Advertising Laws and Ethics PDF

ADVERTISING LAWS AND ETHICS ABCOM | Prepared by Anj De Castro Are laws necessary? Laws = social order Various Governing Bodies in the PH Agencies that regulate ads in the Philippines  Ad Standards Council (ASC) Founded in 2008, the Ad Standards Council (ASC)...

ADVERTISING LAWS AND ETHICS ABCOM | Prepared by Anj De Castro Are laws necessary? Laws = social order Various Governing Bodies in the PH Agencies that regulate ads in the Philippines  Ad Standards Council (ASC) Founded in 2008, the Ad Standards Council (ASC) is the advertising industry’s leading body in charge of reviewing advertising content of materials across all media. The ASC reviews advertisements based on content, and not on intent. The main functions of ASC are 1) screening of advertisements, 2) hearing of disputes on advertising content, and 3) resolution of disputes on advertisements based on violations of the ASC standards. The ASC reviews advertisements based on content, and not on intent. Members Association of Accredited Advertising Agencies (4As)- undertakes the improvement and strengthening of the advertising agency business in the Philippines. Digital Marketing Association of the Philippines- sets the standard for the adoption of digital practices and transformation in the country. Kapisanan ng mga Brodkaster ng Pilipinas (KBP)- elevates professional and ethical standards in Philippine broadcasting, promoting social responsibility in broadcasting Members Media Specialists Association of the Philippines (MSAP)- independent organization established to help media agencies directly navigate the critical issues affecting the advertising industry Philippine Association of National Advertisers (PANA)- a self-regulatory body that is committed to the promotion of "Truth in Advertising" United Print Media Group (UPMG)- promotes the continuous development and pursuit of excellence in the Philippine print media industry. Members Out-of-Home Advertising Association of the Philippines (OHAAP)- the only outdoor advertising association recognized by the advertising industry as well as the government Government Partners  Materials Covered by the ASC Code of Ethics and Manual of Procedures “Advertisement” means the form through which the advertising information is disseminated, which includes but is not limited to print, broadcast, cinema, out-of-home, merchandising materials, digital, and mobile ads. Advertisements, whether foreign-produced or canned, locally-produced, station-produced, branded, corporate or organizational, national, local, advocacy-related, are covered by the ASC Rules. Advertising” means dissemination of information or messages for a business purpose, usually intended to promote commercial transactions, or to enhance a general standing of an entity or business in the marketplace or the community.  Materials Covered by the ASC Code of Ethics and Manual of Procedures The following criteria shall, likewise, determine if a material is an advertisement: ➔ If advertising claims are made ➔ If airing time, publication, display, posting, or feature of the material has been paid for, whether in cash or in kind, or as part of a total package resulting from the Ad Agency’s/ Advertiser’s transaction, regardless of time or frequency of airing/ publication/ display/ posting. ➔ A claim on a pack or label, when prominently readable or specifically highlighted in an advertisement, shall be deemed as part of the advertisement, and thus shall be covered by the ASC Rules.  Materials Covered by the ASC Code of Ethics and Manual of Procedures Complete list of covered materials + pre-screening/post-screening requirements While ASC exists to regulate ads in the PH in general, they still heavily rely on specific laws to control how certain products or services are promoted. These are…  Philippine Laws that Regulate Various Advertising Practices 1. The Consumer Act of the Philippines- Republic Act No 7394, “Consumer Act” 2. The Food and Drug Administration (FDA) Act- Republic Act No 9711, “FDA Act” 3. The Subdivision and Condominium Buyers’ Protective Decree- Presidential Decree No 957 4. The Public Telecommunications Policy Act of the Philippines- Republic Act No 7925 5. The Civil Aeronautics Act of the Philippines- Republic Act No 776, as amended ASC CODE OF ETHICS & STANDARD MANUAL OF PROCEDURES Who regulates ‘political ads’? Political ads are ads produced specifically during the election period, as defined by the Commission on Elections (COMELEC), paid for (whether cash or in kind) and by bona fide electoral candidates. Republic Act No. 9006 “Fair Election Act”  Republic Act No. 9006 “Fair Election Act” Sec. 2. Declaration of Principles. – The State shall, during the election period, supervise or regulate the enjoyment or utilization of all franchises or permits for the operation of media of communication or information to guarantee or ensure equal opportunity for public service, including access to media time and space, and the equitable right to reply, for public information campaigns and fora among candidates and assure free, orderly, honest. peaceful and credible elections.The State shall ensure that bona fide candidates for any public office shall be free from any form of harassment and discrimination.  