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

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 children DoDo 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)