Largest Net publishers pull out of auditing body

By Iain Scott, ITWeb group consulting editor

Johannesburg, 21 Oct 2002

Internet traffic measurement was plunged into crisis yesterday as SA`s two largest Internet publishers, IOL and e-Media24, withdrew from the Audit Bureau of Circulation, citing a lack of credibility and challenging the bureau`s measurement process.

Other online publishers audited by ABC`s electronic arm (ABCe) are still deciding on their position.

Independent`s IOL and Naspers`s e-Media24 sent Craig Farham, chairman of ABCe, a joint letter signed by e-Media 24 GM Russell Hanly and IOL MD Howard Plaatjes. The document was also distributed to the media as an open letter.

ABCe was drawn into controversy last month after the release of second-quarter circulation figures highlighted disagreement over measurement techniques.

IOL and e-Media24 cite three reasons for their move:

* The inability of the ABCe to provide the market with a clear and unambiguous report through their quarterly publication of audited unique users and page impression metrics by site owner;

* The apparent inability of the ABCe to gain any credibility among marketing and advertising decision makers in a manner which has a positive impact on online revenues; and

* The gradual decline in ABCe membership over the past two years supports the perception that the organisation is not representative of the industry and has failed to effectively serve the interest of the online publishing community.

Farham says the situation can probably be resolved through talks. "I want to sit down and talk to those guys before I go to the press. I think there are some misunderstandings that could be cleared up through a brief chat."

He says he is trying to organise a meeting with Hanly, Plaatjes and ABCe`s auditor-general. "Until then, I can`t comment any further."

Online service provider M-Web says it is in favour of IOL and e-Media24`s decision. M-Web itself resigned from the organisation last year.

"The South African online publishing industry needs a reliable form of measurement which is more in line with tried and trusted traditional audience measurement systems, one which advertising and marketing decision makers can absolutely trust and rely upon," says Russel Yeo, GM of M-Web Studios.

Geoff Cohen, manager of information systems and online at BDFM, publishers of Business Day and Financial Mail, says while BDFM has not yet arrived at a firm decision, with the biggest members leaving ABCe its membership would require serious thought.

He says the situation is a blow to Internet media in the country. "As with any of these things it creates the perception that the medium has not matured."

ITWeb MD Jovan Regasek agrees that the measurement process is full of holes and says the numbers are easy to manipulate.

However, he says ITWeb will retain its membership "as long as it makes sense. If too many members leave, it won`t make sense for ITWeb to stay as a member." ABCe is still indicative of trends in Internet traffic and there is no replacement for the body.

Regasek says intellectual honesty is the key to the system. "My core feeling is that everything depends on the intellectual honesty of media owners. You can manipulate Internet numbers, just as you can manipulate print numbers."

He adds that ABCe is made up of its members and any blame for failure to establish credibility must fall on those members.

Andrew Gill, GM electronic publishing at Johnnic Publishing, which publishes the Sunday Times, says although his company has been considering its position for a while, it has not yet made a decision.

"But we do understand their [IOL and e-Media24`s decision]. We agree there is a need to look for an industry-wide measurement solution."

At a meeting of the SA Advertising Research Foundation last month it was decided to establish an independent body, the Online Media Owner`s Association, to govern the relationship between various media organisations.

However, organiser Taryn Naledi Hood says it was never the intention of the body to replace ABCe or to carry out auditing functions.