HFSS advertising restrictions - experience to date and ... · Contents 1. Background 2. Data and Definitions 3. Trends in Children’s TV Viewing ... drink advertising (referred to

HFSS advertising restrictions -experience to date and next steps

12 December 2007

Stakeholder briefing

1

Contents

1. Background

2. Data and Definitions

3. Trends in Children’s TV Viewing

4. Trends in Core Category Impacts seen by Children

5. Media Spend

6. Conclusions and next steps

2

Background: current and planned restrictions

• Phase 1 (March 2007): – end to HFSS advertising in programmes made for / of particular appeal to children

aged 4-9 on all channels except children’s channels– on children’s channels, cut in HFSS advertising to 75% of 2005 levels (pro-rated)– Stricter content rules: any HFSS advertising targeted at primary school children must

not use celebrities and characters licensed from third parties (e.g. cartoons), refer to promotions (e.g. toys) or incorporate health or nutritional claims

• Phase 2 (January 2008): – extension of HFSS advertising restrictions to cover programmes made for / of

particular appeal to children aged 4-15 on all channels except children’s channels– on children’s channels, cut in HFSS advertising to 50% of 2005 levels

• Phase 3 (January 2009). End to all HFSS advertising on children’s channels.

• Definition: programmes of particular appeal to children are those where the proportion of children in the audience is 20% or more higher than their proportion in the available TV audience

3

Contents

1. Background




5. Media Spend


4

Data and definitionsData

• The data analysed in this report uses the Nielsen Media database and is based on all food & drink advertising (referred to as Core Categories). As this analysis does not specifically look at HFSS advertising there may be some Core Category advertising in children’s airtime as non-HFSS foods continue to advertise

• All analysis is based on April-September 2007, the first full six months since the restrictions came into operation. Comparisons made to the same period in 2005 and 2006

• Reliable, detailed data on food & drink advertising spend on the internet is not available

Definitions

• Core Category definition:– Total Food (including all sub-categories)– Total Soft Drinks (including all sub-categories)– Total Beverages (previously included in the Food category, now moved to Drinks category– Chain Restaurants– Analysis is based on Nielsen Media ‘product’ categories - a product category is allocated to

the product being advertised rather than the advertiser, for example an advertisement for Sainsbury’s chocolate is found in the product category ‘Food’ rather than ‘Retail’.

– see following slide for details• Impacts provide a measure of advertising exposure. One impact is equivalent to one member of

the target audience viewing one commercial spot

5

Definitions: Core categoriesNielsen sub-categories

02 FOOD 02 FOOD cont. 02 FOOD cont. 04 DRINK01 Bakery Goods 04 Dairy Products & Substitutes 08 Prepared & Convenience Foods 02 Soft Drinks05 Biscuits 05 Butter 05 Baby Foods 05 Soft Drink Mixer10 Bread & Bakeries 10 Cheese 10 Cereals(Ready To Eat) 07 Mineral Water15 Cakes & Fruit Pies 15 Cream & Substitutes 15 Cereals(Requiring Preparation) 10 Cordials20 Cakes (Frozen) 20 Eggs 20 Convenience Desserts 15 Fruit Juices/Still Fruit Drink25 Crispbread/Crackers 25 Margarine 25 Dehydrated,Canned Ready To Eat 20 Other Carbonated

02 Confectionery 30 Milk & Milk Products 27 Pizza - Frozen 25 Athletes/Health/Energy Drinks05 Cereal Bars 35 Yoghurt/Fromage Frais 30 Prepared Food Range 95 Soft Drinks Genl10 Chewing Gum 99 Dairy Range 35 Frozen Ready To Eat Meals 04 Beverages15 Chocolate-Bars & Countlines 06 Fruit, Vegetables, Pasta 40 Jam & Spreads 05 Coffee (Fresh)20 Chocolate-Boxed 15 Fruit(Fresh) 45 Soup (Canned) 10 Coffee (Instant)25 Chocolate-Other 25 Rice & Pasta(Dried & Fresh) 50 Soup (Packet) Dry & Fresh 15 Health Drinks30 Ice Cream & Lollies 30 Vegetables & Pasta (Canned) 55 Potato Crisps & Snacks 20 Tea35 Sugar Confectionery 35 Vegetables(Fresh) 56 Dips/Dippers Snacks 25 Other Beverages40 Mixed/General Confectionery 40 Vegetables(Frozen) 09 Organic Foods Rge

