Transcript Alcohol Advertising

Alcohol Advertising
Targeting Youth and Minorities
Huge sums are spent annually on
advertising
 According to the FTC, in 2001 $1.57 billion was spent on
alcohol advertising in measured media
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television
radio
print
outdoor advertising
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sponsorship
internet advertising
point-of-sale materials
product placement
brand-logo’d items
 FTC estimated in 1999 that alcohol industry spends two
to three times this amount each year to promote
products through
 means that alcohol industry spent about $5 billion on
advertising and promotion in 2001
Alcohol advertising appeals to
underage youth
 1996 study of children ages nine to eleven found that
children were more familiar with Budweiser’s
television frogs than Kellogg’s Tony the Tiger, the
Mighty Morphin Power Rangers, or Smokey the Bear
 1998 the Budweiser lizard commercials were the most
popular commercials on television
 since 1995 Budweiser beer ads have been the most
popular ads for consumers, including teenagers
 junior high students can name more beer brands than
presidents
 younger children can sing the jingles and mimic the
characters in alcohol commercials
Alcohol advertising and marketing have a
significant impact on youth
decisions to drink
 study of 12 year-olds found that children who were more
aware of beer advertising held more favorable views on
drinking and expressed an intention to drink more often
as adults than did children who were less knowledgeable
about the ads
 study of 1,000 young people found that exposure to and
liking of alcohol advertisements affects whether young
people will drink alcohol
 USA Today survey found that teens say ads have a
greater influence on their desire to drink in general than
on their desire to buy a particular brand of alcohol
 eighty percent of general public respondents in a poll by
the Bureau of Alcohol, Tobacco and Firearms believed
“that alcohol advertising influences youth to drink
alcoholic beverages”
Industry has adopted voluntary codes of
conduct through its three trade
associations
 Beer Institute--represents the interests of
more than 200 brewers that produce more
than 90 percent of the beer brewed in the U.S.
 Distilled Spirits Council of the United
States (DISCUS)--represents most of the
major U.S. distilled spirits
 Wine Institute--represents over 300
California vintners; members market over 75%
of wine sold in the United States
1999 FTC Report on the success of
self-regulation
 obtained information from the three associations and
eight alcoholic beverage companies
 Anheuser-Busch, Inc.; Bacardi-Martini USA, Inc.;
Brown-Forman Corporation; Coors Brewing Company,
Inc.; Diageo plc; Miller Brewing Company, Inc.; Stroh
Brewery Company, Inc.; and Joseph E. Seagram &
Sons, Inc.
 focused on three areas:
1. advertising placement
2. advertising content
3. product placement
1. Advertising placement
 voluntary industry codes required that
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more than 50 percent of the audience for alcohol
advertising be over 21
 FTC report reflected mixed compliance with the codes'
requirement:
 half of the companies were able to show that nearly all
of their ads were shown to a majority legal-age audience
 other four companies did not fare as well:
 two companies' data showed weeks when many ads
were shown to majority underage audiences.
 two others failed to provide reliable information
showing the audience for their ads
 report also pointed out that only 30 percent
of the U.S. population is under the age of
21, and only 10 percent age 11 to 17
 thus "the 50 percent standard...permits
placement of ads on programs where the
underage population far exceeds its
representation in the population“
 report recommended that the industry raise
the standard to no more than 25% of the
audience be under 21
 other organizations weighed in on the
issue as well:
 Mothers Against Drunk Driving
(MADD) proposes a limit of 10%
 Center on Alcohol Marketing and
Youth (CAMY) suggests 15.8%
 corresponds with the percentage of the
population aged 12-20
2. Advertising content
 voluntary codes prohibit alcohol advertisers
from using advertising content that is more
appealing to underage consumers than to
adults (including 21-year olds)
 each of the three codes also expressly
prohibits the use of certain characters or
people in alcohol ads:
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actors under 25 (beer)
children (spirits)
Santa Claus (beer and spirits)
sports celebrities or "current or traditional
heroes of the young" (wine)
 1999 FTC report noted that industry members appear
to make significant efforts to comply with the codes'
standards, instructing their staffs and ad agencies to
avoid content with greater appeal to kids than to
adults
 report also notes that since standard permits ads
targeted at 21-year olds, might have "overflow"
appeal to younger consumers
