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Regulating Online Advertising in the Digital Ecosystem
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I recently attended Westminster Media Forum keynote seminar, The future of online advertising regulation, 11th July 2019, where the debate centred around regulating  the online market and how best to protect consumers, with special reference to children.

 

Guy Parker, Chief Executive, Advertising Standards Authority (ASA) describes the role of the ASA as, "working to prioritise the protection of vulnerable people. The ASA currently exploring new technological solutions, including machine learning, to improve regulation." Regulation plays a significant role in keeping people safe online. The UK spends more of its GDP on online advertising than any other nation in the world.

 

For the purposes of this blog I would like to focus on children as consumers of online content, including online advertising targeting children. 

 

"Children aged 5 to 15 are spending over 15 hours online a week, they're spending 14.5 hours a week on their mobile phones. Those numbers are bigger than the amount of time that they're spending watching telly on TV sets, or playing games, out of those four things they are spending the least amount of time playing."

Guy Parker, Chief Executive, Advertising Standards Authority (ASA)

 

So, what is being delivered to protect consumers, including children? 

 

The ASA developed seven avatars that they use to perform compliance sweeps online.  They capture adverts served to avatars which, at present, are profiles of children of different age groups.  The adverts are then analysed to see if they have been appropriately targeted. 

 

The ASA are also working proactively with Influencer Advertising in a bid to make it more responsible.  It is a particular concern that brands are encouraging influencers to advertise harmful product to young people, such as detox products and cosmetic surgery procedures.  As a priority, the ASA aim to educate Influencers about what they should be doing, and brands have a responsibility to not misinform, and to target their projects responsibly. 

 

Brands also face challenges to keep their identity safe online.  Max Beverton-Palmer, Head of Digital Policy, Sky, confirmed that they are holding online platforms to account to keep their brand safe online.  He called for more responsibility on platforms to ensure they are operating safe spaces for brands to feel confident their ads will not be placed against harmful content.

 

The practice of real-time bidding (RTB) in online display advertising has rapidly grown in recent years, it is of particular concern to its impact on children. Advertisers bid in real time for display impressions as consumers visit publisher's websites.  What this essentially means is that once a child has visited a website, a bidding process begins between advertisers for that individual's personal data so that they can sell to them through personalised advertising.

 

Simon McDougall, Executive Director, Technology Policy and Innovation, ICO, highlighted that personalised adverts are sometimes based on very private information about an individual.  This poses a risk to data protection rights, and he questioned whether current RTB practices comply with the law.  Research undertaken by the ICO show that people are generally fine to get some services for free in exchange for some advertising.  But, with a model so lacking in transparency, the scale and extent of the nature of the personal data being shared, in particular children's data, is much greater than people understand.

 

"Data profiles built on individuals is often built on sensitive characteristics. This is unethical and also unlawful."

Simon McDougall, Executive Director, Technology Policy and Innovation, ICO

 

But there is some good news. The ICO are planning a review of the industry following a period of change and adopting new practices.  The ICO have general systemic concerns about the level of compliance of RTB, with Simon McDougall noting that there are some pockets of industry where heads are still firmly in the sand.  If change is not forthcoming, the ICO intend to act to ensure that people's personal information is used in a way that is legal, fair, and transparent.  The ICO is committed to see the industry channel the expertise that created the ad tech system to make it fit for purpose. "It's complicated," noted Simon McDougall, "is no longer an excuse."

 

Another important drive for change by the ASA is to meet the concerns about advertising to vulnerable groups, and children in particular. The Government is currently consulting on options to tighten up the standards for targeting HFSS (high fat, salt, sugar ads) at children on TV and online. CAP, the rule writing part of the ASA system, introduced tough new standards in 2017: they banned the targeting of HFSS food ads to children in non-broadcast media, including online, bringing the protections up to the same level as had been in place in TV for a while, and the ASA have since then been taking tough action, administering and enforcing those new standards.  

 

Post Contributor:

Caitriona Fitzsimons Digital Reporter

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