Press Release: ANA and 4A's Address Legitimacy of Magazine Bleed Charges

New York, NY- February 2, 2009-The ANA (Association of National Advertisers) and the 4A's (American Association of Advertising Agencies) today formally encouraged their members to discuss with publishers the outdated practice of charging to accommodate bleed ads in magazines. The organizations suggest that publishers could simplify their rate cards by not including incremental charges for bleed ads. This initiative is a result of analysis conducted by the ANA Print Advertising Committee and the 4A's Print Media Committee.

Bleed charges add a layer of complexity to the magazine planning, buying, and production processes for advertisers and their agencies, which may incur additional non-media costs for the advertiser. Today's printing and production technologies no longer require the press stoppages and plate changes that resulted in the real charges that magazines used to incur when producing bleed units. According to a recent analysis by TargetCast tcm, 442 of the 2,820 titles listed in the Consumer SRDS currently indicate that bleed charges carry anywhere from a five percent to 20 percent premium. While it is generally acknowledged that bleed charges may be negotiable, there is no apparent, cost-based rationale for why they still exist.

Many magazines have done away with these obsolete charges, including the ANA's own The Advertiser, and within someof the larger publishing companies, bleed charges may vary from publication to publication. The ANA and the 4A'sapplaud new magazines that are launched without bleed charges on their rate cards and encourage the 442 remaining titles in the TargetCast tcm analysis to reassess whether bleed charges are still warranted.

"The advertising industry recognizes that new technologies have streamlined the business system and made certainpractices obsolete" said Bob Liodice, President and CEO, ANA. "We strongly encourage all publishers to evaluate whether bleed charges are inconsistent with today's marketing supply chain and should be reconsidered and eliminated. Such actions would simplify the media planning and buying processes and properly align costs with value received".

"Advertisers and their agencies provide the funding that keeps magazines in business," said Nancy Hill, President and CEO of the 4A's. "In this economy, every dollar counts even more. Incurring an unaccountable business expense simply cannot be justified . We look forward to hearing the points of view of the publishers on this issue."

The ANA Print Advertising Committee and the 4A's Print Media Committee encourage marketers and agencies to discuss this issue with publishers, so that the publishers can understand fully the current drawbacks to outdated bleed charges.

View position paper

The Association of National Advertisers leads the marketing community by providing its members insights, collaboration and advocacy. ANA's membership includes 360 companies with 9,000 brands that collectively spend more than $100 billion in marketing communications and advertising. The ANA strives to communicate marketing best practices, lead industry initiatives, influence industry practices, manage industry affairs and advance, promote and protect all advertisers and marketers. For more information, visit http://www.ana.netabout/

THE 4A's
The American Association of Advertising Agencies is the national trade association of the advertising agency business. The 1,196 member agency offices it serves in the U.S. employ 65,000 people, offer a wide range of marketing communications services, and place 80 percent of all national advertising. The management-oriented association helps its members build their businesses, and acts as the industry's spokesman with government, media, and the public sector.

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Lesley Neadel Kipp Cheng
CooperKatz & Company for the ANA
(917) 595-3034

Kipp Cheng 
(212) 850-0720