Study: Regularly Audited Hispanic Papers Earn Twice As Much As Others

By: Mark Fitzgerald For Latino newspapers and print products, circulation audits pay off big, according to the first-ever comprehensive study of how the audits are used by both the papers and media buyers.

Hispanic publications that "consistently" audit circulation earn nearly twice as much advertising revenue as those that are only occasionally or never audited, according to the study. The average annual advertising revenue for a consistently audited publication is $2.496 million; the figure is $1.301 million for an occasionally audited publication. A publication that has never been audited averages $560,000, the study said.

The study was conducted by Western Publication Research and sponsored by the National Association of Hispanic Publishers (NAHP) Foundation.

NAHP for several years has campaigned to get Hispanic papers to audit their circulation. The issue is taking on added urgency now with the circulation scandal that has tainted several mainstream papers and an NAHP member, Tribune Co.'s Spanish-language daily Hoy.

The scandals are damaging the perception of even audited publications, the NAHP study found. Fully 59% of marketing professionals surveyed said they do not fully trust circulation audits.

"We have an enormous challenge in making critical changes in the circulation-audit business, and in growing minority-owned businesses [to adopt] the practice of ongoing audits," NAHP Foundation CEO and Executive Director Thomas Oliver told E&P.

Audited Hispanic papers not only sell more ads, they also grow faster, the study seems to indicate. "For instance, among Hispanic weeklies, consistently audited publications have an average circulation of 68,112, in contrast to circulations of 33,019 for occasionally audited and 23,336 for never audited publications," the study states.

Despite these advantages, only a bare majority of Hispanic publications, 55%, are audited at all, Oliver said in a telephone interview after the study results were released at a New York City event. Publishers told the study that cost is the main hang-up about auditing, followed by the amount of paperwork involved.

According to the study, a total of 99 Hispanic newspapers with a combined circulation of 4.6 million are now audited. It said 23 magazines with a combined circulation of 5.3 million are audited, adding up to a circulation of 9.9 million.

The NAHP Foundation is looking at a number of ideas to both increase Hispanic papers' participation in audits -- and change some circulation-auditing practices, Oliver said. "We believe the findings point the way to needed reforms in the circulation audit business," he said.

A statement from the NAHP Foundation said its board of directors are considering these ideas:

? Encouraging audit companies without Hispanic print board members to add Hispanic print representatives to their board.

? Asking auditing firms to focus on counting copies in use first, and dealing with paid vs. controlled as a secondary issue.

? Encouraging the Audit Bureau of Circulations (ABC) to begin auditing controlled-circulation weeklies.

? Recommending that the audit industry move toward year-round audits with quarterly reports, and move away from issuing public publisher statements.

? Encouraging the audit industry to unite in an annual report on the State of Print Audits.

? Reaching out to the Newspaper Association of America, Magazine Publishers of America, National Newspaper Association, and other publisher associations to encourage the audit industry to implement the recommended motions.

? Recommending that ad agencies use only audited Hispanic newspapers in the top 25 Hispanic markets