Ad ban could push Australia into recession, warns industry body
Putting new restrictions on ads could tip the economy into a “harder, faster, longer” recession, the boss of the Advertising Federation of Australia has warned today.
Mark Champion, executive director of the AFA, claims that attempts to put further limits on alcohol advertising and junk food promotion will prevent businesses from properly promoting their products. He said:
“Economists and businesses the world over recognise that to prosper through the tough times you need to keep advertising – and maintain the ability to advertise your products. And yet now, on the verge of a recession, we are confronted by the Federal Government’s Preventative Health Taskforce proposing ad bans to combat obesity and the over consumption of alcohol and calls for similar bans by two State Governments.”
He went on: “It’s all very well for the Federal Government to commit to spend close to 20 billion dollars to stimulate the economy, but it makes no sense to then go and restrict the ability of companies to advertise and market products – especially at a time like this.”
He added: “And we now know that banning ads in an attempt to control obesity and binge drinking don’t work and actually damage the economy.”
He said that recent research co-sponsored by the AFA had demonstrated that such bans did not lead to increased health benefits anyway.
Along with Champion’s comments, the AFA issued an analysis stating:
“If advertising slows or is cut, it is feared a recession will come harder, faster and for longer.”
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large. He returned to Mumbrella as Publisher in January 2025
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For now on, making a specious link between a non-economic policy and Australia’s ability to weather the global economic crisis will be known as “pulling an AFA”.
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And apparently if you don’t increase Free TV’s share of spend, it’s an unAustralian act.
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In a so-called “free market” you should be able to advertise your products or services, it is the responsibility of the consumer to determine whether they purchase it or not. I am sick to death of the advertising industry being blamed for the ills of the world and being the easy scapegoat.
People know that fast food is bad for you but that didn’t stop McDonalds posting enormous profits last year in the US in an economic downturn as did many other fast food outlets, not because of their advertising influence but their pricing, it’s cheap and easy.
Take some responsibility for your decisions and stop eating crap or drinking to excess, but no that’s too hard, it’s easier to blame advertising and it’s evil influences. If ad bans were effective it wouldn’t be happening, and if advertising was as influential as what is proposed people wouldn’t speed and there’re be no such thing as drink driving.
Advertising merely suggests that you may like to try a new product or service, or give you consequences to bad actions it doesn’t hold a gun to your head until you do as it says.
To prevent companies from being able to advertise is just another way a spinless government is pandering to whingers and parents groups who instead of complaining should drive past the fast food outlet. Unless your kid has stolen your wallet, keys and car and driven themselves there, you have no excuse and no-one to blame especially advertising.
Go and protest about something important and let companies and their employees earn a living.
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DFS … are you really Sam Kekovich in disguise. Top rant! (and pretty much on the money!)
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It’s a simple case of survival of the fittest. These businesses don’t deserve to survive. Let a better business replace them.
Why?
–They abuse their customers by selling them unhealthy and addictive products.
–And they abuse the society in which they operate by forcing us to pay more in taxes to pay for health care and police to deal with the fall out their products create.
They are hardly better than cigarette manufacturers and toxic polluters who want us all to suffer so they can make an easy dollar.
If they want them to survive, let them produce something that’s not damaging.
THAT would help the economy.
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DFS: Ff advertising influence isn’t significant in the success or otherwise of alcohol/fast food/tobacco products, what’s the problem?
I certainly agree that self control is under emphasised in the government’s attempt to wrap us all in cotton wool, but denying the influence of advertising, especially in this forum seems, is an odd approach. Your choice of examples is especially strange considering the success of the recent pinky campaign (http://www.brisbanetimes.com.a.....29695.html).
Steve N: Nice one 😉
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