Advertising Self-Regulationmulti-channel-home-shopping-conference.eu/system/docs/43/original/... ·...

Advertising Self-Regulation

Challenges & Perspectives

ERA Conference

June 23 2014 Vienna

www.easa-alliance.org

Responsibility Matters?

ERA Conference

June 23 2014 Vienna


The marketing context is consumer trust

30-70% of a company’s value arises from its brand reputation.

” If you think that our future generation only cares

about computer games, you are wrong… today a

market leader must be an ethical leader.“

Maurice Levy, Publicis

ERA Conference

June 23 2014 Vienna


EASA’s Self-Regulatory Network

38 SROs in 36 countries Europe (26 in 24 countries) International Council for Ad Standards – ICAS (11 countries) •Australia, Brazil, Canada, Colombia, Chile, El Salvador, India, Mexico, New Zealand, Peru, South Africa

16 industry organisations •Advertisers •Agencies •different forms of Media

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June 23 2014 Vienna


Global Ad standards? National enforced Codes based on global principles (ICC code) endorsed by Advertising Industry and adapted to local culture and norms

Legal, Decent, Honest & Truthful

Socially responsible, Respecting Fair Competition

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What is a Self-Regulatory Organisation (SRO)?

• ‘Advertising Watchdog’

• Independent body

• Funded by industry

• Guardian of the Code

• Handles consumer & competitor complaints

• Issues sanctions (modify or withdrawal)

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June 23 2014 Vienna


Consumers’ reactions via 62 232 complaints More honesty & transparency

• Misleading advertising most complained about issue for EASA’s SROs

• Transport, Tourism & Communications ads

• Taste and decency and Social Responsibility next

• AVMS top area of complaint, Digital Marcoms increasing

EASA Stats 2013

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June 23 2014 Vienna


Misleading Advertising

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Misleading Advertising: SR Response

BPR on Claims Substantiation

-Common standard for claims

substantiation

-Details types of claims

-Details how claims should be

substantiated

- Puts burden of proof on advertiser

-Responses to EU on Misleading and

Unfair Commercial Practices,

Environmental Claims

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June 23 2014 Vienna


Taste & Decency

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June 23 2014 Vienna


Political agenda

Some issues are politically very sensitive

and high media coverage

Most sectors generally responsible

… but one bad ad or marketing comms:

• gives responsible advertising a bad name

• adds fuel to debate about ad standards

• increases regulatory threats

• undermines confidence in self-regulation

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June 23 2014 Vienna


Key Issues • Stereotyping/

Discrimination (race & gender)

• Social Responsibility

• Health and Safety

• Advertising to Children

• Digital Marcoms

Regulators Demand for more Responsibility & Engagement

Key Sectors

• Alcohol

• HFSS Foods

• Cosmetics

• Toys

• Gambling

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June 23 2014 Vienna


Gender

Belgium: « Your wife was surely also no longer a virgin on your wedding night » Complaint upheld

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June 23 2014 Vienna


Social Responsibility

Health and Safety

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June 23 2014 Vienna


Advertising to Children

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June 23 2014 Vienna


Food and Non-Alcohol Beverages Concerns re

HFSS foods

EU Food

Platform

Children are

specific focus

Digital marcoms

are being

examined

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June 23 2014 Vienna


Food and Non-Alcohol Beverages: SR Response

“For the fifth year running, monitoring

confirms a downward trend in children’s

exposure to TV food advertising by EU

Pledge member companies”

“94% of websites reviewed by EASA were

deemed compliant with the EU Pledge”

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June 23 2014 Vienna


Alcohol Advertising Concerns are around alcohol harm and effective SR

Are industry rules robust?

Rules strengthened and Responsible Marketing Pact put in place

Is there appeal and exposure of ads to minors?

Is digital media; websites, covered?

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June 23 2014 Vienna


•Sectoral guidelines •Framework for Responsible Marketing Communications of Alcohol •Compliance monitoring exercises •European Alcohol and Health Forum •Training module on alcohol and advertising

Alcohol: SR Response

13 SROs

Period monitored: May-July 2009

Media covered: ads on marketer-owned websites

Compliance: 93%

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June 23 2014 Vienna


AVMS directive Is SR an effective instrument for new forms of media and techniques?

•Does SR cover all emerging forms of marcoms?

•Recognition of effective SR as part of regulatory mix

•Maintenance of Country of Origin Principle

•Special protections for children

Crazy frog: - offer not transparent - appeal to children

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June 23 2014 Vienna


Digital media - Content

• Coverage - Rules & Enforcement

• Consistency & Coherence

• Native advertising?

• EASA Best Practice for SR

– Social media

– DMC

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June 23 2014 Vienna


Digital media? What’s in remit

In general

• Text ads

• Paid Search

• Online ‘public’ classified ads

• Display ads (moving & non‐moving)

• Marketer‐created or endorsed User Generated

Content (UGC)

• Online in‐game ads

• MMS/SMS ads

• Video Outdoor

• DVD/CD‐Rom • … non-exhaustive list

Marketer-owned websites ‐

Exhaustive remit? … Prescriptive list:

• All claims made in communications except when

made in strictly “editorial” content (eg: annual

report, CSR reports)

• Any form of commercial communication as covered

by Unfair Commercial Practices (UCP) Directive (eg:

price promotions)

• Third party User Generated Content (UGC) endorsed

by the marketer {VIRALS, BLOGS}

• Uploaded marketing communications which

previously appeared on other media {RADIO ADS}


• Digital advertising is under political & regulatory spotlight

• Particularly collection and use of data

• Legislative attempts to regulate data practices are not always proportionate (e.g. ePrivacy Directive/data protection reforms)…

• …and threaten the viability of many ad models, and what they deliver to brands, publishers & consumers

