ABC Amends Minimum Price Rule
The ABC has taken the decision to change its rules after the sale of millions of copies of Hello! and OK! for 1p led to abnormally high circulation figures for both magazines.
The auditing body has abolished the rule allowing publishers to sell magazines at a minimum price of 1p, increasing the amount to 20% of the cover price, after both Hello! and OK! saw circulation rise by 83.7% and 43.1 % respectively in the latest set of ABC results (see Newsline).
The decision was taken after a price war between the two magazines led to Hello! selling 2.3m copies at 1p as part of a promotional package with the Mail on Sunday and OK! selling 4.5m copies at 1p in a similar arrangement with the Sunday Express.
ABC chairman, Chris Boyd admitted that such tactics: “Could distort the figures and make it unclear for ad buyers.”
He added; “The figures are clearly broken down so ad buyers understand the difference between full-rate sales and total sales including promotions. But they still look at the top-line figures first and foremost.”
Under the new rules magazines sold for 1p will no longer count as “active sales” and will not be included in ABC top-line data. Titles will have to sell at a minimum of 20% of their normal cover price in order to qualify as an active sale.
Boyd continued: “My view, and it is the view of most of the industry, is that if you want to measure the success of a magazine, active purchase is the only meaningful way to do that.”
A spokesman for the ABC was quick to dismiss speculation that further changes to the rules are being considered. He said: “If further changes need to be made they will be reassured by the Media Buyers Association and the Advertisers Committee. The ABC is not a stand-alone organisation and cannot change the rules here and there. We are formed by the industry and whatever suits the industry we will put into place.”
ABC: 01442 870800 www.abc.org.uk
Subscribers can access full ABC figures by selecting “Press” from the drop-down box at the top of this page.