EACA Monthly Newsletter October-November 2004

November 2004

European Institutions

EU - Vote on new Commission postponed
Incoming Commission President José Manuel Durão Barroso asked the European Parliament to postpone the vote for the official approval of the incoming Commission, scheduled for October 27, after it became likely that the outcome would have been a “no”.

Incoming Justice, Freedom and Security Commissioner Rocco Buttiglione‘s remarks about homosexuals and women angered MEPs, who, as the vote approached, seemed increasingly likely to reject the entire new Commission. In a last minute attempt to avert a constitutional crisis, Italy‘s Prime Minister, Silvio Berlusconi went so far as to suggest that Mr Buttiglione should voluntarily withdraw. Mr Butttiglione refused.

Parliament was divided between the Conservative Right EPP group who wanted to support Mr Barroso and the Socialist PSE and the Greens who were totally opposed. The liberal ALDE group, who hold the balance of power in the Parliament, were split over the issue.

Mr. Barroso, who has already been confirmed by the Parliament, must now search for a compromise, which may involve shuffling portfolios, or asking Italy to put forward a new candidate.

The new Commission will thus not take office as scheduled on November 1. The previous Commission will remain in place until a new Commission can be appointed. A new voting date has not yet been scheduled.

Advertising and Children

Ireland - Children‘s Advertising Code launched
The Broadcasting Commission of Ireland has officially launched the Children‘s Advertising Code, which will enter into force on January 1, 2005.

The Code specifies standards, rules and practices for children‘s advertising to be observed by all Irish broadcasters. The Code defines a child as any person under 18 years of age, but recognises that different age groups should receive different levels of protection, in particular children under 6 and those less than 15 years old.

Rules have been put in place regarding the way adverts can portray products and services. Adverts should avoid presenting products, either through special effects or imaginative scenes, in a way that could lead young children to believe that the product has capabilities or characteristics that it does not actually have.

The Code states that food and drink advertising for children shall not portray or refer to sports stars or celebrities unless the advert is part of an educational or public health campaign. Advertising for fast food products or brands should contain a health warning stating, ”Should be eaten in moderation and as part of a balanced diet.“ Advertising for confectionary products will have to bear a warning that ”Snacking on sugary foods and drinks can damage teeth.“ Food advertising should not encourage unhealthy eating or drinking habits.

The use of children in advertising is also restricted. Minors can only appear in advertising for products that children would normally use or be expected to be interested in.

Advertisers should also ensure that they do not undermine parental responsibility. For instance, adverts should not show children using the Internet without parental supervision.

Finally, Christmas-themed children‘s advertising cannot be broadcast before November 1 each year.

The Code will be fully reviewed every three years, except for the provisions relating to diet and nutrition, which will be reviewed every twelve months.

Italy - Gambling baby advert causes uproar
Italian MPs have expressed outrage over an advert for the state-run Agency for Betting on Football Matches.

The advert, which appears in the printed press and not on TV, shows a baby in a prawn playing with a carillon overflowing with footballs and football boots. Mariella Buran Procaccini, President of the Parliamentary Commission on Childhood, condemned the advert as “inopportune and inappropriate to encourage people to bet on football games.” Ms. Procaccini, who is also rapporteur for a bill aimed at repealing a ban on the use of under-14s in TV advertising, added that minors should not be used in commercial advertising and has formally requested that the Minister of the Economy order the withdrawal of the advert.

Alcohol advertising

EU - Young people and alcohol in Europe
Addressing the Amsterdam Group?s European Forum for Responsible Drinking, Robert Madelin, Director General of DG SANCO, invited the alcohol industry to dedicate more resources to responsible conduct.

He also stressed that the Commission was not in favour of a society without advertising, but called for increased transparency, greater stakeholder and third-party involvement, and the publication of self-regulation results. Mr. Madelin also said that while self-regulation codes look good on paper, they often lack credibility and are insufficiently enforced.

Different strategies were outlined at the conference that had been successfully applied in the UK, Canada and the States. Rather than targeting overall consumption, they had specifically aimed at reducing alcohol abuse and resulting harm among young people. One approach for example, had used social norms by identifying desired behaviour and promoting these examples of good behaviour among students in universities; another approach was based on parents´ involvement in creating an open dialogue with their children about use and misuse of alcohol.