03 Cooking Products & Seasoning 07 Meat, Fish & Poultry 05 Organic Foods 30 RETAIL05 Cakes & Pastry Mixes 05 Bacon 99 Food Corporate 01 Entertainment & Leisure10 Condiments 10 Fish(Canned) 99 Food Corporate 15 Chain Restaurants15 Cooking Fats 15 Fish(Fresh & Frozen)25 Meat & Vegetable Extracts 20 Slice Meat,Meat/Fish Sprd,Pate30 Sauces (Cooking & Mixes) 25 Meat & Poultry(Canned)35 Sauces 30 Meat(Fresh & Frozen)46 Artificial Sweeteners 35 Meat Pies & Sausages

40 Poultry(Fresh & Frozen)

6

Definitions: Children’s airtime

Note: Children’s slots may vary throughout the year. Also, dayparts during which children’s programmes are shown may be treated as slots targeted at ‘housewives with children’ by advertising agencies based on the audience against which advertising is sold – we have included these dayparts based on the programming shown. Disney Channels do not carry commercial advertising.

Channels

CbeebiesCBBCBoomerangBoomerang +1Cartoon NetworkCartoon Network PlusCartoon Network TooCITVDiscovery KidsJetixJetix+1Nick JrNick Jr 2NickelodeonNickelodeon ReplayNicktoonsDisney CinemagicDisney Cinemagic +1Disney ChannelDisney Channel +1Toon DisneyPlayhouse DisneyTroubleTrouble +1POPTiny POPToonami./Cartoonito

2005 2006 2007ITV1 Mon-Fri 1515-1700 ITV1 Mon-Fri 1500-1630 ITV1 Sat 0600-1200ITV1 Sat 0600-1300 ITV1 Sat 0600-1130 ITV1 Sun 0600-1130ITV1 Sun 0600-1100 ITV1 Sun 0700-1030

C4 Mon-Fri 0600-0700 C4 Mon-Fri 0600-0700 C4 Mon-Fri 0600-0700C4 Sat 0600-0700 C4 Sat 0600-0700 C4 Sat 0600-0700C4 Sun 0600-0700 C4 Sun 0600-0700 C4 Sun 0600-0700

Five Mon-Fri 0630-0930 Five Mon-Fri 0600-0900 Five Mon-Fri 0600-0900Five Sat 0700-1330 Five Sat 0700-1130 Five Sat 0700-1000Five Sun 0630-1230 Five Sun 0600-1230 Five Sun 0600-1000

7

Definitions: Channel groups

Music channelsB4 MTV R

Bliss MTV Two

Bubble Hits Musflash TV

Channel Fizz Music Choice

Channel U p-rock

Chart Show TV Q Channel

Classic FM TV Rockworld TV

Flaunt Scuzz

Kerrang Smash Hits

Kiss TV The Box

MTV Base The Hits

MTV Dance The Vault

MTV Flux TMF

MTV Hits VH1

MTV One VH1 Classic

PSB and PSB related digital channels (spin-off channels)

BBC ITV Channel 4 Five

BBC1 ITV1 Channel 4 FiveBBC2 ITV2 Channel 4+1 Five Life

BBC3 ITV2 +1 Film4 Five Life +1

BBC4 ITV3 Film4 +1 Five US

BBC News 24 ITV3 +1 FilmFour Extreme Five US +1

CBBC ITV4 FilmFour Weekly

Cbeebies ITV Play FilmFour World

BBC Parliament CITV E4

E4+1

More4

More4 +1

8

Contents

1. Background




5. Media Spend


9

Viewing to non-terrestrial channels has increased year-on-year across both dedicated children’s channels and ‘adult’ channels