• Innovation can empower & protect consumers

• Challenge to set up an effective SR solution

The need for an SR Programme on OBA

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June 23 2014 Vienna


Delivery - OBA

• Third party targeted online behavioural advertising

• Transparency, choice and control are key principles

• Universal SR system for Europe linked to a global approach through the EDAA & EASA

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June 23 2014 Vienna


Icon links to... Consumer Control Cockpit

over 120 Billion icons delivered in 2013

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June 23 2014 Vienna


YourOnlineChoices.eu • Continuous updates

• 30 countries; 25 languages

• Iceland, Liechtenstein & Turkey to follow in ’14

• 90 companies integrated

• Traffic peaked at 2 million end ’13 users/month

• Mobile next 26

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June 23 2014 Vienna


Company compliance status

27

• Independently audited companies receive the Trust Seal signalling full Programme compliance

Signatories

217

Licencees

103

Self-Certified

companies

60

Ind. audited

companies

18

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June 23 2014 Vienna


SRO implementation

Implemented:

DE, ES, FR, HU, IE, SE, UK

Anticipated:

Q2 2014

FI, GR

Anticipated:

Q3-4 2014

BE, PT, TR

28

EASA engaged with remaining SROs re implementation schedules and understand of any sticking points at national level

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June 23 2014 Vienna


Consumer Awareness campaign

• Deployed in DE, IE and UK, shortly in F, B & FIN

• Delivered to-date: – 360 million Impressions – More than 100 million browsers (approx. 40m+

EU consumers) have seen the ad – More than 300,000 consumer interactions -

consumers engaged with the ads

29

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June 23 2014 Vienna


“it is always a pleasure, and a source of confidence, to see fast and dedicated follow-up to a high-profile business initiative in a crucial sector. I look forward to continuing cooperation between all interested parties.”

Robert Madelin, DGCNECT

on the OBA Programme January 2014


Industry Governance under the lens

1. What SR arrangements in place?

2. Does it extend to all media?

3. Responsibility up & down value chain?

4. Consideration of Children?

5. Are the weakest links being addressed?

6. What are the results/has it delivered?

7. What does SR add/ or add up to?

8. Does SR deliver? Is it a policy option? The question that society asks about self regulation is, does it work? If it does that’s good. If it doesn’t, then the pressure will increase for other sorts of regulation.” …. it is possible through effective self regulation to take away the demand for something more interventionist or more rigid.”

Robert Madelin, Director-General DG CONNECT, European Commission

ERA Conference

June 23 2014 Vienna


“This is not so much a debate about self-regulation against hard-law, but rather about how law and self-regulation can and should interact”

Advertising Roundtable report 2006

EU Commission

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Promoting effective self-regulation?

June 2004 summit: EASA members sign the

EASA Advertising Self-Regulatory Charter

sets 10 best practice principles

Administration Complaint handling Advice Sanctions Consumer awareness

Geographical coverage Media coverage Funding Codes Consultation

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June 23 2014 Vienna


Effective SR recognised

Principles: Participation, Openness, Good Faith, Objectives, iterative improvements, monitoring, evaluation

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June 23 2014 Vienna


The Trustmark challenge ERA Conference

June 23 2014 Vienna


EU assessment of Cosmetics SR initiative

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June 23 2014 Vienna


So how about yours?

Conception

• Non-industry Participants in code making?

• Good faith

• Objectives

• Legal Compliance

• Iterative Improvements

Implementation

• Lay experts in Jury?

• Compliance Monitoring

• Independent monitoring?

• Publication of decisions

• Consumer Awareness?

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June 23 2014 Vienna


Advertising system: State of play

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June 23 2014 Vienna


Principles for Effective Ad Standards

APEC Ad Standards Conference, Hanoi

1. Universality

2. Sustained & Effective Funding

3. Self-Regulatory Organisations

4. Universal and Effective Codes

5. Appropriate Advice/Info

6. Prompt & Efficient

Complaint Handling

7. Independent & Impartial

Adjudication

8. Effective Sanctions

9. Efficient Compliance &

Monitoring

10. Effective Industry

& Consumer Awareness


Why

Advertising

Self-Regulation?

Relevant

Cost Effective

Consumer Friendly

Offers Speedy Resolutions

Complements the Law

Trusted

Impartial

Provides Effective Sanctions

ERA Conference

June 23 2014 Vienna


Working together

Do you have robust SR? Code review & compliance

Combat rogue traders Education and awareness of responsibility

What about privacy and digital SR concerns?

Demonstrate effective SR content and delivery

More legislation? Advocate the better use of SR and its recognition

Provide proof points that responsibility works

ERA Conference

June 23 2014 Vienna


Consumer Awareness

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June 23 2014 Vienna


• 5,525 complaints to ASA, UK

• 65 complaints to ASA, IRL

“the ad “trivialised issues surrounding

a murder trial, the death of a woman

and also disability.”

'In your face KFC!': Shameless Paddy

Power makes extraordinary gloat that

its 'disgusting' Pistorius ad has now

become 'most complained about advert

of all time'

DailyMail on Facebook

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June 23 2014 Vienna

http://www.google.be/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=A0_x9N2prHmCaM&tbnid=LooimFWRWdcBVM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.huffingtonpost.co.uk%2F2014%2F03%2F02%2Fpaddy-power-oscar-pistorius_n_4885089.html&ei=TzpzU5ONDMXQ7AbZ5IGYDA&bvm=bv.66699033,d.ZGU&psig=AFQjCNG1BuoUe3qHlQyOug3gdMRpVu_Jog&ust=1400146893401179

http://ec.tynt.com/b/rf?id=bBOTTqvd0r3Pooab7jrHcU&u=DailyMail


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Everything about advertising self-regulation

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