Topics
With regard to television and radio sales houses' core activity – the sale of advertising space – the Audiovisual Media Services Directive (AVMSD) sets minimum rules governing all aspects of the industry. For sales houses, this piece of European law is central to their operations. It sets:
Broadcasters continue to innovate by providing audiences with creative ways to enjoy content in a fashion that appeals to how consumer habits are changing in this new, converged era. While broadcasters are embracing this new reality, there are challenges that are presented by a converged audiovisual landscape. As a consequence, broadcasters are competing for users’ attention with a whole variety of services. The use of other devices at the same time as television, and the potential temporary abandonment of television services, can reduce television’s unique appeal for the advertising industry and thereby result in funding problems for premium content.
For egta, the issue of data protection relates to the consumer’s information, especially in the field of online behavioural advertising (OBA). The practice of advertising based on users’ interests is a proven technique to engage with Internet users who have a genuine interest in particular product categories, and it will therefore often produce a higher ROI than other forms of advertising for brands.
Alcoholic drinks are not ordinary consumer goods. When inappropriately consumed, there is a potential for abusing alcoholic beverages, which can lead a small proportion of the population and particularly vulnerable people to dependence and/or harmful conduct. For these reasons, legislative measures have governed the advertising of alcoholic beverages in Europe for the last 15 years. Many of these EU-wide restrictions were established by the Television without Frontiers Directive, strengthened in the AVMSD, and many Member States have taken additional restrictive measures. In addition, the advertising industry polices itself thanks to agreed standards that are designed to eliminate inappropriate advertising and to initiate a range of socially responsible messages preventing any abuse of alcohol.
egta issue brief on alcohol advertising
During the last few years, the debate on the rising level of obesity across Europe has provoked calls for restrictions on the advertising of foods high in fat, salt and sugar that are particularly directed at minors.
The Audiovisual Media Services Directive sets a total ban on television advertising for medicines and medical treatments under prescription and broadens its application to all commercial communications (including sponsorship and product placement) in any audiovisual service, including on-demand services. Combined with the Medicinal Products Directive, this bans any commercial communication featuring corporate brands for prescription-only medicines.
The advertising or sponsorship of tobacco products is banned across the European Union through both the Tobacco Advertising Directive and the Audiovisual Media Services Directive. They prohibit cross-border tobacco advertising and sponsorship in media. The ban covers television, print media, radio, and Internet. It also includes sponsorship of events involving several Member States (MS), such as the Olympic Games and Formula One races, and the free distribution of tobacco is also banned at such events.
Compulsory/warning messages are often used by legislators as a means to inform and protect consumers. However, this generally disregards several practical issues.
The fast-paced progress of online technology, with the development of mobile phones and smartphones, tablets and digital TV, goes hand-in-hand with an increase in the offer and use of online gambling services in Europe. With close to 7 million EU consumers participating in online gambling services, the EU online gambling market represents 45% of the world market share. In 2008, online gambling accounted for annual revenues of €6.16 billion, and available figures projected that figure to double to €13 billion in 2015.
Retransmission disputes between broadcasters and cable operators have become increasingly public in recent years, and now the situation of must carry vs. must offer and retransmission payments is becoming more topical in many EU Member States, with both broadcasters and governments looking at implementing new rules that could greatly affect broadcasters and in turn potentially consumers.
To help drivers choose new cars with low fuel consumption, EU Member States are required to ensure that relevant information is provided to consumers, including a label showing a car's fuel efficiency and CO2 emissions. This can be provided at the point of sale and includes labels, guidance on fuel economy and promotional literature.
Advertising helps European citizens make informed decisions on the vast array of products and services available to them across the European market. To that extent, it is a central element in the establishment of an efficient single market, and it deserves much attention from European institutions. The business of television and radio advertising sales houses is consequently directly impacted by EU regulations.
The Audiovisual Media Services Directive
With regard to television and radio sales houses' core activity – the sale of advertising space – the Audiovisual Media Services Directive (AVMSD) sets minimum rules governing all aspects of the industry. For sales houses, this piece of European law is central to their operations. It sets:• advertising time limitations
• rules on the insertion of advertising breaks
• it provides legal clarity on emerging forms of advertising such as product placement
• rules on protection of minors
• strict rules on alcohol advertising
• rules on the insertion of advertising breaks
• it provides legal clarity on emerging forms of advertising such as product placement
• rules on protection of minors
• strict rules on alcohol advertising
As with other EU Directives, Member States have to adapt their national legislations accordingly, but they are also free to take more restrictive measures than those stipulated in the Directive itself.
