Workshop Commercial Communication

1. Workshop Commercial Communication Workshop Commercial Communication Workshop CoWorkshop Commercial Communication Belgrade, Media Center, 25thof September 2014

2. Agenda morning • 09.00-09.15 Registration • 09.15-09.30 Introduction • 09.30-10.30 Advertising in general & self- and cross-promotion • 10.30-10.45 Coffee break • 10.45-12.30 Sponsorship & product placement • 12.30-13.30 Lunch break Workshop Commercial Communication Workshop

3. Agenda afternoon • 13.30-14.00 Follow up on product placement • 14.00-15.00 Undue prominence & surreptitious advertising • 15.00-15.15 Coffee break • 15.15-16.00 New advertising techniques • 16.00-16.30 Content of advertisements • 16.30-17.00 Resume and conclusions Workshop Commercial Communication Workshop

4. Structureeach topic • Legal framework EU • Implementation in the Netherlands • Implementation in other EU countries • New media legislation in Serbia • Specific issues and cases REBEM • Specific issues and cases in the Netherlands • Specific issues and cases other EU countries • Interactive discussion Workshop Commercial Communication Workshop

5. Session 1: Advertising in general, self- and cross-promotion Workshop CoWorkshop Commercial Communication Belgrade, Media Center, 25thof September 2014

6. Advertising: legal framework EU AVMS Directive contains rules regarding distinction from editorial content, quantity and quality. Clearly separated and recognizable for viewer (in block). Surreptitious and subliminal advertising is forbidden. Individual spots should remain the exception. Maximum per hour: 12 minutes. No commercial communication for tobacco or related brands and for electronic cigarettes (Directive 2014/40/EU of 3 April 2014).

7. Media regulation NL Article 7 constitution: secures freedom of speech, no prior supervision of radio and TV programmes. Media Act: formal law containing most important rules for radio and TV. Media Decree: delegated regulation containing more detailed rules. Media Regulation: ministerial regulation on specific topics(eg compensation costs supervision). Policy Guidelines of the Dutch Media Authority. Telecommunications Act: dealing with issues regarding access to cable and other platforms.

8. Advertising: implementation NL Private broadcasters: Programmes may be interrupted by commercial breaks. During films, children (with duration of min 30 minutes) and news programmes max 1 break per 30 minutes: advertising time is counted in (gross principle). No daily limit: only hour limit of 20% applies. Individual spots max 2 times per hour. Split screen possible in live reports and registrations of sports and other events.

9. Advertising: implementation NL Stricter rules for public service media (PSM): During programmes no commercial breaks, except for pauses in sports and similar structured events. Minimum duration advertising block: 1 minute. Year maximum lower compared to private broadcasters: 10% vs. 15%. Special advertising techniques like split-screen are not allowed.

10. Advertising: implementation NL Advertising rules for programmes apply where possible to other audiovisual media content of PSM like websites and online video services: General principle: advertising should be limited in amount and duration and not-excessive . Limitation amount banner ads: 10% of page. Limitation duration pre-roll ads: max 30 seconds. Pop up, pop under, hover banner, video overlay advertising prohibited because excessive nature. Advertorials prohibited because infringement separation commercial and editorial content.

11. Advertising: implementation NL Private broadcasters: Unlike is the case for PSM no specific conditions for advertising on pages of their websites. But: All advertising in a commercial on-demand media service (which can be online) should meet basic requirements of AVMS Directive like clear separation from editorial content and no surreptitious advertising. Content requirements of Advertising Code apply.

12. Advertising: implementation NL Private broadcasters and PSM: Watershed: between 06.00 and 21.00 advertising for alcohol beverages not allowed on TV. References to sponsor related to alcohol industry should be neutral between 06.00 and 21.00. For PSM restrictions for alcohol advertising also apply to advertising on their websites: banner ads, pre-rolls and other commercials.

