Emerging global policy issues in the field of advertisingJuly 2013

1. Digital advertising and privacy

2. Digital advertising to children

3. Commercialisation & sexualisation of children in advertising

4. Body image, airbrushing and gender stereotyping

5. Environmental claims

Emerging Issues

• Increasing data being processed online

• Online advertising techniques raise new privacy concerns, e.g. Online Behavioural Advertising (OBA)

• Mobile brings additional layer of concern, i.e. geo-location data.

Regulators are asking:

What is personal data?

How should users give their consent (opt-in v. opt-out)?

What balance between online ad-funded business model and users’ right to privacy?

1. Digital advertising and privacy

• NGOs and privacy advocates maintain pressure on governments

• Revision of Data Protection regulations in all regions: EU, US, China, Singapore, etc.

• EU: world’s strictest privacy laws in process of being tightened further

• USA: FTC scrutiny + Administration White Paper calling for “Do Not Track”

• Global discussions on “Do Not Track” standards (W3C)

1. Digital advertising and privacy

Status of public and political debate:

Industry response:

•Industry standards for online behavioural advertising (OBA)

•Icon-based, choice and user control on e.g. www.youronlinechoices.eu (EU), www.aboutads.info/choices (US)

•Targeting of children under 13 with OBA prohibited

Resources:

•WFA support pack on OBA self-regulation

•WFA Get Digital Ready Pack

1. Digital advertising and privacy

• Children’s growing internet use: In the UK, 75% of 5-16s own a laptop and 7-16s using the Internet do so 2hrs/day, ˃5 days/wk (Childwise, 2012)

• 38% of European 9-12s use Facebook (despite being not allowed) (EU Kids online, April 2011)

• Children are 77% more likely to visit internet pages with advergames and spend 88% more time on these pages (Harris, 2012)

• Parents feel lack of control over online advertising to children

• Need to ensure that current rules protecting children are transferable to digital marketing communications

2. Digital advertising to children

Status of public and political debate:

•Distinction between advertising/editorial content less evident online; ’blurring’•US new COPPA rules to protect children online require parental consent for collecting <13’s data

•Revision of EU Data Protection legislation- Risk of children being defined as <18

- Parental consent

•Mobile apps:o Increased brand engagement o Geo-location & Privacy concerns

•Advergames:o Strong academic/NGO focuso Most popular marketing tool on brand websites – branded

entertainment: $26bn in 2009 (Adweek) o High level of brand engagement

2. Digital advertising to children

Industry responses:

•Global Industry OBA SR framework: No collection of data from <13s

•EU Pledge initiative: No online advertising of products which do not meet specific nutritional criteria to children <12 (third party and company-owned websites)

•Teaching media literacy: Media Smart

o Paid by advertisers, creative from agencies, airtime from media

o Runs in the UK and 8 other EU countries + Mexico

o Digital Adwise specifically designed to help children navigate online world

Resources: WFA Get Digital Ready Pack

2. Digital advertising to children

3. Commercialisation & sexualisation of children

• Commercialisation of children has become a major concern for parents and policy-makers, especially in the UK.

• NGOs claim parents are powerless faced with growing pressure on children to ‘buy things’

• NGOs think society is full of sexualised imagery (ads, music videos, clothing, online pornography, etc.) where ‘children can’t be children’

Status of public and political debate:

•Debate on the sexualisation of children through advertising (originated in the UK) echoed in France, Ireland, Israel & Australia

•UK Bailey Review (June 2011) – key recommendations:

o Ban use of <16s as brand ambassadors and in peer-to-peer marketing

o Define children as <16 in all ad codes (= ban on OBA to <16s)

o Reduce “sexualised” images in outdoor advertising

o Involve parents in self-regulationo Increase scrutiny of media literacy education

programmes

•2011 UNICEF UK report calls for <12 ad ban

4. Commercialisation & sexualisation of children

Industry responses

•UK Advertising Standards Authority’s initiatives to increase children protection, incl. website for parents about ad regulatory standards; teaching pack “Ad:Check” for ad savvy students, stricter ‘sexualised imagery’s regulation in outdoor advertising

•UK Committee for Advertising Practices (CAP)’s new guidance about the use of children as brand ambassadors and in peer-to-peer marketing