Belgium - Health Minister outlines alcohol advertising reforms
Health Minister Rudy Demotte has said that changes in Belgium´s social reality and the alcohol industry meant that legislation that has not been updated since 1939 needs to be overhauled.

The minister´s proposal would make alcohol industry self-regulation binding. However, in order to support producers who adhere to the codes, and to protect them from unfair competition, the minister believes that additional legal measures are needed. His proposals are to restrict alcohol advertising generally, and to ban ads aimed at minors under the age of 16. The proposed legislation will introduce minimum norms on marketing behaviour by industry and advertising agencies. Mr. Demotte said he hoped to get support and responsible behaviour from all stakeholders.

France - National Assembly relaxes restrictions on alcohol advertising
French MPs have voted 102 to 12 to exempt wine from the ‘Loi Evin,’ which bans alcohol advertising on television, but have called for alcoholic beverages to carry health warnings for pregnant women.

From now on, wine producers will be able to advertise their product collectively, referring to the specific qualities of the wines, particularly flavour, the conditions in which the wine is produced, and the type of grape used. Adverts, however, must be compatible with the goal of promoting moderate consumption.

This is the second victory for French wine producers in recent months. In May, the Senate made changes to the law allowing wine adverts to refer to the general characteristics of a product.

In voting for the amendments, MPs were reacting to concerns about the effects of a crisis in the wine industry on the French countryside and economy. The changes to the law come at a time when the French wine industry is in decline. Over the last twenty years, wine consumption in France has fallen by almost 50%. Foreign sales have stagnated due to competition from New World wines. The reform is also a boost to the French advertising industry, which has been mired in a recession for the last three years.

Health organisations oppose the alterations to the ‘Loi Evin.’ Michel Reynaud, Secretary-General of the French Federation of Alcohol Studies, said the softening of the ban on alcohol advertising could lead to a public health disaster. An increase in sales of just 10% could, he said, lead to two to three thousand more alcohol related deaths per year in France.

UK - Supermarket chain to display alcohol health warnings
Waitrose, the UK supermarket chain, has announced that it will display health warnings near alcohol product displays.

The move follows rising concerns about binge drinking and alcohol related health problems. The labels will warn customers they ought not to drink more than one third of a bottle of wine a day. The warnings will outline the recommended daily limits for men and women and will be placed next to product displays to explain how many units each particular product contains.

Broadcasting

Italy - Broadcasters accused of excessive advertising
Two Italian broadcasters risk fines for exceeding limits on advertising revenue.

The Italian communications sector watchdog, Autorità per le Garanzie nelle Comunicazioni, has decided to bring proceedings against the public broadcaster RAI, and the commercial channel Mediaset. Both companies risk fines of up to € 150 million for breaching a 30% limit on advertising revenue.

Netherlands - Broadcaster calls for abolishment of advertising rules
Gerhard Zeiler, the CEO of the RTL broadcasting group, has called for the abolition of European advertising limitations.

In a statement to the Dutch national broadcasting conference, Mr. Zeiler appealed for a European lobbying campaign against rules set out in the Television Without Frontiers Directive, setting a maximum amount of television advertising. He said that self-regulation deserved more trust and that the viewers should be able to make up their own minds about advertising.

Gambling

UK - New law to remove restrictions on gambling advertising
On 18 October, the Government introduced a sweeping and controversial reform of UK gambling legislation.

While liberalising gaming laws, and allowing the establishment of twenty-four hour casinos throughout the UK, the bill will remove many of the existing restrictions on the advertising of gambling.

The bill will allow casinos to advertise for the first time in the UK. The bill also creates an offence of advertising illegal gambling, and sets out rules for the content and conduct of advertisements for legal gambling. A reserve power can be invoked to prohibit the advertising of gambling in particular jurisdictions.

MP´s examining the bill proposed adding a clause to ban gambling advertising that might be seen by under-18s, as well as ensuring that adverts contained information on sources of help for problem gamblers.

A new regulator, the Gambling Commission, which has been granted enforcement powers, will be created to oversee the rules.

Assuming the bill does not encounter significant parliamentary resistance, it could be passed into law as early as next summer.