 report identifies “best practices” that some companies
follow that reduce the likelihood that an ad will have
substantial appeal to underage consumers
 e.g., targeting ads to persons 25 and older
3. Product Placement
 FTC Report noted that in 1997-98 the eight reporting
companies placed products in
 233 motion pictures
 one or more episodes of 181 different television
series
 alcohol placement occurred
 in 'PG' and 'PG-13' films with significant appeal to
teens and children
 in films where the advertiser knew that the primary
target market included a sizable underage market
 on eight of the 15 television shows most popular with
teens
 report noted that a few companies had taken steps to
reduce the likelihood that a substantial underage
audience would see their products promoted in movies
and on television
The 2003 FTC Update
In March, 2003 Congress directed the FTC to
1. determine whether the industry had adopted
recommendations regarding self-regulation from the
1999 report
2. study the impact of the expansion of ads for new
flavored malt beverages
 FTC issued its report in September 2003
 FTC report noted that youth drinking remained high in
2002
 one-fifth of eighth graders
 one-third of 10th graders
 half of 12th graders
1. Flavored Malt Beverages (FMBs)
 FMBs (a/k/a “alcopops”), introduced
in the late 1990's, combine
characteristics of beer and distilled
spirits
 As new products, receive a larger
share of advertising dollars than
other beer products:
 2% of total beer advertising in 1998
 17% of total beer advertising in 2002
 In 2001, Center for Science in the Public
Interest (CSPI) had asked FTC to
investigate whether FMBs were being
targeted to minors
 The FTC reviewed whether:
 FMBs were being placed among non-alcoholic
beverages in retail outlets
 advertising was targeted to an underage
audience
 survey evidence showed that teens were more
likely than adults to be aware of and use the
products
 FTC found no evidence supporting the first
two allegations by CSPI and that the survey
methodology used to determine the third
was flawed
 In its 2003 investigation, FTC reviewed the
following aspects of FMB marketing:
 ad placement
 ad content
 effect of marketing on minors
a. Advertising placement
FTC investigation found that
 over 99% of dollars spent to advertise FMBs on television,
radio and print complied with the "50% over 21" standard
 but ads were still placed in venues with substantial
underage audience composition
 to minimize this possibility, five companies maintained lists
of programs on which they would not place ads; instructed
buyers not to place ads on
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MTV or UPN
wrestling or extreme sports shows
teen oriented shows such as: Malcolm in the Middle, Gilmore
Girls, Boston Public, Grounded for Life, Celebrity Death Match,
Dawson's Creek, Heaven and Popular (among others)
another company set a “70% over 21” standard
two companies did not advertise in print or broadcast media
b. Advertising content
 FTC subpoenaed planning and other
documents that reflected the
industry's marketing strategy
 concluded that the intended target
market for FMBs was consumers in
the 21-27 or 29 year old age group
 In fact, the majority of FMB drinkers
were over 27
c. Effect of marketing on minors
 FTC was concerned that the sweet taste of
FMBs would appeal to minors and that
advertising aimed at those over 21 would
have a greater "spillover" effect than for
other alcoholic beverages
 evidence collected by the FTC did not
provide information about the impact on
minors of expanded marketing for FMBs
 however, FTC noted that teen drinking
actually dropped between 2000 and 2002,
the period during which advertising for
FMBs increased
2. The Status of Advertising SelfRegulation
 FTC examined the extent to which the
industry had implemented
recommendations in the 1999 report
a. Third-Party Review
 1999 Report suggested that self-regulation
is most effective when internal mechanisms
are supplemented by third-party review
 FTC found that only "modest steps" had
been taken to adopt such systems
 as an example of a successful third-party
review, FTC cited Coors Brewing Company's
agreement to adopt BBB's Advertising
Pledge Program
BBB Advertising Pledge Program
 upon receipt of a complaint, BBB
determines whether an advertising
campaign violates the company's
voluntary advertising pledge
 if BBB decides the pledge has been
violated, may recommend that the
campaign be modified or discontinued
 May, 2003 BBB considered a complaint
concerning a Coors ad showing an outdoor
party at a ski resort
 complaint alleged that
 the ad appeals to snowboarders
 partygoers would be leaving the party in cars
 complaint asserted that the ad violated a
Coors advertising pledge standard:
 “We will not portray or encourage high-risk
activities by anybody who is drinking or
has been drinking”
The BBB found that:
 pledge defines high risk activities as those that require
high degree of alertness or coordination, e.g.
