Chrysalis Scrap Wealth Warning Charges

Chrysalis Radio has scrapped the charges for “wealth warnings” on financial ads in an attempt to attract more financial advertisers to the sector.

Heart and Galaxy will no longer charge advertisers for the 10-second legal message which, according to current legislation, has to be broadcast on the end of financial adverts.

The radio industry is at a disadvantage compared to other media as the warning takes up extra airtime. However in TV and press the warning is included in the advert at no extra cost to the advertiser.

Commercial director of Chrysalis Radio, Don Thomson, said: “Over the past few years financial advertising on radio has taken a lower share than in other media sectors. This is largely as a result of the onerous regulations required to broadcast a wealth warning as part of the commercial. This new initiative will overcome that hurdle for financial advertisers and should stimulate growth from this sector in the radio medium.”

The regulations surrounding financial services advertising are currently under review from the Department of Trade and Industry and the Financial Services Authority (see Financial Advertising Shake Up), who propose to make the rules clearer and less misleading.

The move has received backing from advertising industry bodies the IPA and ISBA, who say that currently the regulations are unintelligible to consumers. The IPA’s director of media affairs, Geoffrey Russell, said: “Current credit warnings in ads simply do not do work – you know it, I know it – and so does the man and woman in the street, who simply dismiss them as meaningless gobbledegook.”

Chrysalis: 020 7221 2213 www.chrysalis.com

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