Republic Act No. 9006 “Fair Election Act” Sec. 3. Lawful Election Propaganda. – Election propaganda whether on television, cable television, radio, newspapers or any other medium is hereby allowed for all registered political parties, national, regional, sectoral parties or organizations participating under the party-list elections and for all bona fide candidates seeking national and local elective positions subject to the limitation on authorized expenses of candidates and political parties, observance of truth in advertising and to the supervision and regulation by the Commission on Elections (COMELEC).For the purpose of this Act, lawful election propaganda shall include:  Republic Act No. 9006 “Fair Election Act” 3.3. Cloth, paper or cardboard posters whether framed, or posted, with an area not exceeding two (2) feet by three (3) feet, except that, at the site and on the occasion of a public meeting or rally, or in announcing the holding of said meeting or rally, streamers not exceeding three (3) feet by eight (8) feet in size, shall be allowed: Provided, That said streamers may be displayed five (5) days before the date of the meeting or rally and shall be removed within twenty-four (24) hours after said meeting or rally; 3.4. Paid advertisements in print or broadcast media: Provided, That the advertisements shall follow the requirements set forth in Section 4 of this Act 3.5. All other forms of election propaganda not prohibited by the Omnibus Election Code or this Act. Midterm Output (Group Critique Paper) For the midterms output, each group is tasked with writing a comprehensive critique paper on a local advertisement that was taken down or banned in the Philippines. This paper should provide an in-depth analysis of the advertisement, including the circumstances and processes that led to its banning. You may explore various aspects in your critique, such as: ➔ The brand's history ➔ The context and content of the advertisement ➔ The controversies or public reactions it sparked ➔ The steps taken by regulatory bodies in the Philippines to ban or remove the ad ➔ How did this shape the identity of the brand and their future ads? Please ensure that your group selects a unique advertisement to analyze. The critique paper must be submitted by September 20, 11:59 pm. Only one submission per group is required. Late submissions will not be accepted, so plan accordingly to meet the deadline. REFERENCES ASC. (2024, May 15). ASC Member Associations | Ad Standards Council. Ad Standards Council. https://asc.com.ph/asc-member-associations/ ASC. (2023, November 9). Government Partners | Ad Standards Council. Ad Standards Council. https://asc.com.ph/partners-in-government/ ASC. (2023a, March 17). Materials covered by the ASC Code of Ethics and Manual of Procedures | Ad Standards Council. Ad Standards Council. https://asc.com.ph/our-standards/manual-of-procedures/general-rules/materials-covered-by-the-asc-code-of-ethics-and-manual-of-proce dures/ Comparisons | Global Practice Guides | Chambers and Partners. (n.d.). https://practiceguides.chambers.com/practice-guides/comparison/740/11928/18974-18975-18976-18977-18978-18979-18980-18981-18982 -18983 CLASSIFICATIONS OF ADVERTISING ABCOM | Prepared by Anj De Castro 5 MAIN CLASSIFICATIONS OF ADVERTISING Area-Based Classification Audience-Based Classification Action-Based Classification Media-Based Classification Function-Based Classification 1. Area-Based Classification A personalized and targeted form of advertising based on the geo-location of the audience or the advertising business. Advertisers can tailor their messages based on the retail location, routes, weather, and of course, behavioral patterns of the target customers/audience. 1. Area-Based Classification ➔ Local Advertising- aims to capture the attention of a geographically proximate audience. This type of advertising is particularly beneficial for service providers looking to establish a strong presence within their community. Channels often employed include local newspapers, community radio stations, and event sponsorships. ➔ National Advertising- Spans across an entire country, appealing to a wider demographic. The mediums employed are more far-reaching, such as national television networks, widely circulated newspapers, and prominent online platforms. National advertising is a powerhouse for brands seeking to establish a broad customer base and a consistent brand identity. ➔ International Advertising- necessitates a nuanced understanding of cultural sensitivities and diverse preferences. Social media platforms, international publications, and cross-border media channels become essential tools for brands aiming to connect with a global audience. 1. Area-Based Classification 2. Audience-Based Classification These are ads that target specific groups of people who are most likely to be interested in a particular product, service, or issue. This can be based off customer demographics, business-to-business partnership deals, or for a social cause. 2. Audience-Based Classification ➔ Consumer Advertising- or business-to-consumer (B2C) advertising, is tailored to engage end-users directly. This is prevalent in industries such as retail, e-commerce, and fast-moving consumer goods (FMCG). Through creative storytelling and relatable imagery, brands strive to tap into consumers’ emotions and desires, driving them to make purchasing decisions. ➔ Business-to-Business (B2B) Advertising- focuses on showcasing how a product or service can address specific business needs and enhance operational efficiency. Trade shows, industry publications, and specialized networking events play a crucial role in this domain, allowing businesses to forge partnerships and collaborations. ➔ Social Cause Advertising- aligns with social issues and promotes positive change. Non-governmental organizations (NGOs) and governmental agencies often employ this type of advertising to raise awareness and mobilize support for various causes by evoking empathy and a sense of responsibility. 