Online advertising standards Dr Oliver Gray

26 October 2004

• The problems and challenges• ICC & EASA• The new ICC guidelines • Enforcement• Conclusions

To discuss today…

Problems and challenges 1• New media: Internet, SMS, MMS• New techniques: Blogs, Wiki, Split Screen• New actors: internet agencies• Constant change blurring traditional

divisions• Law not able to keep up• Outside advertising standards remit?• Enforcement not yet adapted

Problems and challenges 2

• Direct interface consumer -> advertiser• Privacy• Data collection• New technologies aimed at, used by and

understood by young people• Increased media and commercial crowding• An industry developed to offer the solution

From challenge to opportunity

Industry:• Confusion!

Consumers:• Uncertain, doubtful

• Confidence and trust undermined

Solution:• ‘Light touch’ regulation

• SR seen as business solution• SR works within framework

of law i.e. EU e-commerce & TVWF directives

ICC and EASA• Commission on Marketing &

Advertising: 1996: ICC guidelines for Internet 1998: Internet guidelines revised

Instigated by: • Advertising industry• New actors (service providers, software

companies, telecoms, online media)

EASA work

• Encourages advertising standards bodies (ASBs) to adopt ICC internet guidelines

• Studies and makes recommendations on enforcement (esp. with country of origin)

• ASBs took internet advertising into their remit with reservations

• Trustmark schemes

New ICC guidelines

• No longer just internet: updated to include telecoms, internet and TV

• Major business associations involved: WFA, EACA, FEDMA, EGTA, ESOMAR, EASA, USCIB, IAB

• FEDMA & EGTA SR codes consulted• Updated by ICC Task Force Code Revision• Approval Nov 2004, launch 2 Dec 2004

Visit www.iccwbo.org

Why electronic media guidelines?

• Enhance consumer confidence in electronic media

• Ensure an adequate level of privacy• Honour consumer preferences

Better business

Basic principles of guidelines

Advertisers must:• Be aware of applicable laws• Respect the spirit and letter of the rules Communications must:• Be legal, decent, honest & truthful• Not impair public confidence• Respect the rules in the ‘country of origin’

Guidelines’ scope• Disclosure of advertiser’s identity• Clarity for consumer of cost of communications• Respect for public groups• Data protection and privacy• Unsolicited messages• Honouring consumer preferences• Interfering with consumer’s usage• Advertising to children• Respect for sensitivities of global audiences• Ultimate responsibility

Example: Advertising to childrenDo Do not

• Collect only data that is reasonably required• Encourage obtaining parental permission • Encourage parents to supervise • Facilitate protection of children’s privacy

• Exploit inexperience or credulity• Use content that may harm

Example: Responsibility

• Shared by all parties • Commensurate with their role in ad

process• Prime responsibility is on advertiser• Clauses in contracts re: adhering to

rules and respecting decisions

Enforcement

• Invest in technology and training: SMS/MMS hotlines Online complaint forms

• Build up cross-border expertise• Link with new enforcement communities• International networks• Establish best practice

EASA network

• 27 advertising standards bodies

• 13 European industry bodies

Advertisers Agencies Media

Internet advertising statistics

2002: 1,843 (4% of total)2003: 3,428 (8% of total)Increase: +1,585 (86%)

•Germany: Increase of 500 complaints•UK: Increase of approx 1,050 complaints

Cross-border example: Ganter shoes

• 2002: Complaint from UK Royal Household re: unapproved use of the Queen’s image

• Site based in Germany, German rules stipulate subject’s approval

• Image removed

Cross-border example: Ganter shoes

• Site no longer has any such images

Companies! Stop, look and listen!• Are your ads legal, decent honest and truthful?• Have you consulted the ICC rules?• Are you aware of local applicable advertising

standards rules?• Have you included a responsibility clause in your

agency contract?• Are your agencies aware of this?• Is it clear to the consumer what rules apply and

where to go if there is a problem? • Have you honoured their preferences?

Conclusion 1

• We live in a virtual universe• Uncertainty principle:

“The more precisely the position is determined, the less precisely the momentum is known in

this instant, and vice versa.” (Heisenberg)

Conclusion 2• ICC provides a flexible and dynamic

framework for business to conduct responsible marketing communications

• Confidence will be built• Education and training of new actors

Prevention is better than cure (Erasmus)