Digital advertisingPresented by Malcolm Phillips, Code Policy Manager, CAP

P&G23 March 2011

This morningThis 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 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 t thf l’ d f d th ttruthful’ and fund the system

• Mandatory Codes, written by two Committees of Advertising Practice (CAP and BCAP), maintain standards for consumer protection and ( ), pfair competition

• Independent ASA adjudicates on complaints and monitors compliancecompliance

• 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 complaintsResolving complaints

As part of the Process Review the ASA has undertaken to “target aAs part of the Process Review, the ASA has undertaken to target a

meaningful and measurable increase in the proportion of cases that

can legitimately be resolved informally to effect quicker resolution ofcan legitimately be resolved informally to effect quicker resolution of

issues for the benefit of all parties”

A Comprehensive SystemA Comprehensive System

• Complaints and Investigations – public and industry

• Pre-publication advice (Copy Advice on non-broadcast)

• Monitoring and complianceMonitoring and compliance

• Code policy – Broadcast Code interpretation (not copy advice)

• ResearchResearch

• Advice, training and guidance

The CAP CodeThe CAP Code

• Not just a Code for content and placement, but also addresses:

• administration of prize promotions

• database practice

The existing digital remitThe existing digital remit

Display advertising

Paid search

The existing digital remitThe existing digital remit

Online video

SMS

I d

The CAP Code applies to:

I d

The CAP Code applies to:

Advertisements in non-broadcast electronic media, including but not li it d t li d ti t i id f (i l di blimited to: online advertisements in paid-for space (including banner or pop-up advertisements and online video advertisements); paid-for search listings; preferential listings on price comparison sites; viral advertisements; in-game advertisements; commercial classified advertisements; advergames that feature in display advertisements; advertisements transmitted by Bluetooth; advertisements distributed y ;through web widgets and online sales promotions and prize promotions

Digital remit extension: Digital remit extension: what happened on 1 what happened on 1 March 2011 – and whyy

Why extend the digital remit of the Why extend the digital remit of the CAP 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

BackgroundBackground

• Vast majority of marketing communications comply with the Codesj y g p y

• Primary SR objective: to maintain and improve standards and not simply to punish (prevention preferable to cure)simply to punish (prevention preferable to cure)

• Objective underpinned by an effective range of industry-backed sanctionssanctions

• Emphasis on persuading marketers to comply with the Codes; l ti f lth h th th t i ft hescalation of pressure although the threat is often enough

Special sanctionsSpecial sanctionsExisting: New:

• Adverse publicity arising from ASA adjudication

• Enhanced name and shame on home page and dedicated section of ASA site• Pre-publication vetting by the

CAP Copy Advice team

• Withdrawal of trading

section of ASA site

• Removal of paid ads that link to non-complying content• Withdrawal of trading

privileges, including trade body benefits

p y g

• ASA paid search campaign highlighting non-complying d ti• Withdrawal of media space

• Referral to OFT under CPRs

advertiser

Comprehensive reviewComprehensive review

• Two-and-a-half years review; quarterly updates to CAP, ASA, Asbofy ; q y p , ,

• To ensure ASA continues to work in the best interests of consumers and the marketing communityand the marketing community

• A pledge from the ad self-regulatory system to act, as appropriate, on significant commentson significant comments

• Write to: codepolicy@cap.org.uk

Extended Digital Online RemitExtended Digital Online Remit

Advertisements and other marketing communications by or from

companies, organisations or sole traders on their own websites, or inp , g ,

other non-paid-for space online under their control, that are directly

connected with the supply or transfer of goods servicesconnected with the supply or transfer of goods, services,

opportunities and gifts, or which consist of direct solicitations of

donations as part of their own fund raising activitiesdonations as part of their own fund-raising activities.

Additional assessment criteriaAdditional assessment criteria

• These criteria may help identify (but not necessarily determine) two y p y ( 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 space

may include, or make easily accessible, ‘an invitation to purchase’ (characteristics of a product + price)

The GMPThe GMP

• To assist the Executive in demarcating the boundaries between gmarcoms 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 or transfer of goods”

Customer reviews Outside Remit– Outside Remit

BUTBUT

2.3

Marketing communications must not falsely claim or imply that the

marketer is acting as a consumer or for purposes outside its trade,

business, craft or profession; marketing communications must make

clear their commercial intent, if that is not obvious from the context.