Average hours of television viewing per week

Source: BARBNote: Minor variations due to rounding

Total 14.5 14.6 14.7 14.4 14.8 15.0 14.6 14.4 14.4

Children 4-15 Children 4-9 Children 10-15

1.7 1.7 1.6 1.5 1.5 1.4 1.9 1.9 1.80.7 0.6 0.6 0.6 0.6 0.6 0.7 0.6 0.61.8 1.6 1.6 1.6 1.6 1.4

1.9 1.7 1.7

1.0 1.0 0.9 0.6 0.7 0.7

1.3 1.3 1.20.6 0.5 0.5 0.6 0.5 0.5

0.6 0.5 0.4

4.2 4.3 4.6 5.9 5.8 6.4 2.7 2.8 2.9

4.6 4.8 4.9 3.6 3.9 4.05.6 5.5 5.8

Apr-Sep2005

April-Sept2006

April-Sept2007

Apr-Sep2005

April-Sept2006

April-Sept2007

Apr-Sep2005

April-Sept2006

April-Sept2007

Hou

rs o

f vie

win

g pe

r wee

k

Other - All otherchannelsOther - DedicatedChildren's ChannelsFive

Ch4 + S4C

ITV1

BBC2

BBC1

10

The increase in non-terrestrial viewing during ‘adult’ airtime has been driven by the increase in viewing to PSB digital channels – at the same time viewing to music channels has fallen

0.2 0.2 0.3 0.1 0.2 0.2 0.2 0.2 0.30.6 0.7

1.0

0.40.6 0.8 0.7 0.9

1.20.6 0.5

0.4

0.30.3

0.3 0.8 0.70.6

3.3 3.33.2

2.72.9 2.7

3.9 3.73.6

Apr-Sep2005

April-Sept2006

April-Sept2007

Apr-Sep2005

April-Sept2006

April-Sept2007

Apr-Sep2005

April-Sept2006

April-Sept2007

Hou

rs o

f vie

win

g pe

r wee

k

All other

Music channels

Commercial PSBspin offs ex.Children's

BBC spin offs ex.Children's

Average hours of television viewing per week : Non terrestrial channels excluding Children’s Channels

Children 4-15 Children 4-9 Children 10-15

Source: BARBNote: Minor variations due to rounding

11

Contents

1. Background




5. Media Spend


12

Has exposure to Core Category television advertising changed?

13

Core Category impacts fell 20% from 8bn in 2005 to 6.4bn in 2007- driven by 59% decline in children’s airtime

2.8 2.51.2

5.1 5.3

5.2

Apr- Sept 05 Apr – Sept 06 Apr-Sept 07

Impa

cts

(bn)

Children’s Airtime Other Airtime

Core Category Impacts: Children 4-15

8.0bn 7.9bn

6.4bn

Source: Nielsen MediaNote: Minor variations due to rounding

14

2.8 2.51.2

5.1 5.3

5.2


Impa

cts

(bn)




8.0bn 7.9bn

6.4bn

0.6 0.3 0.04

2.2 2.21.1

3.22.9

2.8

1.9 2.5

2.4


Impa

cts

(bn)

Children’s - Terrestrial Children’s – Non-TerrestrialOther - Terrestrial Other – Non-Terrestrial

8.0bn 7.9bn

6.4bn

Core Category impacts fell 20% from 8bn in 2005 to 6.4bn in 2007- driven by 59% decline in children’s airtime- and in particular in children’s non-terrestrial airtime (49%)

15

2.8 2.51.2

5.1 5.3

5.2


Impa

cts

(bn)



8.0bn 7.9bn

6.4bn


0.6 0.3 0.04

2.2 2.21.1

3.22.9

2.8

1.9 2.5

2.4


Impa

cts

(bn)


8.0bn 7.9bn

6.4bn

Core Category impacts fell 20% from 8bn in 2005 to 6.4bn in 2007- driven by 59% decline in children’s airtime- and in particular in children’s non-terrestrial airtime (49%)

