The Federal Trade Commission says the marketing responsibility exhibited by manufacturers and distributors of alcoholic beverages has come a long way. In particular, it applauded efforts to avoid underage audiences and allow for third party complaint review. In fact, 92% of all advertisements place in television, radio and print met the standard audience threshold, which specifies that at least 70% be of age. Further, the non-compliant placements tended to be in smaller venues, so the number of impressions that were within the guidelines amounted to 97%.
The FTC report was based on information from 12 major suppliers, and showed marked improvement compared to two earlier studies. The FTC had been critical of the industry in 1999, when industry standards allowed ad placements before 50% underage audiences. By 2003, suppliers had agreed to use audience composition data before placing ads, and at least one subgroup within the category had agreed to third-party complaint review.
The report also provided information on how these companies spend their promotional dollar. 42% goes to television, radio, print and outdoor advertising; 40% is earmarked to help wholesalers and retailers move product; 16% goes to sponsorships; and 2% is used for other purposes, including internet and digital advertising.
RBR/TVBR observation: Few goals in Washington compare with “protecting our children.” For politicians, it is an utterly safe topic. Everyone from one end of the ideological and party spectrum to the other can leap on a pedestal with the biggest megaphone they can find and bloviate to their hearts content. Many products are not designed for children, but all products need to be marketed one way or another, so advertising is often where the rubber meets the road in the protecting-our-children infrastructure. Any time an entire industry can earn praise from a watchdog agency like the FTC via voluntary practices, it is a great thing. The alcohol industry has gone a long way toward directing politicians elsewhere when they require some children to protect.
