Summary of presentation by The Institute of Advertising Practitioners of Ireland (IAPI) To THE JOINT COMMITTEE ON HEALTH AND CHILDREN – November 17, 2011 INTRODUCTION – IAN YOUNG Good Morning. I would like to introduce my colleague, Patrick Hickey and my name is Ian Young. We are presenting on behalf of The Institute of Advertising Practitioners of Ireland (IAPI). IAPI represents over 60 agencies employing over 1500 people. Irish agencies have built up a reputation for quality of production and creative output, and ads are produced here for other markets. I am Managing Director of Irish International Advertising, and Diageo is one of our clients. Patrick Hickey is Managing Director of Rothco Advertising, and Heineken is one of their clients. This is a complex issue. There is no silver bullet nor one single villain. The other key factors impacting on this area include retail pricing and controls, parenting, peer pressure, social and cultural influences and access. CURRENT PROCESS AND RESTRICTIONS – We acknowledge and concur with the comments of An Taoiseach on November 7th – “Nobody wants to take away the rights of people to enjoy themselves but there has to be an understanding that excess does serious damage and the longterm impact and consequences of excess alcohol (and use of drugs) leads to enormous health challenges” We do not intend to repeat the content of the ASAI or AMCMB presentations. Their contribution outlined the various codes, restrictions and complaints process, which currently exists and with which we all comply. What we hope to achieve is to paint a picture of how the current codes are implemented and adhered to in both the letter and spirit within across all elements of an agency working with an alcohol client. Let us talk briefly through the process We are talking about advertising – paid for communications – across a range of media We are currently working under a number of different – yet supporting - codes. These are from the ASAI, the Broadcasting Authority, as a regulator and the Central Copy Clearance Ireland (CCCI). 1 Oversight and reporting is undertaken by the Alcohol, Marketing Communications Monitoring Body, an independent entity, which monitors compliance to the code and reports directly to the Minister for Health. I am going to talk about the separate scrutiny and restrictions around both content and placement For content, each individual piece of advertising is pre-vetted – this can be copy, images or concepts. The vetting takes place at all stages of production and is undertaken by two managers. Pre-vetting is undertaken for all advertising designed for the Irish market place. Retailers are exempt from these restrictions – we have our concerns on this, which we will outline during our presentation Between the client and agency, there is extensive engagement to ensure that the codes are adhered to at all stages. Both Brand Managers and supporting marketing staff and agency teams undergo rigorous training on the codes and their implementation No cast member can be – or look as if they are – under 25. There can be no implied social or sexual success and there can be no signs of group drinking When the advertisement is complete, it must be submitted to the CCCI for final approval – this can take a number of weeks. At this stage, a final approval clearance number is issued. Its important to note that prior acceptance by the CCCI is merely an indication that the completed advertisement is likely to comply with the codes. As there may be significant differences between a script, the early development stages of an advertisement and the finished production, final approval is essential The CCCI scrutiny covers alcohol brand advertising for TV/cinema, radio, press/magazines, outdoor/transport, internet/digital and any other nontraditional media such as ambient When content is approved, the agency must then ensure that the placement of the ad is also in accordance with the codes, which were agreed between the Department of Health, brand owners and others involved in alcohol advertising. This covenant was formed in 2002 and the codes strengthened in 2008. I am now going to hand you over to my colleague – and competitor - Patrick Hickey – who will talk through the market dimension Patrick Hickey All of our clients operate in a commercial environment. In an open economy, companies operate on the principle that they communicate to their public to provide information to them within the dynamic of a purchasing decision. 2 Obviously, this must be done within specific and acceptable guidelines, from a societal perspective The brief we receive from a client is entirely related to the brand. There is absolutely no consideration nor brief to increase or drive consumption levels, unit levels or to encourage excess consumption. The Key Performance Indicators, which our clients impose on us are around how a brand is perceived – is it trusted, are the core values understood. It is true to say that Ireland has a social, financial, Health and cultural problem with the misuse and over consumption of alcohol through our society. What role does paid for advertising play in this? We accept that well funded, well-produced advertising is designed to be noticed The brands that spend money on adverting are the ones who in the main support every code both in spirit and letter. Curtailing advertising will have an effect. It will ensure that the more responsible brands market share will decline over time. However their loss will result in gain for another cohort. The cheap vodka, cheap beer etc will simply grow in share. Most of these brands operate independently outside the code. You will never have seen an ad for a jagger bomb or a fat frog. Both of which are consumed in large quantities every weekend all over this country. We have always complied fully with any legislation or code that we have been asked to as an industry. We would like to support the call for below cost selling. We would also recommend an extension to the codes reach to include every activity that an alcohol brands are involved in. We would like to recommend that both agency and client receive punitive fines if they are found to be in breach of such codes. We are not trying to defend the indefensible, however in the interest of balance we must agree that of all the actions that may be recommended by the committee curtailing the communication of the compliant brands is the easiest but may not deliver the effect that is hoped for. The current codes, which we work to, have the potential to be extended to encompass other communications and integrated marketing and communications. This reach could involve greater integration with retailers and the on and off trade. 3 Thereafter, the advertising sector would welcome an opportunity to work with the statutory agencies and regulators in any initiative, which would strengthen the reach and implementation of the codes 4