Resources: RAC key messages

4. Commercialisation & sexualisation of children

• Increasingly, body image issues receiving growing policy-makers’ attention

• Advertisers blamed for promoting unrealistic ideals and fostering gender stereotypes

5. Body image/airbrushing/gender stereotypes

Status of public and political debate:

•Israel parliament bans underweight models, makes “photoshop warning label” mandatory; Austrian and Polish MPs introduce similar bills

•Several cosmetics ads banned in the UK (July 2011) for airbrushing

•Portrayal of women: Ford India ad campaign censored (March 2013); UK Lynx (Unilever) ad banned (Nov 2011) for demeaning women

•British House of Commons Body Image Parliamentary Group report (May 2012) finds children vulnerable to body image concerns

•Advertisers blamed for perpetuating gender stereotypes, esp. ads targeting children

•European Parliament’s reports on gender stereotypes in advertising (1997, 2012)

5. Body image/airbrushing/gender stereotypes

Industry responses

•Gender specific toys: In France & in Sweden, supermarket and kids’ store release unisex Christmas’ gift catalogues for children

•Brands’ ad campaigns, like Dove (Unilever) feature “real women”

•In the UK, Media Smart Body Image lesson (September 2011) & Parent Pack (June 2012) aim to foster body image education

•In several countries, SROs handle consumers complaints & ensure that ads are decent, legal, honest and truthful

Resources: WFA One-pager on Body Image & RAC key messages

5. Body image, airbrushing & gender stereotypes

• Sustainable development: increasing demand for sustainable goods and services

• Marketing communications use environmental claims to promote properties of products

• Challenge: absence of clearly defined terms and rules

What is “green”? When do we begin calculating the footprint?

6. Environmental claims

Status of public and political debate:

•Pressure mounting from environment NGOs denouncing the “sins” of greenwashing

•National debate & global discussions UN World Summit on Sustainable Development (2002) + UNEP

•US FTC: revised ‘Green Guides’ (Oct. 2012)

•European Commission: MultiStakeholder Dialogue on Environmental Claims = input for the revision of the Unfair Commercial Practices Directive Guidance Document

•Energy labelling: pressure to extend energy labels to advertising of “white goods” and automobiles

6. Environmental claims

6. Environmental claimsIndustry response:

•ICC Code of Marketing and Advertising: general principles and definitions of: “environmental aspect”, “environmental claim”, “environmental impact”, “life cycle”, “product”, “qualification” and “waste”…

•Codes developed by national advertisers’ associations in collaboration with Environment Ministry (French Charter on eco-responsible advertising and UK revised DEFRA Guidelines)

• Heavy criticism of alcohol advertising by anti-alcohol NGOs

• Underage exposure and “appeal” to minors are greatest challenges

• Conflicting approaches to exposure measurement: industry v. NGOs

• Ongoing debate on the quality of biased scientific evidence, funded by EU and driven by anti-alcohol advocates

• Extension of these debates to developing countries

What role for industry self-regulation?

7. Alcohol advertising

Status of public and political debate:

•Growing pressure at member state level, backed up by EU and WHO strategies

•2010 World Health Organisation (WHO) Global Strategy to Reduce the Harmful Use of Alcohol

•Self-regulation challenged to step up action and deliver tangible results

•NGO criticism focuses on:

o Exposure of underage

o Underage “appeal” of alcohol marketing

o Perceived absence of rules on social media

7. Alcohol advertising

7. Alcohol advertisingIndustry response:•Current best practice to ensure responsible placement of alcohol advertising (70/30)•WFA Responsible Marketing Pact: a commitment to the EU Alcohol and Health Forum based on three pillars:

o Social media: Prevent minors from inadvertently seeing alcohol ads

o Appeal: put in place common standard to prevent primary appeal to minors

o Placement: Full implementation of 70/30 rule and oversight by SROs. Reinforce evidence on impact.

•International Center for Alcohol Policies (ICAP) ‘Global Actions on Harmful Drinking’

CONTACTS:

General Query: Nafisa Gabaji – nafisa.gabaji@pas.org.pk

Advertising & Children and Food Advertising: Simon Meehan – s.meehan@wfanet.org

Alcohol Advertising: Paola de la Baume – p.delabaume@wfanet.org

Digital Advertising: Malte Lohan – m.lohan@wfanet.org