ADVERTISING TO CHILDREN:UNDERSTANDING

THE NEED OF RESPONSIBILITY

Presented by:

Anirudh Kotlo

Reg. no:130606007

Pharmaceutical Marketing

Dept. of Pharmacy Management

Guided by:

Dr. Virendra S Ligade

Assistant Professor

Dept. of Pharmacy Management

MCOPS,MANIPAL

FLOW OF PRESENTATION

Advertising to Children

Status of Advertisements in India

Classification of Advertisements to children

Ethical aspects of Advertising to children

Regulations in India and Various Countries

Pharmaceutical Advertisements to Children

Case Studies

Conclusion

References

ADVERTISEMENT

• Advertisement is the non–personal communication of

information that is usually paid for and usually

persuasive in nature about products, services or ideas

by identified sponsors through the various media.

ADVERTISING TO CHILDREN

• Advertising to children is the act of marketing or advertising products or services to children, as defined by national legislation and advertising standards

• It is often the subject of debate, relating to the alleged influence on children’s consumption.  

• Children today are exposed to all types of advertisements in the various media like Television, Print and Internet as well. Children are more susceptible and easily get influenced by advertisements.

• Advertisements are made in such a way to attract children and they do not understand that its an Marketing strategy.

STATUS OF ADS IN INDIA

• The size of the Advertising industry in India is Rs.30,800 crore as of

2013.

• The advertising industry is growing at a rate of 7.4%compared to the

previous year

• According to ASCI ,television channels in India played 1.04 billion

seconds of advertisements to children

• In India the advertising expenditure per year on products meant for

children but purchased by parents, like health drinks, is 12 to 15 % of

the total Rs. 38,000 million

• Children in India constitute 18.7 % of the World kids

population and one-third of our country's population is under

the age of 15 years.

• Thus in India, children form a massive 30% of the total

population and this segment is growing at a rate of 4% per

annum.

• This means a huge target market of 300 million is available to

advertisers and they are already focusing on the kids channels.

Indian advertisement industry

Status of Advertisements in Various channels

Status of advertisements in India

POSITION Name of the Company Amount Spent(in millions)

1) Hindustan Lever 376

2) Paras Pharmaceuticals 120

3) Procter& Gamble 114

4) Coca-Cola 95

5) Godrej Industries 80

6) Colgate-Palmolive 67

7) PepsiCo 62

8 Nirma Chemicals 52

9 Nestle 50

10 Dabur India 49

Classification of advertisements to children

1) Television Advertising

2) In School Marketing

3) Product Placements

4) Kids Club

5) Toys and Products with Brand Logos

6) Youth Targeted Promotions

Television Advertising• The largest single source of media messages about food to

children, especially younger children, is television. Over 75% of US food manufacturers' advertising budgets and 95% of US fast-food restaurant budgets are allocated to television. 

• Food is the most frequently advertised product category on US children's television and food ads account for over 50% of all ads targeting children.  Children view an average of one food commercial every five minutes of television viewing time, and may see as many as three hours of food commercials each week

In School Marketing

• In-school marketing is the marketing to children and

adolescents include the desire to increase sales and generate

product loyalty, the ability to reach large numbers of children

and adolescents in a contained setting, and the financial

vulnerability of schools due to chronic funding shortages. 

• There are many types of direct advertising in schools, such as

soft drink, fast food, or snack food corporate logos on athletic

scoreboards, sponsorship banners in gyms, ads in school

newspapers and yearbooks, free textbook covers with ads, and

screen-saver ads on school computers for branded foods and

beverages.

• EX: McDonalds ,Frito lays, Hershey ,Kellogg's

Product Placements

• Product placement is increasing in popularity and becoming

more acceptable as a standard marketing channel. It typically

involves incorporating brands in movies in return for money

or promotional support.

• Fees are variable depending on the relative prominence of the

placement in movies, and are usually around $50,000 to

$100,000 in the United States.

