The value of Advertising...

Mr Stéphane Martin,

GM ARPP (FR)

11th April 2016, Athens

The value of Advertising Self-regulation

and

its European dimension

2

1. The challenges of self- regulation

3

The French Industry Association For Responsible Advertising

ARPP (ex BVP) was created in 1935 by the Advertising

industry: advertisers, advertising agencies and medias

Since 1992, ARPP clears all TV advertising before

broadcast

The ARPP is financed and managed by the advertising

industry

ARPP is chaired by an independent personality:

François d’Aubert, former Minister

ARPP employs 20 full time staff members

ARPP is certified ISO 9001 since July 2012

1st challenge: Seeking the right balance between Consumer’s protection and Advertising business models preservation…

ARPP gathers the whole value chain of the advertising industry, from advertisers and their agencies, to the medias, including RTB actors, Digital sales houses… and also law firms!

ARPP is solely financed and entirely managed by the advertising industry.

ARPP contributes to the consumer protection and awareness ….

… While preserving the industry from excessive or irrelevant legislation

Decent, honest, truthfull advertising All consumers can bring cases to an independent Jury if an ethic rules seems to be not respected

Professionnals need fair, clear, relevant, creative and flexible rules.

2nd Challenge: Being flexible…

• The real challenge consists in fitting with the strong evolution of the industry.

• Professional rules are freely decided by the

industry, hence naturally respected.

• Professional rules are fastly adopted when necessary, in complement or beyond the law.

• Professional rules are part of international rules

(ICC Code, EASA BPR…), and Self-Regulatory Organizations are present in most of democratic countries.

3rd Challenge: Being creative with the rules…

• Relevant rules, shared best practices, that usefully fulfill some lacks of regulations

• Fitting with new technologies,

formats, supports, actors…

• Drafted by professionals for professionals.

2. ARPP: the main missions

Three main missions

Elaborate Self-regulatory codes

Secure their proper implementation

(copy advice/pre-clearance)

Receive and handle consumer’s complaints

(through our Jury –JDP-)

Elaborate Self regulation Codes

Scope of ARPP Codes:

•Industry sectors: alcoholic drinks, hygiene and

beauty products, automotive, toys, financial services,

consumer credit

•Medias: Internet, TV, outdoor, press, telephone

advertising

•Main topics: children, image of the human being,

races-religions-minority groups, security, etc.

•Technical matters: corrective statements (legal

notes), identification of the adverts…etc.

Secure Proper Implementation And

Handle Complaints

Before broadcasting: copy advice and pre-clearance

-ARPP reviews all media projects: non binding copy advice (for members only)

-ARPP clears all TV commercials with a mandatory and binding

advice (Pre-clearance)

After broadcasting or publication:

-ARPP handles all the complaints submitted by consumers, consumer associations, public bodies or industry competitors and transmits them to the JURY (JDP)

- ARPP can decide, on its own, to intervene on a specific ad

- ARPP conducts and publishes monitorings on specific themes such as the image of human being or environment in advertising…

ARPP Monitorings

ASSOCIATED BODIES

The JURY: JDP. Handles complaints after broadcast or publication. This covers all media. Website: www.jdp-pub.org where adjudications are available online

CPP: committee that gives voice to consumer and environnemental associations on issues concerning advertising and new Codes

CEP: committee that leads reflections and studies on advertising and its role and responsability in french society.

3. The European Alliance: EASA

The Netherlands

Italy

Germany UK Spain Belgium

Hungary

Portugal

Poland

Greece

Czech Rep. Etc…

Ireland

Sweden Romania

Austria Cyprus Turkey

Annex 2 ICC CODE: The need to support and combine efforts with any relevant self-regulatory bodies set up by the industry should be underscored. When established with the means to be effective, such schemes multiply the value of self-regulation. Consultation of self-regulatory decisions and copy advice facilities can also provide deeper understanding of interpretation matters. Article 25 ICC Code : Marketers, communications practitioners or advertising agencies, publishers, media owners and contractors should ensure an appropriate means exists for consumers to make a complaint and that consumers can readily be aware of it and use it easily. Article 26 ICC Code : No marketer, communications practitioner or advertising agency, publisher, media owner or contractor should be party to the publication or distribution of an advertisement or other marketing communication which has been found unacceptable by the relevant self regulatory body. All parties are encouraged to include in their contracts and other agreements pertaining to advertising and other marketing communication, a statement committing the signatories to adhere to the applicable self-regulatory rules and to respect decisions and rulings made by the appropriate self-regulatory body.