Health Protection

EU - Future Health and Consumer Protection Commissioner sets out priorities
Markos Kyprianou outlined his public health, food safety and consumer protection priorities for the coming five years at his confirmation hearing in the European Parliament.

The former Cypriot Minister of Finance said his key priorities would be to combat obesity, smoking and alcohol abuse. He said that measures should be focussed on preventing minors from consuming alcohol and tobacco. Saying “there is no scourge worse than tobacco,” Mr. Kyprianou pledged he would aim at an EU-wide smoking ban in workplaces as well as in other public areas such as bars and restaurants.

Referring to consumer protection, Kyprianou said “harmonised products and services must under no circumstances pose a danger to the consumer, whether financially, physically or in terms of health.” Full harmonisation will allow consumers to feel safe anywhere in the internal market. While saying that he favoured harmonisation based on “the most radical rules in force in a Member State,” he reminded MEPs, “that harmonisation can only be the result of a compromise between Member States.”

Obesity

EU - European Parliament discusses nutrition and health claims
The European Parliament´s Internal Market and Consumer Protection Committee has discussed proposals for a joint regulation on nutrition and health claims, and on claims about the addition of vitamins and minerals to food products.

Paola Testori Coggi, Director at the Health and Consumer Protection Directorate General, said that Commission supported joining the proposals, and that the Commission was ready to work towards a compromise with Parliament. She also said that the Commission was working on improving those areas of the text that have been criticised as unclear, including the section regarding nutritional profiles.

Ms. Coggi said that the Commission did not want to stigmatise food as a cause of ill health, and that it understands the importance of an overall balanced diet to a healthy lifestyle, but the article on nutritional profiles would remain an important element of the proposal.

EU - Study shows that Europeans do not favour advertising bans
A recent study by the research company Globescan indicates that most Europeans are not in favour of government bans on food advertising.

Those polled thought that government should take positive measures, such as health information campaigns, to combat obesity and promote health. The study concluded that while most people are aware of the risks of an unhealthy diet, they do not always make the connection between bad diets, lack of physical exercise and health risks.

Poland - Survey on children‘s perception of food advertising published
The Association of Polish Consumers has released the results of a survey on food advertising conducted among children aged 13-15.

Five hundred children responded to the survey, which was organised last May as part of an educational programme on the nature of advertising. The results of the poll show that Polish children usually spend one to two hours a day in front of the TV, while eight out of ten enjoy watching TV adverts. The survey also showed that the more children watch TV, the more they tend to like TV commercials. A large majority of the respondents (87%) claimed that ads present incomplete information about products, while only 2.5% believe that advertising is always true.

When it comes to buying products, the study showed the most important influence on children´s decisions are parents. Other significant factors include cost and information presented at the point of sale.

Sweden - Minister identifies food marketing as a threat
The Minister for Agriculture, Food and Consumer Affairs has labelled food marketing as a serious threat in the context of the struggle against obesity.

Calling for an EU-wide ban on food marketing to be put into place Ann-Christian Nykvist said that although bad diets are as dangerous to health as alcohol, the food industry continues to spend huge amounts on marketing ‘fast food.’ Mrs. Nykvist claimed that in 2003, fast food marketing amounted to 1 billion Swedish Krona (2.2 billon euro), while only 20 million Krona were spent on advertising fruit.

She also called for restrictions to be put into place to prevent the circumvention of Sweden´s laws against advertising to children.

UK - Industry adopts new Food and Health Manifesto
The Food and Drink Federation (FDF) has published a manifesto on Food and Health in advance of a Government white paper on health due to be published in November.

The document commits the Federation´s members to several health promotion measures. These include making food labelling clearer, in line with revised EU provisions, continuing to reduce levels of fat, salt and sugar in products, and exploring new approaches to portion sizes to help reduce over-consumption.

The manifesto also includes measures to remove branding where requested by schools or local authorities, and to remove all vending machines from primary schools. The text also outlined proposals to work with the communications regulator OfCom and the Government to tighten self-regulatory codes, and to discuss concerns about advertising to children. Members also agreed to participate in a Government led programme to educate the public about healthy eating and lifestyle, as well as promoting healthy eating schemes in their workplaces.