• Product placement in the movies first gained attention in 1982

when it was reported that sales of the peanut butter candy

Hershey's Reese's Pieces increased by 65% within a month

due to its placement within E.T., The Extra Terrestrial. 

Kids Club

• Several corporations have developed branded kids clubs as a way to communicate with and maintain an ongoing relationship so that they can participate in contests, receive coupons and branded items such as posters, screensavers, and discounts for items with the club's logo.

• Ex: Burger King, Nickelodeon, Sega

Internet

• The forms of advertising and marketing on the web differ

significantly from television commercials

• These sites include games, word-find puzzles, contests,

quizzes, riddles, music, e-mail cards, clips of commercials,

sweepstakes, downloadable recipes, desktop wallpaper and

screensavers that feature their products, and on-line stores that

sell licensed merchandise

• Children can also sign up to receive electronic newsletters with news about products and promotions

• Ex:Tony the tiger, Chester the cheetah

FOOD COMPANY Example of web site content

BURGER KINGhttp://www.burgerking.com

Games, toys, tunes, and other downloads are promoted along side their food items. There is a special Big Kids Club link on the home page where 4–12 year olds are encouraged to become club members.

FRITO-LAYhttp://www.fritolay.com

Homepage displays logos of all of this corporation's food products. These websites contain flashing icons and banners, music, games, e-cards, and special offers featuring the products and/or its characters, (i.e., Chester Cheeto, the hip animated character that advertises Cheetos).

HERSHEY'Shttp://www.kidztown.com

There are animated games all promoting the company's brands, i.e., Milk Duds Trivia, Hershey's Syrup Flavor Farm, Twizzlers Slider Puzzle, Hershey's Kisses Way to Go, and recipes using Hershey's candy.

Toys and Products with Brand Logos

• There has been a recent trend among food companies to market

toys and products with brand logos to preschoolers and young

children to develop an early and positive relationship with the

child and thereby promote brand awareness and preference.

• The Food industry has partnered with toy manufacturers to

create toys that advertise food.

Youth Targeted Promotions

• Promotions are a commonly used marketing method for

reaching children and adolescents and include cross-selling,

tie-ins, premiums, and sweepstakes prizes

• Cross-selling and tie-ins combine promotional efforts to sell a

product. In the US, the food industry has forged promotional

links with Hollywood and Network studios, toy companies,

and sports league

• Premiums and sweepstakes prizes have increased recently  and are often used to appeal to children's and adolescent's tastes and desires

ETHICAL ASPECTS

• Advertisers have to be especially careful to act ethically at all times, taking extra care when advertising to children, Should not advertise potentially harmful products and use psychological tactics to stimulate demand.

• Having a list of ethical and legal issues at hand when creating advertisements can help companies to craft legal, responsible Ad messages for the benefit of children.

• Children are easily persuaded and have a large pull on today's market and as it is known by all advertisers even ones which are not intended for the children are also sold as products.

• Children are among the most sophisticated observer of ads.

• They have strong feelings for the product.

Infant Milk Substitutes

• The Parliament passed the Infant Milk substitutes, Feeding

Bottles and Infant Foods(Regulation of production, supply and

distribution) Act in 1992.

• This Act prohibits the promotion of Infant foods, Infant milk

Substitutes and Feeding bottles.

• This Act ensures that “No impression is given that feeding of

these products is equivalent or better than breast feeding”.

Cable TV Networks Act

• The Cable Television Networks(Regulation)Act 1995 provides

guidelines for programmes and advertisements on television

and it set up some provisions related to children:

• Programmes on cable television should not denigrate children

• Programmes meant for children should not contain any bad

language or explicit scene of violence.

Comparison of Advertisements

• Nowadays the advertisers are engaged in unhealthy brand

comparison with the help of advertising in children.

• Such comparisons create problems and confusions for the right

choice of the product as far as children are concerned.

