DISCUS Code of Responsible Practices Self-Regulation and the New Media Landscape New Social Media: Opportunities and Challenges 2012 NABCA Legal Symposium 1 Social Media: A New Way to Connect Proactively Addressing the New Media Landscape • Connecting to your constituents • Connecting to your licensees • Connecting to your community and • Connecting to your customers 2 New Media -- Same Principles Strong Voluntary Code Revised as Social Mores and Technology Change • Core principles steadfast: – To market our products to adults 21 years of age and older in a responsible and appropriate manner • Proactively engage digital media experts • Responsible content/placement provisions • Detailed media “buying” guidelines • Consult with online demographic data sources • Regular meetings with social media cos. Establishing Code compliant tools 3 Results of Proactive Outreaches New Internet/Digital Media Buying Guidelines • Issued internet buying guideline used across entire industry—effective Jan. 1, 2008 • Applies to all forms of digital media – Videos, pop-ups, blogs, and more • Use Nielsen or comScore data to place ads • Requires independent demographic survey for unmeasured digital media • Post audits to verify Code compliance LPA 21+ Audience Compliance (%) - Nielsen and comScore Data Twitter Facebook Google YouTube Nielsen comScore Nielsen comScore Nielsen comScore Nielsen comScore Oct-11 87.5 77.5 82.8 80.6 81.8 77.6 81.2 76.5 Nov-11 86.7 76.5 82.4 80.3 81.4 77.6 80.8 76.6 Dec-11 87.0 80.6 82.9 82.8 81.7 78.8 81.2 79.5 4 Pioneering Social Media Tools Constantly Evolving to Address the Future 5 Facebook Pages: Alcohol Settings The Facebook Page Terms require that all content on a Page that is advertising in nature (such as commercial content) must comply with the Advertising Guidelines, which includes the Facebook minimum age targeting for alcohol ads and Alcohol-Related Page & Application Setting: Anyone of Legal Drinking Age (as determined by Page Settings) will be able to see their friends’ engagement with Beverage Alcohol Brands. Anyone under Legal Drinking Age will not be able to see their friends’ engagement with Beverage Alcohol Brands. This is addressed in Facebook Page Terms: http://www.facebook.com/terms_pages.php User Flow Brand Channels for Non-Customized Gadgets A21+: Registered & Logged In Sees Omlie’s Gin Brand Channel Ad Types in www.YouTube.com/O mliesGin <21: Registered & Logged In Will not see Omlie’s Gin Ads Types in www.YouTube.com/O mliesGin User Flow Example: Promoted Videos A21+: Registered & Logged In <21: Registered & Logged In Clicks on PV ad driving to watchpage Clicks on PV ad driving to channel Clicks on PV ad driving to watchpage Clicks on PV ad driving to channel New DISCUS Social Media Marketing Guidelines Effective September 30, 2011 9 Who Is Currently Online? A Printing Press/TV Set of Today’s Vintage 10 Age 21+ Online Usage Exceeds 80% Online Reach % by Age Group 100% 80% 85.0% 87.4% Under 21 21 - 34 35 - 49 78.3% 83.5% 59.1% 60% 40% 20% 0% Total 50+ Nielsen June - August 2011 11 Monthly Time Online ~ 30 Hours 35.00 Online Activity HH:MM per Person by Age Group 29:53 30.00 25.00 29:25 25:53 24:40 20.00 15.00 10:56 10.00 5.00 0.00 Total Under 21 21 - 34 35 - 49 50+ Nielsen June - August 2011 12 How Time Is Spent • Search/Portals/Communities: 27% • Entertainment: 21% • Telecom/Internet Services: 14% • Commerce: 5% • Computers/Consumer Electronics: 5% • News/Information: 4% • All Other: 24% 13 Age 50+ FB Time Up 53% in 2 Years 7.00 6.00 Facebook Activity HH:MM per Person by Age Group 6:56 6:52 5:48 5:16 5.00 4.00 3:47 3.00 2.00 1.00 0.00 Total Under 21 21 - 34 35 - 49 50+ Nielsen June - August 2011 14 More Than 1 ½ Hours on YouTube YouTube Activity HH:MM per Person by Age Group 2.50 2:05 2.00 1.50 1:49 1:30 1:26 1.00 0:52 0.50 0.00 Total Under 21 21 - 34 35 - 49 50+ Nielsen June - August 2011 15 Social Sites 21+ Composition Twitter @ 87.1% Facebook @ 82.7% Google @ 81.6% YouTube @ 81.1% Nielsen October – December 2011 16 Responsible Digital Marketing Communications Guidelines Intended for LPA Transparent as brand marketing Respect User Privacy Media site should be 71.6% LPA DISCUS BASIC PRINCIPLES Direct interaction w/ user = Age Affirmation (mm/dd/yyyy) Instructions to “Not Forward Downloaded Content to Under LPA” UserGenerated Content must be monitored and moderated on regular basis 17 About the Digital Marketing Guidelines • An important supplement to the DISCUS Code • Guidelines ‘principles-based’ – Will be reviewed regularly and updated as needed – Recognition that new technology trends are likely to occur rapidly • Scope: based upon what we can control – Applies to branded digital marketing communications (paid and unpaid) – Social networking sites, blogs, mobile communications, apps, websites • Global in application – Digital media easily transcends geographic boundaries 18 Basic Principle 1: Intended for Adults LPA+ Foundation of the DISCUS Code Over 76 Years of Advertising Self-Regulation 19 Basic Principle 2: 71.6% Placement Standard 71.6% LPA+ Compliant