Included in this issue: Pokémon Go creates opportunities for augmented reality advertising; Brexit vote fails to halt global ad market growth; Outcome of BCAP consultation on scheduling of payday loan TV advertisements and more...


Pokémon Go creates opportunities for augmented reality advertising 

The successful release of the Pokémon Go app has brought to light the potential for "augmented reality advertising". Pokémon Go uses the GPS and camera on a player's mobile device to attract players to specific physical (real world) locations or landmarks. This concept has led to the suggestion that advertisers could soon attract players to go to "sponsored locations", which could provide a new revenue stream by allowing companies to sponsor physical retail locations. The idea is that "sponsored locations" could convert the increased footfall into sales for retailers.

Brexit vote fails to halt global ad market growth

Following the referendum in June, where the UK voted to leave the European Union, UK ad spend froze while marketers analysed Brexit's effect on the international markets. The initial panic largely subsided and ad spend returned to previous levels, with ZenithOptimedia's Advertising Expenditure Forecast for September marginally downgrading the growth forecast by 0.2 per cent to 5.4 per cent.

This year, it has been projected that the global ad market will grow by a reported $539bn – with further projected increases of 4.5 per cent in 2017 and 4.6 per cent in 2018 respectively.

Outcome of BCAP consultation on scheduling of payday loan TV advertisements

The Broadcast Committee of Advertising Practice (BCAP) has reported on the outcome of its 2015 consultation on introducing scheduling restrictions on television advertising of high-cost short-term credit (HCSTC), commonly known as payday loans. BCAP has decided not to introduce scheduling restrictions on the advertising of HCSTC, but concluded that a further review of the content of HCSTC advertisements is needed to ensure that its rules remain fit for purpose in light of the current market and regulatory framework.

BCAP amends rule on direct exhortations to children to align with EU law

The BCAP has amended the BCAP Code relating to "exhortations" to children, following a public consultation. The amendment has been made as the current rule appears to impose stricter controls than those provided for (and permitted by) the Unfair Commercial Practices Directive (2005/29/EC), which is implemented in the UK by the Consumer Protection from Unfair Trading Regulations (SI 2008/1277) (CPUT).

Currently, the BCAP Code provides that "advertisements must neither directly exhort children to buy a product or service nor encourage them to ask their parents, guardians or other persons to buy or enquire about a product or service for them". The BCAP code seems to catch "indirect" forms of encouragement and also prohibits children from asking their parents to enquire about products, whereas this is not the case in the Directive.

In order to be consistent with the Directive and CPUT, the revised BCAP Code rule now provides that "advertisements must not include a direct exhortation to children to buy or hire a product or service or to persuade their parents, guardians or other persons to buy or hire a product or service for them".

Only 9 per cent of digital ads are viewed for more than a second

New research suggests marketers should start thinking about digital display ads ‘like posters’ if they want to create the same engagement as TV, print or out-of-home advertising.

Since January 2016, research firm Lumen has used laptop-mounted eye tracking cameras on 300 consumers’ laptops to collect visual data on what they notice when they are online. Over this period the study found that only 35 per cent of digital display ads received any views at all. And, of those, only 9 per cent of ads received more than a second’s worth of attention. Only 4 per cent of ads, meanwhile, received more than 2 seconds of engagement.

Lumen found that a full-page ads in a paper the same size as the tabloid the New York Daily News will be viewed by 88 per cent of readers, for an average time of 2.8 seconds. In comparison, a billboard format ad on a website will get 38 per cent of people looking for just 1.5 seconds.

Mobile overtaken desktop as the top internet advertising medium

According to ZenithOptimedia, desktop advertising peaked globally back in 2014 (it shrank by 0.2 per cent in 2015, and is expected to decline another 0.9 per cent in 2016). Meanwhile, Zenith says mobile has now overtaken desktop as the top internet advertising medium and, by 2018, mobile advertising will account for 58 per cent of all internet advertising while desktop advertising will only account for 42 per cent.

Mobile advertising grew at a staggering rate of 95 per cent last year. Zenith forecasts additional growth of 46 per cent in 2016, followed by 29 per cent growth in both 2017 and 2018. eMarketer estimates that advertisers in the U.S. will spend $28.72 billion in 2016 to target consumers on mobile devices, and worldwide, that number is projected to reach nearly $100 billion.

Popular social media channels are considered the main drivers for this growth. The average daily time spent on smartphones and tablets is approximately three hours in developed countries, of which 2.5 hours are devoted to social media apps on mobile devices.

ASA ruling on Kellogg Marketing and Sales Company (UK) Ltd 

A TV ad for Kellogg's Special K porridge featured claims that it (1) was "full of goodness" and that it (2) "contains vitamin B2 which contributes to the maintenance of normal skin". Separately, the Special K website featured a claim that the Special K flakes are (3) "made with our unique Nutri K™ recipe making a nutritious and delicious start to your day". The claims were challenged and the ASA considered each claim in turn.

Claim (1) was a reference to a general, non-specific health benefit of the product and required a specific authorised health claim to be compliant under EC Regulation on Nutrition and Health Claims made on Foods. Claim (2) was intended to be the required specific authorised health claim. However, the claim (2) did not appear with or immediately after claim (1). Therefore, the ad breached the code because the specific authorised health claim did not properly accompany the general health claim.

Kellogg's stated that claim (3) was not a health claim; it was instead a reference to the nutritional credentials of Nutri K™. However, claim (3) featured on the Special K homepage and the ASA concluded that consumers were likely to interpret the claim as a reference to the nutritional properties of the Special K flakes, rather than the nutritional credentials of Nutri K™. Therefore, claim (3) needed to be accompanied by a specific authorised health claim, which is was not. The ASA concluded that the claim therefore breached the code. 

ASA ruling on Kellogg Marketing and Sales Company (UK) Ltd

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Rebecca Moore

Rebecca Moore

Legal Director, Commercial Services
Manchester

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