ISBA - The Voice of British Advertisers

One of ISBAs most significant legacies is the introduction of the Contract Rights Renewal price control mechanism, linking the share of budgets ITV can command from advertisers to its audience delivery. ISBA urged its imposition when the two sales houses Carlton and Granada merged in 2003, to form ITV plc.  

Despite recommendations made by the Office of Fair Trading (OFT) to the Competition Commission (CC) that CRR should be relaxed in 2009, the CC decided to keep the pricing mechanism, recognising advertiser and agency concerns that ITV clearly continues to have significant market power. The CC rightly acknowledged that developments since its inception in 2003, such as time-shifted and high definition channels, could justify some variation. ISBA collaborated with the OFT and Ofcom to implement suitable adjustments to CRR.

ISBA members can find out more details here.

In July 2010, Ofcom undertook the decision to remove rules governing the way TV advertising was sold to media buyers and advertisers. Despite some objections from broadcasters, the Airtime Sales Rules were scrapped from September 2010.

The rules were split into two parts – the ‘Withholding Rule’ and the ‘Conditional Selling Rule’ - both intended to ensure fair and effective competition. Advertisers expressed their disappointment and concern at the decision. However, Ofcom said it will monitor the effect of the removal of the rules and warned that broadcasters engaging in "anti-competitive conduct" would face "enforcement action".

Throughout 2010, the House of Lords Communications Committee conducted an inquiry into the (economic) regulation of TV advertising. Following the Committees’ call for evidence, ISBA provided both a written and verbal response to the inquiry. In February 2011, the Committee published its findings and made three key recommendations; removal of CRR, replaced with “binding undertakings” from ITV to invest proportions of any additional revenues from advertising into creating UK-originated programming and training; harmonisation of advertising minutage at an average of seven minutes per hour (same as all public-sector broadcasters (PSBs); and a “short, focused” review of the television trading system, conducted by a "small expert panel".

ISBA dismissed the Lords’ report suggesting that investment in quality content is not a direct substitute for CRR. The Department for Media, Culture and Sport (DMCS) also rejected the House of Lords’ calls for CRR to be abolished, stating its removal would likely result in higher prices.

However, DCMS endorsed Ofcom’s wider review of the television advertising market that was announced at ISBA’s Annual Conference in March 2011. Ofcom’s Chief Executive, Ed Richards, stated that “the time is right to consider whether the current trading mechanism prevents, restricts or distorts competition in the sale of TV airtime.” If the regulator concludes there is a cause for concern, the case will then be referred to the CC to examine. ISBA has responded to Ofcom’s consultation questions, offering the views of its members

The television market has experienced sales house consolidation amongst the sellers of commercial TV airtime as the number of major sales houses have fallen from seven to four in the past two years. Concentration within ITV, Channel 4, Five and Sky, has raised concerns over competition, which ISBA continues to remain close to. 

As the future of audiovisual media becomes more digital, with the increasing adoption of web-enabled set top boxes and televisions, there is greater need to provide more accurate information about the increasingly ‘connected’ audience. 

BARB, the organisation traditionally responsible for providing the official measurement of UK television audiences, is progressing with a new measure of TV viewing on PCs, laptops and tablet devices, following the introduction of a web TV-viewing meter to UK households. However, the concept of a standardised online video metric is increasingly becoming distorted by the volume of similar planning tools either already in existence or in the process of being developed. 

ISBA members can find out more details here.

The BBC and commercial radio have joined forces to create a single website called ‘Radioplayer’ which currently offers users access to all ca.250 UK radio stations’ output. 

Radioplayer launched 31st March 2011 allowing listeners to access live streaming and on-demand content from hundreds of different radio stations in one place for the first time. All of the BBC's local and national stations, as well as about 140 commercial broadcasters, are available on the service from launch.

Radioplayer could have positive implications for advertisers.  Not only will it facilitate listening, but it could enable multimedia, cross-promotional and transactional activity.

ISBA members can find out more details here.

Digital developments have prompted changes at RAJAR, including taking part of the survey online. This will serve to improve respondent representation and achieve more detailed platform listening data. Respondents will continue to be canvassed, door to door, but option to report online will be available.