Core Category impacts increased by 26% in ‘adult’ non-terrestrial airtime

16

The fall in CC impacts was higher for 4-9 year olds: - minus 27% between 2005-7- especially in children’s airtime (minus 57%)


Children aged 4-9 % change (05 vs 07)

% change (06 vs 07)

Change in Core Category impacts-26.9

All terrestrial -32.4 -18.5

All non-terrestrial -23.1 -31.7

-56.8

+0.4

-92.2

-46.8

Other Airti

All Airtime

me - Terrestrial -13.0 -7.2

+24.0

-26.8

Children’s Airtime -51.5

Other Airtime -8.2

Children’s Airtime – Non-Terrestrial -46.9

Other Airtime – Non-Terrestrial -9.5

Children’s Airtime - Terrestrial -84.40.4 0.2

1.41.4

1.21.2

1.1

0.7 1.0

0.9

0.8


Impa

cts

(bn)


3.8bn 3.8bn

2.8bn


17

Children aged 10-15 % change (05 vs 07)

% change (06 vs 07)

Change in Core Category impacts-13.0

All terrestrial -23.0 -3.8

All non-terrestrial -2.3 -15.5

-62.7

+2.6

-94.9

-52.9

Other Airtime - Terrestrial -14.4 +0.5+30.9

All Airtime -10.2

Children’s Airtime -56.0

Other Airtime +2.0

Children’s Airtime – Non-Terrestrial -52.6

Other Airtime – Non-Terrestrial +3.6

Children’s Airtime - Terrestrial -86.3

0.2 0.1

0.8 0.8

2.01.7

1.7

1.21.5

1.6

0.4


Impa

cts

(bn)


4.2bn 4.1bn3.7bn


The fall in CC impacts was lower for 10-15 year olds: - minus 13% between 2005-7- especially in children’s airtime (minus 63%)


18

Which channels are driving the increase in Core Category impacts seen during ‘adult’ non-terrestrial airtime?

19

PSB spin-off channels and music channels are behind the growth in impacts on non-terrestrial ‘adult’ channels between 2005-2007

28.3% 30.9%

113.5% 114.4%

42.5%35.4%

2.0% 4.8%

Children 4-15 Children 10-15

% c

hang

e in

impa

cts

Total non-terrestrial 'other' PSB Spin-offs Music channels All other non-terrestrial channels

Change in Core Category impacts on non-terrestrial channels: April-Sept 05 vs April-Sept 07

Source: Nielsen Media – analysis excludes dedicated children’s channels

Apr-Sept 2007 2.4bn(100%) 821m (34%) 267m (11%) 1,360m(56%) 1.6bn(100%) 532m (34%) 185m(12%) 848m (54%)impacts:

20

However, between 2006 and 2007 the growth in impacts delivered on music channels appears to have slowed down while impacts continue to grow on PSB spin offs

-1.5%

3.6%

57.1%63.3%

-0.3% 2.8%

-19.7% -15.5%

Children 4-15 Children 10-15

% c

hang

e in

impa

cts

Total non-terrestrial 'other' PSB Spin-offs Music channels All other non-terrestrial channels

Change in Core Category impacts on non-terrestrial channels: April-Sept 06 vs April-Sept 07

Source: Nielsen Media – analysis excludes dedicated children’s channels

Apr-Sept 2007 2.4bn(100%) 821m (34%) 267m (11%) 1,360m(56%) 1.6bn(100%) 532m (34%) 185m(12%) 848m (54%)impacts:

21

Top 20 rating programmes on PSB digital channels: Children 4-15

Source: BARB – April-Sept 2007, based on multichannel individuals 1. 1. Where BARB data indicates the child component of the audience is 20% higher than its representation in the total viewing population, the programme is deemed to be of particular interest to children.