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the operation of motor vehicles
boating and other water sports
operation of equipment or machinery
skiing, climbing, or contact sports
 ad does portray some persons acting in an uninhibited
manner
 nothing in the commercial suggests that anyone is
leaving or about to leave
 nothing suggests that any person will necessarily be
driving within a short period of time after events
depicted
 Also in May, 2003 BBB considered a
complaint about the Coors "Because
We Can" ad campaign
 complaint alleged violation of nine
different provisions of the Coors
advertising pledge, including the
pledge:
 “to place ads where the audience is
at least 60% 21 and older”
 BBB concluded that the ad violated
two pledges:
 “will not condone overconsumption
or irresponsible drinking”
 “advertising and marketing will be
responsible and in good taste”
 Coors disputed the BBB's findings but
agreed to withdraw the campaign
b. Advertising Placement
1999 Report
 criticized the "50% over 21" standard as resulting in
large underage audiences
 recommended that industry members raise standard
for placement and do after-the-fact audits of
placements
2003 FTC reported that:
 placement compliance had improved "considerably"
since 1999 report
 all three associations had amended codes to require
"70% over 21" standard
 two of the three industries require members to
conduct periodic post-placement audits
c. Advertising Content
1999 Report
 recommended that companies target ads to persons 25
and older or not place ads with substantial appeal to
underage consumers (even though they also appeal to
adults)
 some companies responded that since many alcohol
consumers develop brand loyalty by age 25, necessary
to target drinkers between the age of 21 and 24
2003 Report:
 industry documents show that alcohol industry members
do make efforts to target ad content to persons of legal
drinking age
 some advertising targeted to youngest legal drinkers
continues to risk appealing to minors
d. Product Placement
1999 Report recommended that product
placements
 be limited to movies rated "R" or
having mature themes
 not be made in films and programs
where underage person is the primary
character
According to 2003 Report, companies:
 appeared to restrict alcohol product
placements to movies and television shows
in mature themes or "R" ratings
 avoided movies with themes that appeal to
underage consumers, such as "coming of
age" films
 rejected requests to place products in
movies that displayed irresponsible
drinking, drunk driving, or college drinking
Beer Institute Code has specific
provisions concerning product
placements; prohibits placement in
films that:
 depict underage drinking
 show irresponsible consumption in
connection with driving
 are particularly attractive to children
or have underage primary characters
Criticism of the FTC Report
A number of organizations complained that FTC simply
adopted the facts provided by the industry
Particular concerns are that:
 all advertising aimed a young adults, whether for
FMBs or other alcoholic drinks, will spill over into the
underage market
 "It's impossible to construct an advertisement that
appeals to a 21-year-old on his 21st birthday and
doesn't appeal to someone who's 18 years old or
maybe even 16" (CSPI)
 70% rule is still too weak because it doesn't take into
account the total number of underage viewers or
readers
 E.g., the percentage of underage consumers watching
the Super Bowl is small, but the total number is
substantial
Youth Exposure to Alcohol in 2001
 According to a series of reports by
the Center on Alcohol Marketing and
Youth (CAMY), youth exposure to
alcohol advertising on television, in
magazines and on the radio remains
substantial, despite what is indicated
in the FTC Report
Alcohol Advertising and Minorities
The Target Market
Overall, minority groups drink less than whites
However:
 the impact of alcohol on minority
communities is greater than that on white
communities
 in minority communities, among those who
do drink, the heaviest consumers drink
"prodigious" amounts
 Because they are growing in size, minority
communities are an attractive target
market for alcoholic beverage marketers
Malt Liquor
 Malt liquor is targeted primarily to
urban African-Americans and Latinos
 African American drinkers are four
times as likely to consume it as the
general population
 African Americans ages 18-24 are
nearly five times as likely to consume
it as the general population
 although marketed, packaged and sold like
beer, it is much more potent than beer:
 alcohol content is as much as 8%,
 compared to an average of 4.6% for beer
 most commonly sold in 40-ounce
containers
 twice the content of a regular beer
 single 40-ounce bottle has the same
amount of alcohol as five shots of whiskey
 it's cheap
 40-ounce bottles sells for between $1
and $2
 in 1990's was the fastest-growing
segment of the beer market
 sales increased almost 25%
compared to 5% for beer sales
Advertising
 early ads used images of sex and power
 Colt 45
 current ads continue those themes but appeal to
younger market; use of gangster rap musicians, gang
symbolism, hip-hop images, etc.
 St. Ides
 Phat Boy
 billboard advertising particularly intrusive and much
more prevalent in minority neighborhoods than white
 study in a Latino community found children see as
many as 60 alcohol ads on one-way trip between
school and home
What’s new in 2004/2005?
1.Drinking becoming more common
among teenage girls than boys
 Drinking is increasing among teens
 Rate of increase greater for girls than
boys
 Increase appears to be advertisingrelated
 Study published July, 2004 in
Archives of Pediatric and Adolescent
Medicine
 Larger percentage of girls 12-20 were
exposed to ads than
 women over 21
 Women 21-34 (prime target of
marketing)
 Biggest change was in ads for lowalcohol drinks
 Alcohol iced tea
 Wine coolers
 From 2001-2002
 Boys’ exposure increased 46%
 Girls’ exposure increased 216%
2. Cable TV advertising for liquor is
increasing
 Effective March 1, 2005 CNN became first
national cable news network to accept
commercials for distilled spirits
 Joined growing list of national cable
channels
 Others involve sports, entertainment or financial
programming
 Critics express concern about exposure of
children and teens
 CNN counters its audience is concentrated
in 25-54-year-old age group
3. Distilled Spirits Council making
public code review board decisions
 DISCUS code review board
 Comprised of senior member
company representatives
 Advisory board of outside experts
from academia, government and
broadcasting
 Charged with reviewing complaints
about advertising and marketing
materials
 Announced March 8, 2005 it would
release reports every six months
 Reports would include
 complaints
 response from advertiser
 action taken
 Initial report included 15 complaints