Funding and SRO support

EASA’s BPR on SRO Funding : Adequate and properly resourced long-term funding is essential to enable self-regulatory

systems and SROs to comply with EASA’s Best Practice Model. EASA - A Statement of Common Principles and Operating Standards of Best Practice: Self-regulatory systems must be sufficiently resourced and supported to be able to meet their objectives. Industry members should ensure adequate moral and financial support for advertising self-

regulation and its implementing organizations. EASA Best Practice Self-Regulatory Model : Effective self-regulation is the best means of maintaining the freedom to advertise and freedom has a price. Self-regulation is not a cut-price option: it can function effectively only if it is properly funded. A self-regulatory system requires a robust method of funding involving the commitment of all the parties involved in the various sectors of commercial communications. It is important that such a method is sustainable, i.e. affordable and not extravagant, but it should also be buoyant, i.e. so designed that it cannot be placed in jeopardy by the unilateral action of any company or industry sector. Finally, the funding method should be indexed to ensure that it keeps pace with increased costs and reflects changes in the advertising market. A levy system based on a small percentage of all advertising expenditure has been found to be a very satisfactory way of fulfilling all these criteria.

Funding and SRO support

Why responsible advertising isn’t luxury during a socio-economical turmoil:

Freedom of commercial speech and respect of consumer freedom

for an economical and moral recovery

APRIL 2016, Athens

63

7. Self-regulation in the Digital Environment

ARPP

« Digital Advertising »

Code

ARPP Recommendation « Digital Advertising »:

Main rules:

Identification of advertising

Identification of advertiser

Protection of children and teenagers

Taste and decency

Fair, Honest and truthfull advertising

User Generation Content

End user compliance (UX)

ms

Specific rules:

1/ Advergame

2/ Applications

3/ Promotional Blogs / Sponsored-Posts / Promotional Foru

4/ Emails/ SMS / MMS

5/ Gamification

6/ In-game Advertising

7/ Paid-for links

8/ Native advertising

9/ Connected objects

10/ Behavioral advertising and retargeting

11/ Augmented reality

12/ Social Network

13/ VOD / Connected television

14/ Teasing

15/ Virtual world

16/ Viral

Identification of advertising

Compliant « Sponsored

by… »

« In partnership

with… »

« Promoted by… »

« Advertising »

Identification of advertising

Compliant

“Native advertising covers all advertising

formats that adopt or are closely integrated

within the design and appearance of the

website on which they are displayed.”

Promoting substitution solutions of an ad by another ad (based on the Adblock technology).

Fair competion issues Some examples :

o Converse operation « #TheTicket », o Time Out Paris o The Ad Filter

Fair competition

Fair competition

Définition :

“Behavioural advertising refers to the practice of collecting information over time on users’ online activities across multiple (unaffiliated) websites/applications in order to create interest segments or to allocate such viewing behaviour into interest segments for the purposes of delivering advertisements tailored to a web user’s inferred interests and preferences.”

Online behavioural advertising (OBA) & retargeting

YOUR ONLINE CHOICES

Online behavioral advertising (OBA) & retargeting

In-app advertising & advertising for applications

• Identification of the advertising

• End user compliant

• Children protection

• Fair & honest (ex : if addons are not free but

the app is presented as free on the online

store)

.

Applications :

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Example :

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8. Education and training

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The importance of Education

EASA created 3E modules

ARPP delivers trainings in schools, colleges, and in agencies

or at advertisers

ARPP organizes events to promotes self regulatory rules and achivements

3E EDUCATION MODULES :

• Created by American Professor ARTHUR POBER

•A lot of ad examples

• Small groups : interactivity

• Engage discussions

• Encourage reactions and debates

• Trainer must know how to stay quiet and let trainees speak

Thank you for your attention! For more information: EN/FR

www.arpp.org www.jdp-pub.org www.cep-pub.org www.cpp-pub.org @smartinarpp

via Eleni Donta, info@see.gr T. +30 210 68 99 331