Title Channel Average Audience (000s) Index1

FILM: WILLY WONKA AND THE CHOCOLATE FACTORY ITV3 274 153THE X FACTOR ITV2 244 110BIG BROTHER'S BIG MOUTH E4 207 81XTRA FACTOR ITV2 194 96KATIE & PETER: THE BABY DIARIES ITV2 178 79HOME AND AWAY Five Life 166 111KATIE AND PETER: THE NEXT CHAPTER ITV2 165 71HOLLYOAKS E4 144 78FILM: CHITTY CHITTY BANG BANG ITV3 144 163MEN IN BLACK (TOON) ITV2 143 96AMERICA'S GOT TALENT (2007) ITV2 130 78FRIENDS E4 129 145BRITAIN'S GOT MORE TALENT ITV2 125 80UGLY BETTY E4 116 96FILM: LETHAL WEAPON 3 ITV2 113 86FILM: COYOTE UGLY ITV2 107 68FILM: SPACE JAM (1996) ITV2 102 150FILM: THE MUMMY RETURNS ITV2 99 89FILM: THE FLINTSTONES ITV2 98 131FILM: SISTER ACT ITV2 97 102

22

Between 05-07 CC impacts have increased across almost all dayparts- with above average increases during daytime and late night

Change in Core Category impacts by daypart: Children 4-15, April-September 05 vs April – September 07

-19.6-13.9

28.3

-60.0

-40.0

-20.0

0.0

20.0

40.0

All airtime 'Other' -Terrestrial

'Other' -Non

terrestrial

% c

hang

e in

impa

cts

Source: Nielsen Media

-6.1

42.7

61.7 61.2

40.0

5.2

55.746.5

147109 120 103 120

764

283 258

-60.0

70.0

0600

-0929

0930

-1229

1230

-1514

1515

-1659

1700

-1759

1800

-2059

2100

-2229

2230

-2959

% c

hang

e in

impa

cts

0

100

200

300

400

500

600

700

800

900

Cor

e C

ateg

ory

impa

cts

(milli

ons)

% change Impacts

23

Contents

1. Background




5. Media Spend


24

Core Category advertising spend has increased since 2005- Television’s share of spend has fallen from 68% to 64%

11.0 10.7 15.544.7 45.2 49.7

73.7 99.4 92.418.5

15.7 14.3

314.3304.8 310.7

April-Sept 2005 April-Sept 2006 April-Sept 2007

Med

ia s

pend

, £m

TV

Radio

Press

Outdoor

Cinema


Core Categories: Spend by media

2.4% 2.2% 3.2%9.7% 9.5% 10.3%

15.9% 20.9% 19.1%4.0%

3.3% 3.0%

68.0% 64.1% 64.4%

April-Sept 2005 April-Sept 2006 April-Sept 2007

Sha

re o

f med

ia s

pend

, %

£462m £476m £483mCore Categories: Share of spend by media

25

Cereal and dairy product manufacturers have increased total media spend since 2005

47.3 39.1 44.8

70.4 75.9 67.2

73.6 69.2 69.5

47.1 52.8 59.919.7 17.8 15.528.0 44.2 35.8

66.976.1 80.7

109.2100.9 109.3

Apr-Sep 2005 April-Sept 2006 April-Sept 2007

Tota

l med

ia s

pend

, £m

All other food

Dairy Products

All other Prep & Conv

Savoury Snacks

Cereals

Confectionery

Soft Drinks

Chain Restaurants


£462m £476m £483m

Total media spend by sub-category

26

The marginal growth in television spend between 2006-7 was driven by categories such as meat/fish/poultry and bakery goods

