Digital advertisingPresented by Malcolm Phillips, Code Policy Manager,CAPP&G23 March 2011
This morning- The ASA system- The new CAP Code- What the Code already covers online- Digital remit extension: what will be covered from 1 March 2011 and why- The consumer perspective: trends in complaints- The consumer perspective: typical points of complaint- CAP Services- Q&A
The ASA system• ‘One-stop shop’ for ad complaints across all media• Both self-and co-regulatory• Advertisers, agencies and media commit to ‘legal, decent, honest and truthful’ d fund the t thf l’ and f d th system t• Mandatory Codes, written by two Committees of Advertising Practice ( (CAP and BCAP), maintain standards for consumer protection and ), p fair competition• Independent ASA adjudicates on complaints and monitors compliance• Fifteen-strong ASA Council is the arbiter of whether or not an ad has breached the rules• Key principles - transparent, proportionate, targeted, evidence-based
Resolving complaintsAs part of the Process Review the ASA has undertaken to “target a Review, targetmeaningful and measurable increase in the proportion of cases thatcan legitimately be resolved informally to effect quicker resolution ofissues for the benefit of all parties”
A Comprehensive System• Complaints and Investigations – public and industry• Pre-publication advice (Copy Advice on non-broadcast)• Monitoring and compliance• Code policy – Broadcast Code interpretation (not copy advice)• Research• Advice, training and guidance
The CAP Code• Not just a Code for content andplacement, but also addresses:• administration of prize promotions• database practice
The existing digital remit Display advertising Paid search
IdThe CAP Code applies to:Advertisements in non-broadcast electronic media, including but notlimited to: lili it d t online advertisements i paid-for space (including b d ti t in id f (i l di banneror pop-up advertisements and online video advertisements); paid-forsearch listings; preferential listings on price comparison sites; viraladvertisements; in-game advertisements; commercial classifiedadvertisements; advergames that feature in display advertisements;advertisements transmitted by Bluetooth; advertisements distributed y ;through web widgets and online sales promotions and prizepromotions
Digital remit extension:what happened on 1March 2011 – and why y
Why extend the digital remit of theCAP Code?• All marketing communications should be legal, decent, honest and truthful wherever they appear• Large advertiser call for action (WFA, ISBA) - strengthens principles of fair competition• Consumer imperative: c. 3,500 complaints (08-09) – need to build consumer trust in online marketing• Political imperative: focussing on protection of children• Now we have the right tools: remit, sanctions, funding
Background• Vast majority of marketing communications comply with the Codes j y g py• Primary SR objective: to maintain and improve standards and not simply to punish (prevention preferable to cure)• Objective underpinned by an effective range of industry-backed sanctions• Emphasis on persuading marketers to comply with the Codes; escalation of pressure although the threat is often enough l ti f lth h th th t i ft h
Special sanctionsExisting: New:• Adverse publicity arising • Enhanced name and shamefrom ASA adjudication on home page and dedicated section of ASA site• Pre-publication vetting by theCAP Copy Advice team • Removal of paid ads that link to non-complying content py g• Withdrawal of tradingprivileges, including trade • ASA paid search campaignbody benefits highlighting non-complying d ti advertiser• Withdrawal of media space• Referral to OFT under CPRs
Comprehensive review• Two-and-a-half years review; quarterly updates to CAP, ASA, Asbof y ;q y p , ,• To ensure ASA continues to work in the best interests of consumers and the marketing community• A pledge from the ad self-regulatory system to act, as appropriate, on significant comments• Write to: email@example.com
Extended Digital Online RemitAdvertisements and other marketing communications by or fromcompanies, organisations or sole traders on their own websites, or in p , g ,other non-paid-for space online under their control, that are directlyconnected with the supply or transfer of goods services goods, services,opportunities and gifts, or which consist of direct solicitations ofdonations as part of their own fund raising activities fund-raising activities.
Additional assessment criteria• These criteria may help identify ( y p y (but not necessarily determine) two y ) types of commercial communication that are intended to sell something.• Depending on context, an ad or other marcomm is likely to consist of commercial communication that:has appeared in the same or very similar form as an ad in 3rd party spacemay include, or make easily accessible, ‘an invitation to purchase’ (characteristics of a product + price)
The GMP• To assist the Executive in demarcating the boundaries between g marcoms and other communications e.g. editorial, investor relations etc• To provide practitioner insight and expertise in judging whether an ad or other marcom sets out to sell something• To help regulate content that can be properly accepted as falling within the remit of the ASA; an advertising regulator
“...directly connected with the supply ortransfer of goods”
BUT2.3Marketing communications must not falsely claim or imply that themarketer is acting as a consumer or for purposes outside its trade,business, craft or profession; marketing communications must makeclear their commercial intent, if that is not obvious from the context.
