Handle with care:Digital marketing and online

behavioural advertising

Global guidance to help improve consumer trust in practice, techniques and messages

Agenda

Global business, ICC and CodesICC voice of global business and rules writing authorityCode is gold standard for ethical marketing practiceCovers core and topical issues: children, privacy, environment

Digital interactive media marketing

What’s at stake?What are the concerns?

How does the Code help?

ICC’s influence around the world is due in large part to its global network of national affiliates. It is their job to voice the interests of world business to their national governments, and also to provide input to ICC’s policy work.

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ICC offices around the world

Examples of well-known ICC members:

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About ICC

ICC Marketing Code

• First global code in 1937• General principles covering all

marketing communications practice

• Specific chapters dealing with sales promotion, sponsorship, direct marketing, digital interactive marketing and environmental claims

• Harmonizes global best practices; extends and strengthens SRO remits around the world

SR_world_map

Self-regulation around the world

Digital interactive media marketing

What is it?• Marketing communications, using digital interactive media

intended primarily to promote products or to influence consumer behaviour

• “Digital interactive media” refers to any media platform, service or application providing electronic communications, using the Internet, online services, and/or electronic and communication networks, including mobile phone, personal digital assistant and interactive game consoles which allows the receiving party to interact with the platform, service or application

Value of the industry

Digital media growth

Consumer use of devices/ platforms

New business models and players

Global ad spendto exceed US$500 billion in 2011.

2010-2012 31% growth in Central and Eastern Europe

Estimated 4.5 trillion online ads served annually (2,000/person)Digital media spend 48% growth 2010 to rise to 17.9% total ad spend by 2013

50% US online consumers advanced users of smartphones, social networks…India and much of Africa start on mobile Internet

Rapid innovation and many new actors involvedNeed for self-regulation to adapt & engage new community

Sources: Groupm; Greg Stuart,McKinsey,Zenith Optimedia

Digital interactive media marketing

• Social media…mobile…transparency of commercial messages…privacy

• Child protection and safety

• Data collection and online ads

• EU and US policy debate• Regulators and legislators attention• Consumer confusion and fear• Advertising restrictions first response

Digital interactive media marketingWhat are the concerns?

Digital interactive media marketingWhat are the concerns?

If implemented effectively – the global framework can help:

Consumers – ease concerns and provide protection and simple access to information and control of data

Regulators –relieves their dilemma with a responsive, cost-effective approach to institute ethical practice without thwarting digital social and economic growth by blanket regulation

Industry - protects most valuable asset –consumer trust; offers a cross-border solution that sets rules for everyone to play by; Entire ecosystem has stake and shared responsibility in ensuring ethical practice

How does the Code help?

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Digital interactive media marketing

New elements of the Code• Broadens scope: All of the Code applies to digital marketing

communications; Embraces all: PC, apps, mobile, social media, game consoles, text messaging, testimonials …

• Totally new Chapter covering specifics of digital interactive media marketing, including online behavioural advertising (OBA) and privacy

• Identification: new text on endorsements and on social media;

• Children protected from data disclosure to third parties and restricted from sites selling age-restricted products

Digital interactive media marketingHow does the Code help?

First globally-applicable OBA provisions require:• Clear and comprehensible notice • Describe data collection and use • Easy to use mechanism for exercising choice• No segments for children under 13 • Explicit consent required for total device data harvesting

models, or for segments relying on sensitive dataCONSISTENT for application around the worldDeveloped in close consultation with US and EU initiatives

New Code, new online resources

www.codescentre.com

Elizabeth Thomas-Raynaud

ICC Marketing and Advertising Commission Business Action for Responsible Marketing and Advertising (BARMA)

www.codescentre.com