Facebook has formally joined the system that funds advertising self-regulation, which includes the operations of Ad Standards.
The Australian Association of National Advertisers (AANA) CEO John Broome says the development is an important milestone in the evolution of the self-regulatory system which was set up by the AANA more than 20 years ago.
At the time of its establishment, advertising was almost entirely in traditional media and made through media agencies.
“Advertisers supporting the self-regulatory system voluntarily pay a small levy on their media spend that is collected on their behalf by members of the Media Federation of Australia,” Broome says.
“However, in recent years there has been a growing trend for advertisers to pay major publishers and digital platforms directly, with the unintended consequence of effectively bypassing the current collection mechanism
“At the same time, the increasing migration to digital has led to much more advertising content and hence a greater workload for Ad Standards. So, Facebook’s move to directly fund the self-regulatory system will help underpin its future financial sustainability.”
The AANA says 90% of the funds collected go towards financing the complaint handling system that Ad Standards operates, with the balance helping to fund AANA’s code development work. The industry body also says it's in discussions with Google for it to contribute funds.
Facebook AUNZ managing director Will Easton says a fully functioning self-regulatory system was in the interests of all parties.
“Australia’s self-regulatory system provides the public with a highly efficient and effective complaints handling service that is one hundred percent funded by industry,” Easton says.
“We are committed to ensuring that we play an appropriate role in ensuring its funding now and in the future.”
The AANA says that self-regulation would now be funded by the combination of the levy system, operated by the MFA on advertisers’ behalf, and direct funding from digital publishers and major media outlets.
“We are in discussions with the other major digital platforms and media players to achieve a sustainable and equitable funding arrangement,” Broome says.
“I am pleased to say that those discussions are progressing very well, and I am confident that we will continue to evolve our funding model so that we maintain a world class self-regulatory system that meets the Australian community’s expectations.”
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