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Code on the Scheduling of Television Advertising - Revised rules on the scheduling of advertisements

Summary

Review of advertising regulation

Following changes to the European framework of advertising regulation as set out in the Audio Visual Media Services (AVMS) Directive, Ofcom decided to carry out a comprehensive review of its Rules on the Amount and Distribution of Advertising (RADA). We published Stage One of the review in March 2008[^(-1-)], and invited comments on proposals for simplified and liberalised rules on the placing (or ‘distribution’) of television advertisements. This document sets out the conclusions of Stage One of the review, and also describes the next steps in relation to Stage Two.

Stage One

Following the consultation on Stage One of the review, Ofcom has decided that RADA should be replaced by a shorter and simpler Advertising Regulation Code which will come into force on 1 September 2008 (Annex 1). The changes remove outdated or unnecessary rules that have little or no beneficial impact, either on viewers or broadcasters, and in some cases, are unhelpful, both to viewers and broadcasters. Examples include unhelpful rules that force broadcasters to adopt a pattern of advertising breaks that is unpopular with viewers, the outdated rules that prohibit advertising after an epilogue (these are rarely, if ever, broadcast), and unnecessarily detailed guidance on what constitutes a natural break.

The changes also seek to create a more level playing field, by removing or liberalising rules that prevented broadcasters from taking as many breaks in documentaries, religious programmes or films as in other kinds of programmes. In the case of films, this means that one break will be allowed every 30 minutes, instead of once every 45 minutes. These changes will remove or reduce the disincentives to showing such programmes.

Stage Two

Stage Two of the review will deal with possible changes to the rules on the amount of advertising and teleshopping on television. Alongside Stage One of the review, we set out a range of possible scenarios for these changes[^(-2-)]. The purpose of this was to ask interested parties if we had identified the appropriate range of options, and whether the approach we had taken to assessing the impact of these options was reasonable. The views expressed by respondents will be helpful to Ofcom in framing the consultation planned for the autumn, and for refining our assessment of the impact of different options. However, it was not a formal consultation, and we have not reached firm conclusions on any scenarios.

We shall publish a consultation in the autumn dealing with the amount of advertising and teleshopping permitted on television, and how often advertising breaks should be allowed. Pending the outcome of that consultation, broadcasters may not increase the frequency of advertising breaks, and the current limit on the maximum length of breaks within programmes on the main channels will remain.

Many of those who commented on the range of scenarios for the amount of advertising on television told us which scenarios they would prefer, and which they would not. Their views are summarised in Annex 3. In particular, we note that almost all those who responded from all sides of the industry, including viewers, UK broadcasters, advertising agencies and many advertisers, believed that no-one would benefit from an increase in the advertising minutage allowances on television channels. We will reflect these views in the consultation we publish in the autumn, though it will be important to include within the consultation the full range of options.

Alongside the consultation on Stage Two of the review, we shall publish a full report on deliberative research into the attitudes of consumers towards possible changes to the frequency of television advertising. The research, which we commissioned earlier this year, was conducted independently with panels of viewers from across the United Kingdom. The results of the research will help us in framing options for the Stage Two consultation.

Ofcom aims to conclude Stage Two of the review in time to allow any changes to the rules on the amount or frequency of television advertising to be incorporated in the new Code and implemented with effect from 1 January 2010.

Advertising on text services

As indicated in paragraph 6.77 of the March document, section 11 of the RADA now becomes a separate code applicable to the Public Teletext Service[^(-3-)]. No changes have been made to these rules.