33.6 25.3 26.0

44.637.8 32.3

45.447.7 47.4

41.045.0 46.4

14.1 11.0 9.8

15.6 23.6 22.7

48.3 55.3 56.6

71.6 59.1 69.4

Apr-Sep 2005 April-Sept 2006 April-Sept 2007

Tele

visi

on s

pend

, £m

All other food

Dairy Products

All other Prep & Conv

Savoury Snacks

Cereals

Confectionery

Soft Drinks

Chain Restaurants

£314m £305m £311m

Television advertising spend by sub-category


+1.9%

+17.6%

+2.3%

-3.6%-10.3%

+2.9%

-0.5%

-14.6%

+2.5%

Includes:Bakery goods +44.4%Fruit & veg +19.2%Meat, fish & poultry +154.3%

27

Contents

1. Background




5. Media Spend


28

Conclusions

• Core Category impacts fell by 20% between April-September 2005-2007, driven by the 59% decline during children’s airtime:– Impacts during children’s airtime on the terrestrial channels have fallen to a negligible

amount – Accompanied by a marked decline in impacts on dedicated children’s channels

• There has been an increase in exposure during ‘adult’ non-terrestrial airtime

• The fall in impacts has been greater amongst children aged 4-9• the 57% decline in 4-9 year old impacts during children's airtime contributed heavily to

the overall 27% decline in exposure among this group– the increase in exposure during ‘adult’ airtime has been driven by the non-terrestrial

channels

• 10-15 year old Core Category impacts fell 13% – impacts during children’s airtime have dropped 63% – there has been a 31% rise during ‘adult’ airtime on non-terrestrial channels

29

Conclusions

• Entertainment channels are driving the increase in exposure to Core Category advertising on non-terrestrial channels

– PSB digital channels and music channels have been behind the growth in impacts on non-terrestrial ‘adult’ channels

– However, between 2006 and 2007 the growth in impacts delivered on music channels appears to have slowed down while impacts continue to grow on PSB spin offs

– This is in line with trends in television viewing as children have been increasing the time spent watching PSB digital channels since 2005 with a marginal drop in viewing to music channels

• Non-terrestrial ‘adult’ airtime activity has increased between 2005-2007 across almost all dayparts with above average increases during daytime and late night

30

Next steps

• Phase 2 (January 2008) will extend the restrictions to cover advertising in programmes aimed at older children and further reduce the amount of HFSS advertising allowed on children’s channels. Phase 3 (January 2009) will eliminate HFSS advertising from children’s channels

• Ofcom will continue to monitor effects of these restrictions, and will share the results with stakeholders. In particular, we shall look closely at:

– what the trends are in HFSS advertising in adult airtime before 9pm, and what effects these are having on children’s exposure to HFSS advertising

– the distribution of HFSS advertising across different types of channel

• Ofcom will be carrying out a review of its restrictions in July 2008 (see following slide)

31

Ofcom’s review

• Scheduling restrictions are achieving the objective of reducing significantly the number of HFSS product advertising impacts (i.e. each occasion when a viewer sees an advert) among children aged 4-15 years

• The impact on broadcasters has been broadly consistent with the effects that both Ofcom and the broadcasters expected

• Scheduling restrictions and revised content rules are being implemented as intended, or whether unexpected difficulties have emerged in interpretation, implementation and enforcement

• Advertisers are evading the spirit of the restrictions, by airing advertising and sponsorship in the names of brands commonly associated with HFSS products in children’s airtime

• Advertisers have (contrary to our expectations) significantly increased the amount of HFSS advertising and sponsorship in periods outside children’s airtime, at times when significant numbers of children may be watching

2008 review to look at whether:

32

Other reviews

• Department of Health has commissioned consultants (Thomson Intermedia) to look broadly at expenditure and advertising behaviour across all media. Includes work on the techniques adopted by advertisers in TV and other media

• Aim is to publish a report during 2008, with a progress report in the next few weeks

• FSA has commissioned an independent panel to review the nutrient profiling scheme. The panel has held a number of meetings, and has taken evidence from stakeholders.

• Further meetings are planned during the course of 2008, leading to a recommendation from the panel to the FSA in early 2009. The FSA will then consider the recommendations before reaching a conclusion, probably in the first quarter of 2009

Food Standards Agency

Department of Health

Documents

HFSS advertising restrictions - experience to date and ... · Contents 1. Background 2. Data and Definitions 3. Trends in Children’s TV Viewing ... drink advertising (referred to