• Examples: Pepsi vs. Coca-Cola ,Colgate vs. Pepsodent,

Horlicks vs. Complan

Ethical Advertisements

Positive Effect:

• Advertising makes the kids aware of the new products

available in the market

• It makes them to learn moral lessons

• Advertising ethically causes children to motivate positively

• Some of the public service Ads are useful to children

Unethical Advertisements

• Negative Effects:

• Unhealthy advertisements are those which include dangerous

stunts, demand for luxurious life and learn unusual language.

• These advertisements encourage children to purchase the

products.

Why do we need Regulation?

• Advertising has been in the vortex of controversy of the many ills that it brings to the society

• Advertising is generally accused of encouraging materialism

or manipulating behavior generally contributing to the

downfall of social system particularly in children.

• Hence there comes a need for regulatory bodies and

authorities

• Truthful and fair to consumers and competitors

• Within the bounds of generally accepted standards of decency.

• Not used indiscriminately for the promotion of products, hazardous or harmful to the society or to individuals, particularly minors to a degree unacceptable to a society by an large.

Advertising Regulatory Bodies around the Globe

• Advertising Standards Council of India(ASCI)

• Federal Trade Commission of United states(FTC)

• Advertising Standards Authority for United Kingdom(ASA)

• Advertising Standards Bureau for Australia(ASB)

• Advertising Standards Authority for South Africa(ASA)

• European Advertising Standard Alliance (EASA)

• Japan Advertising Review Organization (JARO)

• Advertisement Law of the People’s Republic of China under

the State administration of industry and commerce

• Singapore Code of Advertising Practices(SCAP)

Advertising Standards Council of India

• Advertising Standards Council of India(ASCI) is a self regulatory voluntary organization of the advertising industry.

• ASCI founded in 1985. The three main constituents of advertising industry viz advertisers, advertising agencies and media came together to form this independent NGO.

Consumer Complaints Council

For public awareness council time to time puts up the advertisements in newspapers Each year the council receives 150 complaints: 50 are upheld 80 are voluntarily withdrawn/modified

Children Advertising Review Unit

•  It is an independent self-regulatory agency for the promotion of responsible advertising to children under the age of 12 in all media. CARU reviews and evaluates advertising for truth, accuracy, appropriateness and sensitivity to children in accordance with its Self-Regulatory Program for Children's Advertising (the Guidelines) and relevant laws

Children Online Privacy Protection Act

• It details what a website operator must include in a privacy policy when and how to seek verifiable consent from a parent or guardian, and what responsibilities an operator has to protect children's privacy and safety online including restrictions on the marketing to those under 13.

COUNTRY STATUTORY GUIDELINES ON ADVERTISING TO CHILDREN

SELF REGULATORY GUIDELINES ON ADVERTISING TO CHILDREN

COMMENTS

AUSTRALIA Advertising before and after children programme is banned

BELGIUM Advertising is banned with certain modifications

CANADA Advertising to children is proscribed since 1990

FRANCE Advertisement banned to children under 14 years of age

GERMANY New regulations

IRELAND Advertising before and after children programme is banned

SWEDEN Advertising to children is proscribed since 1991

ITALY Proposals to ban advertising to children

NORWAY Advertising is not permitted in children programme lasting than 30 min

PHARMACEUTICAL ADVERTISEMENTS

Case study #1

• COMPANY: Hindustan Unilever Limited

• PRODUCT: Surf Excel Liquid Detergent and Bar

• COMPLAINT: Ad depicts a child sprinkling ink on his white shirt and face and teeth.

• Nature of Complaint: Ad is very offensive and negative in Nature and children with impressionable minds could ape it with disastrous results. Ink is toxic, is it safe to allow the ink to get into the child's mouth and the ink even discolors his teeth?

