Poor regulation hampers the Middle Eastern advertising industry

By Louai Al Asfahani, Managing Partner, Paragon

The problem in a nut shell is the absence of consumer pressure groups, in-sufficient regulations, only a handful of agencies self-regulate (although this is slowly changing).

Success is never an accident. It is no wonder that the UK (for example) has a thriving advertising industry, since it is monitored and regulated by a plethora of industry bodies.

I ask then why in a comparatively smaller market such as the GCC, with fewer media vehicles, can't we regulate an industry which is still in its infancy stage?

VFD: Verified Free Distribution

A subsidiary of ABC which certifies the circulation of free newspapers. Currently we have media vehicles claiming to print and distribute more than 100,000 copies even though the realistic figures are closer to 30 per cent of that claimed by the publisher.

COA: Certificate of Attendance

The COA was introduced in 1993 by ABC, and requires registered members to show proof of systems used to reliably audit attendances at exhibitions and to provide accurate information for certification purposes.

Barb: broadcasters Audience Research Board

Barb researches TV audiences, publishing weekly and monthly reports. It has a panel of 4,435 homes with meters for recording watched programmes. Barb also measures when someone watches a VCR or DVD player.

Weekly reports give hours of viewing for each channel and lists audiences for the most popular programs on each channel. Monthly reports provide hours of viewing plus regional shares, and the top 50 programmes for the month.

Caviar: Cinema and Video Industry Audience Research

Run by Carrick James Market Research, it conducts research into cinema going for the Cinema Advertising Association.

ITC: Independent Television Commission

Founded by the Broadcasting Act 1990, it deals with commercial television (ITV) only. The ITC licenses ITV contractors and issues a Code of Practice and rules regarding sponsored programmes.

ITVA: Independent Television Association

A trade body of ITV contractors, which recognises advertising agencies. It vets TV commercials before screening.

Rajar: Radio Joint Audience Research

Since 1992, Rajar has researched all radio audiences and produced quarterly listening summaries.

NPA: Newspaper Proprietors Association

A trade body of national newspapers, the NPA recognises advertising agencies for commission purposes.

NS: Newspaper Society

A trade body of regional newspapers, the NS recognises advertising agencies for commission purposes.

PPA: Periodical Publishers Association

The PPA is a trade body of magazine publishers. It recognises advertising agencies for commission purpose.

NRS: National Readership Survey

The NRS publishes results of 35,000 interviews a year regarding readership and demographics of readers of 250 national newspapers and magazines.

PIN: Pinpoint Identified Neighbourhood

PIN analyses 130,000 neighbourhoods and 60 types of census neighbourhoods. PIN produces proprietary a mapping system.

ISBA: Incorporated Society of British Advertisers

A trade body for protection and advancement of advertising interests of member firms. Advises on all forms of media and publishes useful guidance booklets.

BRAD: British Rate and Data

A monthly media directory containing rate card data. BRADbase makes data available online.

BCAP: British code of advertising practice

A voluntary code covering all print advertising and administered by the UK's Advertising Standards Authority. For recognition purposes, advertising agencies must support BCAP.

Its basic principle is that advertising should be legal, decent and honest and the public are invited to make written complaints about offending or misleading advertisements. BCAP has no power to penalise, but can recommend modifications or non-repetition of misleading claims in the future.

It publishes monthly reports on its investigations, recording whether or not complaints were upheld.

For the purpose of claiming commission on media purchases, advertising agencies and media independents must apply to NAP, NS, PPA, ITVA, AIRC for recognition. This is granted once the bodies are presented with satisfactory evidence of credit worthiness (ability to pay media bills promptly) and the acceptance of the British Code of Advertising Practice.

The Office of Fair Trading in 1976, under Restrictive Trade Practices Act 1976, ruled that it was monopolistic for media bodies to guarantee a rate of commission which became negotiable between agencies and media owners.

A commission system is used as a method of recognising advertising agents by NPA, NS, PRA, ITVA, AIRC, so that they may receive commission on media purchases. Agencies are required to show proof of credit worthiness so that media bills are paid promptly, and to adhere to British Code of Advertising Practice.

The advertising industry is a serious business and as such warrants proper regulation if it is to thrive. While not all of the above bodies may be right for the GCC, the region can certainly learn from them and adapt their practices to help the advertising industry improve.

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