The Marketing Manager's Yearbook 2006
The Changing Face of Advertising Regulation
Claire Forbes, Director of Communications
Advertising Standards Authority (ASA)
For many consumers, advertising is the most conspicuous part of the marketing
mix. Advertising, by its very nature, is designed to attract attention.
Research by the Advertising Standards Authority (ASA) shows that many ad
campaigns are enjoyed for their humour and valued for the information they
provide. But growing public concern about binge drinking, obesity and
advertising to children also means that the medium is in the spotlight more
than ever before. It’s the role of the Advertising Standards Authority to
ensure that advertising in the UK conforms to standards of truthfulness,
decency and social responsibility.
The way in which advertising is regulated in the UK changed markedly in 2004
when a one-stop shop for all advertising complaints was established, under the
banner of the Advertising Standards Authority. The ASA had already been
responsible for regulating the content of non-broadcast advertising since 1962.
The new one-stop shop meant that broadcast advertising – i.e. radio and
television advertising content – was added to the ASA’s regulatory
remit.
Hasn’t the ASA always regulated broadcast advertising?
Historically, advertising in the UK has been controlled through a combination
of statutory and self-regulatory methods. Since the introduction of television
in the UK, statutory controls on advertising in both that medium and radio have
existed. But 45 years ago, worried that governmental regulatory creep might
extend to other forms of advertising, the ad industry decided to take matters
into its own hands and set up a system of self-regulation for non-broadcast
advertising. A body called the Committee of Advertising Practice (CAP), formed
of representatives from all aspects of the advertising industry, was created in
1961 and drew up a set of guidelines for advertising content to comply with. In
1962, it decided that for the system to be seen as credible, an independent,
arbitrary body was needed to enforce the advertising code and the ASA was
created.
For over four decades, this system of advertising regulation persisted;
broadcast advertising controlled by statute (with separate radio and television
regulators) and the self-regulatory system for non-broadcast advertising. 2003
saw the creation of Ofcom, a new super-regulator responsible for all
communications regulation, whose remit included responsibility for broadcast
advertising control. Recognising the effectiveness of the existing
non-broadcast advertising self-regulatory system, and noting that many
consumers already believed the ASA regulated television and radio advertising
content, Ofcom took the decision to contract out broadcast advertising control
and day-to-day responsibility for advertising complaints to the ASA. This
change was approved by Parliament and the ASA opened its door as the regulator
for all advertising complaints on 1 November 2004. Ofcom retains its position
as the statutory controller of broadcast advertising matters, and acts as the
ASA’s legal backstop when enforcing broadcast advertising issues.
How and what does the ASA regulate?
The ASA is committed to maintaining the highest standards in UK advertising
content. It is responsible for ensuring that advertising meets the requirements
laid down in the advertising codes. The ASA’s remit extends to cinema,
radio, television and print ads; leaflets, circulars, commercial e-mails,
paid-for advertising online, commercial text messages and direct mail.
Behind the ASA’s one-stop shop front is a complex system of regulation
comprising several different organisations. These organisations have broadly
three main functions: responsibility for writing and enforcing the advertising
codes; consideration of complaints about advertising complaints and financing
the advertising regulatory system.
ASA - Advertising Standards Authority
As the public face of the self-regulatory system, the ASA is the body
responsible for deciding whether or not advertising is compliant with the
advertising codes. The ASA Council - a body of fifteen people, the majority of
whom are free from advertising interests - makes these decisions, led by the
ASA Chairman, Lord Borrie Q.C.
CAP – Committee of Advertising Practice
This is the body responsible for writing and enforcing the non-broadcast
advertising code - the CAP Code (the British Code of Advertising, Sales
Promotion and Direct Marketing). CAP enforces ASA decisions and also offers
guidance to the advertising industry. It offers a confidential free,
pre-publication copy advice service to both advertisers and publishers.
BCAP – Broadcast Committee of Advertising Practice
This is the broadcast equivalent of CAP and comprises advertisers, agencies and
broadcasters. BCAP is responsible for the broadcast advertising codes and
enforces ASA rulings.
AAC – Advertising Advisory Committee
Under the contract of co-regulation agreed between the ASA and Ofcom, an expert
panel of consumer representatives needs to be consulted on any changes that may
be made to broadcast advertising rules. The AAC was formed in 2004 and is
chaired by Elizabeth Filkin.
