ASA to extend remit following Google funding deal

The Advertising Standards Authority plans to extend its remit to cover online advertising next year following a funding deal with Google.

The ASA has agreed funding with the US search giant to help pay for a new digital media regulation system, which will include Google and the rest of the online marketing community.

Advertisers pay a levy of around 0.1% of their annual marketing budget to fund the current ASA system, but Google has stepped in to provide “vital seed capital” to get the new digital media initiative off the ground.

The new system will enable all online advertising to come under the CAP code, which is enforced by the ASA.

Winston Fletcher, chairman of the Advertising Standards Board of Finance, which funds the ASA through the levy mechanism, said: “This stands to be an incredibly important development in effective self regulation by the advertising industry.

“It promises to strengthen significantly the reach and work of the ASA, which will be good for our industry and vital for consumers. The active role that Google has played has been essential.”

Matt Brittin, Google’s UK managing director, added: “If people have a complaint about a claim made on a website it’s important that it is properly investigated. We support the ASA’s aims of providing consumer protection and are happy to help get this up and running for the benefit of UK consumers and businesses.”

The proposal is still to be formally ratified by the Advertising Standards Board of Finance, the Advertising Standards Authority Council, the Committee of Advertising Practice and the Advertising Association.

It is understood that Google has only committed for an initial two year period.  Reports also suggest that the search giant has refused to collect the levy from other members in the industry.

The ASA’s extended remit is expected to come into operation in the second half of 2010.