Launch! Advertising and Promotion in Real Time, 2009a
Launch! Advertising and Promotion in Real Time, 2009a Launch! Advertising and Promotion in Real Time, 2009a
Agencies), the ANA (Association of National Advertisers), the AAF (American Advertising Federation), and the Council of Better Business Bureaus Inc. This system maintains two bodies that investigate claims of abuse or deception: the National Advertising Division (NAD) and the Children’s Advertising Review Unit (CARU). If an advertiser disagrees with NAD or CARU decisions, it can appeal to the National Advertising Review Board. The system covers advertising in traditional media as well as on the Internet. The large majority of cases get settled through this route—95 percent, in fact. [3] A 2007 case involving a very public dispute between two online dating services illustrates how the NAD works to insure that advertising is as fair and accurate as possible. One site, Chemistry.com, claims in its advertising that answers to questions like “Do you watch people kissing in public?” and “Is your ring finger longer than your index finger?” can predict whether the people it matches up are likely to have “dating chemistry.” The site’s rival eHarmony.com objected to this claim and brought its charge to the NAD. After investigating the scientific basis for the claim, the division ruled that indeed Chemistry could not support its argument. As a result, the matchmaker has to find other ways to compete for the $700 million Americans spend each year to find their dream mate online. [4] The Interactive Advertising Bureau (IAB) The Interactive Advertising Bureau was founded in 1996 to represent over 375 companies that conduct business in cyberspace. Its members sell about 86 percent of the online advertising that gets placed in the United States. The IAB evaluates and recommends standards and very specific practices to govern what interactive ads can and cannot do. For example, it mandates that an advertiser wishing to use a pop-up ad can show the message only one time during a person’s visit to an online site. Furthermore, the pop-up must be clearly labeled with the name of the network, the advertiser, and the publisher; there are limits on how big the image can be, and it must offer a “close box” so the user can choose to shut it down. [5] Word of Mouth Marketing Association (WOMMA) The Word of Mouth Marketing Association (WOMMA) is the official trade association for the word-ofmouth marketing industry. The organization promotes “best practices” and sets standards to regulate how “buzz marketers” interact with consumers. This has been an important issue due to some early buzz campaigns in which professional actors pretended to be everyday consumers in public places like tourist areas and bars, where they told other people about the advantages of using a particular product or service. Saylor URL: http://www.saylor.org/books Saylor.org 85
Today WOMMA’s members must adhere to a code of ethics that the group summarizes as the Honesty ROI: Honesty of Relationship: You say who you’re speaking for. Honesty of Opinion: You say what you believe. Honesty of Identity: You never obscure your identity. [6] The Direct Marketing Association (DMA) The Direct Marketing Association represents more than thirty-six hundred companies, based in fortyseven countries, that employ direct marketing tools and techniques. It provides information to help consumers recognize fraudulent practices as well as to remove themselves from mailing or call lists. [7] KEY TAKEAWAY Numerous organizations monitor the advertising industry to detect instances of false or deceptive advertising. The government enforces rules regarding content through federal agencies such as the FTC and the FCC. In addition, the industry vigorously polices itself to try to head off problems before the legal authorities must deal with them. As new media platforms continue to evolve (such as product placement and word-of-mouth marketing), the industry needs to be vigilant about tracking these applications to prevent additional abuses. EXERCISES a. List and briefly characterize the major governmental and industry “watchdogs” that regulate and influence advertising and the advertising industry. b. Describe how the National Advertising Review Council processes complaints. Illustrate your description with a summary of the 2007 case (described above) concerning “dating chemistry” and “kissing in public.” [1] Federal Trade Commission, “A Guide to the Federal Trade Commission,”http://www.ftc.gov/bcp/edu/pubs/consumer/general/gen03.shtm (accessed July 19, 2008). [2] David Goetzl, “Game-Changer: FCC Considers Product Placement Disclosures,” Media Daily News, June 30, 2008, https://www.mediapost.com/publications/index.cfm?fa=Articles.showArticle&art_aid=85685 (accessed July 19, 2008). Saylor URL: http://www.saylor.org/books Saylor.org 86
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Today WOMMA’s members must adhere to a code of ethics that the group summarizes as the Honesty<br />
ROI:<br />
<br />
<br />
Honesty of Relationship: You say who you’re speak<strong>in</strong>g for.<br />
Honesty of Op<strong>in</strong>ion: You say what you believe.<br />
Honesty of Identity: You never obscure your identity. [6]<br />
The Direct Market<strong>in</strong>g Association (DMA)<br />
The Direct Market<strong>in</strong>g Association represents more than thirty-six hundred companies, based <strong>in</strong> fortyseven<br />
countries, that employ direct market<strong>in</strong>g tools <strong>and</strong> techniques. It provides <strong>in</strong>formation to help<br />
consumers recognize fraudulent practices as well as to remove themselves from mail<strong>in</strong>g or call lists. [7]<br />
KEY TAKEAWAY<br />
Numerous organizations monitor the advertis<strong>in</strong>g <strong>in</strong>dustry to detect <strong>in</strong>stances of false or deceptive<br />
advertis<strong>in</strong>g. The government enforces rules regard<strong>in</strong>g content through federal agencies such as the FTC<br />
<strong>and</strong> the FCC. In addition, the <strong>in</strong>dustry vigorously polices itself to try to head off problems before the legal<br />
authorities must deal with them. As new media platforms cont<strong>in</strong>ue to evolve (such as product placement<br />
<strong>and</strong> word-of-mouth market<strong>in</strong>g), the <strong>in</strong>dustry needs to be vigilant about track<strong>in</strong>g these applications to<br />
prevent additional abuses.<br />
EXERCISES<br />
a. List <strong>and</strong> briefly characterize the major governmental <strong>and</strong> <strong>in</strong>dustry “watchdogs” that regulate <strong>and</strong><br />
<strong>in</strong>fluence advertis<strong>in</strong>g <strong>and</strong> the advertis<strong>in</strong>g <strong>in</strong>dustry.<br />
b. Describe how the National <strong>Advertis<strong>in</strong>g</strong> Review Council processes compla<strong>in</strong>ts. Illustrate your description<br />
with a summary of the 2007 case (described above) concern<strong>in</strong>g “dat<strong>in</strong>g chemistry” <strong>and</strong> “kiss<strong>in</strong>g <strong>in</strong> public.”<br />
[1] Federal Trade Commission, “A Guide to the Federal Trade<br />
Commission,”http://www.ftc.gov/bcp/edu/pubs/consumer/general/gen03.shtm (accessed July 19, 2008).<br />
[2] David Goetzl, “Game-Changer: FCC Considers Product Placement Disclosures,” Media Daily News, June 30,<br />
2008, https://www.mediapost.com/publications/<strong>in</strong>dex.cfm?fa=Articles.showArticle&art_aid=85685 (accessed July<br />
19, 2008).<br />
Saylor URL: http://www.saylor.org/books<br />
Saylor.org<br />
86