Advertising Self-Regulation
Challenges & Perspectives
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
Responsibility Matters?
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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
www.easa-alliance.org
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
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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)
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
Misleading Advertising
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
Taste & Decency
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
Gender
Belgium: « Your wife was surely also no longer a virgin on your wedding night » Complaint upheld
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
Social Responsibility
Health and Safety
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
Advertising to Children
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
Food and Non-Alcohol Beverages Concerns re
HFSS foods
EU Food
Platform
Children are
specific focus
Digital marcoms
are being
examined
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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”
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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?
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
•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%
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
Digital media - Content
• Coverage - Rules & Enforcement
• Consistency & Coherence
• Native advertising?
• EASA Best Practice for SR
– Social media
– DMC
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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}
www.easa-alliance.org
• 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
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
Icon links to... Consumer Control Cockpit
over 120 Billion icons delivered in 2013
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
“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
www.easa-alliance.org
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
www.easa-alliance.org
“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
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
Effective SR recognised
Principles: Participation, Openness, Good Faith, Objectives, iterative improvements, monitoring, evaluation
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
The Trustmark challenge ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
EU assessment of Cosmetics SR initiative
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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?
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
Advertising system: State of play
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
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
www.easa-alliance.org
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
www.easa-alliance.org
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
www.easa-alliance.org
Consumer Awareness
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
• 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
ERA Conference
June 23 2014 Vienna
www.easa-alliance.org
Want to know more?
www.easa-alliance.org
Everything about advertising self-regulation
ERA Conference
June 23 2014 Vienna
Top Related