Directly connected with supply of Directly connected with supply of service

Remit: key pointsRemit: key points

‘directly connected with the supply or transfer of goods, services etc’ :y pp y g ,

• to ring-fence material which can be properly accepted as constituting an ad or other marcomman ad or other marcomm

• to bear out the primary intent of marketing communications: to sell somethingsomething

• there are a myriad of different ways in which a marcom can sell thi it d t i l d i k h t t fi i lsomething; it need not include a price or seek a short term financial

transaction

“… or in other … or in other non-paid-for space online space online under their control”control”

User-generated content (UGC)User-generated content (UGC)

User-generated content (UGC) is content created by privateUser-generated content (UGC) is content created by private

individuals.

UGC falls within remit if the website owner adopts and incorporates

it within their own marketing communications.

UGC – adopted by marketerp y

Facebook, UGC and CRMand CRM

Facebook, CRM and marketing

Facebook, CRM d k ti iiand marketing ii

UGC – In remit

2.3Marketing communications must not falsely claim or imply that theMarketing 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 makel th i i l i t t if th t i t b i f th t tclear their commercial intent, if that is not obvious from the context.

3.45Marketers 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 remitContent excluded from remit

• Press releases and other public relations materialp

• Editorial content

• Political advertisements

• Corporate reports• 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 remitContent excluded from remit

• Investor Relations: information about an organisation (including its g ( ggoods or services) addressed to the financial community, including shareholders and investors, as well as others who might be interested in the company's stock or financial stabilityin the company s stock or financial stability.

• Content promoting ‘causes’ or ‘ideas’ (excluded by new remit which covers goods services opportunities and gifts only) but not contentcovers goods, services, opportunities and gifts only), but not content that directly solicits donations as part of marketers’ own fund-raising activities.

Content excluded from remitContent 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:compliant ads that are published on non UK websites, if:

they are targeted at UK consumers and y g

the website is based in a country with which the ASA d t t ff ti b d l i tdoes not operate an effective cross-border complaints system.

Press releases and other public relations Press releases and other public relations material

Heineken – Corporate site

Heritage advertisinge tage ad e t s gThe Code does not apply to:

Heritage ads by or from companies, organisationscompanies, organisations or sole traders on their own websites, or in other non-paid for space onlinenon-paid for space online under their control, where that advertising is not part of their currentpart of their current promotional strategy and is placed in an appropriate context.

Investor relationsInvestor relations

For the avoidance of doubtFor the avoidance of doubt

• The entirety of the CAP Code applies to marketing• 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

fcommunication does not mean that every or any part of the

communication raises relevant issues under the Code

1 81.8Marketing communications must comply with the Code.Primary responsibility for observing the Code falls onPrimary 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.

The consumer perspective: The consumer perspective: trends in complaintstrends in complaints

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 20101 Dec 2009 – 1 Dec 2010

The consumer perspective: The consumer perspective: typical points of complaintyp p p

3.1

Marketing communications must not materially

mislead or be likely to do so.mislead or be likely to do so.

3 33.3Marketing communications must not mislead the consumer by 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 needs to make informed decisions in relation to a product. Whether the omission or presentation of material information is likely to mislead the consumer depends on the context, the medium and if the medium of the marketing communicationmedium and, if the medium of the marketing communication is constrained by time or space, the measures that the marketer takes to make that information available to the consumer by other means.

3.9Marketing communications must state significantMarketing communications must state significant limitations and qualifications. Qualifications may clarify but must not contradict the claims that they qualify.

3.17Price statements must not mislead by omission,Price statements must not mislead by omission, undue emphasis or distortion. They must relate to the product featured in the marketing communication.

3.18Quoted prices must include non-optional taxes, duties,Quoted prices must include non optional taxes, duties, fees and charges that apply to all or most buyers. VAT-exclusive prices may be given only if all or most consumers pay no VAT or can recover VAT; marketing communications that quote VAT-exclusive prices must prominently state the amount or rate of VAT payable ifprominently state the amount or rate of VAT payable if some consumers are likely to pay VAT.

3.7Before distributing or submitting a marketingBefore distributing or submitting a marketing communication for publication, marketers must hold documentary evidence to prove claims that consumers are likely to regard as objective and that are capable of objective substantiation. The ASA may regard claims as misleading in the absence ofregard claims as misleading in the absence of adequate substantiation.

Getting Getting help and help and staying informed

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occasions.

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campaigns in the context of:

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• Advertisers seeking advice on individual marketing communications on theirmarketing communications on their website may continue to use CAP’s free Copy Advice service.

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Q&AQ&A