Home Page The Advertising Media Internet Center

Telmar Home Page


Media Guru

Guru Search Results: 7 matches were found

Tuesday, June 07, 2011 #8097
what does rate base mean

The Media Guru Answers(Tuesday, June 07, 2011 ):
rate base is the circulation on which print rates are guaranteed. A magazine with a circulation of 1,100,000 might sell with a rate base of 1,000,000. If you buy a page at $50,000, and circulation of that issue is only 950,000, you are owed a refund of 5% or $2,500.

Too many planners/buyers do not audit this carefully.

Saturday, April 19, 2003 #5940
For magazine, what is the difference between circulation and rate base?

The Media Guru Answers(Thursday, April 24, 2003 ):
Circulation is the number of copies distributed. The magazine's definition of "distributed" may be paid circulation, audited paid circulation, controlled circulation or print run less returns. "rate base" is a guaranteed audited circulation. In other words, rates are based on an amount of circulaition. This amount is usually less than the latest audited circulation. Rates are adjusted / rebated proportionately if this circualiton is not met and the advertsier make a claim for adjustement.

Thursday, February 06, 2003 #5808
I need to verify that the magazines on a past schedule have met their rate bases. I've noticed that some magazines publishers statements (pink sheets) show the publication meeting rate base but the corresponding audit report (white) shows that they did not. Which report should I be holding publications accountable to?

The Media Guru Answers(Friday, February 07, 2003 ):
The audit is definitive.

Tuesday, August 24, 1999 #2736
I've been asked to do a post-buy analysis for a business-to-business advertiser. What components should be included in the analysis?

The Media Guru Answers(Tuesday, August 24, 1999 ):
Any specifications of the buying instructions should be included in the post. These might include:


  • Number of GRPs
  • $ spent
  • Daypart mix
  • Horizontal and vertical rotation
  • Average rating or number of spots meeting/not meeting ratings minima


  • $ spent
  • # of insertions
  • Page position
  • Reproduction quality
  • rate base guarantees met/unmet - rebates due

Thursday, March 25, 1999 #2411
In dealing with consumer magazines, what does the term advertising rate base mean?

The Media Guru Answers(Friday, March 26, 1999 ):
This is the circulation on which the pricing is based. Typically, this circulation is guaranteed to be delivered in the issues where you buy ads or a proportional rebate is due you.

Tuesday, March 23, 1999 #2403
I have been researching these questions for a number of days now and have been unsatisfied with the answers I have been receiving. I am a new member and new to this field, any direction would be most helpful. Thank you in advance... 1) What is the difference between rate base (a number guaranteed by publishers and audited by ABC) and Readership (a number provided by, say, MRI) levels for magazine publications? 2) Which number (above) is most often used to calculate CPM (I believe this calculation is ad_page_rate/readership)? 3) Is 'readership' really a composite number (perhaps a result of some other formula)? If so, does Page Exposure Rates factor into 'readership'?

The Media Guru Answers(Tuesday, March 23, 1999 ):
If you went to AMIC's Rates, Dates and Data area and clicked the link
"Audience data from MRI is available for
Fall 1998 for Total Audience, Circulation and Readers Per Copy
" you would see the table from which this image is taken:

The following discussion will use this table as a visual aid.

"rate base" refers to circulation, the actual number of copies of a publication printed and sold for the average issue over a specified period of time. In the table, "Circulation" is the middle column of data.

"Readership" is the number of readers of the average issue. It includes "passalong" readers, who may not be the buyers / subscribers but read some else's copy. In almost every case, total readership will be greater than circulation. The first three columns of the MRI table we are looking at are readership numbers.

CPM can be calculated based on either circulation or readership. The circulation CPM (Cost Per Thousand) calculation is: divide ad cost by the number of copies in circulation.

The readership cpm calculation is: Divide ad cost by number of readers of an average issue. Often readers within a specified demographic the advertiser is targeting are the divisor in this second calculation. As a planning tool, the readership CPM is more common than the circulation CPM, especially for categories of print that use readership research, such as MRI.

Many people misinterpret the common reporting of "readers per copy." The last three columns of the MRI data are readers per copy figures. What audience research actually measures is readership. A random sample of consumers is interviewed and asked about their magazine reading to determine how many readers there are for an average issue of a magazine. Readers per copy is a calculation done after the fact, dividing the readers measured by the circulation. It is a handy factor used to compare magazine pass-alongs or to calculate other audience elements.

Friday, July 17, 1998 #1959
I am working on a television post buy analysis and was wondering what the industry standard index is for estimated vs. actual GRP ratings? Rule of thumb in the past was 90%+, is this still in effect and does it change from market to market? Is there any documented research for this percentage or do most television sales reps know the "rules" in order for me to get make-goods for my client?

The Media Guru Answers(Friday, July 17, 1998 ):
Everything is by agreement. In this business, one tends to think the policy of the agency or medium where they learn things are rules of the industry.

Some agencies have a +/- 15% policy others have +/- 10%. Some advertisers make their agencies give them +/- 10% when the agency policy is a wider allowance and some major advertisers don't post.

Some network deals are 100% guaranteed, magazine "rate base" is 100% guaranteed, but many advertisers/agencies never verify delivery.

If you negotiate a 90% deal with your sales rep, then that' s what he/she's got to do. If you're doing regular business, it shouldn't be much of an issue to get 90%, anyway.

In markets where there are weekly ratings available, it should also be your practice to rerate buys as they progress and negotiate adjustments during the schedule to avoid shortfalls on post analysis.