• by Joe Mandese  @mp_joemandese, August 15, 2004

Belo Corp. today unveiled an "advertiser compensation plan" covering advertisers that were impacted by a circulation overstatement at The Dallas Morning News. The overstatement, which was first disclosed by Belo on Aug. 5, and which led to the resignation of a top executive in charge of the paper's operations, is the latest in a litany of newspaper circulation debacles.

The disclosure follows similar revelations recently by Tribune Co.'s Newsday and Hoy and by the Chicago Sun Times, which are fueling perceptions on Madison Avenue that the developments are not anomalies, but are part of a systemic pattern within the newspaper industry. In July, the Audit Bureau of Circulations adopted tougher guidelines for dealing with papers that violate its procedures, and censured several of the papers.

Belo said it has implemented an investigation into the circulation practices at The Dallas Morning News and its other major newspapers led by the national law firm of Seyfarth Shaw following the disclosure. A report is expected by mid-September.

Belo estimated that circulation for The Dallas Morning News was overstated by 1.5 percent for daily and 5 percent of Sunday. Combined with other circulation declines, the company said the overstatement will result in the newspaper reporting an overall decline of 5% daily and 11.5% Sundays for the six-month period ending Sept. 30, compared to a year earlier.