The Audit Bureau of Circulations (abc) has redefined paid circulation for Canada’s newspapers, changing a concept that has been in place since 1914.

The old definition limited papers to reporting circulation as ‘paid’ only if sold for 50% or more of the publication’s cover price.

Under the new guidelines, a newspaper’s total circulation will be reported and segmented into paid circulation at 50% or more of the cover price; paid circulation at less than 50% of the cover price; bulk circulation, that is, copies sold in bulk to airlines or hotels for distribution to customers; and non-paid circulation.

In addition, the audited circulation statement – traditionally a very staid-looking document – has been revamped to include a four-color presentation copy with pie charts showing a summary of circulation by delivery type and category.

Bob White, senior vice-president of the abc in Toronto, says the changes are based on responses to an Angus Reid survey of agencies, advertisers and member newspapers that abc commissioned last year.

‘Newspapers benefit because they have more flexibility in marketing their product now. It allows a paper to target geographic areas such as condominiums and not lose circulation.

‘It also allows bulk circulation to count, such as when selling a bunch of copies to a hotel or airline. This is a favorite technique of The Globe and Mail which distributes about 50,000 papers a day this way.’

White says the advantage for advertisers and agencies is full disclosure and a chance to analyze circulation components based on their needs.

While one advertiser may simply be looking for a large total distribution figure, another advertiser may place more value on paid circulation where the reader reaches into his pocket to buy the paper, says White.

abc member newspapers have received information packages explaining the changes that are effective with their Sept. 30 circulation reporting period.