European Advertising Rules - Essay Example

Case Study It is clear from the case study and related literature that Europe's advertising market has long awaited revision. In the case that is presented, European advertising rules that have been in place for 16 years are the subject of a proposed overhaul. However, Europe's biggest television group-RLT-claims that the proposed overhaul of the current advertising rules is not satisfactory. The current setup has restrictions that advertisers would like to see removed, and the European Commission proposed doing so (Lainer, 2005). To the disappointment of advertisers, however, the European Commission also wanted to reduce the amount of advertising times during children's and news programs. In addition, the European Commission desired to confine isolated spot advertisements to short time slots during sports programs only (Lainer, 2005). According to Lainer (2005, pg. 1), "We are truly disappointed. We think they have missed an opportunity really to modernise advertising rules in a fast-moving environment with new technologies and competition." As previously mentioned, RLT is Europe's largest television group, having 32 stations in all. These include France's M6 and the United Kingdom's Channel Five. According to Lainer (2005, pg. 1), "Traditional commercial broadcasters pressed for more flexibility in using commercials amid increased competition for advertising. They also say tougher rules on commercials during children's and news shows could endanger programmer-making in these fields. The growth of digital channels, web-based TV and viewers' commercial skipping devices have fragmented audiences and challenged the core advertising-driven business of traditional free-to-air broadcasters." The European Commission stands up for itself by claiming that they tried to support traditional commercial broadcasters as much as possible when they were writing their proposal. A couple of things it proposed that would support advertisers include allowing them to have commercials during the first 20 minutes of television shows-which they currently cannot do-and allow for product placement in television shows. The proposal of the addition of product placement sparked much criticism, where some individuals feared that television in the UK would become commercial-soaked like it is in the United States (Lainer, 2005). One of the major forces impacting the European advertising industry is the European Advertising Standards Alliance. According to EASA (2008, pg. 1), "The European Advertising Standards Alliance (EASA) is a non-profit organisation based in Brussels. EASA brings together national advertising self-regulatory organisations (SROs) and organisations representing the advertising industry in Europe. EASA is, on behalf of the advertising industry, the single authoritative voice on advertising self-regulation issues and promotes high ethical standards in commercial communications by means of effective self-regulation, while being mindful of national differences of culture, legal and commercial practice." The advertising industry in Europe faces a number of key challenges today. Among these are socially responsible advertising. According to Perez-Latre (2003, pg. 1): In recent years, the European advertising industry has made a clear self-control effort since its goal is to provide a solid alternative to more governmental advertising regulation. But the last change in the European Commission's Directive, "Television without Frontiers" (COM/2002, 6.I. 2003), has provoked fresh thinking. Today's main controversial topics are alcohol advertising, time constraints for advertising on television, norms on interactive television, sponsoring, self-promotion, teleshopping, and other advertising/programming content. Extreme commercialization of television programs is having an impact: Clutter has increased to levels that are unbearable for viewers. Pretty much every European Union market is regulated with regard to its advertising industry. Children's advertising is particularly affected. For instance, in Belgium, advertisers cannot run advertisements that are directed towards children during children's programming. The advertisement of toys is banned in Greece between 7:00 and 10:00 p.m. Unsolicited advertising via email, fax, or telephone is banned in Austria (Perez-Latre, 2003). Another challenge that the European advertising industry is facing is the rapidly-spreading anti-globalization movement. These tend to spotlight their doings. "They blame advertising for spreading throughout the lifestyles and consumption patterns of the developed world. Such patterns are not sustainable, because they lead impoverished nations to spend too much and create artificial needs among their citizens. Here indeed lies a paradox. The persuasion industry needs to persuade all parties about its capacity to implement effective ethical codes and solve this major reputation problem" (Perez-Latre, 2003). There are various examples of self-regulation efforts in Europe. These include the IAP in Italy, the JEP in Belgium, the ASAI in Ireland, and the ASA in Great Britain. However, it may make more sense at this point for the advertising industry to put more effort into making sensible and acceptable commercials than to focus all efforts on regulation and blocking laws (Perez-Latre, 2003). Another big challenge for the advertising industry in Europe is the need