As audio streaming is growing, RAJAR will be working with the industry to create standards in measurement and reporting for streaming statistics. Ipsos MORI Media Cell are working towards capturing encoded broadcast on smart phone and tablet devices.

ISBA members can find out more details here.

After several rounds of consultation, the previous administration passed legislation to permit paid product placement on broadcast media during the legislative ‘wash-up’ which preceded the dissolution of Parliament before the General Election.

Product placement was officially introduced in the UK in February 2011, allowing media owners to access a new source of revenue. Ofcom has outlined the regulations that are to govern the practice with the publication of its new Broadcasting Code rules with respect to Commercial references in television and radio programming. 

News, current affairs and religious content are not to incorporate brands in such a way, a restriction similarly applying to material specifically targeted at children.

Alcoholic drinks, tobacco, medicine, baby milk, unhealthy foods and gambling are among the categories prohibited from utilising this strategy

The Radio Advertising Bureau (RAB) has published a new study, showing that people who use media are happier and more energetic than people not using media. The research, carried out by Sparkler Research for the RAB, surveyed 1000 consumers via their smart phones, asking what media, if any, they were consuming and to rate aspects of their mood.

The results of the study were used as a basis to establish if media can exert a positive influence on the way people feel, how this happens and how does this affect engagement with advertising – especially on radio. 

ISBA members can find out more details here.

BARB is under pressure to provide more accurate multi-platform audience viewing and measurement data. It has recently been canvassing stakeholder’s opinion to identify future non-linear viewing requirements.  ISBA submitted its preliminary views in May 2011.

Advertisers were unanimous that BARB's exploration of non-linear measurement is critical to its survival. Granularity across content type (e.g. live, catch up, archived content, bespoke content and user-generated content) was seen to be more important than granularity across platforms.

Adding to the pressure is Sky’s single-source viewing panel, SkyView - a panel of 33,000, (as opposed to BARB’s panel of 5,100), providing more granular data direct from set top boxes on channels being accessed.  The BBC and Channel 4 have also both launched standalone measurement services to provide combined viewing figures across linear TV and their on-demand services iPlayer and 4oD. 

Broadcasters have historically been able to charge advertisers premium rates for prime slots based on the seemingly robust figures of BARB data.  With the introduction of sophisticated platforms, offering more accurate data, broadcasters may need to rethink their standards of measurement and share them with brands.  Funding will be an underlying issue if BARB decides to invest in such improvements. 

In reaction to this, BARB is rolling out a new measure of TV viewing on PCs and tablets to provide more accurate information. It will launch the web TV viewing meter in 100 of its panel homes over the second half of 2011. BARB will then extend its use across up to 1,100 homes during 2012. An estimated 2,500 people will ultimately take part in the measurement process.

The move follows a one year period that identified developments to improve its web TV software, and BARB anticipates further updates are likely to follow during the course of a staged rollout.

Google is funding a multi-million-pound planning tool to help brands understand consumer behaviour across TV and online media. The internet giant is working with WPP-owned research firm Kantar to build a panel that will measure TV and online media habits from a single source.

Kantar will recruit a 3,000-strong panel, representative of the UK population, by the end of 2011, with data and measurement analysis promised to the industry by 2012. The aim is to provide brands with a planning tool where they can benchmark the reach and footprint of a campaign that would run across TV and online. It aims to help them understand how leveraging spend between TV and the web can impact consumer interaction through a single source, rather than by fusing together two sets of data.

Google has discussed its initiative with all of the UK’s major trade bodies involved in media measurement including the IPA, the IAB, ISBA, BARB and UKOM. It will look at how its initiative will complement others, such as the IPA’s Touchpoints.

In May 2011, the UK Online Measurement Company (UKOM) and Nielsen launched the first industry-backed online video metric, VideoCensus, allowing brands to directly compare web viewing with TV for the first time. VideoCensus aims to boost online video budgets by being directly comparable to the long-established TV planning tool BARB. It uses a hybrid online audience panel and technology-based methodology to show how web users engage with online video content, helping advertisers, agencies and publishers accurately measure online video audiences. 

Founded by ISBA in 1932 and co-owned by all major industry stakeholders, ABC independently audits and reports on print media circulations and online media traffic, providing a fundamental trading currency for media buyers and owners across print, events, digital and evolving platforms.