UK - Health conference discusses nutrition
Sir John Krebs, Chair of the Food Standards Agency (FSA), claimed at a meeting hosted by Cancer Research UK and the British Heart Foundation that individual choice has its limits in the debate over diet.

Sir John stressed the importance of educating children about healthy lifestyles as part of school curricula, as well as the need to change the attitude of the food industry. He said that while the FSA is not currently recommending a ban on advertising “junk food” to children, Ofcom should ensure that such advertising is balanced by information on healthy lifestyles.

The conference also adopted MP Paul Burstow´s Health Paper, which outlines proposals for a “traffic light system”, restrictions on the advertising of “unhealthy” foods, and a proposal for a Healthy Eating Fund to be supported by voluntary contributions from the food processing industry.

UK - Government considers introducing TV food advertising watershed
There are reports that the Government could be considering the introduction of a watershed for food advertising on television.

In addition to restricting the times that food advertising could be shown on TV, the Government is said to be considering the use of ‘traffic light’ symbols on food products. It is unlikely that such a proposal would become law, however, as ministers appear to favour implementing the measures through voluntary action by industry.

The Food Standards Agency has been considering similar measures, such as signposting and nutritional profiles. The Agency has also just been allowed to continue its current controversial media campaign on salt intake, featuring Sid the Slug. The Salt Manufacturers Association had claimed the ads were “ ? factually incorrect and potentially very damaging.”

Sales Promotions

EU - Still no agreement on Sales Promotion Regulation
The September Competitiveness Council was unable to reach an agreement on the Dutch Presidency´s proposed compromise text on the Sales Promotion Regulation.

The Presidency gave the Member States three options: a Directive that would apply immediately; a Directive that would have delayed application; and a Regulation with an amended mutual recognition clause. As ministers were unable to reach an agreement, the dossier was referred back to COREPER.

The Dutch Presidency is trying to persuade Germany ? a major opponent of the directive ? to support the text. If they are successful, a new proposal could be discussed at the Competitiveness Council on 25-26 November.

Self-Regulation

EU - Commissioner Byrne positive towards self-regulation.
David Byrne, the outgoing Health and Consumer Protection commissioner, spoke in support of self-regulation at the Dutch Presidency?s recent consumer policy conference.

Mr. Byrne said that business has an important role to play in consumer policy, either by bringing infringements to the notice of the authorities or by taking legal action against competitors who cheat or mislead consumers. He acknowledged that self-regulation is central to consumer policy in several Member States. The Commissioner also pointed out that self-regulation was effective in dealing with the bulk of cases concerning law-abiding companies. This is especially true of the advertising industry, he said.

UK - ASA begins co-regulating TV and radio commercials.
On November 1, the Advertising Standards Authority (ASA) began co-regulating advertising on television and radio.

The Advertising Standards Authority is the independent body set up by the advertising industry to police the rules laid down in the advertising codes. Up to now, the ASA has only been responsible for regulating advertising in the non-broadcast media.

The ASA will be working in a co-regulatory partnership with Ofcom, the communications regulator. The Communications Act, which set up Ofcom, allows the regulator to use self-regulation to carry out some of its functions.

The move creates a ‘one stop shop’ for all advertising issues and complaints, bringing the regulation of broadcast and non-broadcast advertising under one roof.

www.asab.org.uk/asa/focus/Live%20Issue/

Estonia, Latvia & Lithuania - Establishment of advertising standards systems.
During the advertising standards road-show held in Vilnius on 28 October, Baltic advertisers, agencies and media confirmed their plans to establish advertising standards systems within the next six months. The Lithuanian and Latvian systems will be launched by the end of this year, with Estonia following in May 2005.

Mariuus Jovaisa of the Lithuanian advertising agencies´ association (KOMAA) which hosted the road-show, emphasized the opportunity to “demonstrate our commitment to effectively regulate our own industry”, bringing the Baltic states in line with the majority of EU Member States. The road-show was jointly organised by KOMAA, the European Advertising Standards Alliance (EASA) and The Amsterdam Group (TAG).

Spain - Co-regulatory code agreed on protection of minors.
The Spanish Deputy Prime Minister and the heads of four major TV channels have agreed to establish a co-regulatory code on the protection of minors.

