Wednesday, January 11, 2006

Global Challenges in Advertising: A Look Across the Pond


Twice a year, a distinguished group of advertising experts and practitioners from around the world convene under the aegis of the International Chamber of Commerce (ICC) to discuss major issues and challenges facing the marketing and advertising sector. The 2006 session of the ICC Commission on Marketing and Advertising was held in New York this week and was focused on emerging challenges to industry self-regulation.

Delegates came from Belgium, India, Italy, Mexico, the Russian Federation, Sweden, Switzerland, Turkey, the United Kingdom and the U.S., representing leading corporations, advertising agencies, media companies, trade associations and law firms involved in marketing, advertising and commercial communications. In addition to a broad discussion on the challenges of self-regulation, a dedicated task force met to review possible changes to the ICC Code of Advertising and Marketing Communication Practice.

While many who follow advertising issues in the United States may not be familiar with this group or the series of codes it promulgates, it is a big deal in Europe where the advertising sector and governments take the ICC's deliberations quite seriously. There, the ICC's position on marketing and advertising practice sets a high standard for a wide range of commercial marketing communications, and plays a key role in advertising litigation and enforcement.

International Self-Regulation

For example, the ICC Code sets out clear guidelines on basic matters such as decency, honesty, truthfulness and social responsibility in marketing and advertising. There is a decidedly protective (and some say over-protective)element to marketing communications directed toward children and young people, recognizing their inherent sensitivities. The Code speaks to everything from sales promotions, sponsorship, direct marketing, and the uses of electronic media to environmental advertising.

At its core, the Code is a self-regulatory framework that complements existing national and international laws. It is intended to bolster public confidence in advertising by showing that the marketing and advertising sector abides by the principles of corporate responsiblity and respect for consumers' privacy and preferences.

In Europe, there remains a patchwork of laws and regulations governing advertising of certain products such as food, and advertising to certain markets, such as children or youth. Variations from country to country make it difficult to plan global campaigns. The ICC Code provides companies with a credible and reliable set of guiding principles that respect those frameworks. As such, it is an indispensable tool for companies seeking to expand their global reach into new and emerging markets.

As the ICC turns its attention to newer practices involving product placement, branded content, and direct marketing, it is paying close attention to the concerns of consumers, regulators and non-governmental organizations in Europe. As it turns out, European concerns are not much different than those in the United States, especially on the matter of transparency and disclosure in commercial communications.

One other message is clear. Self-regulation in advertising, a practice that has been heralded in the United States by serial chairmen of the Federal Trade Commission from both political parties, is alive and well in Europe. The robust self-regulatory regime put forth by the ICC in its Code of Advertising and Marketing Communication practice is something in which the advertising industry can take pride.

Unfortunately, much of the good work and adherence to ethical principles remains hidden from the very consumers it is designed to protect.

(c) 2006 Adonis Hoffman