• DECISION: Upheld

The CCC viewed the TVC and concluded that the visual depiction of “a child with ink stained teeth and mouth”, is likely to encourage minors to emulate such acts in a manner which could cause harm to them

Case Study 2

• COMPANY:  Nirma Ltd 

• PRODUCT: Nirlife Ener-G drink

• COMPLAINT: Ad shows - “a child is late for school, denied entry by watchman, scales high walls, jumps over terraces, performs various stunts to gain entry via classroom window and proudly flips out energy drink and gains admiration of a girl in a class”

NATURE OF COMPLAINT:• "Ad shows - “a child is late for school, denied entry by

watchman, scales high walls, jumps over terraces, performs various stunts to gain entry via classroom window and proudly flips out ener-g drink and gains admiration of a girl in a class "It's dangerous for children who are liable to imitate the act and It’s wrong to show 'pride in wrong activity' especially by a pre - teen. “

DECISION: UPHELD• The CCC concluded that the TVC shows dangerous acts which

are likely to encourage minors to emulate such acts in a manner which could cause harm or injury. The advertisement contravened Chapter III.2(b) of the Code. The complaint was UPHELD.

Case Study 3

• COMPANY: Heinz India Ltd 

• PRODUCT: New Complan with 8 Memory Chargers

• COMPLAINT:

• "TVC claims: “New Complan contains the nutrition of Complan and the power of 8 memory chargers”, These memory chargers are graphically shown to be protein, iron, iodine, zinc, vitamin B12, folic acid, vitamin B6 and choline. “They help improve a child’s memory”. TVC shows - “a child neglecting a plate of complete meal” and claims “feeding children with the New Complan”. "

• NATURE OF COMPLAINT:

• It means that children who neglect their daily meals can suffice their nutrition needs with a cup or two of Complan. This claim needs to be substantiated. "

• DECISION: UPHELD

• The CCC considered the third party independent data provided by the Advertiser and concluded that the claims were substantiated. Also, the TVC was not considered to be objectionable. The complaint was NOT UPHELD.

Conclusion

• The Existing rules and laws should not only be strictly implemented but should be harmonized to curb the unethical advertising and practices to the children.

• Members of all Aspects of Every Profession need to come together and remain vigilant to shield child health from business and trade.

• There is urgent need for the Authorities to draft and implement laws that do not deal with the advertising in general but are specifically related to every aspect of advertising especially with those of which target young children and kids and necessary measures should be taken to avoid confusion among children.

References

1)Jethwaney J, Jain S. Advertising Management . 2nd ed. New Delhi: Oxford University Press; 2012. P:481-486.

2)Thakurta PG. Truth Fairness and Objectivity. New Delhi: Oxford University Press; 2009. P:245-250.

3)Sharma S, Singh R. Advertising Planning and Implementation. New Delhi: Prentice Hall of India Pvt.Ltd; 2006. P:41-43.

4)Nawathe A, Rohan GR, Sudhir DS. Impact of advertising on children’s health. Proceedings of international marketing conference on Marketing and Society,8-10 April,2007.

5)Mary S, Simone F. Food advertising and marketing directed at children and adolescents in the US. IJBNPA.2004 Feb 10; 1(3).

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6)Anonymous. Advertising to Children the Tricky Business[Internet].[updated on 2014 Feb 28;Cited on 2014 Mar 5].New York. Available from:

http://www.theguardian.com/sustainable-business/advertising-to-children-tricky-business

7)Anonymous. The Face of Marketing. Pitch Madison Media ad Outlook. 2012 Aug:9(11). P:2,8.

8) Advertising to Children[Internet].[updated on 2014 Feb; Cited on 2014 Mar 5]. Available from:

http://www.wikipedia.org/advertising to children .

9)Advertising to kids[Internet].[updated on 2014 Jan 16; Cited on 2014 Mar 7]. Available from:

http//www.ftc.gov.in/Advertising to kids and FTC regulatory advices present

10)Advertising Decisions[Internet].[updated on 2013 Jul;Cited on 2014 Mar 12]. Available from:

http//www.ascionline.org/index.php/ascidecisions.html

Thank you