In 2015, the European Commission announced that an evaluation with a view to a revision of the AVMSD would be taking place, with a proposal expected in 2016. The AVMSD is undergoing a REFIT (Regulatory Fitness and Performance programme) exercise, which includes studies regarding alcohol advertising, advertising self-regulation and advertising rules.
egta has been in close contact with the European Commission & the other EU institutions to put forward our view that they need to consider a future-proof piece of legislation.
egta guide on understanding the AVMSD - available upon request; click here to learn more.
Media convergence
Broadcasters continue to innovate by providing audiences with creative ways to enjoy content in a fashion that appeals to how consumer habits are changing in this new, converged era. While broadcasters are embracing this new reality, there are challenges that are presented by a converged audiovisual landscape. As a consequence, broadcasters are competing for users’ attention with a whole variety of services. The use of other devices at the same time as television, and the potential temporary abandonment of television services, can reduce television’s unique appeal for the advertising industry and thereby result in funding problems for premium content.egta has been at the forefront of both discussions with the institutions, through workshops (Media Connect 1&2), attending industry forums such as the Media Talks along with speaking at institutional events on topics such as Connected TV and commercial communications.
Sales houses and broadcasters are embracing new techniques, which have greatly changed since the introduction of the AVMSD and while the cornerstones of that Directive, such as the protection of minors and the core qualitative values, remain appropriate, certain areas need to be looked at to ensure a truly competition-based regulatory framework. We believe that the Commission should assess whether the quantitative rules and the scope of the Directive are still fit for purpose in this new media environment.
Data protection and online behavioural advertising
For egta, the issue of data protection relates to the consumer’s information, especially in the field of online behavioural advertising (OBA). The practice of advertising based on users’ interests is a proven technique to engage with Internet users who have a genuine interest in particular product categories, and it will therefore often produce a higher ROI than other forms of advertising for brands.Currently, the rules on obtaining consent for processing people’s information are put forward in the e-Privacy Directive. The set-up can be described as opt-in, effectively meaning that the consumer must give his or her consent before cookies or any other form of data is stored in their browser.
In order to help consumers understand more about targeted advertising, the European Interactive Digital Advertising Alliance (EDAA) was created, and egta sits on the board of this self-regulatory programme. Through the EDAA, each advertisement on a website that is using OBA has a clickable icon that leads the user to an information site called Your Online Choices. This site explains the concept of behavioural advertising, your rights as a consumer and allows you to opt out from receiving targeted advertising. The EDAA manages the icon and the linked website in Europe; its 2015 activity report is accessible here.
The adoption of the new EU General Data Protection Regulation in 2016 signals a significant change in the rules that will need to be implemented at national level in the months to come.
egta welcomes the chance to streamline these rules, reducing the burdens on businesses and allowing broadcasters to collect and process personal data, thus permitting them to provide their services on new platforms and devices.
egta overview on implementation of the e-privacy directive - document available upon request. Please contact the egta team.
Advertising for alcoholic beverages
Alcoholic drinks are not ordinary consumer goods. When inappropriately consumed, there is a potential for abusing alcoholic beverages, which can lead a small proportion of the population and particularly vulnerable people to dependence and/or harmful conduct. For these reasons, legislative measures have governed the advertising of alcoholic beverages in Europe for the last 15 years. Many of these EU-wide restrictions were established by the Television without Frontiers Directive, strengthened in the AVMSD, and many Member States have taken additional restrictive measures. In addition, the advertising industry polices itself thanks to agreed standards that are designed to eliminate inappropriate advertising and to initiate a range of socially responsible messages preventing any abuse of alcohol.egta has been a proponent of responsible alcohol advertising and was a founding member of the European Alcohol and Health Forum. Our commitments focussed around providing advertising professionals with a benchmarking tool and, in turn, facilitating the exchange of best practices across Europe in the area of responsible advertising. This was done through the creation of a compendium on alcohol advertising based on a survey conducted across 21 European countries. This study found TV advertising to be the most restricted means of marketing communication with regards to alcohol advertising. egta’s compendium also highlights that sales houses comply with a wide range of advertising self‐regulatory codes of conduct and individual companies codes of ethics applicable to the advertising of alcoholic beverages.
