Written evidence submitted by the Institute of Practitioners in Advertising (IPA)

 

Fake News Inquiry

 

Introduction

  1. The original terms of reference to this inquiry preceded revelations of very significant data usage for the purposes of paid-for online political campaigning in the UK and abroad.
  2. We have concentrated our submission on the fourth term “advertising”, as this is both our area of expertise and because it has emerged as a subject where particular and urgent attention is required in the context of political campaigning.

 

 

About the Institute of Practitioners in Advertising (IPA)

  1. The IPA, Incorporated by Royal Charter, is widely recognised as the world’s most influential professional body for practitioners in advertising, media and marketing communications. It has a well-earned reputation for thought leadership, best practice and continuous professional development and also provides core support and advisory services for its 320 corporate members who handle over 80% of advertising spend. Based in the United Kingdom for 100 years, IPA programmes can be found in more than 60 countries worldwide. Its membership is primarily made up of advertising agencies.

 

  1. The IPA progresses media policy issues through its Media Futures’ Group which meets every month and which is made up of representatives from the UK’s media agencies. IPA media agencies handle the planning and buying of ~85% of UK display advertising spend.

 

  1. The IPA is one of the tripartite stakeholders that make up The Advertising Association which represents advertisers, agencies and media owners. The other stakeholders are the Incorporated Society of British Advertisers and a cluster of media owners.

 

Why UK agencies matter

  1. UK advertising, media and marketing communication agencies sit at the heart of a much larger UK creative industries ecosystem. We employ 35,000 people (27,000 of whom work in IPA member agencies). IPA member contribute approximately £66m in tax revenues from a turnover of £22 billion. Because of the nature of our work we also directly impact other companies’ growth prospects: for example, advertisers (domestic and global) and other creative businesses eg production companies.
  2. The advertising industry is seen as a bellwether for the wider economy – the IPA Bellwether Report in particular is the only indicator that has accurately anticipated both the last downturn and upturn. It is a quarterly survey of client spending intentions. The 1Q 2018 Report (published 18th April 2018) reports that spend on internet advertising continues to be the strongest category, having grown consistently over 35 consecutive quarters.
  3. The Advertising Association/Warc expenditure report 4Q 2017 (published 26th April 2018) shows that the internet accounts for more than half of advertising spend (£11b out of £22b) and is forecast to grow another 9% in 2018.

 

The UK Digital Economy

 

  1. The IPA is a UK-focussed organisation and we note the UK has one of the most advanced digital economies in the world. It was ranked as one of the world’s “digital elite” in research unveiled by Mastercard and The Fletcher School at Tufts University. The UK is identified as one of the so-called “Stand Out” economies, characterised by high levels of digital development and a fast rate of digital evolution.

 

  1. The UK is a global leader in ecommerce and has arguably the most advanced digital media market of any major national economy. UK digital adspend is as large as Germany, France, Italy and Spain combined.

 

  1. We note the Government’s commitment that “the UK should lead the world in innovation-friendly regulation” and to “create the foundations for the UK digital economy to thrive”.

 

 

The IPA submission:

 

  1. The IPA believes that the internet has proved itself to be a powerfully influential and potent business and personal tool. As with all things, with great power comes great responsibility. The pace of its growth has meant its influence and effects on society are still not fully known. It is also apparent that in the last ten years, with the rise of social media particularly, that it is a complex and ever-evolving channel, that needs to be understood and moderated as appropriate.

 

  1. Use and abuse of the internet, and especially social media, are having a profound effect on political systems around the world, including western liberal democracies like the UK. The full spectrum of this issue is beyond the purview of the IPA. However, under one the main terms of its Chartered Status*, it is the IPA’s duty “to advance the theory and practice of advertising, media and marketing communications in all its aspects for the benefit of the public.”

 

 

 

Political Advertising

 

  1. We therefore wish to reiterate our concerns and recommendations for political adverting. We have two major concerns:

 

1)              Politics relies on the public sphere - on open, collective debate. We, however, believe micro-targeted political ads circumvent this. Very small numbers of voters can be targeted with specific messages that exist online only briefly.

2)              Political advertising, unlike every other category, is not covered by the strict Advertising Standard Authority (ASA) codes.

 

  1. In the absence of regulation, we believe this opaque and unaccountable form of political communication is vulnerable to abuse.

 

  1. We would respectfully make two recommendations for this specific form of advertising online.

 

1.              A moratorium on micro-targeted political advertising online. Where we work together to agree a minimum limit for numbers of voters sent individual political messages.

 

2.              A public register for political advertising. This register would require all political advertising creative work to be listed for public display so that messaging whilst not regulated is transparent and accountable for all members of the public to see should they wish.

 

 

Additional

 

  1. The Electoral Commission

We note and support the Electoral Commission’s call for digital or online campaign material to require imprints that would enable voters and the public to be confident about who is trying to influence them during election campaigns.

 

  1. European Commission Multistakeholder Forum on Disinformation (“Fake News”).

We would also respectfully advise the Committee that we have made the same recommendations on online political advertising to the European Commission through the European Association of Communications Agencies (EACA) who have made a formal submission to the EC Multistakeholder Forum on Disinformation (Fake News).

 

 

 

June 2018