for education. In every profession that one can possibly think of, the most successful individuals are often highly-educated and well-trained. This is not, however, necessarily true for professionals within the advertising industry. The educational levels for these professionals differ from the norm. According to Perez-Latre (2003, pg. 1): Practitioners are frequently arbitrary and irresponsible, to a large extent because they lack serious education. That is the reason why they tend to live in their particular world, following trends that are imitated again and again, and more inclined to think about the ideas they believe will be winning in the next advertising festival than to understand their public. Today almost anybody may be working in advertising. If, as EACA's manifesto says, a leap "from a trade to a profession" is to be made, the role of education cannot be underestimated. To become a socially esteemed profession, advertising education must be university-level or it will not be the education that advertisers, markets and citizens deserve. Another challenge for the European advertising industry is responsible communication. This is particularly true for educational campaigns in developing countries in the region, as can be seen in the challenge that was presented above. It all boils down to corporate responsibility. Advertising good products with adequate support is also very important. The idea is for brands to have images that have positive outcomes on the economy, social systems, civic systems, and ecology of European nations (Perez-Latre, 2003). The European Commission wants to reduce the amount of advertising times during children's programs. This can, in turn, have an effect upon the advertising of breakfast cereal product to children. There has often been controversy surrounding the marketing of products to children. Children are especially vulnerable to commercials aimed at them and have a tendency to bother their parents to buy a particular product until the parents simply give up and give in. This is true regardless of whether or not a particular product is good for children. Take, for example, the case where a United Kingdom advertising industry watchdog came down on Kellogg's for misleading consumers into thinking that their Frosties brand cereal-aimed at children-was healthy and good for them. Their advertisements featured children playing football, as if the cereal was healthy enough for them to make them athletes, or at least energetic and well. The ASA considered the complaint, and they ended up upholding it because they found out that Frosties contained a high level of sugar (Food Navigator, 2004). Also according to Food Navigator (2004, pg. 1), "Consumer groups welcomed the adjudication that finally responded to mounting evidence showing that advertising influences the foods that children choose to eat. The UK magazine, that since 1957 has been fighting for consumer rights, added it wants to see the government using the opportunity presented by the forthcoming Public Health White Paper to include advertising restrictions on foods high in fat, sugar and salt during children's' viewing times." It is believed that advertising breakfast cereals targeted at children has played a large role in today's obesity epidemic. According to Food Navigator (2004, pg. 1), "If the government is serious about curbing the obesity epidemic it has to lose the couch potato approach towards companies misleading parents who are trying to encourage their children to eat more healthily." Although sales of healthy cereals have grown steadily throughout the past few years, the growth associated with chocolate-type breakfast cereals marketed towards children has grown even more. "Despite repeated pledges to tackle the problem, many of the big brand breakfast cereals on supermarket shelves in the UK still contain excessive levels of sugar, salt and fat. Of most concern, according to Which, were the cereals marketed to children. Out of the 28 cereals investigated by the Consumers' Association, some 32 per cent contained 40 per cent of sugar or more and 64 per cent contained 'a lot' of salt" (Food Navigator, 2004, pg. 1). The European advertising market is attempting to make decisions that are in line with other nations throughout the world. According to Willenz (2004, pg. 1), "Research shows that children under the age of eight are unable to critically comprehend televised advertising messages and are prone to accept advertiser messages as truthful, accurate and unbiased. This can lead to unhealthy eating habits as evidenced by today's youth obesity epidemic. For these reasons, a task force of the American Psychological Association (APA) is recommending that advertising targeting children under the age of eight be restricted." Approximately $12 billion per year is spent on advertising that is aimed directly at members of our youth. On average, children watch over 40,000 commercials each per year. "The six-member team of psychologists with expertise in child development, cognitive psychology and social psychology found that children under the age of eight lack the cognitive development to understand the persuasive intent of television advertising and are uniquely susceptible to advertising's influence" (Willenz, 2004, pg. 1). Adults and older children have the ability to decipher messages encoded in commercials and understand that some of their claims may be