Advertising In Europe Seminar
Advertising in Europe, an Advertising Association half-day seminar, took place at BAFTA yesterday.
The seminar examined the possible effects of the advertising directives proposed by the European Commission and outlined the industry’s responses to these directives.
The session was opened by Richard Wade, director general of the Advertising Association, who stated that advertis- ing is a key mechanism within the European Common Market.
Wade suggested that the restrictions proposed by the European Commission represent a threat to the freedom of speech. However, he did mention the need for a responsible attitude within the advertising industry.
The first speaker was Peter Mitchell, strategic affairs director of Guinness and chairman of the Advertising Association’s Special Issues Committee. Mitchell began by referring to the possible restrictions as “More than a matter of life and death.”
Mitchell set out the range of areas currently under review; tobacco, over the counter medicines, food claims, comparative advertising and direct response. He also set out the areas potentially under review; toys, advertising to children, automobiles, financial services and alcohol.
Mitchell believes that the directives are not the result of a concerted strategic attack by the Commission. Instead they are the result of a piecemeal process of activity.
There are many different and often antagonistic views, both political and cultural, involved. Mitchell claims this makes it very difficult for the advertising industry to react because they are dealing with such a fragmented issue. Mitchell argued that in the past industry response has concentrated on individual areas.
He went on to stress that the various European advertising bodies, opposing the EC directives, must recognise each others cultural and legal attitudes, if they are to organise a collective response.
Virginia Graham, information officer at the Bureau Europeen des Unions de Consommateurs (BEUC), was next to speak presenting a consumer’s view.
Graham began by saying that advertising is not the prime tool for product information. Instead it lies somewhere between information and persuasion.
Graham believes that advertising does have an important place in the European single market place. Its role will be to provide information on unfamiliar products from other member states.
The European consumers’ organisation, BEUC, does support some of the earlier EC directives whilst opposing some of the more recent ones.
Graham went on to explain that the BEUC takes a neutral position over the tobacco proposals. Arguing that they do not form part of a global effort to reduce smoking.
Valerie Saint, head of legal services at Birds-Eye Walls, examined the effect of the proposed food restrictions.
One of the areas that may be restricted is nutritional information. Saint argues that this is a powerful educational tool that should not be taken away from advertisers.
The use of familiar phrases such as ‘low in fat’ and ‘free from artificial colours’ may also be restricted under the EC proposals.
Saint stressed the need to retain the positive information which helps to sell products in concise terms.
The next speaker was Tony Coad, managing director of NDL International, who discussed the area of direct marketing.
He began by saying that the future for this sector of the industry lies in targetting and not mass distribution. The use of databases is essential for careful targetting.
Whilst applauding the data protection legislation in principle he feels the directive needs to be more informed. Coad suggests self-regulation within a legislative framework which will enable different product positioning, within different cultures and languages.
Jane Reed, director of corporate affairs at News International, examined the impact from a media owners point of view.
Reed pointed out that at present Britain has the most pluralistic and democratic press in Europe and that this is not reflected in the agenda of either the European Commission or Parliament.
If the EC proposals are implemented it is estimated that the press will lose up to 30% of their advertising revenue
She explained that the European Press Commission has been set up to compliment the existing efforts of the Advertising Association.
Reed emphasised the need to demonstrate that self-regulation on a pan-European basis can take place. She ended by saying that the price of failure will be very heavy.
Matti Alderson, director general of the Advertising Standards Authority and vice chairman of the European Advertising Standards Alliance (EASA), was next to speak.
The EASA was formed in February 1991 and includes Austria and Switzerland which are not members of the European Community.
Alderson set out the main objectives of the EASA which include:
* To promote the best practice in self-regulation.
* To seek a convergence of principles of existing European systems.
* To develop a dialogue with European Governments, consumer groups and trade associations.
* To stimulate existing self- regulatory bodies and create them where they do not exist.
* Exchange information.
* Provide advice on international codes of conduct.
Overall the main aim of the Alliance is to encourage the European Commission to avoid administrative or judicial action where effective self-regulation exists.
The final speaker was Jeremy Kane, chairman of European Public Policy Advisors and a member of the Advertising Association Committee. Kane stated that advertising’s role in the community is to encourage consumer choice and facilitate new products in the market place.
He outlined a programme for the industry’s response to the proposed EC directives.
Firstly that there should be no further advertising legislation until existing EEC legislation is adopted by all member states.
Secondly, any further legislation should only go ahead once the need for it has been clearly demonstrated. All new EC proposals should be clearly legal and not put forward by the use of inappropriate, possibly illegal, interpretations of Articles.
The idea of subsidiarity, control at the lowest most appropriate political level, should apply together with mutual recognition.
Finally Kane outlined that EEC Recommendations rather than Directives should be used wherever possible as these are more flexible.
The speakers were then joined by Ken Miles from ISBA, Sue Eustace from the ITVA and Nick Philips from the IPA for a panel discussion.
Miles pointed out that self-regulation and regulation do not have to be at odds and that they should not be seen as two opposing values. He argued that the best possible outcome for the advertising industry would be for the two forms of control to run in tandem.
Philips referred to the “Stop The EC Taking Liberties” campaign that will run in newspapers and magazines across Europe (Newsline 16/10).
He believes that the Campaign will force the European Commission and Parliament to address the requests of the advertising industry.
The overall feeling of the morning was that whilst the countries within the European Community have now banded together, to oppose the restrictions, there is still a long way to go to reverse the proposed EC directives.