The compendium was followed up by a dedicated website on responsible advertising on alcoholic beverages, which – along with news and research – also includes a database compiling the information on all regulations, self-regulatory standards and industry codes of conducts on audiovisual advertising of alcoholic beverages across EU Member States.
Advertising for HFSS food products
During the last few years, the debate on the rising level of obesity across Europe has provoked calls for restrictions on the advertising of foods high in fat, salt and sugar that are particularly directed at minors.In the context of the reiterated acknowledgment by European Institutions of the role played by self-regulatory mechanisms in this field, egta has engaged in numerous initiatives aimed at strengthening food advertising self-regulation and, in turn, demonstrating the effectiveness of the industry’s initiatives in responding to the obesity challenge.
Through its commitments to the European Platform on Diet, Physical Activity and Health, egta television members have devoted airtime to healthy lifestyle campaigns on TV and published its Interpretative Guidelines on the ICC Framework for Responsible Food and Beverage Marketing Communication. This publication addresses egta member professionals in charge of screening advertisements with the aim of helping them to better understand the most commonly used self-regulatory codes on food advertising and to equip them with concrete suggestions on how to call more frequently on the support of national self-regulatory organisations.
In fact, the belief in responsible advertising and the added-value of self-regulation as a means of delivering high-level of consumer protection are two cornerstones of egta membership.
Food & beverage advertising to children, overview of regulation and self-regulation in the EU - document available upon request. Please contact the egta team.
Advertising for pharmaceutical products
The Audiovisual Media Services Directive sets a total ban on television advertising for medicines and medical treatments under prescription and broadens its application to all commercial communications (including sponsorship and product placement) in any audiovisual service, including on-demand services. Combined with the Medicinal Products Directive, this bans any commercial communication featuring corporate brands for prescription-only medicines.egta and its sales house members are fully aware of the specific features of prescription pharmaceutical products as opposed to general consumer goods. They are therefore also aware of the need to discriminate between commercial communications for on-prescription medicines, which are currently prohibited on television by means of the AVMSD, from the provision of branded information to consumers on medical products received upon request. egta also believes that the distinction currently applied by the AVMSD for governing advertising for medicinal products, between medicines that are only available on prescription and over-the-counter medical products (OTC), is a valid principle for applying different layers of regulation to advertisements for different categories of medicinal products, and it should, therefore, be preserved. This distinction is justified by the fact that advertising for medicinal products that do not require the supervision of a medical practitioner (i.e. over-the-counter medicines) can play an essential role in providing consumers with brand awareness and information on the product and, therefore, in ensuring effective free competition to the benefit of the industry and consumers alike.
egta overview on pharmaceutical advertising - document available upon request. Please contact the egta team.
Ban on advertising for tobacco products and rules on electronic cigarettes
The advertising or sponsorship of tobacco products is banned across the European Union through both the Tobacco Advertising Directive and the Audiovisual Media Services Directive. They prohibit cross-border tobacco advertising and sponsorship in media. The ban covers television, print media, radio, and Internet. It also includes sponsorship of events involving several Member States (MS), such as the Olympic Games and Formula One races, and the free distribution of tobacco is also banned at such events.However, national advertising and local promotion of tobacco products remains under national competence and is still permitted.
With the adoption of the revised text on the Tobacco Products Directive in 2014, the advertising of electronic cigarettes has come under strict rules designed to ensure equal treatment across the EU for nicotine-containing e-cigarettes (products that do not contain nicotine are not covered by the Directive).
Since May 2014, e-cigarettes have been regulated as tobacco products, unless they are presented as having curative or preventative properties, then they are regulated as medicinal products. This means they cannot be advertised or part of a sponsorship deal or product placement, unless e-cigarette companies choose to claim medical status for the devices, which would allow them to be advertised as smoking cessation aids.
egta and its members fully respect the tobacco ban, which is not to be called into question in view of the scientifically established harms of tobacco consumption.
Rules on e-cigarette advertising following the Tobacco Products Directive adoption - document available upon request. Please contact the egta team.
