“Nobody reads ads. People read what interests them, and sometimes it’s an ad”, so said legendary ad-man Howard Gossage sometime last century. Since then, marketing has transformed to encompass a range of different forms, from product placement to native advertising, the use of bloggers, influencers and engagement of consumers via social media.
There are a myriad of ways for brands to get their message out there but in piquing consumer interest, should it be clear to the audience that what’s caught their attention, is actually an ad?
If you want to engender trust, the answer is a definite “yes” and the reality is that most advertisers are already conscious that consumers expect this basis level of transparency.
The rise of new forms of marketing, particularly the use of native advertising, has prompted advertisers to make explicit this commitment and to be held accountable to the community. From yesterday, the AANA Code of Ethics will contain a requirement that advertising and marketing communication be clearly distinguishable as such to the relevant audience. Recent weeks have seen a range of commentary on the new requirement, and while it’s been positive, not all of it has been correct. It’s important to understand the framework in which the requirement will operate and there are four key points to establish at the outset:
1. In determining whether content is marketing communication and therefore subject to the Code of Ethics, it is assessed against two key criteria: does the marketer retain a reasonable degree of control over the content and does it draw the attention of the public in a manner calculated to promote a product or service? If these two criteria are met then the material is a marketing communication and the over-arching AANA Code of Ethics will apply.
2. The application of the AANA Code of Ethics is universal and the Ad Standards Board will determine complaints against it, irrespective of whether the brand owner is a member of the AANA or not. The responsibility will fall upon the advertiser to respond to a complaint to the Ad Standards Bureau, not the blogger, influencer or media owner. That said, if the Ad Standards Board does decide that advertising has been masquerading as editorial, it has reputational implications for all concerned.
3. The AANA Codes apply in the same way to all media and there are no carve outs for particular channels. Consumers expect the same standards in advertising, no matter what the medium in which they see the message.
4. The new provision does not mean advertising must have a prescribed banner or a particular label – e.g. there’s no requirement that “#ad” be added to every piece of social media creative, but advertisers would be well advised to consider carefully whether they should, as a matter of general routine, include such explicit hashtags.
The Code of Ethics is supported by a Practice Note which provides interpretive assistance and which will be applied by the Ad Standards Board in making its determinations. Separately, to assist advertisers in their understanding of the new distinguishable advertising requirement, the AANA has produced a Guidance Note which aims to provide a range of illustrative scenarios to distinguish between compliant and non-compliant material.
Whether or not advertising is clearly distinguishable as such will be assessed bearing in mind the relevant audience. So if an advertisement is readily accessible by children and the product advertised may be purchased by children, the Ad Standards Board will look at it through that lens.
When it comes to product placement, the Guidance Note refers to the prevailing community view that audiences are ‘used to’ in-program advertising and to some degree seem to expect and recognise it for what it is, based on research carried out by the Australian Communications and Media Authority. The research found that on the whole product placement was seen by participants as a necessary element of ensuring their favourite program is funded and was an accepted form of advertising, not requiring audience notification. While this research covered consumer views in relation to television and radio, this does not translate to a two-tiered system with regards to product placement for traditional and non-traditional media within the Code.
The change to the AANA Code of Ethics provides confirmation that industry is prepared to be accountable to the community in delivering clearly distinguishable advertising. It also brings Australia into line with similar codes in other like markets, such as the UK and NZ. The business value of any advertising content should be derived from its authentic and transparent nature, making use of channels to create meaningful interactions with audiences. Advertisers – and publishers - recognise it is important not to blur the line between advertising and editorial, if they are to retain trust with consumers. As Gossage highlighted, consumers will be interested in a message when it is delivered through strong content in a receptive context - great advertising does not need to disguise itself.
By AANA, director of policy and regulatory affairs, Simone Brandon