13. Advertising: implementation other countries Advertising limits: Some countries apply maximum of 12 minutes (20%) per hour but impose a lower daily limit. Stricter limits for PSM: NL, France, Romania, Czech Republic, Latvia, Bosnia and Herzegovina. No advertising allowed at all for PSM: Sweden, UK, Belgium.

14. Teleshopping: legal framework EU Article 1, (l) AVMS Directive: ‘teleshopping’ means direct offers broadcast to the public with a view to the supply of goods or services, including immovable property, rights and obligations, in return for payment; Teleshopping spots: alone or together with advertising spots max 20% per hour. No time restrictions for teleshopping channels. Teleshopping windows: clearly identified by optical and acoustic means and 15 minutes minimum. Forbidden for medical products and treatments.

15. Teleshopping: implementation NL Absolutely forbidden for PSM. Characteristic are direct offer and opportunity for viewer to order product or service immediately. Due to internet direct transaction possibilities have increased and distinction with advertising spots is more blurred. Especially information services which can be consumed instantly through telephone or internet like dating, chat services and consults use the regime of teleshopping. Medical treatments: those stated in Civil Code.

16. Selfand cross-promotion: legal framework EU Article 23 of the AVMS Directive: Paragraph 1: The proportion of television advertising spots and teleshopping spots within a given clock hour shall not exceed 20% Paragraph 2: Paragraph 1 shall not apply to announcements made by the broadcaster in connection with his own programmes and ancillary products directly derived from those programmes, sponsorship announcements and product placements

17. Self and cross-promotion: legal framework EU Elements of self-promotion definition in AVMS Directive: Announcements made by the broadcaster in connection with his own programmes or in connection with ancillary products directly derived from those programmes

18. Self and cross-promotion: legal framework EU More guidance can be found in recitals previous EU Directive Television without Frontiers (1997): (35) Whereas, in order to avoid distortions of competition, this derogation is limited to announcements concerning products that fulfill the dual condition of being both ancillary to and directly derived from the programmesconcerned; whereas the term ancillary refers to products intended specifically to allow the viewing public to benefit fully from or to interact with these programmes;

19. Self and cross-promotion: legal framework EU More guidance can be found in recitals previous EU Directive Television without Frontiers (1997): (39)Whereas it is necessary to make clear that self-promotional activities are a particular form of advertising in which the broadcaster promotes its own products, services, programmes or channels; whereas, in particular, trailers consisting of extracts from programmes should be treated as programmes;

20. Self and cross-promotion: legal framework EU In general we can identify 3 types of self-promotion: Self-promotion that should be considered as advertising. Self-promotion that should be considered as advertising but not calculated as such. Self-promotion that should not be considered as advertising but as editorial content.

21. Selfand cross-promotion: legal framework EU Consequences: Alot of interpretation margins and legal uncertainty. Risks of affecting level playing field between EU members states. Risks of distortion of fair competition between media service providers and other commercial parties which have to pay for advertising.

22. Selfand cross-promotion: legal framework EU Dilemma’s and questions many RA’s in EU are facing: Requirements of “ancillary to programme” and “directly derived from programme” seem rather abstract and subjective concepts. Broadcasters become more and more part of multimedia enterprises involved in many different activities; are all references for these activities self-promotion? Products of third parties receive often excessive attention in self-promotion messages like prizes during games and quizzes; where to draw the line?

23. Selfand cross-promotion: legal framework EU Following recital 39 of TwF Directive trailers consisting of extracts from programmes should be treated as programmes, which means: They can be counted in for the amount of European works. They can be sponsored and can contain sponsor identification references at beginning and end. This creates extra exposure possibilities.

24. Selfand cross-promotion: implementation NL Conclusions CvdM in NL draws from recent cases: Directly derived from means connected to concrete programme which has been broadcasted or will be broadcasted. The programme should be produced or commissioned by broadcaster. What is stated regarding products in EU Directive applies to services as well. No specific references to third parties (like were to buy) must be made during self-promotion spot. Excessive attention for product or service (like prize in game) can lead to undue prominence.

