Advertising

In the UK, advertising is a crucial source of revenue on commercial television and radio. The BBC is not allowed to make money from broadcasting advertisements (or from commercial sponsorship) on its public service channels that, unlike independent services, earn revenue through the licence fee.

Advertisements are subject to controls set out in codes of practice operated by the ITC and the Radio Authority. The codes seek to ensure that advertisements are not misleading, do not encourage or condone harmful behaviour and do not cause widespread or exceptional offence. The authorities can impose heavy penalties on any television or radio company that fails to comply with the codes.

Of the 7,632 complaints covering some 1,604 different advertisements that the ITC dealt with during 2000, 154 were upheld. This figure is low because the UK advertising sector has a system of self-regulation that ensures advertisements are vetted before they are broadcast or published in any form. Self-regulation is managed through an independent body called the Advertising Standards Authority (ASA). In turn, the ASA acts upon rules that have been drawn up by the Committee of Advertising Practice (CAP), a body that represents all the main trade bodies involved in media and advertising.

The ASA, which was established in 1962, spot checks thousands of advertisements each week - using tests that are similar to those employed by the ITC Self-regulation is viewed as more flexible than legislation and able to adapt more quickly to new forms of advertising and changes in public attitudes. If the ASA's 12-strong council is of the opinion that an advertisement breaches the rules, it can take action to have it withdrawn or changed without having to wait for a complaint.

In a White Paper that prepares the ground for the new Communications Bill the Government supports self-regulation, saying it would 'encourage co-regulation and self-regulation where these will best achieve objectives'.

Advertisements are broadcast during and between programmes but must be distinct from the programme content, which advertisers are not allowed to influence. Television advertising is limited to an average of seven minutes an hour over the day as a whole, and to an average of no more than eight minutes an hour in the peak evening viewing period. The fastest growing advertising media in the UK at the moment are commercial radio and outdoor advertising. Advertising on the internet has not yet taken off in a major way.

Some types of advertisement (e.g. alcohol and betting) are restricted during broadcasts of religious services and in broadcasts to children and young people (including schools programmes). Full details can be found in the ITC Rules on the Amount and Scheduling of Advertising at www.itc.org.uk.

Political advertising is banned - although both the BBC and the commercial services must provide air time for an annual series of party political broadcasts. Other prohibited categories include private investigation agencies, commercial services offering advice on personal or consumer problems, and betting (other than the National Lottery, bingo and the football pools). All tobacco advertising is prohibited on television and cigarette advertisements are banned on radio. There are ongoing efforts to have a total ban on tobacco advertising and sponsorship.

Government publicity

Government publicity material to support non-political campaigns may be broadcast on independent television and radio. This is paid for on a normal commercial basis. Short public service programmes, about health, safety and welfare, are transmitted free by the BBC and independent television and radio.

Sponsorship

Sponsorship as a means of helping to finance commercial broadcasting is fairly new to the UK, where a ban on the practice on terrestrial services was only lifted by legislation in 1990. Sponsors, in return for their financial contribution, receive a credit associating them with a particular programme.

The Independent Television Commission's Code of Programme Sponsorship was drafted in 1991 and has been gradually relaxed as the sponsorship market matures, with its most recent version coming into effect in autumn 2000. The purpose of the ITC's Code, and the Radio Authority's Advertising and Sponsorship Code, is to see that sponsors do not exert influence on the editorial content or scheduling of programmes and that sponsorships are made clear to viewers and listeners.

News, current affairs and consumer advice programmes may not be sponsored while there is an absolute ban on sponsorship by political parties, tobacco manufacturers and companies that are prevented from advertising on television under the ITC Code of Advertising. Potential sponsors for other categories of programme may be disallowed if their involvement could constrain the editorial independence of the programme maker in any way. There are tough rules for bookmakers and pharmaceutical companies.

References to sponsors or their products must be confined to the beginning and end of a programme and around commercial breaks. For the first time, the autumn 2000 Code allowed sponsors to show an image of their product in the sponsorship breaks. However, there must be no reference of any kind to the sponsor in the programme itself. All commercial radio programmes other than news bulletins may be sponsored.

In 2000, the value of TV sponsorship in the UK was around £75-£80 million. The highest profile sponsorship of a television programme in the UK so far is that of Coronation Street (a soap opera that attracts a huge regular audience) by Cadbury Schweppes. The sponsorship was agreed in March 1996 and continues to this day. In 2000, the biggest deal saw Coca-Cola pay £50 million to sponsor ITV highlights of Premier League soccer over three years.