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Ad ban could push Australia into recession, warns industry body

afa-logoPutting 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.”

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