Asbof – Advertising Standards Board of Finance
Asbof is responsible for the financing of the self-regulatory system through a
0.1% levy that on display advertising and direct mail. Asbof gives the ASA a
steady income stream that keeps the ASA at arms length from its funders.
Basbof – Broadcast Advertising Standards Board of Finance
Basbof funds broadcast advertising co-regulation by a levy on advertising
airtime costs. Basbof’s contribution to the ASA’s income keeps the
ASA’s decision making independent of the broadcasters advertisers who
help to fund it.
How does the system work?
The primary function of the self-regulatory system is responding to complaints
about advertising content. In 2005 the ASA received over 26,000 complaints from
people concerned that advertising had either misled or offended them.
Approximately three quarters of the complaints directed to the regulator are
about misleading advertising, although it tends to be complaints about
offensiveness that grab the headlines. About 10% of the complaints received are
competitor complaints or from informed pressure groups.
The ASA considers every complaint that it receives, though it will only pursue
those complaints that it considers raise a valid point. Advertisers are given
the opportunity to respond to the complaints that have been made, before the
ASA Council considers the matter, assessing compliance against the relevant
advertising code. The Council’s adjudications are published online at
www.asa.org.uk, are regularly reported in the press and widely read by
consumers, Government and consumer representatives.
Do advertisers have to comply with ASA adjudications?
The ASA is recognised by the Courts as being the established means of
advertising content control. Though we are not a statutory body, we can rely on
our self-regulatory partners, through CAP and BCAP, to help ensure that
problematic advertising is removed. Publishers, broadcasters and media owners
will refuse to accept an ad they know the ASA has ruled against.
In extreme situations, the ASA can resort to its legal backstops; Ofcom for
broadcast matters and the Office of Fair Trading for misleading non-broadcast
advertising issues.
How is advertising regulation changing?
Advertising is so powerful, that it is often seen as a contributory factor for
problems in society, including binge drinking and obesity. Advertisers need to
ensure they are aware of public policy concerns and any likely changes to the
advertising codes as a result.
Alcohol and food
In 2004 Ofcom issued new rules for alcohol advertising on television. These
rules were developed following research indicating that advertising has some
influence on young viewers’ attitudes to drinking, albeit at a relatively
low level compared to those other factors. CAP also tightened up the rules for
non-broadcast advertising, ensuring that there would be a consistency in
approach across all media. The new rules became effective in October 2005 and
will ensure that ads don’t appeal to young people under the legal
drinking age.
The advertising of food is under the spotlight in 2006, with a public
consultation expected in this area and new rules for food advertising expected
to be in place by 2007.
New media
As it gets harder to reach target audiences, advertisers have to become ever
more resourceful to try to reach consumers. More and more advertisers are
looking beyond the traditional media formats to reach their potential
customers. The self-regulatory system has to be able to keep up with this
trend, ensuring that it is able to regulate the various forms of new media used
by both consumers and advertisers. For example, steps are currently being taken
to bring viral marketing within the ASA’s remit, to ensure that
advertising material downloaded from the internet conforms to the same
standards as other advertising media. Consumers expect all advertising to be
honest and truthful and the self-regulatory system plays a vital role in
maintaining consumer trust in the ads they see around them every day.
How to keep in touch
The self-regulatory system is in touch with public concerns, responsive to the
changing face of advertising and committed to delivering an effective service.
The system also offers pre-publication help and advice to advertisers, agencies
and publishers. Advice is available via the AdviceOnline database on the CAP
website – www.cap.org.uk – or from the Copy Advice team on 020 7492
2100. CAP publishes help notes on specific advertising topics, and has launched
a series of training workshops covering specific advertising issues. More
information is available on the CAP website, where you can also sign up to
receive copies of Update@CAP - a free quarterly newsletter providing news and
analysis of ASA rulings and their significance.
Claire Forbes
Biography
Claire Forbes is Director of Communications at the Advertising Standards
Authority (ASA) where she leads the ASA’s PR and marketing activity.
Prior to joining the ASA in 2001, Claire worked as Corporate Communications
Manager at the Chartered Institute of Marketing (CIM) in Berkshire, where she
managed all CIM’s communications, including Marketing Business, the
CIM’s magazine.