ACMA reviewing embedding of brands in TV content
The chairman and CEO of the Australian Communications and Media Authority says existing broadcasting rules are “cumbersome, messy” and “not well understood” and are currently being reviewed including an examination of ’embedded’ advertising on television.
Chris Chapman, CEO of the media watchdog, told Encore that while embedded advertising and product placement is a growing revenue stream for commercial TV networks, the current regulations do not adequately cover it. “We are concerned the current codes and practices don’t reflect sufficient transparency,” he said. “We do recognise that it is an increasingly important element of broadcasters’ finances but the question is whether it is adequately distinguished so that viewers can be sensibly digesting it, processing it and aren’t mislead.”
Chapman’s comments just come days after the ABC’s Media Watch program chastised the Ten Network over a sponsored news broadcast covering the recent Reserve Bank’s interest rate cut. The segment featured a Mortgage Choice spokesman. Ten defended the broadcast arguing that the sponsorship was clearly identifiable and the analyst was announced as a representative of the company.
“There is a view that embedded advertising is going to be increasingly important part of broadcasting revenues going forward,” said Chapman. “The Channel Ten example (cited by Media Watch) is an example of that.”
“The fundamental issue is not whether these practices are good or bad but whether there is sufficient transparency around their execution.”
Last month ACMA announced a major review of its various codes of practice after years of minor reviews and incremental changes.
“Also, arguably, there are a number of inconsistencies between one sector’s code of practice and others,” he said pointing to differences between the nine broadcasting codes that the authority is charged with administering. “Each of these is reviewed every three or four years and each of these (reviews) have simply been a very superficial and iterative review of the code which preexisted,” he said. “Overarching all of this is an observation that time has moved on and they don’t adequately capture what are appropriate community safeguards.”
Chapman has urged the advertising industry to become involved in the community consultations that will be held across June as part of the Contemporary Community Safeguards Inquiry. Over the course of the inquiry, ACMA will review various topics including classification, complaints handling, privacy, decency, accuracy in reporting and advertising standards.
“Advertising is a very good proxy for what we want to do here. There is community interest and concern in advertising practices and an assumption that needs to be tested,” said Chapman. “ACMA is on record saying it is an evidence informed regulator. If people don’t participate, they won’t be able to produce their evidence and they will be poorer for the outcome.”
“People who are key stakeholders in this, including the advertising industry, need to make a vital contribution to this debate. And they would be ill advised not to participate.”
Encore understands the authority is consulting widely with the major broadcasters and also key advertising industry bodies about the review.
Interested parties can get more information about the review from the ACMA website.
Nic Christensen
This story first appeared in the weekly edition of Encore available for iPad and Android tablets. Visit encore.com.au for a preview of the app or click below to download.
Given that media outlets are free to simply ignore ACMA’s rulings, (as seen this week with WIN TV’s atrocious anti-vaccine report), what difference does it make what guidelines are in the code?
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