There is an strong and understandable desire from publishers to issue combined print and digital data.  ISBA (and IPA) recognise that most consumption will eventually be through digital channels and welcome the development of headline reports which highlight print and digital data on the same sheet.  However, we are   resisting the conflation of print and digital into a single inflated headline figure, as the two channels are as yet quite different media and advertising consumption experiences.  

The OOH industry has been investing for several years in the development of a new measurement system using GPS technology under industry body POSTAR. 

Over six years, £15m has been invested by the main Outdoor media owners and specialist agencies.  The new research's sample will be in line with population, both geographically and demographically and will increase incrementally by 5,000 every year until a sample of 25,000 has been reached.  It will cover roadside and transport at first, but will extend quickly to embrace retail and other formats hitherto not covered. 

Digital developments have prompted changes at RAJAR, including taking part of the survey online. RAJAR hopes this will serve to improve respondent representation and achieve more detailed platform listening data. Respondents will continue to be canvassed door to door, but given the option to report their viewing online. 

As audio streaming is growing, RAJAR will be working with the industry to create standards in measurement and reporting for streaming statistics. Ipsos MORI Media Cell are working towards capturing encoded broadcast on smart phone and tablet devices. 

RAJAR’s CEO, Jerry Hill (JH), who presented to RAG members in May 2011, believes that the addition of an online diary will improve its demographic representation and the offer of an online version is expected to extend its appeal to people who might have been put off by having to fill out a paper diary. 

For the first three quarters, July to September and October to December 2011 and January to March 2012, the online diary will be used by one sixth, or 16.7%, of all respondents. Should the rollout prove successful, from Q2 half of all respondents will use the online version.

The MASBOF levy on postal operators funds the self-regulation of direct mail.

Recent falls in mailing volumes and greater diversity of mail carriers has resulted in the need for action to reinforce this important self-regulatory system.

ISBA has worked closely with Royal Mail, the Direct Marketing Association (DMA) and the Advertising Standards Board of Finance (ASBOF) to broker an extension to the levy’s reach that will see Royal Mail Wholesale (via its Advertising Mail tariff) joined by other operators in agreeing to collect it

We have consistently supported PAS 2020, the publicly available environmental standard aimed at encouraging the direct mail industry to take a responsible stance. Last year an ISBA member was one of the first organisations to gain accreditation to the standard. ISBA is involved in producing a successor to PAS 2020.

A global media calls for effective self-regulation that goes beyond national borders. ISBA is actively engaged with the IAB and WFA in developing the industry’s Self-Regulatory Code for Online Behavioural Advertising (OBA).  The roll out of the code will enable advertisers to assure consumers and also help business comply with the new EU e-Privacy Directive, implemented via the ‘Cookies Law’.

The placing of cookies and other software on consumer’s computer equipment requires the user’s explicit consent under the EU E-Privacy Directive.  How to do this effectively is still a matter for debate.  There is no single EU wide answer; it looks as if Member States will have a variety of requirements making e-commerce in the EU more difficult.

In the UK ISBA is working to find the best solution for business and consumers.  We regularly update our members of developments within OBA.

We and our industry partners are   working closely with browser manufacturers determining how browser settings can be enhanced to control all cookies.

 We have hosted a regulator and advertiser summit, at which Information Commissioner Christopher Graham explained how members could comply with the Cookies Law.  We are also working with the UK ICC in seeking a business solution for all web site owners regardless of whether they use commercial communications online.

We will be hosting a further summit on 4 October at which representatives from the Information Commissioner’s Office, the Department of Culture, Media and Sports and the Internet Advertisers Bureau will be updating members on compliance issues. Barclays will be providing a practical knowledge sharing session on how they have been moving towards compliance.

In May 2010, the Office of Fair Trading (OFT) launched an inquiry into the OOH advertising market. Stimulated by three factors: concerns raised by a now-defunct outdoor specialist regarding barriers to entry in the market; concerns raised by one or more local authorities regarding exclusive long-term contracts for street furniture; and responses to the OFT’s scrutiny of J C Decaux’s acquisition of part of the defunct Titan Outdoor’s inventory.

ISBA was invited to make early input to the process, and helped the OFT draft and circulate questionnaires. ISBA initially sent out questionnaires to the top 30 advertisers in the OOH market, followed by questionnaires sent to the following 30 advertisers.