Less Than 71.6% LPA - No Placement 20 Basic Principle 3: Age Affirmation Before Direct Interaction on Controlled Sites (Month/Day/Year) 21 Basic Principle 3: Age Affirmation Before Direct Interaction on Controlled Sites (Month/Day/Year) • Direct interaction is a two-way communication between the user and brand advertiser on a site or web page controlled by the advertiser • Occurs when the user affirmatively interacts with the brand advertiser, such as responding to a direct communication from the brand advertiser – User sends content (personal information, text, video, rich media, etc.) to a brand controlled site – Brand advertiser sends content to an individual user (e-mail, custom content, etc.) 22 Under LPA: Redirect to a Responsibility Site centurycouncil.org/acceptresponsibility.org 23 Account: Jack Daniels Tennessee Honey User clicks to follow @JackHoney 24 Email Verification User receives email verification from @JackHoney 25 Age Verification Landing Page User verifies date of birth and country 26 Age Verification Confirmation User receives confirmation that they can continue following tweets from @JackHoney 27 Basic Principle 4: Monitor/Moderate User-Generated Content • User-generated content (UGC) on a site or web page controlled by the advertiser must be monitored and moderated on a regular basis • UGC on a site controlled by a brand should be monitored each business day or, at a minimum, every 5 business days • If content is inappropriate, material should be removed promptly • Notify users that all inappropriate content will be removed 28 Basic Principle 4: Monitor/Moderate User-Generated Content What do we delete? • Offensive comments • Sexually explicit language • Comments regarding overconsumption and/or illegal activity of any kind • Comments that degrade or demean the human form, image or status of women, men or the members of any group based on race, religion, ethnic background, sexual orientation, or any other minority status • Language or images that also are inconsistent with other provisions of the Code Overconsumption References to Drugs 29 Basic Principle 4: Monitor/Moderate Photos and Videos What do we delete? Underage in Video Posted by LPA user Overconsumption Provocative Content 30 Basic Principle 5: Do Not Forward to Those Underage 31 Basic Principle 6: Privacy What Does Privacy Involve: • The handling and protection of sensitive personal information that individuals provide in the course of every day transactions • The exchange or use of data electronically or by any other means, including telephone, fax, written correspondence, and even direct word of mouth 32 Basic Principle 6: Privacy What We Do Under Our Guidelines: • User information collected from LPA+ only • Opt-in before receiving a direct digital marketing communication and opt-out to discontinue receiving those communications • No information collected will be sold nor shared with third parties unrelated to the brand advertiser • Privacy policy prominently displayed and simple to understand • Consumers know who to contact if they have any questions/concerns 33 Basic Principle 7: Transparency of Brand Marketing • Consumers must know they are reading/viewing brand advertising – Brand pages – Blogs: whose blog is it? • FTC’s 2009 Guides Concerning the Use of Endorsements and Testimonials in Advertising [FTC.gov] – Be careful when soliciting endorsements; disclosure is important • Key: clearly identify communication by any employee or anyone hired by brand 34 Reaching the “Always” Connected Consumer Mobile Is a Multi-Channel Medium Shortcode/Text/SMS MMS/Picture Messaging Apps Mobile Video Mobile Internet Growing List of New Technologies Require New Ways to Audit and Control for LPA Audience QR Codes • Third-party tools or source measurements Mobile Couponing • Ability to employ age gating iPad Location Targeting Downloading the App Age Affirmation Page After the Age Gate Mobile: Acessing Websites Via Smartphones Southern Comfort Chambord Mobile Banners for iPhone and iTouch Restricted with LPA age gate screen Facebook Pages: Protecting Intellectual Property If a beverage alcohol marketer wishes to report claims of intellectual property infringement (i.e., non-copyright) by a Facebook user on an Opinion Page, Facebook’s automated IP infringement form can be accessed here: www.facebook.com/legal/copyright.php YouTube Trademark Policy 2006, 2008, 2010, 2011 Best Practices Media Summits • Buying for Radio • Buying for Television – Broadcast and Cable • Buying for Print – Magazine and Newspaper • Product Placements in Cinema and Broadcast • Buying for Digital Media • Social Networking Sites: Demographic Tools & Beyond • Emerging Marketing Platforms (smartphones and more) 44 Linking to the DISCUS Code • Link to the Code for rapid consideration of any questions/complaints • Educate constituents about the Code and its review process • Utah/Nevada Attorneys General link to the DISCUS Code along with 15 State ABCs, the FTC, NCSLA, and NABCA For more about the Code: http://www.discus.org/responsibility/code.asp 45