misleading or exaggerating. However, younger children do not have this ability. They tend to watch television commercials and interpret everything that is said within them as the truth (Willenz, 2004). According to research conducted by Willenz (2004, pg. 1), "Because younger children do not understand persuasive intent in advertising, they are easy targets for commercial persuasion. This is a critical concern because the most common products marketed to children are sugared cereals, candies, sweets, sodas and snack foods. Such advertising of unhealthy food products to young children contributes to poor nutritional habits that may last a lifetime and be a variable in the current epidemic of obesity among kids." Research studies have shown that commercials that are directed at children really do usually result in a purchase for that child. When it comes to the type and brand of product selected, "the findings show that children recall content from the ads to which they've been exposed and preference for a product has been shown to occur with as little as a single commercial exposure and strengthened with repeated exposures" (Willenz, 2004, pg. 1). When children watch commercials that are targeted at them, they form product preferences. These, in turn, affect the requests for purchases that they bring to their parents. This results in their parents feeling pressured to purchase a particular product. If the parents delay or deny their children's request to purchase a particular product after they have been exposed to the commercials that were targeted towards them, it can cause conflicts to occur between the children and their parents. This can lead to serious family issues (Willenz, 2004). There are a number of recommendations provided by the APA, which could be followed by the European Commission. According to Willenz (2004, pg. 1), these are: Restrict advertising primarily directed to young children of eight years and under. Policymakers need to take steps to better protect young children from exposure to advertising because of the inherent unfairness of advertising to audiences who lack the capability to evaluate biased sources of information found in television commercials. Ensure that disclosures and disclaimers in advertising directed to children are conveyed in language clearly comprehensible to the intended audience (e.g., use "You have to put it together" rather than "some assembly required"). Investigate how young children comprehend and are influenced by advertising in new interactive media environments such as the internet. Examine the influence of advertising directed to children in the school and classroom. Such advertising may exert more powerful influence because of greater attention to the message or because of an implicit endorsement effect associated with advertising viewed in the school setting. According to Lainer (2005, pg. 1), "The growth of digital channels, web-based TV and viewers' commercial skipping devices have fragmented audience and challenged the core advertising-driven business of traditional free-to-air broadcasters." This statement is true. With the advent of these new technologies, fewer and fewer viewers are actually being exposed to the commercials that the advertising industry is putting on the airwaves. The first public service television station in the United Kingdom was the BBC. Now, that number has grown. Currently, in addition to the BBC, there is ITV, Channel Five, Channel Four, and Public Teletext. Most of the funding for these stations comes from advertising dollars. They are able to broadcast their programmes to a wide audience, but it comes at a price. They have to provide programming that meets certain requirements. According to Earnshaw (2004, pg. 1), these programmes must: inform, educate and entertain; offer something for everyone through a wide range of programmes across the five public service television providers; be of a high standard, both in terms of the content of the programmes and the way they are made; include drama, comedy, music, feature films, news and current affairs (both national and international), sports and leisure, educational programmes, science, religion and other beliefs, social matters, programmes for children and young people; reflect the different communities and cultural interests of the UK; and be made across the UK, not just within the London metropolitan region. Public service broadcasting has certain aims and values that it wishes to provide to the public. Of course, they strive to provide entertaining programmes to viewers, as well as valuable information. The advent of the aforementioned new technologies provides a serious challenge to the European advertising network, as well as to the individual television stations, as they receive their funding from advertisements (Earnshaw, 2004). If public service broadcasting is going to provide the aforementioned accommodations to their viewers, as well as to remain in widespread existence, there are certain things that they must strive to maintain. These include universal access; quality; distinctiveness, range, and diversity; and independence and impartiality (Earnshaw, 2004). Earnshaw (2004, pg. 1) lists a number of requirements for a future digitally connected world: 1. The End User device should accept transmissions of unscrambled content without the need for a smart card or other means of determining entitlement 2. The platform should handle broadcast transmissions using current legacy transmission standards in a fair and reasonable manner. That is, the devices should allow the user to store the content for private use. 3. The platform should enforce copy restrictions on scrambled and unscrambled content where appropriate. 