The code will focus on the content of programmes and advertising during a protected time band, 6am to 10pm. An additional special time band from 7pm to 10pm, when most children and adolescents watch TV, will be established. During this time, advertising must not be harmful to children. It must not, for instance, encourage the consumption of alcohol or tobacco, nor may it encourage the excessive purchase of toys.

According to the government, the purpose of the code is “to make advertising recognisable and distinguishable from programmes, even for children who cannot read.”

A supervising committee composed of civil servants, as well as representatives of the TV channels and consumers? associations will monitor the code, which is expected to be in force by Christmas.

Services

EU - Future Commissioner McCreevy outlines position on Services Directive
Commissioner designate for the Internal Market and Services, Charlie McCreevy, discussed his concerns about the proposed Services Directive during his hearing before the European Parliament.

Speaking in front of the Internal Market and Consumer Affairs committee, the former Irish finance minister claimed that the Services Directive would come into conflict with the Television without Frontiers directive. He also said that the Country of Origin principle was not the only way to open markets. He said that the removal of barriers, not liberalisation, was the essence of the Internal Market.

Tobacco Advertising

EU - New rules on cigarette packaging
In his last official press conference as Commissioner for Health and Consumer Affairs David Byrne unveiled a new report on tobacco as well as revealing the new images to be printed on cigarette packaging.

“The true face of smoking is disease, death and horror - not the glamour and sophistication the pushers in the tobacco industry try to portray. The EU must hammer home this message to young people,” said Mr. Byrne.

The 300-page report provides an overview of tobacco use and its effects on health, the economics of tobacco and tobacco control in the EU, the development of the EU´s tobacco-control policy and its impact on smoking. The document, entitled “Tobacco or Health in the European Union,” presents the incoming Commission with a series of recommendations for both long and short-term action.

The incoming Health Commissioner, Markos Kyprianou, is expected to maintain an equally tough anti-smoking stance. At his confirmation hearing in the European Parliament, Mr Kyprianou said he would work towards an EU-wide smoking ban in public places.

UK - Doctors call for changes to cigarette labelling
An article published in the British Medical Journal claims that the health information printed on cigarette packages is misleading.

The authors claim that the machine-measured levels printed on packets do not reflect the amounts of tar, nicotine and carbon monoxide that smokers actually consume, due to the variations in smoking patterns, and new cigarette designs that allow deeper inhalation. Scientists worry that this could lead consumers to believe that cigarettes are less dangerous than they really are.

The authors of the article call for the measurement of chemicals in cigarettes to be taken out of the hands of the tobacco companies, and replaced by a standardised measurement, carried out by regulatory authorities.

UK - Tobacco companies launch freedom of speech case
The tobacco industry has filed a case in the High Court challenging legislation that limits the size of tobacco advertising at points of sale.

The industry claims that the rules limit the freedom of commercial speech guaranteed by European law and the UK Human Rights Act. The industry also claimed that the rules make it very difficult for UK companies to maintain market share and to launch products. The tobacco companies also pointed out that although tobacco may be harmful, it is still a legal product.

EACA and Members News

EACA - Yahoo! Europe to back Euro EFFIES with new Best Idea award.
Yahoo! Europe is to support the Euro EFFIES with the introduction of a new award category in 2005 for Best Idea.

The award will be given at the discretion of the jury to the company, team or individual who displays the most innovative thinking, whether for a strategic, media or planning idea.

Yahoo! chose this year´s Euro Effie Awards in Brussels as the European launch pad for their Yahoo! Big Idea Chair, which is being given to the creators of really big ideas at a series of events over this year and next in the United States and around the world. It is also a symbol of Yahoo!´s commitment to supporting remarkable marketing ideas and to encouraging and supporting big ideas throughout the marketing and marketing communications community. The winner will receive a real Yahoo! Big Idea Chair in addition to their Euro Effie trophy.

EACA - 2004 PMC Award Winners announced.

The Promotional Marketing Council of Europe announced the winners of the European Sales Promotion Awards 2004, at an Award Ceremony in Brussels on 30th September.

