Brands broadly welcome new proposal to regulate EU audio-visual

On 25 May, the European Commission put forward several proposed changes to Europe's main law regulating TV advertising, the Audiovisual Media Services Directive (AVMS Directive). The WFA and its members welcome many of the proposals.

In particular, brand owners support the Commission's efforts to bring the European regulatory framework in line with the evolving media landscape and simplify the current rules, especially for advertising.

WFA supports the strong recognition for the "well designed" self/co-regulatory systems that the industry, governments and civil society organisations have developed over the last decades in the EU.

Many of the so-called "advertising standards bodies" or "self-regulatory organisations" have been put in place owing to a call for action and support from the Commission and Member State governments.

Robust, effective and responsive systems, which often rely on third-party monitoring or independent complaint mechanisms, are a cornerstone of consumer protection and an area where the EU has taken global leadership. It is positive to see a strong call to continue to develop and enhance such systems, and brands stand ready to respond to this call if it is included in the final text.

The new proposal also suggests introducing a range of flexibilities for media, which reflect the challenges of regulating a fast-moving industry. Brands support many of these changes, seeing them as allowing greater flexibility for media owners and therefore ultimately benefiting consumers.

There remains one area where the WFA believes the proposal goes too far however, putting at risk the consumer TV experience of today and therefore the medium's future.

Across the EU, there has long been a twenty percent cap per hour on advertising meaning European consumers can only be exposed to twelve minutes in a given hour slot.

This limit was put in place to prevent media owners from increasing the volume of advertising to raise additional revenues beyond sustainable levels in order to safeguard the consumer experience.

Brands unequivocally support this limit. WFA believes more advertising does not mean a better experience for people, better engagement for brands or, in the long run, better funding for the media channels themselves. This is particularly true today given the range of other media options people have.

It is therefore of concern to brands to see the Commission proposing to effectively remove this hourly limit and replace it with a daily limit applied between 7am and 11pm.

If Member States were to implement such a change, people will likely see far more advertising in and around prime time television, thus interrupting their favourite TV shows and events.

Ultimately, this will lead to a poorer consumer experience, less engagement and ultimately people will vote with their feet and turn to different media and platforms for their news, culture, sport and entertainment.

The new draft proposal comes as a result of more than a year of consultation and data collection by the European Commission. WFA has supported this process, sharing data and providing the brand owner's perspective on what is needed in order to benefit consumers and ensure advertising is delivered responsibly across Europe.

Brands invested more than EUR 80b in 2015 in media in Europe, and TV and online audio-visual media will remain a key way to reach people for many years to come.

While in economic terms advertising helps to drive jobs and growth, many people still see its main tangible benefit as paying for the high quality content and online services they enjoy every day. While media and technology will evolve, the importance of regulating advertising effectively to protect this benefit for consumers will remain key.

As the debate moves to the European Parliament, the WFA will continue to listen and see how brands can play a role in protecting consumers by enhancing self- and co-regulation for advertising. WFA and its members will also stand in support of our consumers who continue to want to see proportionate limits on the amount of advertising they see on broadcast TV.

For more information, please contact Adam Gagen at a.gagen@wfanet.org