A puzzle that doesn't fit together

 
Reach Ringier's calculation of Cash daily's current print reach raises questions.  
In Mach Basic 2008-1, Wemf reports an average reach of 73,000 readers per issue for the Ringier free newspaper Cash daily in its first year. A good performance for the young business newspaper. But like all Mach-Basic values, these figures are a thing of the past and Ringier needs current values. That's why Christoph Bauer, Head of Business Media at Ringier, sent out his 16th Cash Media Report on March 25, 2008, in which he explained that Cash daily currently has a much higher reach, namely around 127,000 print readers. Bauer explained how he arrived at this figure: "The Wemf figures confirm this projection with Mach Basic 2008-1, which confirms that Cash daily had an expected 73,000 readers for the period 10/2006 to 09/2007. With an average circulation of 60,800 copies distributed during this period, this results in 1.2 readers per copy (LpE)." In the meantime, however, the daily circulation amounts to "an average of 106,000 printed copies", which at 1.2 LpE corresponds to a daily print reach of 127,000 readers.75,000 or just 60,800? The calculation appears transparent, but in the opinion of Werbewoche it contains an error. The circulation distributed in the first cash-daily year averaged 75,000 copies, not 60,800 copies as stated by the publisher. This can be recalculated on the basis of the circulation figures published monthly by Ringier. This means that Cash daily had just under one reader per copy in its first year, which, with 106,000 copies currently distributed, results in a reach of 106,000 readers. This is 21,000 readers less than the figure calculated by Bauer - a significant difference.
What does Ringier have to say about this? Ringier spokesman Marco Castellaneta initially confirms: "In the period from October 2006 to September 2007, 75,333 copies were actually distributed via all channels", including 29,083 via boxes in companies. When these boxes were checked last fall, it was discovered that around half of the copies distributed there had been left behind. "Based on this learning, we calculated the total circulation back to the period 10/06 to 9/07" by only including half of the circulation in company boxes, i.e. 14,541 copies - "in the interests of maximum transparency." As a result, the distributed print run of Cash daily amounted to 60,800 copies in the first year. As of January 08, Cash daily introduced a new returns process, corrected the company box circulation downwards and now reports it correctly. The currently distributed 106,000 copies are therefore comparable with the new circulation calculation for the first year, and the extrapolated reach of 127,000 readers is correct.
Cross-comparison is not correctIn plain language, however, this means that what Ringier had previously reported as "distributed circulation" was merely the print run delivered - not including returns. This puts Bauer in a predicament, as he has always communicated in words and graphics that it was the actual circulation sold. He had already calculated an initial "current" reach for Cash daily on this basis last fall - and also arrived at 127,000 readers back then.
One thing is certain: Ringier has not yet explained the new circulation calculation in any Cash Media Report. However, the publisher should have done so in the March 25 issue at the latest. Instead, two different calculations were mixed up in the text and graphics. Castellaneta confirms: "The graphics no longer match in the cross-comparison." This is unprofessional, to say the least, and gives the impression that Ringier is deliberately trying to present Cash daily's performance as better than it is. At the moment, it remains to be seen how high the current reach actually is.
 
Markus Knöpfli
Wemf is too slow for cash dailyIt is already the second time
that Ringier extrapolates a more up-to-date reach value for Cash daily than that of Wemf. The first time was in September 07, but why is Ringier in such a hurry? Spokesman Marco Castellaneta explains: "We decided to use the readership projection method for Cash daily because the Wemf research concept cannot reflect the rapid growth of a free title, especially when new distribution channels are successively established and optimized. Our advertising customers are investing today and therefore the current media performance is relevant. Of course, we concede that projections can be fuzzy. However, so does Wemf research, whose confidence interval in the first few years is certainly above the normal five percent. In addition, more and more publishers will need more up-to-date reach figures in the future: Tamedia and Basler Zeitung Medien for news, at Blick and also at Schweizer Illustrierte this will also become topical - and then at all the regional publishers that are launching new Sunday or free projects." (mk)