Compulsory information and warning messages in advertising
Compulsory/warning messages are often used by legislators as a means to inform and protect consumers. However, this generally disregards several practical issues.egta has always highlighted that radio is not the appropriate channel to provide consumers with detailed technical information. This is based on two facts: firstly, that findings show that consumers, when searching for detailed information before making a purchase decision, do not seek such information in advertising; and secondly, each medium has its own specificities that need to be taken into account. The short duration, the linear nature of the media and the need for highly creative content mean that television and radio advertising are not well suited to carrying detailed technical information in an understandable way.
There are, in fact, more appropriate and efficient communication channels available to reach consumers with the specific information they need at the time of taking their decision, such as supplier literature or a specific call in the advert to visit a website for more information.
Unnecessary warning messages lower media’s attractiveness to advertisers, thus diminishing sources of revenue and endangering quality content creation.
Legal caveats in advertising – a snapshot of the main studies - document available upon request. Please contact the egta team.
egta overview on compulsory messages in radio advertising - document available upon request. Please contact the egta team.
Online gambling advertising
The fast-paced progress of online technology, with the development of mobile phones and smartphones, tablets and digital TV, goes hand-in-hand with an increase in the offer and use of online gambling services in Europe. With close to 7 million EU consumers participating in online gambling services, the EU online gambling market represents 45% of the world market share. In 2008, online gambling accounted for annual revenues of €6.16 billion, and available figures projected that figure to double to €13 billion in 2015.In the EU, there is no specific regulation on the airtime of gambling advertising; it falls into the advertising subject to 12 minutes an hour on TV.
In 2014, the European Commission adopted a Recommendation on online gambling services. The Recommendation states that advertising and sponsorship of online gambling services should be more socially responsible and transparent. The Recommendation does not introduce binding rules for the Member States but rather is intended to act as a catalyst for the development of consistent principles to be applied throughout the European Union.
egta has lobbied extensively over the years to ensure that while minors remain protected in this area, the broadcasters’ position was taken into consideration and that overly prescriptive warning messages and time restrictions would not be part of any recommendations. Any advertising restrictions could have an obvious economic impact on the revenues of media businesses in the EU. Any negative impact on the revenues of broadcasters also risks directly undermining other EU priorities, such as promoting media pluralism and cultural diversity, the creation of European programme content and the sustainability of the European sport industry.
egta overview on gambling regulation - document available upon request. Please contact the egta team.
Must carry and retransmission fees
Retransmission disputes between broadcasters and cable operators have become increasingly public in recent years, and now the situation of must carry vs. must offer and retransmission payments is becoming more topical in many EU Member States, with both broadcasters and governments looking at implementing new rules that could greatly affect broadcasters and in turn potentially consumers.Why does this matter for broadcasters? The real bone of contention is regarding retransmission fees and compensation for carriage of programmes. While not common in the EU, cable groups in the US pay to carry the main free-to-air channels – what is known as retransmission fees – which amounted to an estimated $3.3bn in 2013. For many broadcasters, this could be a new source of revenue that is not always currently available to them.
Because so many issues debated at European level have an impact on advertising, the list of issues presented above is not exhaustive. Should you require more information, please contact the egta team.
egta overview on must carry vs. must offer - document available upon request. Please contact the egta team.
CO2 labelling for cars
To help drivers choose new cars with low fuel consumption, EU Member States are required to ensure that relevant information is provided to consumers, including a label showing a car's fuel efficiency and CO2 emissions. This can be provided at the point of sale and includes labels, guidance on fuel economy and promotional literature.Faced in 2010 with the potential of having such information included in advertising through a European Parliament proposal, egta and its television and radio sales house members noted that the provision of appropriate information on the CO2 emission performance of a light commercial vehicle to consumers is a commendable political objective which deserves a proper policy response.
However, as advertising professionals, egta members wish to highlight that advertising is not the appropriate channel through which to provide consumers with detailed technical information regarding the emission performance of a vehicle. There are in fact more appropriate and efficient communication channels available to reach consumers with the specific information they need at the time of making their purchase decision.
17 slides that every marketer should know about TV
Mark Ritson visits Malin Häger, Commercial Director Advertising Nordics at TV4 Media, for an interview in TV4 Growth. Based on world-leading players in insight and analysis, he presents several areas within media consumption, effect and strength in different types of media in a well-formulated and creative way.