2. Audience-Based Classification 3. Action-Based Classification Thus categorizes campaigns based on the specific actions the advertiser wants the audience to take. Instead of focusing solely on the platform or creative format, this approach emphasizes the desired outcome of the advertisement. 3. Action-Based Classification ➔ Direct Response Advertising- designed to prompt an immediate action from the audience. This could involve making a purchase, signing up for a newsletter, or filling out a form. Email marketing, online pop-up ads, and direct mail campaigns are common strategies in this category. The goal is to create a sense of urgency or value that compels the audience to take immediate action. ➔ Brand Awareness Advertising- shifts the focus to creating a lasting impression rather than an immediate action. Through creative visuals, memorable slogans, and emotional storytelling, brands strive to embed their identity in the minds of consumers. Over time, this exposure contributes to a stronger brand recall and affinity. ➔ Conversion-Oriented Advertising- strategically guides consumers through the sales funnel. It aims to convert potential leads into loyal customers. Paid search ads, retargeting campaigns, and product-focused advertisements in e-commerce settings are typical examples. 3. Action-Based Classification 4. Media-Based Classification This categorizes campaigns based on the medium or platform used to deliver the message. Advertisers must closely evaluate which channels offer the greatest amount of benefits for the least relative cost. Each advertising medium should be chosen based on the goals of the campaign and the channel’s ability to reach a target audience. 4. Media-Based Classification ➔ Print Advertising- allows brands to establish credibility and engage readers in a thoughtful manner. Print advertising often appeals to an older demographic and is effective for conveying in-depth information. It holds a traditional charm encompassing mediums like newspapers, magazines, flyers. ➔ Broadcast Advertising- use of mass media channels, specifically television and radio, to deliver advertisements to a wide audience. Brands can leverage visual effects, music, and impactful narratives to create a memorable impression. While television offers a broad reach, radio advertising’s auditory appeal can resonate deeply with listeners. ➔ Digital Advertising- new era of advertising through various online platforms. Social media, search engines, display ads, and influencer collaborations constitute the digital advertising landscape. The precision of audience targeting and real-time engagement metrics make digital advertising a powerful tool for reaching a vast and diverse audience. ➔ Outdoor Advertising- commands attention in the physical world with billboards, transit ads, and signages strategically placed in high-traffic areas. These visuals leave a lasting impact on passersby 4. Media-Based Classification 4. Media-Based Classification 4. Media-Based Classification 5. Function-Based Classification ➔ Informative Advertising- an educational tool, conveying essential information about a product or service. By highlighting features, benefits, and unique selling points, businesses empower consumers to make informed purchasing decisions. ➔ Persuasive Advertising- employs emotional appeals, compelling narratives, and persuasive language to influence consumer attitudes and perceptions. This approach aims to forge an emotional connection between the brand and its audience, encouraging them to align with the brand’s values and offerings. ➔ Reminder Advertising- aims to reinforce brand awareness and maintain a brand’s presence in consumers’ minds. Established brands often employ this strategy to retain customer loyalty and prevent their products from fading into obscurity. 5 Function-Based Classification Group Activity For this activity, each group will choose an international brand that operates both globally and in the Philippines. The task is to analyze how the brand adapts its advertising strategies to different cultural contexts, with a focus on localization efforts in the Philippines. The following aspects shall be taken into consideration: ➔ Brand Context/History ➔ Global Advertising Strategies ➔ Localization in the Philippines ➔ Local Challenges ➔ Effectiveness Each group has a max of 15 minutes to present their reports in class on 27th of August. Use visuals to support your analysis. An assignment tab will be posted for a more detailed description of the activity. REFERENCES Agrawal, A., & Agrawal, A. (2024, August 12). Classification of Advertising: All you need to know. Ginger Media Group - India’s Best Advertising Company. https://www.gingermediagroup.com/blog/classification-of-advertising/ K, R. (2023, January 26). Location Based Advertising Complete Guide (2021 update). Knorex. https://www.knorex.com/blog/articles/location-based-advertising-2#What_is_location-based_advertising_LBA Kamody, T. (2024, May 9). Maximizing Your Advertising Impact with Audience-Based Buying. Tunnl. https://www.tunnldata.com/blog/what-is-audience-based-media-buying