Alcoholic Beverages:

Silver – Spain
Campaign: Hallowbeer
Agency: Momentum
Company: Heineken

Non-Alcoholic Beverages:

Gold – Netherlands
Campaign- Pepsi Blue
Agency: Vrumona
Company: Vrumona

Business to Business:

Gold – Netherlands
Campaign: 20 th Anniversary of Doom & Dickson
Agency: Doom & Dickson
Company: Doom & Dickson

Cause-Related and Charity:

Gold - UK
Campaign: The Sex Lottery
Agency: Iris
Company: UK Department of Health

Creative Execution:

Gold – Austria
Campaign – IKEA FIAKER
Agency: McCann Erickson
Company: IKEA

Durables including Automobile:

Gold – UK
Campaign: Coolpix Adventures
Agency: SMP
Company: Nikon UK

FMCG Food:

Gold – UK
Campaign: Kellogg’s – Amazon
Agency: Blue Chip Marketing International Ltd.
Company: Kellogg’s Sales and Marketing Co.

FMCG Non-Food:

Gold – UK
Campaign: Andrex
Agency: SMP
Company: Kimberly Clark

Innovation:

Gold – Italy
Campaign: Free Telephone
Agency: CCI Centro della Comunicazione Interattiva
Company: Black and Decker Garden Tools, Power Tools, Home Products Italy

IT and Telecoms:

Gold - Italy
Campaign: Nokia 3650
Agency: Network & B
Company: Nokia

Integrated Campaigns:

Gold - Italy
Campaign: Bowerman Trial Programme
Agency: Inventa
Company: Nike

Long Term Campaigns:

Gold – Belgium
Campaign: Old Shoes Collection
Agency: BAD
Company: Brantano Shoe Shops

Media:

Gold – UK
Campaign: Guide to Gastro Pub Supplement
Agency: Clayton Heely Jones Mason
Company: Guardian Gastro Pubs

Retail:

Gold – Austria
Campaign: BILLA Birthday Promotion – 10 percent discount on all products
Agency: Euro RSCG E&E
Company: BILLA Supermarket

Sales Motivation and Trade:

Gold – Italy
Campaign: Living Europcar
Agency: Gir Promomarketing
Company: Europcar

Services including Finance :

Silver – Austria
Campaign: With Robin Wood in
Treasure Forest
Agency: FCB PR & Events GmbH
Company: Bank of Austria

Travel and Leisure :

Gold – Belgium
Campaign: ‘Vlaanderen Vakantieland’ – ‘Unknown, Unloved’
Agency: DVN
Company: Toerisme Vlaanderen (Flemish Tourist Board)

Best of Europe :

UK
Campaign: The Sex Lottery
Agency: Iris
Company: UK Department of Health

Germany - GWA publishes its Autumn Monitor 2004.
The GWA Autumn Monitor, survey of communications-business development published twice a year, shows that 2004 has been rather lukewarm, mostly because of the consolidation process started early this year. It is hoped that 2005 will see better results.

Figures from this survey, calculated by the marketing research company Czaia Marktforschung, mirror the advertising sector?s economic situation as 82% of German agencies are members of GWA.

UK - IPA Effectiveness Awards 2004 winners.
The O2 paper written by Vallance Carruthers Coleman Priest has been awarded the Grand Prix and Effectiveness Agency of the Year prizes at the IPA Effectiveness Awards 2004, held at the Hilton Park Lane, London, on 1 November.

In total there were seven Gold Awards, 12 Silver, 13 Bronze and 13 special prizes given.

http://www.ipa.co.uk/news/news_archive/displayitem.cfm&itemID=1370

UK - IPA report indicates longest period of continual growth since 2000.
The Q3 2004 Bellwether Report, the quarterly survey of marketing budgets, published by NTC Research on behalf of the IPA, reports improvements in marketing spending.

According the report, all categories of marketing expenditure saw growth. The only exception was ‘all other’ marketing spend, including activities such as PR, market research, sponsorship and conferences. This reduced spend reflects the need to cut costs in some companies, but also the diversion of spend to other marketing activities.

“The latest Bellwether survey suggests that marketing activity in the UK continues to expand at a robust pace on the back of increased corporate profitability. The outlook for main media advertising is particularly encouraging, as buoyant initial budgets for 2004 - which were set at the start of the year to show the strongest growth for four years - have been steadily revised up on average as the year has proceeded,” said Bellwether´s author Chris Williamson of NTC Research.