have decided to apply the simplest method of auditing circulations and improve it step by step. That means, we collect from publishers only few figures in order to know particularly net paid circulation of their publications. The publishers fill in a form to declare numbers of printed and sold copies of their newspapers and magazines each month. These figures are published monthly in the economic weekly named Trend, the media monthly Strategie (Strategies), as well as on the web site www.sme.sk and are audited twice a year by a contractual auditor.

Each publisher shall give to the audit full and free access to his financial records, which should include:

• Contracts with printers and distributors
• Print orders and distribution orders
• Delivery records about printed circulation and distribution records about sold and unsold copies
• Financial records – invoices from printers, invoices and credit notes form distributors

Each audit should be a complete financial, sales and, statistical audit for the purpose of establishing the net paid circulation. In other words, each audit for and on behalf of the Bureau must include both the statistical and financial aspects of the publication. The financial part of the audit shall however, be limited to ascertaining, supporting and checking the circulation figures and shall not go into the affairs of the publisher, which have no bearing on circulation.

Net Paid Circulation is number of sold copies, for which the publisher collected not less than 50% of retail price. The copies may be sold in wholesale, in subscription as well as directly from publisher in retail sale.

If audited figures differ more than 2% from declared figures, all months of half-year are audited and the publisher in question is penalised.