new regulation, new rules, new ethics simon rothon senior vice president global marketing services...
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New Regulation, New Rules, New Ethics
Simon Rothon
Senior Vice President Global Marketing Services
Unilever
Unilever Facts
• Worldwide sales - €40 billion• Employees – c.200,000• Research & Development - €1 billion per annum
(Unilever Food and Health Research Institute)• Manufacturing sites – 337 across six continents• Advertising & Promotion - €5 billion
(world’s second largest advertiser)
• 150 million times a day, in 150 countries,
people use our products at key
moments of their day
Our Portfolio
The Media Landscape
Then NowChaos Theory
BreakoutSessions
Today’s Panels:• Digital re-aggregration of media dust
• Digital is making the media universe fly apart at an accelerated rate
Rishad
Peter
John
Bob
TelevisionThe :30 is Facing Serious Challenges:• Proliferation of Channels• Performance Decline• DVR Penetration
Demand for Broadband grows: Penetration clears
50% of all HH’s
Watershed Moment: October ‘05
Institutions getting Hit Hard: Music
Source: New Yorker Conference “2012” – Music
Advertising Self - Regulation
• 40 years of compliance with the Advertising Standards Authority code
• Now backed by statutory powers• Govern the rules laid down in Codes of
Advertising Practice• “Legal, Decent, Honest and Truthful”
Statute Law
• Tobacco, alcohol, cars, gaming, financial services, food
• Toys, aviation, social networking
UK Stature Law Database
78 pieces of newly enacted legislation up-loaded on August 17th
Some examples:
• The gaming machine (circumstances of use) regulation 2007
• The national minimum wage regulations 1999 (amendment)
• The companies (interest rate for unauthorised political donation or expenditure) regulations 2007
• Public health (aircraft) (amendment) (Wales) regulations 2007
European Framework for Self - Regulation
• Major effort from WFA (EASA) to embed self-regulatory framework
• In 5 years from 10 to 27 European states participating
• Objective is to have self regulation recognised in the law
• Need to inform and educate those states where there is little history or tradition of self-regulation
Rama Ad
In breach of Article 15 of Hungarian
national code
Regulation of New Media
• Key principles should still apply• National sanctions not easy to enforce• Option for “rogue” companies to go offshore • Can take action cross-border in Europe but not
Feasible further “offshore”• Current initiative through International Chambers
of Commerce
Television Without Frontiers Directive
Audio Media Services directive
• A positive initiative to address the issue • Drafting proving to be a challenge for legislators
and stakeholders (six European Parliamentary Committees)
• Issues to be resolved by Commission:
i) Regulation of e-commerce (transactions vs. promotion)
ii) Linear vs. non-linear definition
iii) Global sanctions
Rationale for Self Regulation in New Media
• “Goodwill” the major component of brand valuations
• New media invite much closer engagement • A stronger imperative to be legal, decent, honest
and truthful
But..
Issues on “Rogue” traders, fraud and “Mal-ware” can affect legislative environment for legitimate advertisers
Doing Well by Doing Good
• Consumer expects high standards of ethics and responsible behaviour from advertisers
• Brand equity enhanced by embracing a relevant social cause
• Transition from “ideas” to “ideals” • Examples: Dove, Persil, Flora• New media lend themselves to this “interactive”
approach
Becel adBECELMISSION:TO HELP MAKETHE WORLD’SHEARTS HEALTHIER
360 Degree Marketing
• Co-invention of content and channels• Identification of all relevant touch points with the
consumer• Demands consistency of message tone and
manner • Should lend itself to self regulation across all
media
Draft Findings of Major European Audit of Compliance with Self Regulatory Codes, July 2007
• 8 country study• 1760 advertisements reviewed• 1707 found to be compliant with Codes of
Practice • 53 found to be in breach (3%)
July 2007 Compliance Audit
• 940 internet advertisements reviewed (“pop- ups and banners)
• None found to be in breach of Codes
Challenges for both Legislation and Self-Regulation
Nature of complaint: %
• Issue of “taste” across different viewer groups• Need for impartial and objective adjudication
Legality 19
Misleading 39
“Offensive” 19
Denigration 6
Other 17
New Media, New Regulation, New Ethics?The Way Forward
• Major role of UK in evolving international regulatory framework • UK voluntary codes adopted as basis of European framework• Push for adoption of Global Framework through International
Chambers of Commerce (120 countries)• Self-regulation continues to be the optimum approach as “New
Media” become “Media”• How do you maintain legislation for an industry which evolves
every 3 months?