Mar 10, 2008
Keeping New Media Advertising Honest
Our Spotlight column in the Oct ‘07 edition of ESOMAR’s Research World. Grab your copy here.
Now that new media accounts for a significant portion of advertising revenues, advertising bodies are investigating how to future-proof its self-regulatory framework.
Breaking news: as far as advertising goes, the internet’s not quite the bad boy it may appear to be.
As Richard Knubben, policy & compliance manager at EASA, the European Advertising Standards Alliance, puts it: “On the whole, internet and new media-related complaints have made up a relatively small percentage of total advertising complaints over the last couple of years, but are slowly rising.”
And according to Christopher Graham, director general of UK advertising regulator the ASA, that’s because people see traditional media including TV as ‘push’ and so uncontrollable by the recipient, whereas new media is more ‘pull’. He adds: “…people have an expectation about the internet. If they encounter some nastiness they just go away… in context, they would probably expect some advertising to be, frankly, raunchier or sexier than on TV.” A conclusion supported by a 2005 research study commissioned by the ASA.
If it ain’t broke…
But while complaint levels are relatively low, complaints do exist. And according to Knubben, half of Europe-wide complaints about advertising on the internet relate to spam and the remainder to everything else internet/new media.
Spam, by definition, is tricky for authorities to control given its pernicious nature.
But it is parts of the ‘everything else’ category that self-regulatory organisations (SROs) are looking to manage. Most complaints here, according to Graham and Knubben, relate to misleading consumers, e.g. airlines not displaying fully inclusive prices.
And where such infractions are committed in conventional forms of paid-for online advertising (banner ads., search listings, etc.), Knubben believes that eCommerce-related cases can be resolved across Europe through the UCP (unfair commercial practices) directive which is in the process of being implemented.
However, one of the issues being debated is whether or not to include corporate websites. In the UK, Graham says, “We’re in the embarrassing position that our third most complained about non-broadcast medium has 90% of complaints that are out of remit [because they relate to corporate websites]…if this continues, it will erode the relationship we have with consumers because they regard it as advertising.”
The fact that corporate websites are not regulated has offered companies a back door. For example, while being banned from airing an ad. on conventional media can impact brand reputation, the free publicity may drive traffic to the company’s website where the ad. can be shown in full, uncensored. Moreover, the reach and low cost of websites like YouTube only makes online even more attractive.
Graham believes that corporate websites being outside a regulatory framework “is a threat to effective enforcement.” But regulating corporate websites could prove controversial. As well as going against the spirit of the internet, opponents would cite freedom of speech arguments over editorial content. Graham is quick to recognise the sensitivities here: “…is it clever for advertising self regulators to say ‘no we don’t go there’ if that’s where the action is in respect of claims or material on those websites that’s clearly advertising…we don’t want to be making judgements on editorial claims in the website.”
Maintaining public trust
It’s not just online advertising’s rise in importance that has driven these deliberations. Pressure from regulators over HFSS (high fat, sugar and salt) advertising has also been a factor.
So the EASA has created a new media initiative to spearhead Europe’s advertising self-regulation efforts. The EC Directorate General for Health and Consumer Protection, DG Sanco’s director general Robert Madelin has organised an advertising roundtable with EASA, the EC and interested NGOs. And in a recent meeting, according to Graham, Madelin “challenged [the SROs] to see what they were doing about new media”.
In the case of the UK, the Advertising Association, responsible for furthering the interests of all advertising stakeholders, has created a working group including a diverse set of experts and specialists to look into future-proofing new media.
And in Spain, a successful online advertising trust mark scheme (“confianza online”) is already in use. Its success is attributed to having wide take-up because advertising regulation there is member-based. This is in contrast to a similar UK scheme (Admark) that failed due to poor uptake because advertisers had to voluntarily sign up to it within the context of an ad. self-regulatory scheme that is otherwise comprehensive.
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