DISCUS Code of Responsible PracticesDISCUS Code of Responsible Practices

Self-Regulation and the New Media Landscape

Self-Regulation and the New Media Landscape

New Social Media:

Opportunities and Challenges

2012 NABCA Legal Symposium 1

Proactively Addressing the New Media Landscape

• Connecting to your constituents• Connecting to your licensees• Connecting to your community

and• Connecting to your customers

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Social Media: A New Way to Connect

Strong Voluntary Code Revised as Social Mores and Technology Change

• Core principles steadfast:

– To market our products to adults 21 years of age and older in a responsible and appropriate manner

• Proactively engage digital media experts

• Responsible content/placement provisions

• Detailed media “buying” guidelines

• Consult with online demographic data sources

• Regular meetings with social media cos.

Establishing Code compliant tools 3

New Media -- Same Principles

Oct-11

Nov-11

Dec-11

New Internet/Digital Media Buying Guidelines

• Issued internet buying guideline used across entire industry—effective Jan. 1, 2008

• Applies to all forms of digital media– Videos, pop-ups, blogs, and more

• Use Nielsen or comScore data to place ads• Requires independent demographic survey

for unmeasured digital media• Post audits to verify Code compliance

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LPA 21+ Audience Compliance (%) - Nielsen and comScore Data

Twitter Facebook Google YouTube

Nielsen comScore Nielsen comScore Nielsen comScore Nielsen comScore

87.5 77.5 82.8 80.6 81.8 77.6 81.2 76.5

86.7 76.5 82.4 80.3 81.4 77.6 80.8 76.6

87.0 80.6 82.9 82.8 81.7 78.8 81.2 79.5

Results of Proactive Outreaches

Constantly Evolving to Address the Future

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Pioneering Social Media Tools

The Facebook Page Terms require that all content on a Page that is advertising in nature (such as commercial content) must comply with the Advertising Guidelines, which includes the Facebook minimum age targeting for alcohol ads and Alcohol-Related Page & Application Setting:

Anyone of Legal Drinking Age (as determined by Page Settings) will be able to see their friends’ engagement with Beverage Alcohol Brands. Anyone under Legal Drinking Age will not be able to see their friends’ engagement with Beverage Alcohol Brands.

This is addressed in Facebook Page Terms: http://www.facebook.com/terms_pages.php

Facebook Pages: Alcohol Settings

A21+:

Registered & Logged In

Sees Omlie’s Gin Brand Channel Ad

Types in www.YouTube.com/O

mliesGin

<21:

Registered & Logged In

Will not see Omlie’s Gin Ads

Types in www.YouTube.com/O

mliesGin

User Flow Brand Channels for Non-Customized Gadgets

A21+:

Registered & Logged In

Clicks on PV ad driving to watchpage

Clicks on PV ad driving to channel

<21:

Registered & Logged In

Clicks on PV ad driving to watchpage

Clicks on PV ad driving to channel

User Flow Example: Promoted Videos

Effective September 30, 2011 9

New DISCUS Social Media Marketing Guidelines

A Printing Press/TV Set of Today’s VintageA Printing Press/TV Set of Today’s Vintage

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Who Is Currently Online?

Nielsen June - August 2011

Online Reach % by Age Group

Total Under 21 21 - 34 35 - 49 50+0%

20%

40%

60%

80%

100%

78.3%

59.1%

85.0% 87.4% 83.5%

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Age 21+ Online Usage Exceeds 80%

Online ActivityHH:MM per Person by Age Group

Nielsen June - August 2011

Total Under 21

21 - 34 35 - 49 50+0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

24:40

10:56

29:53 29:2525:53

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Monthly Time Online ~ 30 Hours

• Search/Portals/Communities: 27%• Entertainment: 21%• Telecom/Internet Services: 14%• Commerce: 5%• Computers/Consumer Electronics: 5%• News/Information: 4%• All Other: 24%

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How Time Is Spent

Facebook ActivityHH:MM per Person by Age Group

Nielsen June - August 2011

Total Under 21 21 - 34 35 - 49 50+0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

5:48

3:47

6:56 6:52

5:16

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Age 50+ FB Time Up 53% in 2 Years

YouTube ActivityHH:MM per Person by Age Group

Nielsen June - August 2011

Total Under 21 21 - 34 35 - 49 50+0.00

0.50

1.00

1.50

2.00

2.50

1:301:49

2:05

1:26

0:52

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More Than 1 ½ Hours on YouTube

Twitter @ 87.1%

Facebook @ 82.7%

Google @ 81.6%

YouTube @ 81.1%

Nielsen October – December 2011 16

Social Sites 21+ Composition

Responsible Digital Marketing Communications Guidelines

DISCUS

BASIC PRINCIP

LES

Intended for LPA

Media site should be

71.6% LPA

Direct interaction w/

user = Age Affirmation(mm/dd/yyyy)

User-Generated Content must be monitored and moderated on regular basis

Instructions to “Not Forward Downloaded Content to

Under LPA”

Respect User Privacy

Transparent as brand

marketing

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About the Digital Marketing Guidelines

• An important supplement to the DISCUS Code

• Guidelines ‘principles-based’

