IVW. Informationsgemeinschaft zur Feststellung der Verbreitung von Werbeträgern e.v. Information Community to Ascertain the Distribution of Media

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2 IVW Informationsgemeinschaft zur Feststellung der Verbreitung von Werbeträgern e.v. Information Community to Ascertain the Distribution of Media Audit Bureau of Circulation Germany 2

3 Foundation December, 12th 1949 as suborganisation of the German Advertising Federation (ZAW) independent legal constitution as association with non-profit status. The close co-operation with ZAW has been remaining until today. 3

4 Objectives of IVW Fixed in 1 of the IVW Bye-laws: Promoting truth and transparancy of advertising to guarantee a fair competition of media through ascertaining and providing actual data about the distribution of advertising media. 4

5 Structure of IVW Most important and legal authorities of IVW are the chairman of the board and the board of directors. Additionally working committes with specific responsibilities are established. 5

6 Chairman of the Board Chairman of the board and legal representative of IVW is the president. Traditionally the president of IVW comes from the advertisers. He overtakes this function as elected president of the German Advertising Federation ZAW. The deputy chairman traditionally is a representative of the newspaper publishers. He becomes elected by IVW`s board of directors. 6

7 Board of Directors Following the principle of a delegates assembly representing the members of IVW. All relevant groups of the advertising market media, advertisers and advertising agencies are represented by delegates of their corresponding associations. The associations which are authorized to nominate these delegates (and their numbers) are fixed in the bye-laws. This structure makes sure that IVW is strictly neutral. 7

8 Working Committees To support the board and the management of IVW working committees were established. Their personal structure corresponds to the single working areas of IVW. Concerning print circulation auditing the most important working committee is the Organisationsausschuss Presse consisting of ten delegates of print publishers, advertisers and ad agencies. This committee meets about three times per year to discuss changes of rules and regulations, interpretations and single cases of conflicts in order to prepare final decisions of the board. One special responsibility of the working committees is the basic approval to membership applications. 8

9 Management General Director ZAW/IVW Managing Director IVW Print Departement Online Departement Administration 9

10 Chairman of the Board (President) Deputy Chairman Board of Directors Working Committees Press Regional Circulation Analysis Daily Newspapers Telekommunication Directories Business Directories Controlled Circulation Business Publications Outdoor Advertising Cinema Broadcasting Media Online-Media Management Circulation Auditing Newspaper Analysis Business Publications Analysis Outdoor Cinama Broadcasting Online 10

11 Current Membership 1205 Print publishers 896 Online-publishers 33 Broadcasting companies 13 Outdoor advertising companies 35 Advertising agencies 9 Advertisers 26 Others 19 Member Associations 11

12 Business since 1950 Circulation auditing since 1959 Auditing the audience of cinemas since 1965 Auditing outdoor advertising since 1971 Regional analysis of daily newspapers since 1994 Auditing broadcasting media since 1996 issue by issue circulation of magazines since 1997 Auditing Online-Media since 1998 Auditing Advertising in Cinemas since 1999 Auditing controlled circulation of b2b publications since 2007 Auditing the audience of events 12

13 Circulation Auditing Basic System Reporting of circulation figures for newspapers, consumer magazines, business publications, directories and other periodical print publications. Publishing fixed circulation categories (printed copies, subscriptions, single copy sales a.s.o.) as average per quarter. Quarterly complete circulation report. 13

14 Current number of audited print publications Newspapers nearly 100% of all German titles; 384 plus 124 epapers Consumer magazines 80%; 882 plus 36 epapers Business publications 1137 Customer publications 79 Supplements 24 Telephone directories

15 Circulation Categories (Newspapers) Printed copies: Net press run Total distribution: Sum of distributed copies Total sales: Sum of sold copies Subscriptions: Periodically delivered and fully paid Single copy sales: Copies sold to single persons and paid with full copy price (usually via wholesale traders and retailers) Returns: Unsold copies (delivered back to the publisher and credited) Inflight copies: Copies sold to public traffic companies (airlines) for their passengers Other sales: All sold copies not acceptable as subscriptions or single copies or inflight copies but paid with a maximum discount of 10 %. Free Copies: Delivered and distributed free of charge; distribution must be proved. 15

16 Audit Procedure for Print Media Confirmation not refutation The publisher has to prove the circulation Detailed audit per publication and issue published in the audit period in the publisher`s distribution departement and bookkeeping Individual revision based on IVW rules and regulations corresponding to publishers specific internal procedures Content and structure of the audits depend on the different types of publications and the various possibilities of press distribution 16

17 Formal Conditions Audit frequency: Publications with less than 6 issues per year or less than copies average print are audited annually. All other publications are audited twice a year. Audit Period: Basically the whole period since the last audit, minimum one complete quarter (three months). 17

18 Audit Locations: Usually the audit takes place in the publishing house. Since 1998 additional external audits are carried out. From 2003 on those external audits are extended to all service companies of a publisher. The IVW auditor is authorized to look at all relevant dokuments and to demand the necessary information. 18

19 Sources of Audit Documents Distribution/circulation department of the publisher Bookkeeping / Accountancy / Controlling of the publisher External accountants / tax accountants Distribution companies Mailing department/service companies External companies (national distributor, printer, administration services a.s.o.) 19

20 Audit Documents Circulation summaries Delivery statistics Statistics sold circulation Statistics free copies Evaluation wholesale trade / retailers Records for returns Evaluation subscriptions (customers / prices) Evaluation inflight copies / other sales Detailed delivery records Payment records / accounts / balances 20

21 Audit Details The audit can be separated into two steps: Logistic records to prove the delivery structure. Bookkeeping records to prove the sold circulation especially to verify the various circulation categories. The records have to be kept in a way that allows to verify the circulation of every single publication in every circulation category and for every special delivery. 21

22 Logistic Records Logistic records and documents can be for example: Delivery notes Freight documents Handling lists and documents Corresponding accounts Contracts with service companies, post, carriers and others 22

23 Bookkeeping Records After the delivery is completely verified, veried bookkeeping records have to be submitted for the further audit. The priority is to prove the sold circulation through the corresponding income. The bookkeeping of the publisher has to take care that the accounts are separated for the different publications, circulation categories and periods. 23

24 Audit Statement Report of the Audit Result: Regular Audit Written report of audit details and result. Confirmation of the circulation (or) Objektion by the auditor (internal note) Correction: Divergences are published immediately 24