1 IVW Informationsgemeinschaft zur Feststellung der Verbreitung von - - PowerPoint PPT Presentation

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IVW

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

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Foundation

• December, 12th 1949 as sub-
• rganisation of the German Advertising

Federation (ZAW).

• 1955 independent legal constitution as

association with non-profit status. The close co-operation with ZAW has been remaining until today.

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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.

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Structure of IVW

Most important and legal authorities of IVW are the chairman of the board and the board

• f directors.

Additionally working committes with specific responsibilities are established.

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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
• f the newspaper publishers. He becomes elected by

IVW`s board of directors.

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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.

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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.

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Management

• General Director ZAW/IVW
• Managing Director IVW
• Print Departement
• Online Departement
• Administration

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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

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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

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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

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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.

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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 268

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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.

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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

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Formal Conditions

Audit frequency:

• Publications with less than 6 issues per year or less

than 5.000 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).

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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.

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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.)

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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

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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.

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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

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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.

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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