– Will be reviewed regularly and updated as needed

– Recognition that new technology trends are likely to occur rapidly

• Scope: based upon what we can control

– Applies to branded digital marketing communications (paid and unpaid)

– Social networking sites, blogs, mobile communications, apps, websites

• Global in application

– Digital media easily transcends geographic boundaries

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Basic Principle 1: Intended for Adults LPA+

Foundation of the DISCUS Code

Over 76 Years of Advertising Self-Regulation 19

Basic Principle 2: 71.6% Placement Standard

71.6% LPA+ Compliant

Less Than 71.6% LPA - No Placement 20

Basic Principle 3: Age Affirmation Before Direct Interaction on Controlled Sites (Month/Day/Year)

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Basic Principle 3: Age Affirmation Before Direct Interaction on Controlled Sites (Month/Day/Year)

• Direct interaction is a two-way communication between the user and brand advertiser on a site or web page controlled by the advertiser

• Occurs when the user affirmatively interacts with the brand advertiser, such as responding to a direct communication from the brand advertiser

– User sends content (personal information, text, video, rich media, etc.) to a brand controlled site

– Brand advertiser sends content to an individual user (e-mail, custom content, etc.)

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Under LPA: Redirect to a Responsibility Sitecenturycouncil.org/acceptresponsibility.org

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User clicks to follow @JackHoney

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Account: Jack Daniels Tennessee Honey

User receives email verification from @JackHoney

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Email Verification

User verifies date of birth and country

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Age Verification Landing Page

User receives confirmation that they can continue following tweets from @JackHoney

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Age Verification Confirmation

Basic Principle 4: Monitor/Moderate User-Generated Content

• User-generated content (UGC) on a site or web page controlled by the advertiser must be monitored and moderated on a regular basis

• UGC on a site controlled by a brand should be monitored each business day or, at a minimum, every 5 business days

• If content is inappropriate, material should be removed promptly

• Notify users that all inappropriate content will be removed

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What do we delete?• Offensive comments

• Sexually explicit language

• Comments regarding overconsumption and/or illegal activity of any kind

• Comments that degrade or demean the human form, image or status of women, men or the members of any group based on race, religion, ethnic background, sexual orientation, or any other minority status

• Language or images that also are inconsistent with other provisions of the Code

Overconsumption References to Drugs

Basic Principle 4: Monitor/Moderate User-Generated Content

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Basic Principle 4: Monitor/Moderate Photos and Videos

Overconsumption

Underage in Video Posted by LPA user Provocative Content

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What do we delete?

Basic Principle 5: Do Not Forward to Those Underage

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Basic Principle 6: Privacy

• The handling and protection of sensitive personal information that individuals provide in the course of every day transactions

• The exchange or use of data electronically or by any other means, including telephone, fax, written correspondence, and even direct word of mouth

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What Does Privacy Involve:

• User information collected from LPA+ only

• Opt-in before receiving a direct digital marketing communication and opt-out to discontinue receiving those communications

• No information collected will be sold nor shared with third parties unrelated to the brand advertiser

• Privacy policy prominently displayed and simple to understand

• Consumers know who to contact if they have any questions/concerns

What We Do Under Our Guidelines:

Basic Principle 6: Privacy

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Basic Principle 7: Transparency of Brand Marketing

• Consumers must know they are reading/viewing brand advertising

– Brand pages

– Blogs: whose blog is it?

• FTC’s 2009 Guides Concerning the Use of Endorsements and Testimonials in Advertising [FTC.gov]

– Be careful when soliciting endorsements; disclosure is important

• Key: clearly identify communication by any employee or anyone hired by brand

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Reaching the “Always” Connected ConsumerMobile Is a Multi-Channel Medium

MMS/Picture MessagingShortcode/Text/SMS Mobile Internet

Apps Mobile Video

Growing List of New Technologies Require New Ways to Audit and Control for LPA Audience

QR Codes • Third-party tools or source measurements

• Ability to employ age gatingMobileCouponing

iPad

LocationTargeting

Downloading the App

Age Affirmation Page

After the Age Gate

Southern Comfort

Mobile: Acessing Websites Via Smartphones

Chambord

Mobile Banners for iPhone and iTouch

Restricted with LPA age gate screen

If a beverage alcohol marketer wishes to report claims of intellectual property infringement (i.e., non-copyright) by a Facebook user on an Opinion Page, Facebook’s automated IP infringement form can be accessed here: www.facebook.com/legal/copyright.php

Facebook Pages: Protecting Intellectual Property

YouTube Trademark Policy

• Buying for Radio• Buying for Television – Broadcast and Cable• Buying for Print – Magazine and Newspaper• Product Placements in Cinema and Broadcast• Buying for Digital Media• Social Networking Sites: Demographic Tools & Beyond• Emerging Marketing Platforms (smartphones and more)

2006, 2008, 2010, 2011 Best Practices Media Summits

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• Link to the Code for rapid consideration of any questions/complaints• Educate constituents about the Code and its review process• Utah/Nevada Attorneys General link to the DISCUS Code along with 15 State ABCs, the

FTC, NCSLA, and NABCA

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For more about the Code: http://www.discus.org/responsibility/code.asp

Linking to the DISCUS Code