ISBA members can find out more details here.

The London Organising Committee for the Olympic Games (LOCOG) has developed an online auction that allows brands to bid for outdoor advertising space for the London 2012 Olympics. A total of 4,000 advertising packages, available to buy at a fixed price, were available through the site.

The International Olympic Committee (IOC) requires the provision of first options on OOH media in venue cities to be offered to partner brands for the Games period. In addition, legal framework is in place to prevent ambush marketing in the vicinity of venues.

ISBA members can find out more details here.

In January 2011, the Outdoor Advertising Association (OAA) relaunched under the new name Outdoor Media Centre (OMC).

While still retaining its role as a trade association, the Outdoor Media Centre is hoping the rebrand will help move its primary focus to the inter-media planning process at agencies and advertiser clients.

The repositioning of the trade association is timely with the bidding for OOH surrounding the Olympics and new audience research being made available at POSTAR.

As part of an industry wide response to the concerns about the commercialisation and sexualisation of children the OMC ensured that advertisers had the option of excluding sites within 100m of schools for campaigns that might be thought unsuitable for such a location. No 10 had commissioned Reg Bailey to look at a wide range of issues, some of which the advertising industry were able to take immediate action on following the advice of the Children's panel.

National titles remain at the forefront of setting the news agenda, and with increasing online audiences; they arguably have more influence than ever before. However, there are fundamental concerns over the funding of quality journalism. Given declining circulation figures, publishers seek to optimise revenue, identifying a suitable balance between cover prices and ad revenue, whilst formulating strategies for the tablet age.

ISBA members can find out more details here.

News Corp, current owners of 39% of Sky, proposed a buyout of the entire company in June 2010. However, following pressure from various groups, including a significant alliance of media groups, the case was referred to Ofcom in order to assess whether the deal would adversely affect media plurality. 
 

The merger attracted widespread public and political opposition, with concerns that competition would be restricted by fostering cross selling. 

In the wake of phone hacking allegations at News of the World, News Corporation pulled out of the bid, stating that it "no longer intends to make an offer for the entire issued and to be issued share capital of Sky not already owned by it”. Despite their belief that the proposed acquisition would benefit both companies, News Corporation stated that “it has become clear that it is too difficult to progress in this climate”

ISBA members can find out more details here.

News International has been working on a ‘new basis for trading their press space’. The new proposition is called ‘Delivering Scarcity’.

The publisher seeks to scrap the long-standing method of trading advertising space, cost-per-single-column-centimetre (SCC), which it and other national newspapers currently use to negotiate rates with media agencies.

News International believe the SCC model does not reflect audience delivery and distorts the market, and instead, wants to move to a cost per thousand (CPT)-based model.

ISBA members can find out more details here.

Co-owned by all major industry stakeholders, ABC independently verifies and reports on media performance, providing a major trading currency for media buyers and owners across print, events, digital and evolving platforms.

Recent ABC board meetings have focussed on publishers’ strong desire to publish combined print and digital data.  Whilst readily accepting that one day henceforth most consumption will be through digital means, ISBA and the IPA are nevertheless resisting this development vigorously on the basis that print and digital are as yet quite different media consumption, and therefore advertising consumption, experiences. ISBA members endorsed this position, suggesting they are highly unlikely to use a combined model, which has no meaning as figures will be inflated.

Two national newspaper publishers, Express and Independent newspapers, continue to levy charges for handling colour advertisements submitted in digital file format.

 
These stances contrast with those taken by all other publishers following a lengthy and successful campaign by ISBA between 1997 and 2006. ISBA continues to press the matter, writing to both publishers, inviting them to review their practices and requesting that they cease charging henceforth. 

Preceding the 2010 Wimbledon tennis tournament, national newspapers in the UK joined together to provide brands with a collective advertising package, tested around the Wimbledon event that saw them sell ads on their own and rivals’ titles for the first time.

The package guaranteed brands positioning alongside Wimbledon editorial across a broad reach of titles, from tabloid to broadsheet. The Sun, Daily Mail, The Independent, The Guardian, Daily Mirror, The Times, Daily Telegraph and all their sister and Sunday titles were involved.

The test package, conceived by the Newspaper Marketing Agency, was developed at a time when print ad revenues continue to decline across the newspaper sector.