ABC Launches New Audit for Community Newspapers

The Audit Bureau of Circulations is planning to introduce a new auditing service targeting publishers of smaller community newspapers -- circulations under 25,000 -- with lower fees and a simpler process than its regular audit service.

By bolstering advertiser confidence at a reduced cost, the new cost could give smaller newspapers a boost at a time when they are under pressure from both Internet competition and the economic downturn.

The new ABC Community Newspaper Audit -- which received initial approval from the ABC board last week -- would charge relatively modest fees beginning at $2,000, scaling up depending on the size of the newspaper. It could be introduced by the beginning of next year, if all goes well.

In a statement praising the proposed service, Kirk Davis, the president and COO of GateHouse Media, said: "Many publishers in this category will likely see savings of 25% to 50%, with the quality and brand draw of an ABC audit to help them attract local, regional and national advertisers."

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While not impervious to the effects of the economic downturn, smaller community newspapers have, on the whole, fared substantially better than big metro dailies, which tend to dominate headlines with their dramatic revenue declines.

While the 25,000-50,000 cohort may be suffering, according to a long-term study from the Inland Press Association, newspapers with circulations under 15,000 did see revenue grow over the last five years -- albeit just 2.4%.

While only a modest increase, that's far better than the newspaper business overall, which saw total revenues decline 22% from 2004-2008, according to the Newspaper Association of America. It's hard to find reliable numbers for smaller newspapers, which are often privately owned, but Cribb Greene & Associates -- a broker which handles M&A for small newspapers -- said ad revenues are typically only down 10% to 15%.

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