Transcript ppt - European Institute for Commercial Communications Education

Keeping digital advertising within the
law
EFCCE Conference
16-17 May, Paris
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From www to web 3.0
• 30 April 1993: CERN
put the www in
public domain
• Today: web 2.0
• Tomorrow:
semantic web 3.0
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Web 2.0
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Web 2.0
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Web 3.0
• Semantic web: pushing the boundaries
of search and intelligent text filtering
60.8%
14%
Of all global searches in 2007
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3.5%
Advertising funds services
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Content sharing
Social networking
E-mail hosting
Online searches…
– Search marketing
– Targeted ads (display)
• On search engines
• On visited websites
• In E-mail box
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Search marketing income
(Forrester)
– Search in 2007: 8.05 billion $
– Search in 2012: 25 billion$
(Jupiter)
– Search in 2006: 2.16 billion €
– Search by 2011: 13 billion €
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Online display ads
• Display
– Rich media (animated ads such
as pop ups or floating, video)
– Sponsorship
– Banners, skyscrapers…
• Targeted advertising:
• Less in quantity
• Better adapted to consumer taste
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Online display ads
• (DoubleClick)
– In 2005: € 230 million
– In 2010: € 1.8 billion
• Far more effective than banners (Dynamic
Logic MarketNorm 2006)
– Rich media ad 1,5 times more likely to generate
sales than static ad
– Video ads 2,6 times more effective than static
ads
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Are there global rules?
• 1999 OECD guidelines for consumer
protection in electronic commerce:
– No deceptive, misleading or unfair
practices
– Advertising & marketing should be clearly
identifiable as such
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...take special care in
advertising or marketing
targeted at children the
elderly or seriously ill…
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Misleadingness & EU law
• 2005 Unfair Commercial Practices
directive bans:
– any form of commercial communication which
cannot be clearly recognised as advertising
(considered a misleading & unfair practice)
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Misleadingness & EU law
– Examples:
• Content integration: commercial or paid-for branded content
included within editorial content without explaining that
commercial or branded content is advertorial,
• Placing branded video or other content on popular
networking websites without disclosing that the person
posting the content acts as a brand ambassador
• Seeding positive messages about a brand in blogs, in a
manner implying you are a simple member of the public…
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Targeted online ads
• How does it function?
• The cookie connection:
– Cookies are strings of html text
– Placed on our computer via a
specific website
– Can register the sites we visit
showing banners relating to
specific campaign, for example
• Raise issues of privacy
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Global privacy rules
• 1948 UN Universal Declaration of
Human Rights, Article XII:
– No one shall be subjected to arbitrary
interference with his privacy, family, home
or correspondence, nor to attacks upon
his honour and reputation. Everyone has
the right to the protection of the law
against such interference or attacks.
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Global privacy rules
• 1980 OECD guidelines for the protection of privacy
– Definition: personal data is any information
relating to an identified or identifiable individual
– Companies should:
• Limit the data collected to what is relevant for
the intended use
• Establish privacy policies
• Ensure safety of collected data
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Global privacy rules
• Person whose data is being collected
should be given:
–Identity of company collecting data,
–Purpose of data collection,
–Right to access collected data,
–Right to modify or have his data
deleted.
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Privacy & EU law
• Collection & use of personal data
– Strictly regulated by 1995 Data Protection directive & 2002
directive on Privacy in E-communications
• Person whose data is being collected must receive following
information:
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–
–
–
–
Identity of company collecting data,
Purpose of data collection,
Who will be given access to data,
Right to access collected data,
Right to refuse data collection.
• EU law applies to all non-EU companies placing
cookies or spyware on computers in EU
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Privacy issues
• Consumers lack understanding of their
data being collected
• Privacy policies often unclear
• Right to access or refuse data
collection: not visible
• Vulnerability of children
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Children’s privacy protection
• No specific law in the EU
• In the US, since 2002: the Children’s
Online Privacy Protection Act (COPPA)
– Allows collection of personal data from
children under 13, only with express
agreement of their parents
– But, application is voluntary and
interpretation is approximative
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Children’s privacy protection
• For social networking sites
• Example UK:
– Ofcom research: Despite the fact that the
minimum age for most major social
networking sites is usually 13 (14 on
MySpace), 27% of 8-11 year olds who are
aware of social networking sites say they
have a profile on a site
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Privacy issues
• UK Home Office guidelines:
– recommend measures to block child sex
offenders from having access to social
networking sites
– providers of social networking services
should ensure that advertising on their
sites is appropriate for the likely audience
and legal
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Children’s privacy protection
• Social networking sites (MySpace,
Youtube)
– Are adopting voluntary measures to block
access to known paedophiles
– Not allow younger members to make
their profiles public
– Mediate content & access
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What if?
• Current discussions on “inappropriate”
advertising on social networking sites
could spill over to other community sites
(Youtube)
• Ask for application of rules applied to all
other media
– Ex: UK content rules for food marketing to
children (no use of cartoon characters)
could be applied to the Youtube Skittles ad –
which would then be illegal
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The future in questions
• It will largely depend on industry’s
responsible behaviour how legislators
will be dealing with online advertising
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