UK Commercial Cable and Terrestrial Networks Say Outlook For Kids TV Programming Bleak As British Regulator Proposes Junk Food Ad Ban In Move That Will Cost Millions In Lost Revenue

The broadcasters are furious. The regulator says the ban will cost in lost revenues around £39 million (€57 million, $74 million), probably less as other type of advertisers replace banned products, but the TV stations are saying that figure is way too low. And yet for all that it could have been worse – the regulator had considered banning all such ads on any program shown before 9 p.m. and then the advertising loss would have been more than triple.

In a TV advertising environment where the spend is flat to down, losing any spend these days is difficult to make up. And the Office of Communications (OFCOM) net fell far further than expected -- if there were going to be restrictions at all many felt it would target children up to the age of 12 – but now networks like MTV whose music caters to the 12 – 16 year-olds are hit, too.

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The food industry and the TV broadcasters have known for a long time that restrictions were coming, and its not as if they haven’t had the time to come up with their own code of what should and shouldn’t be advertised. European governments have increasingly warned the industries to either come up with their own self-regulation or face regulation. Governments have been saying frequently over the past few years that they believe that obesity -- the “American disease” – was now rampant in Europe and not only was that unhealthy; it was costing millions in tax money for health care.

Around the world there has been a crackdown in one form or another against junk food. In California there’s no more junk food in school vending machines, in the US many junk food vendors now say they are using healthier cooking oil (although noticeably some of those international brands have said they are doing this only in the US and not elsewhere) and in the UK junk food has been banned from school menus.

It has been almost three years since the UK government actually asked OFCOM to tighten rules on TV advertising aimed at kids, so its not as if the proposed bans have been rushed through. There have been discussions with the food and TV industries and they were given an opportunity to really put their own house in order but they didn’t, so now it is being done for them.

OFCOM plans final consultations in December and its possible the ban may be amended, but a final decision is expected in January with gradual implementation expected over two years.

There is little doubt that OFCOM has parents’ support. Parents have been complaining that they try to regulate what their kids eat, but once those impressionable kids are left alone watching television they become totally sold on what they see continually, and they just don’t quit nagging until they get what they want. Far easier for the parents if those enticing junk food ads aren’t there in the first place.

So, the battle lines are drawn. The food industry in particular is angry, especially at the proposal’s ban that also targets TV programs watched by adults if those programs are deemed to have a considerable teen audience.

As for the shows that are aimed at kids, broadcasters are threatening reprisal by stopping children’s programming. That’s not possible for those stations that have dedicated children’s programming, but they can threaten to stop buying expensive British children’s programming and instead show cheap American imports. OFCOM admits that dedicated children’s channels such as cartoon stations and the like could lose up to 15% of their total revenue via the ban. The youth oriented stations like MTV could lose around 9%.

One member of Parliament is already playing the “Buy British” card, saying he fears the ban will lead to the demise of British-produced children’s programs (ITV already stopped doing that some time ago). One problem with importing American programs aimed at kids is that they are full of product placement and the European Commission is pushing through regulations banning product placement from children’s programming, although it will take some time for those rules to be ratified by the European Parliament and all 25 countries.

OFCOM recognizes that kids watch adult programs (which is why medical and nutritional groups wanted all junk food ads banned before 9 p.m.) but the regulator believes the new rules would reduce junk food ads seen by the under-nines by 50% and by 41% for the under 16s.

OFCOM did not necessarily disagree with the need to ban junk food ads before 9 p.m. but it figured out the advertising loss to the TV stations would be more than triple than under what is has proposed now, so obviously even with the regulator there is that internal debate over what is best for the kids versus the economics of commercial television, and it has decided for now that those extra financial losses would be “disproportionate”.

The regulator also has proposed limiting what ads aimed at children can show. Celebrities and characters (mainly cartoon characters) licensed from third parties would be banned as would promotional gimmicks such as offering free gifts, and health and nutritional claims will become a no-no.

What’s more important – the medical health of our children or the financial health of a major business such as broadcasting on which many jobs rely? OFCOM has obviously tried to find the middle ground and by having all sides complaining it looks like it has succeeded.

Junk Food Ads To Migrate To The Internet? - November 21, 2006

With the reality that TV junk food ads aimed at kids will start disappearing from British TV screens in January, the big question is where will all that spend go?

The most likely places, according to advertising executives, will be where there are less restrictions such as the Internet, outdoors and even the radio.

Sir Martin Sorrell, chief executive of WPP, says he believes the money will move to the Internet.

Good case in point: Dominos Pizza. It has sponsored The Simpson’s on Sky satellite television for 10 years. That will now likely have to stop. The company says it will transfer that money into e-commerce type services.