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During 1974 – at a time when the UK Government was very critical of the standard of UK advertising – the British advertising recognised that it would be in its interest, greatly to improve the existing regulation of non-broadcast advertising. The leading advertising industry bodies therefore agreed to raise funds for an enhanced system of non-broadcast self-regulation, to be provided by The Advertising Standards Authority (ASA). (Broadcast advertising was then controlled under statute by the ITCA).
Asbof was formed in January 1975 in order to enhance the funding of the ASA, and introduced the levy scheme which continues to the present. Asbof was deliberately constructed as a separate company, to handle the funding of the ASA at arm’s length, thus ensuring the ASA’s operational independence. Under this, advertisers pay a levy of £1 per £1,000 on display advertising in press, magazines, cinema, outdoor, and since August 2004, on internet advertising.
This is included by advertising agencies in their media invoices to their clients, collected by the agencies, and passed over to asbof.
Direct Mail
Since 1992, asbof has also collected the Mailing Standards levy.
This funds the self regulation of direct mail, including the work of the Mailing Preference Service (MPS) and the ASA. This levy is £2 per £1,000 on the cost of direct mail postage, and is collected in the main by Royal Mail, which includes this on their postage mailing invoices.
The Mailing Preference Service (MPS) is a free service set up over 20 years ago and funded by the direct mail industry to enable consumers to have their names and home addresses in the UK removed from lists used by the industry. It is actively supported by the Royal Mail and all directly involved trade associations and fully supported by The Information Commissioners Office.
The MPS Consumer File is a list of names and addresses of consumers who have told The Direct Marketing Association (DMA) they wish to limit the amount of direct mail they receive. The use of the Consumer File by list-owners and users is a requirement of the British Code of Advertising, Sales Promotion and Direct Marketing administered by the Advertising Standards Authority. It is also a condition under the Code of Practice of the Direct Marketing Association. Registering with the MPS is FREE.
Internet
In 2004 display advertising on the internet was brought within the scope of the CAP code and hence the levy. The code was further widened in 2010 to cover marketing communications on websites, and the levy has been collected on Paid Search and Affiliate Marketing spend from 1st May 2010.
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