25. Self- and cross promotion: implementation other countries Promotional references in trailers (programme announcements): Many countries apply general rule of no encouragement of purchase of products or services of the sponsor. Most EU countries allow to mention not only the sponsor but also the product, provided that sale of product should not be encouraged. Greece, Norway and Israel: during trailers not any references to sponsor are permitted.

26. Self- and cross promotion: implementationother countries Cross-promotion: France: cross-promotion references should be purely informative and not-promotional; otherwise it is regular advertising. NL and Italy: editorial responsibility is key criterion: if the promoted programmes or other services are of a company which is only economically but not editorially linked to broadcaster it is regular advertising.

27. Self- and cross promotion: implementation other countries UK: Ofcom Broadcasting Code 2011, Section 9 Commercial references in television programmingRule 9.31: Programme-related material may be promoted only during or around the programme from which it is directly derived and only where it is editorially justified. The product or service must be „directly derived‟ from a specific programme and therefore it is very unlikely that Ofcom will consider a product or service that existed before a programme to meet the definition of programme-related material.

28. Session 2: Sponsorshipand product placement Workshop CoWorkshop Commercial Communication Belgrade, Media Center, 25thof September 2014

29. Sponsorship: legal framework EU Definition: contribution to financing of programme by company or person with aim to promote name, trade mark, logo, image, activities or products. Editorial responsibility and independence of media service provider should be safeguarded. Sponsorship is taboo for certain categories: news and current affairs. Audience may not be encouraged to buy products or services of sponsor by specific recommendations or otherwise. To inform the audience sponsor has to be identified in neutral manner.

30. Sponsorship: implementation NL Private broadcasters and PSM: Sponsorship: contribution to financing of programme by company or person with aim to contribute to creation, purchase or distribution of programme. Editorial statute in which independence of programme makers is guaranteed. Only whole programme can be sponsored, not single parts. Forbidden for news, current affairs and political information.

31. Sponsorship: implementation NL Stricter rules for PSM: Only allowed in specific categories: cultural programmes, educational programmes, reports or registrations of sports events and charity events. Programmes aimed at children younger than 12 years are not allowed to be sponsored. Sponsor contribution must be confirmed in written contract. In case of financial contribution sponsor products are not allowed to be shown during programme. Less promotional identification of sponsorship: max 5 seconds, not moving and not full screen.

32. Sponsorship: implementation NL Identification of sponsorship: Private broadcasters and PSM: obliged at beginning and/or end of programme. Private broadcasters: possible also at beginning and/or end of commercial break. Neutral identification by name, logo or other distinctive sign. Per sponsor only 1 name/logo or other sign. Accompanied by reference like “This programme has been made possible by…”

33. Sponsorship: implementation NL Not allowed during identification of sponsorship: Mentioning positive qualifications. Using slogans encouraging audience to buy products or services. Using tunes known from advertising campaigns. Mentioning address, telephone and fax number. These references will be seen as forbidden surreptitious advertising or advertising messages.

34. Product placement: legal framework EU Definition: inclusion of or reference to product, service or trade mark within a programme in return for payment or similar consideration. Only allowed in certain categories of programmes: cinema works, films and series made for TV, sports & light entertainment programmes. Product placement of tobacco (related) products and medical products and treatments forbidden. Editorial responsibility and independence of media service provider should be safeguarded. Audience may not be encouraged to buy products/services by specific recommendations.

35. Product placement: legal framework EU Identification of product placement is considered to be very important in order to avoid confusion of audience: At beginning and end of programme. When resuming after commercial break. Identification should be appropriate. Requirement can be waived in case programme containing product placement has not been produced or commissioned by broadcaster (like programmes produced and purchased abroad).

36. Product placement: implementation NL NL were criticized by EC for waiver of qualitative requirements product placement in case programme containing product placement has not been produced or commissioned by broadcaster (like programmes produced and purchased abroad). It was not deemed reasonable and practical to check US produced programmes on undue prominence. But according to AVMS Directive exemption only possible for identification requirement; NL had to amend its implementation legislation.