Remit: key points‘directly y connected with the supply or transfer of g pp y goods, services etc’ : ,• to ring-fence material which can be properly accepted as constituting an ad or other marcomm• to bear out the primary intent of marketing communications: to sell something• there are a myriad of different ways in which a marcom can sell something; it need not i l d a price or seek a short t thi d t include i k h t term fi financial i l transaction
“… or in other …non-paid-forspace onlineunder theircontrol”
User-generated content (UGC)User-generated content (UGC) is content created by privateindividuals.UGC falls within remit if the website owner adopts and incorporatesit within their own marketing communications.
2.3Marketing communications must not falsely claim or imply that themarketer is acting as a consumer or for purposes outside its trade,business, craft or profession; marketing communications must makeclear th i commercial i t t if th t i not obvious f l their i l intent, that is t b i from th context. the t t3.45Marketers must hold documentary evidence that a testimonial orendorsement used in a marketing communication is genuine, unlessit is obviously fictitious, and hold contact details for the person who, y , p ,or organisation that, gives it.
Content excluded from remit• Press releases and other public relations material p• Editorial content• Political advertisements• Corporate reports• Natural listings on a search engine or a price comparison site• “Heritage” advertising where that advertising is not part of the advertiser’s current promotional strategy and is placed in an appropriate context.
Content excluded from remit• Investor Relations: information about an organisation ( g (including its g goods or services) addressed to the financial community, including shareholders and investors, as well as others who might be interested in the companys stock or financial stability company s stability.• Content promoting ‘causes’ or ‘ideas’ (excluded by new remit which covers goods services opportunities and gifts only) but not content goods, services, only), that directly solicits donations as part of marketers’ own fund-raising activities.
Content excluded from remit• Marketing communications in foreign media. g g - But, the ASA may take what action it can against non- compliant ads that are published on non UK websites if: websites, they are targeted at UK consumers and y g the website is based in a country with which the ASA does not operate an effective cross-border complaints d t t ff ti b d l i t system.
Press releases and other public relationsmaterial
Heritage advertising e tage ad e t s gThe Code does not applyto:Heritage ads by or fromcompanies, organisationsor sole traders on theirown websites, or in othernon-paid for space onlineunder their control, wherethat advertising is notpart of their currentpromotional strategy andis placed in anappropriate context.
For the avoidance of doubt• The entirety of the CAP Code applies to marketing communications within the extended remit• The fact that website material constitutes an ad or a marketing communication does not mean that every or any part of the f communication raises relevant issues under the Code
1.818Marketing communications must comply with the Code.Primary responsibility for observing the Code falls onmarketers. Others involved in preparing or publishingmarketing communications, such as agencies, publishersand other service suppliers, also accept an obligation toabide by the Code.
What have people been complaining about?Total figures,1 Dec 2009 –1 Dec 2010
Complaints deemed outside the remit of the ASA,1 Dec 2009 – 1 Dec 2010
The consumer perspective:typical points of complaint yp p p
3.1Marketing communications must not materiallymislead or be likely to do so.
3.333Marketing communications must not mislead the consumerby omitting material information. They must not mislead by y g y yhiding material information or presenting it in an unclear,unintelligible, ambiguous or untimely manner.Material information is information that the consumer needsto make informed decisions in relation to a product. Whetherthe omission or presentation of material information is likelyto mislead the consumer depends on the context, themedium and, if the medium of the marketing communication andis constrained by time or space, the measures that themarketer takes to make that information available to theconsumer by other means.
3.9Marketing communications must state significantlimitations and qualifications. Qualifications mayclarify but must not contradict the claims that theyqualify.
3.17Price statements must not mislead by omission,undue emphasis or distortion. They must relate to theproduct featured in the marketing communication.
3.18Quoted prices must include non-optional taxes, duties, non optionalfees and charges that apply to all or most buyers.VAT-exclusive prices may be given only if all or mostconsumers pay no VAT or can recover VAT; marketingcommunications that quote VAT-exclusive prices mustprominently state the amount or rate of VAT payable ifsome consumers are likely to pay VAT.
3.7Before distributing or submitting a marketingcommunication for publication, marketers must holddocumentary evidence to prove claims thatconsumers are likely to regard as objective and thatare capable of objective substantiation. The ASA mayregard claims as misleading in the absence ofadequate substantiation.
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