4. The platform should enforce content transfer restrictions on scrambled and unscrambled content where appropriate. 5. Copy restrictions between receivers (content transfer restrictions) should be capable of recognising regional broadcast boundaries. These are usually drawn along political or cultural regional boundaries. 6. Copy restrictions between receivers (content transfer restrictions) should be capable of being set to 'prohibited' for some content to honour normal copyright rules. 7. Receiver devices within a broadcast region should be homogeneous from the broadcaster's perspective. (The platform should not be fragmented in terms of encryption standards or key management systems but instead offer a common broadcast system for the initial reception and de-scrambling of content). 8. The device should honour the range of agreed standardised usage and copy rules. 9. The device should not tamper with or degrade any (industrially recognised) embedded copyright information, e.g. a watermark. 10. The device should not allow the addition of further usage restrictions of public service or free to air content by proprietary RMP components. The Fair Use Act also affects the statement that was mentioned at the beginning of this section. The Fair Use Act contains several different provisions. First of all, it states that teachers can make copies of works that are audiovisual in nature. This includes events where they need to go around copyright rules to do so. The only catch is that the materials must be used for educational purposes only. Second, "Individuals can circumvent any technology that would force them to watch commercials or offensive content (whether a Web page qualifies as an "audiovisual work" in this context may become a re-opened debate). This will be extremely important news to content producers, who have claimed in recent years that commercial skipping mechanisms such as those used on TiVo devices enable users to effectively break the terms of their contract with TV services, constituting not only a breach of contract but, as some executives have argued, outright theft of service (Fulton, 2007, pg. 1). People can also get around copyright laws if they download AV files for use in their own home networks. This protection does not extend to files they then upload to the entertainment. People who are seeking work in the public domain can also get around copyright protection. The same goes for people in journalism provided they are seeking the information for news reporting. Finally, copyright protection does not apply to those individuals who are simply making backup copies of work that they have previously downloaded (Fulton, 2007). Lanier (2004) claimed in her case study article that certain things fragmented audience members and challenged the core advertising-driven business of traditional free-to-air broadcasters. Among the items listed were digital channels, web-based television, and viewers' commercial skipping devices. It is true that the advent and growth of these new technologies is causing a number of severe challenges to arise for the advertising industry throughout the world, including Europe. The television stations that are located throughout Europe largely depend on advertising dollars not only to thrive, but to survive. That said, the new technologies mentioned above only threaten the advertising industry, as well as the television networks themselves. Without viewers being able to watch the commercials, they will not have those crucial advertising dollars upon which they depend to survive and come out ahead in today's brutal marketplace. This is true both for Europe, and all throughout the world. Europe fears becoming commercial-soaked like the United States. References Advertising watchdog upholds complaint on breakfast cereal. (2004). Food Navigator. Retrieved August 8, 2008, from http://www.foodnavigator.com/Legislation/Advertising-watchdog-upholds-complaint-on-breakfast-cereal Earnshaw, N. (2004). Consideration of public service and free to air broadcasting in the United Kingdom. The Digital Media Project. Retrieved August 8, 2008, from http://64.233.167.104/searchq=cache:ZS95pIWoIFcJ:www.dmpf.org/open/dmp0055.doc+free-to-air+broadcasting&hl=en&ct=clnk&cd=2&gl=us EASA. (2008). European Advertising Standards Alliance. Retrieved August 8, 2008, from http://www.easa-alliance.org Fulton, S.M. III. (2007). Boucher DMCA exemption bill would legalize commercial-skipping. Beta News. Retrieved August 8, 2008, from http://www.betanews.com/article/Boucher_DMCA_Exemption_Bill_Would_Legalize_CommercialSkipping/1172707864 Lainer, S. (2005). Case study. Retrieved August 10, 2008, from http://www.ft.com Perez-Latre, F.J. (2003). Advertising with a conscience. Media Ethics Magazine. Retrieved August 8, 2008, from http://media.www.mediaethicsmagazine.com/media/storage/paper655/news/2003/12/30/Analysescommentary/Advertising.With.A.Conscience-644606.shtml Willenz, P. (2004). Television advertising leads to unhealthy habits in children says APA task force. APA. Retrieved August 10, 2008, from http://www.apa.org/releases/childrenads.html Read More