37. Product placement: implementation NL General prohibition for PSM. For alcoholic beverages not allowed between 06.00 and 21.00. Product placement needs to be identified at beginning and end of programme and when resuming after commercial break. Product placement must be identified by reference: “This programme contains product placement”.

38. Product placement: implementation NL Editorial statute in which independence of programme makers is guaranteed. The way the product or service is shown or mentioned is embedded into the plot (action or story line) of a programme Audience not directly encouraged to buy products or services by specific recommendations. The product or service should not receive excessive attention during the programme.

39. Product placement: implementation NL Distinction between sponsorship and product placement: In case of product placement the product or service which is shown or mentioned is integral part of the plot (action or story line) of the programme. Payment or similar consideration is direct compensation made for showing or mentioning product or service, in case of sponsorship contribution is made to programme in general.

40. Sponsorship and product placement: implementation NL Sponsorship & product placement not allowed in: Political information News and current affairs Definitions in policy guidelines Dutch CvdM: Political information: Programme offer which reports on politicians (and their opinions), political parties and political decisions.

41. Sponsorship and product placement: implementation NL Definitions in policy guidelines Dutch CvdM: News and current affairs: Programme offer which is broadcast frequently, at least once per week, reporting on events of not longer than 7 days ago. Actual information on sports, culture and entertainment is not considered to be news and may be sponsored. Traffic information and weather forecast are not considered to be news and may be sponsored.

42. Sponsorship and product placement: implementation NL Definitions in policy guidelines Dutch CvdM: Programme: Clearly distinguished from preceding and following programme. Recognizable for average audience as programme and content. Format is different from preceding and following programme.

43. Sponsorship and product placement: implementation NL No sponsorship and product placement: contribution by: Governmental or other public institutions which do not run a commercial enterprise (like scientific, cultural, religious, politic of charity purposes). The media service provider which broadcasts the sponsored programme. The co-producer which is involved in the production of the sponsored programme. Mentioning these contributions at beginning or end of programme is allowed.

44. Sponsorship and product placement: implementation NL No sponsorship or product placement: contribution in goods or services which cannot be identified by viewer which: are borrowed from a third party or which have a value of secondary interest compared to the total costs of the programme, provided for TV not higher than €1000 and for radio not higher than €500. Usually these contributions are the so called props, like furniture, clothes.

45. Forbidden sponsorship categories: Alcoholic products: France, Italy, Norway, Sweden, Switzerland, Macedonia (except for beer and wine). Children programmes: Norway, Sweden, UK (when sponsor is producer of HFSS product). Implementation other countries

46. Implementation other countries Other sponsorship restrictions some European countries have: Belgium: sponsorship not allowed 5 minutes before and after children programme. Denmark: no sponsor products in children programmes.

47. Implementation other countries Product placement: First countries in EU which adopted guidelines: Belgium, France and Germany. Countries which wanted to not allow product placement in first instance: Denmark and UK. Meanwhile all EU MS have allowed product placement.

48. Implementation other countries Forbidden categories for product placement: Current affairs, religious programmes, advice and consumer programmes: UK and Germany. Cultural and educational programmes: French speaking community of Belgium. All programmes of PSM: the Netherlands, Germany, Bulgaria, Slovenia.

49. Implementation other countries Product placement identification, variation possible on: Type of logo Size Positioningon screen Duration Additional text Familiarization period Audio signal FR UK BE CZ DE

50. Implementation other countries Product placement identification: PP logo: Belgium, France, UK (2 options), Czech Republic, Bosnia & Herzegovina. Belgium, France: several months period to let audience get used: logo AND explanation, after that only special logo. PP logo and additional text: Germany, Romania. Written signalling (billboards): Denmark, NL. Scrolling text over the screen: Macedonia. List of trademarks/logos in programme credits at end of programme: Ireland.