WFA Welcomes New Ad Rules

The World Federation of Advertisers (WFA) has welcomed the decision of European governments to adopt a new ‘Audiovisual Media Services’ directive, which will introduce new advertising rules for all TV and TV-like services, including interactive TV, video-on-demand, IPTV, and mobile TV.

The directive will replace the 1997 ‘Television Without Frontiers’ directive, and is expected to enter into force in the second half of 2009. Advertisers welcome the new rules, as they will modernise EU broadcasting laws to take account of rapid technological developments, notably in the field of advertising.

As fragmentation continues, the variety of platforms multiplies and viewer choice and control increases, advertising remains key to funding these changes and developments.

But fundamental changes in the TV landscape have simultaneously challenged established advertising models. The traditional model based on 30-second ad blocks is shifting towards more targeted, more engaging and less disruptive models that are made possible by new technologies and formats.

WFA managing director Stephan Loerke, said: “WFA has consistently called for better, not more, advertising. We see the new directive as a milestone on the way towards realising this vision.”

The body has said that it welcomes the main achievements of the modernised directive, including:

• The freedom to broadcast across borders is in principle preserved
• No unnecessary or disproportionate restrictions to advertising are introduced
• Rules on inserting ads into programmes become more flexible
• For the first time in the EU, product placement is explicitly allowed subject to clear rules

WFA says it is particularly encouraged to see, for the first time in EU legislation, the important role of self-regulation and co-regulation fully recognised.

Loerke continued: “Self-regulation in the advertising sector has consistently added an additional layer of consumer protection to European rules. It is important the value of self-regulation is now formally recognised to ensure the necessary support for further improvements.”

WFA also welcomes the fact that the so-called ‘country-of-origin principle’ has been preserved. This provides that a broadcaster may broadcast across the EU as long as it complies with the laws of its home country.

The body says this is a prerequisite for maintaining the current growth in choice and innovation that is too often taken for granted by those Member States that have taken a more protectionist stance.

WFA says it now looks forward to the European Parliament’s formal approval, making possible a prompt entry into force of the directive.

WFA: www.wfanet.org