Paid individual promotions

Business media paid promotional programs

Definitions

Paid, individual subscriptions or single issues are copies ordered and paid for by an individual for their own personal use, and where the magazine was the primary purchase by the consumer.

As a reminder, AAM defines paid circulation as subscriptions and single copies paid at an amount of at least one cent, net of all considerations. See AAM Rule D 1.1/D 101.1 Paid Circulation.

A “consideration” is any item offered to the purchaser that may induce the sale of the publication. This includes, but is not limited to, free gifts and discounted products or services (e.g., advertising). Therefore, the amount paid by the purchaser of the magazine must be at least one cent, after you subtract the market value of all of these inducements from the purchase price.

The Word "Free”

It is possible to construct offers where the circulation is intended to be claimed as paid, but part of the total delivery term is presented to the consumer as free, trial, at no additional cost, bonus, at no extra cost, gift, or other synonymous language.

For the entire delivery term to qualify and be classified as paid circulation, the following is required:

• The promotional material must present to the consumer a perceived dollar value for the entire delivery term.
• This perceived value is accomplished through the existence of a contractual agreement in the offer stating the total term and total amount charged. The contractual agreement is the portion of the offer where the consumer takes action to order the subscription—checking a box, completing requested data, selection of service term or verbal agreement in a telemarketing offer.
• The purchase price for the entire delivery term must be at least one cent.
• See AAM Rule D 1.1/D 101.1 Paid Circulation Defined, section (d).

Example: 

Premiums 

Premiums are defined as any item or inducement offered to an individual to entice them to purchase the business publication.

The following items are not considered premiums:

• Publications (periodicals and newspapers) - combination sales rules apply.
• Free or discounted access to the archives or back content.
• Free or discounted access to online content or electronic edition from the same editorial home page of the publication.
• Items offered to current paid subscribers as an inducement to convert to payment method for a future subscription.
• See also AAM Rule D 8.2/D 108.2 Premium Defined.

For subscriptions or single copies sold with premiums to qualify and be classified as paid circulation, the following is required:

• The purchase price must be no less than one cent plus the full value of the premium.
• The value of the premium is considered the HIGHEST of either:
  • The recognized retail price (cost to purchase in the marketplace)
  • Represented, stated or advertised value (any value stated in the offer)
  • Cost to the publisher (to acquire or manufacture)
• See also AAM Rules D 8.3/D 108.3 Premiums with Subscriptions/Single Copy Sales and D 8.4/D 108.4 Premiums with Combination Sales.

If a publication offers premiums, then the premium shall be reported in the explanatory paragraph of the applicable publisher’s statement(s) and audit report.

Example:

Collection Stimulants 

A collection stimulant is anything offered to induce prompt payment or provide demographic information for a subscription already ordered. A collection stimulant may be extra issues of the publication, a cash discount, or anything of an extraneous nature. See AAM Rule D 7.3/D 107.3 Collection Stimulants.

If a publisher elects to use extra issues for inducement of payment, the solicitation must notate the total number of issues to be served for the total payment due. Per AAM Rule D 1.1/D 101.1 Paid Circulation, if a contractual agreement does not clarify the total term of service for the total cost, value is not implied for the extra issues and, therefore, the extra issues will not qualify as paid circulation.

If a publisher elects to use a product other than extra issues of the publication, the qualification rules are the same as premiums.

• The purchase price must be no less than one cent plus the full value of the product.
• The value of the product is considered the HIGHEST of either:
  • The recognized retail price (cost to purchase in the marketplace)
  • Represented, stated or advertised value (any value stated in the offer)
  • Cost to the publisher (to acquire or manufacture)
• See AAM Rules D 8.3/D 108.3 Premiums with Subscriptions/Single Copy Sales and D 8.4/D 108.4 Premiums with Combination Sales.

If a publication offers collection stimulants, then the collection stimulants shall be reported in the explanatory paragraph of the applicable publisher’s statement(s) and audit report.